Business Management Essay

713 Words Feb 11th, 2015 3 Pages
LO2 Be able to apply the legal rules on consumer credit agreements and agency
Hire Purchase:
Is system that buying in instalment, they have the title of the product; the owner of the product can come and disturb your peace until you finish all the instalments.
Section 12 of the sales of good act (SAC1979) section 2, sub section b:
The buyer will enjoy quite possession of the goods except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance so disclosed or known.
Supply of Goods and Services Act 1982
8. Implied terms where hire is by description
Section 15 by with sample
Section 13 sell by description
Credit Sales:
A sale in which the full amount will be made in one
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The Credit Sales are merchandise or services sold on the promise to pay later. If i don’t bay they will charge me
The Deed
Consumer credit agreement: consumer-credit agreements are regulated by the Consumer Credit Act 1974, which contains provisions regarding the seeking of business, entry into agreements, matters arising during the currency of agreements, default and termination, security, and judicial control. A loan to an individual businessman for business purposes can be a consumer-credit agreement.
5 Restricted-use credit and unrestricted-use credit
The operation of the Consumer Credit Act 1974’s controls sometimes depends on the use to which the credit provided to a debtor is to be put. A restricted-use credit agreement is a regulated consumer credit agreement (s.11(1))–
(a) to finance a transaction between the debtor and the creditor, whether forming part of that agreement or not (s.11(1)(a)), or
(b) to finance a transaction between the debtor and a person (the “supplier”) other than the creditor (s.11(1)(b)), or
(c) to re-finance any existing indebtedness of the debtor’s, whether to the creditor or another person (s.11(1)(c)).
Credit provided under such an agreement is restricted-use credit. But if the credit is provided under an agreement in such a way as to leave the debtor free to use it as he chooses, even though

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