International Business Environments and Operations 16th Global Edition test b...
Warranties
1. WARRANTIES Can I refund the money I paid for an item which I
purchased through force selling by a pool of sales
agents?
Can I demand for replacement/refund for a
defective product under warranty?
Yes, you have the right to refund your money provided that all
supporting documents are presented for your claim.
Yes, you may have it replaced or ask for refund as long as the
defect is not your fault. Just present the warranty card and/or
original receipt. Can I return a product I purchased online because
its specifications and appearance are entirely
different from the way it was advertised?
How long is the duration of warranty?
Yes, you can return the product and request for a refund
All warranties whether implied or expressed should take effect provided that the product has no defect and is still intact.
for not less than 60 days to 1 year.
I am still undecided to purchase an item but I was
Which items are covered by warranty? already charged for it. Can I cancel the
transaction and demand for a refund?
All products being sold in the market should have warranty. No
item is exempted from it. Yes, you can cancel the transaction and demand for a refund
provided that you did not sign any document showing your
Do the accessories that go with the product I consent.
bought are covered by warranty? (i.e. computer
mouse,remote control, etc.) Does a company have the right to impose
additional charges despite failure to comply with
Yes. The accessories are still part of what you paid for. These our transaction agreement?
are not exempted from warranty.
No. A company should only follow what has been agreed upon.
What are the options given to a consumer in case Otherwise, a formal complaint may be filed to the nearest DTI
of a breach of an express warranty? Office.
The options given to consumers are the following: Can I demand to refund that membership fee I
Repair; paid to a spa which failed to offer me the services
Replacement; or they claimed that I will be getting?
Refund
Yes, you can refund the membership fee you since they failed
What are the options given to a consumer in case to provide you the services they claimed to be worth your
of a breach of an implied warranty? money.
The consumer may retain the goods and recover damages, or http://www.dti.gov.ph/dti/index.php?p=751
reject the goods, cancel the contract, and refund the amount
paid for the product, including damages.
Are secondhand products covered by warranty?
o There is no implied warranty in the sale of Price Tag
secondhand products.
o The seller is liable under a warranty in the
Are erasures or alterations on the price tag
sale of secondhand products if he/she has
allowed?
given an express/written warranty to the
buyer.
No. Erasures or alterations are only allowed on price reduction
sales promotion campaigns.
http://www.dti.gov.ph/dti/index.php?p=752
Which amount should I pay when there are two
price tags on an item?
Deceptive Sales Acts and Practices
You should pay the lower price.
Is it right for a company to charge through credit
card for a transaction just offered through What if there are no price tags on the items being
telephone? sold in a store? Can we complain this?
Yes, as long as all details are fully disclosed to the clients. Yes. Get the name and location of the store and report it to the
nearest DTI Office.
2. Is it allowed to indicate a separate cash price tag If the defect is due to mishandling on the part of
and credit price tag on a product or service? the buyer, can he/she still return the item and
demand for either an exchange or refund?
No. The price tag should only carry one price regardless if it is
cash or credit including VAT. No. If the defect on a product is caused by the consumer, the
warranty is automatically void. He/she can no longer demand
for exchange or refund.
Can retailers offer discounts if customers opted
to pay in cash rather than credit card or
installment payments? If after buying a certain item, a customer changes
his/her mind and wants to return it, can he/she
Yes, as long as the payment options will be disclosed by way invoke the prohibition on "No Return, No
of separate information to the consumer and not on the price Exchange?"
tag.
No, the prohibition is not an excuse for the consumer to return
goods because of a change of mind.
Is price tag required for all commodities?
Yes. All items being sold to the public must bear price tags. What is the limit to the period within which a
buyer may return defective products?
Is the use of codes on price tags allowed?
The limit to be followed is the duration of the issued warranty.
The minimum period is 60 days on implied warranty.
Generally, prices of consumer products and services should
not be written in codes. However, the exceptions are as
follows: Can a buyer return defective goods without the
If the codes are used in addition to price tags, labels, markings official receipt?
or price lists;
If the codes are used in combination with shelf pricing which Yes, as long as the buyer can present other proofs of
when scanned will show the price. purchase. But it is better to present the warranty card. (i.e.
contract, billing, etc.)
Are price lists allowed?
Can a store impose the condition that a product
Yes, it is allowed on the following conditions: can only be exchanged once?
When a consumer product is too small or the nature of which
makes it impractical to place a price tag; No, as long as the defect remains on the product, it can be
In case of consumer services. exchanged as many times as needed.
Is a price tag required on samples on dummies on Can the statement "Exchange will not be accepted
display? on items used, damaged or altered." be printed on
invoices?
Yes. Samples or dummies of products on retail when displayed
within a store should also bear price tags. No. Some product defects only manifest after being used.
Is the statement "Sale items are non-refundable."
allowed?
No Return, No Exchange Policy This statement may only be allowed if the defects on the sale
items are fully disclosed to the consumer in the form of tags or
I found out that the item I just bought is being notices.
sold for a cheaper price in another store. Can I
return the item to where I bought it from and ask Is the 7-day policy allowable?
for a refund?
No. The 7-day policy is a store policy which is over and above
No. While consumers have the right to choose and make a the warranty rule that all products sold must have at least 60
canvass of prices, once a sale is done and the product has no days warranty period.
defect, you can neither return it nor ask for a refund
Can a store only exercise a policy of exchange %%%%%%%%%
but not refund? Here is a list of the other government agencies implementing
the Consumer Act and their areas of concern:
No. Consumers are entitled to either an exchange or refund, as
long as there is a defect in the quality of goods or imperfection
in the service. * Department of Trade and Industry: consumer product quality
and safety; deceptive, unfair and unconscionable sales acts
3. and practices; weights and measures (metrication); consumer Protection of consumers against hazards
products and service warranties; price tag; labeling and to health and safety;
packaging; liability for products and services; service and Protection of consumers against
repair shops; and advertising and sales promotion. deceptive, unfair and unconscionable
sales acts and
http://www.sunstar.com.ph/manila/opinion/20 practices; ("unconscionable" means not
12/08/19/bunye-knowing-your-consumer-rights- right, not reasonable or not guided by
238246 conscience)
Provision of information and education
to facilitate sound choice and the
Philippines Consumer proper exercise of rights by the
consumer;
Protection Law Provision of adequate rights and means
We are in the world surrounded by monstrous of redress ("redress" means remedy or to
capitalism and giant business industries which set right <an undesirable or unfair
care for their profit most of the time. You might situation>);
be an ordinary or poor individual who Involvement of consumer representative
consumes products, or services from these in the formulation of social and
businesses. But sad to say, you might be economic policies.
among of those many people who just zipper
their mouth despite being a consumer victim. What government agencies in the Philippines
The reasons might be; you are poor, implement the "Consumer Act of the
uneducated, hesitant or unaware. Should you Philippine" and what are their areas of
keep silent inspite of damaging your rights from concern?
these businesses? No, because as a consumer,
you have the rights protected by law. What is The following agencies implement the
the law for the protection of the consumer Consumer Act:
especially here in the Philippines? And what
steps to take if your consumer rights are Department of Trade and Industry (DTI)
damaged? All these are to be answered in this DTI handles the following areas of concern:
article. To clarify some difficult words and a. Consumer Products and Service
phrases, I'm providing a short definition of them Warranties
in order for you to better understand. b. Consumer Product Quality and Safety
What's the law in the Philippines that protects c. Deceptive, unfair and unconscionable
you as a consumer? sales acts and practices
d. Price Tag
The law that safeguards and protects the e. Weights and measures (metrication)
consumers in the Philippines is the Republic Act f. Labeling and Packaging
7394 (R.A. 7394). g. Advertising and sales promotion
h. Liability for Products and Services
What is Republic Act 7394? i. Service and repair shops
Department of Agriculture (DA)
Republic Act 7394 (RA 7394) is the "Consumer a. Agricultural Products
Act of the Philippines" which was promulgated o Quality and Safety
on July 15, 1992. It is the policy of the State to o Labelling and Packaging
protect the interest of the consumer, promote Department of Education (DepEd)
his general welfare and to establish standards a. Consumer education and
of conduct for business and industry. information
Department of Health (DOH)
What are the objectives of the RA 7394 or a. Food, drugs, cosmetics and devices
otherwise known as "Consumer Act of the and hazardous substances
Philippines? o Quality and safety
o Price Tag
4. o Labelling and Packaging the problem and what steps should be
o Advertising & Sales Promotion taken in order to solve the problem. If
BangkoSentralngPilipinas (BSP) that person irritates you and doesn't
a. Consumer credit transactions help, talk to the supervisor or manager
extended by banks and other and tell your complaint. A huge
financial intermediaries percentage of consumer problems are
Securities and Exchange Commission resolved at this level.
(SEC) If you are not satisfied with the support,
a. Credit facilities extended to write a formal letter of complaint to the
consumers by financing concerned government consumer
companies protection agencies in the Philippines
When is the Consumer Act applicable? mentioned above.
o In the letter, indicate your name
The Act is applicable if: and address; the name and
address of the
the COMPLAINANT is a natural person; establishment against whom you
the SUBJECT of the violation is a are complaining;
consumer product or service; and the circumstances regarding the
the NATURE of the complaint is complaint including names,
regarding any of the aforementioned places and dates etc..
concern Enclose supporting
What is consumer product or service? documents such as official
receipts, deed of sale and the
Consumer product or service means goods, like. And be prepared to make a
service and credits, debts or obligations which personal appearance when
are primarily for personal, family, household or called, especially during the
agricultural purpose, which shall include, but mediation conference.
not limited to food, drugs, cosmetics and
devices. How long can a consumer file a complaint?
What should a consumer do if he/she has a Within 2 years starting from the time the
complaint? consumer transaction happened (when the
deceptive or unfair transaction took place).
Identify the problem. Create a fair
settlement. Would any of the following To whom does a consumer file a complaint?
options do:
o money back (Refund)? In the Provincial Office. The administrative
o product repair (Repair)? complaint shall be filed in duplicate with the
o exchange or change item Provincial Office having jurisdiction over the
(Replace)? subject of the complaint. In areas where there
Gather documentation as much as you are no Provincial Offices, the complaint shall
can regarding your complaint. be filed in the Regional Office.
Examples of documents you can gather
are sales receipts, warranties, repair In cases where the complainant and
orders, contract/agreement, cancelled respondent are situated in different provinces,
checks, or any document which will the complainant has the option to choose the
support the complaint. These place where to file the complaint. The
documents will serve as your evidence civil/criminal action shall be filed with the
or proof. appropriate regular courts (Municipal Trial
Go back to the store or office where Court/Regional Trial Court).
you made the purchase. Talk to the
person who sold you the product or What are the remedies available to
service. Be calm and accurate in telling consumers?
5. Decision of the Arbitration Officer is
For Administrative Proceedings: appealable to the Secretary of the
concerned Department within 15 days
replacement or repair of product or from receipt of the decision.
services Decision of the Department Secretary is
reimbursement to complainant of appealable within 15 days from receipt
amount spent in pursuing the complaint of the decision to the Intermediate
refund of payment made Appellate Court or the Supreme Court
restitution or rescission of contract on the following grounds:
For civil/criminal action There is grave abuse of discretion.
The decision rendered was in excess of
civil action jurisdiction or authority of the Arbitration
refund of payment made Officer
award of damages The decision is not supported by
restitution or rescission of contract evidence or there is serious error in
replacement or repair of product or findings of facts.
services
reimbursement to complainant of What administrative penalties can be imposed
amount spent in pursuing the complaint upon establishments found to have violated
criminal action - defendant, if found any of the laws covered by the Consumer Act?
guilty by the court can be sentenced to
imprisonment or payment of fine or Administrative penalties that can be imposed
both, at the discretion of the court. are:
What are the advantages of filing complaint The issuance of a cease and desist
before the implementing agencies order, provided, however, that such
(administrative proceedings)? order shall specify the acts that
respondent shall cease and desist from
The advantages are: and shall require him to submit a report
of compliance therewith within a
o You can save more money and time in reasonable time;
mediation/arbitration. The acceptance of a voluntary
o You can avoid more hassles. assurance of compliance or
Complainant need not undergo the rigors and discontinuance from the respondent
expense of a court case which may include any or all of the
following terms and conditions:
How are consumer complaints resolved? an assurance to comply with the
provisions of this Act and its
Complaints are resolved through: implementing rules and regulations;
an assurance to refrain from engaging
The implementing agency where the in unlawful acts and practices or
complaint is filed, after jurisdiction is unethical trade practices subject of the
determined, will call the parties for formal investigation;
mediation conference and find ways for an assurance to comply with the terms
amicable settlement. and conditions specified in the
If no amicable settlement is arrived at, consumer transaction subject of the
the complaint will be scheduled for complaint;
preliminary conference for the parties to an assurance to recall, replace, repair
enter into stipulation of facts or arrive at or refund the money value of defective
simplification of issues. products distributed in commerce;
Formal hearing will be conducted by an assurance to reimburse the
the Arbitration Officer and decision will complaint out of any money or property
be rendered. in connection with the complaint, if any,
6. and to file a bond to guarantee
compliance therewith.
Restitution or rescission of the contract
without damages;
Condemnation and seizure of the
consumer product found to be
hazardous to health and safety, unless
the respondent files a bond to answer
for any damages or injury that may arise
from the continued use of the product;
The impositon of administrative fines in
such amount as deemed reasonable by
the Secretary, which shall in no case be
less than Five Hundred Pesos (P500.00)
nor more than Three Hundred Thousand
Pesos (P300,000.00) depending on the
gravity of the offense, and an additional
fine of not more than One Thousand
Pesos (P1,000.00) for each day of
continuing violation.
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