“Rules and regulations can help keep workers safe and prevent damage for a business.”
After learning this chapter, you will be able to understand
· why regulations are needed in retail
1. CONSUMER PROTECTION
In every country there is a consumer protection law. You need to know the basic rules of this law. In the following chapter is introduced what consumer law means in general all around the world. Consumer law has been enacted for the needs of the expanding economic life and the growing possibilities to consume. Because of the growing possibilities to consume, there appeared a need to regulate especially the legal rights between the consumer and the entrepreneur.
The consumer law has been enacted to protect the fainter part, the consumer, against the entrepreneur. A consumer is a person who buys a product or service for oneself or for the family. The entrepreneur is a company which offers consumer products to get revenue or other economic benefit for compensation. The consumer law includes the regulation concerning consumer protection for offering products and services and sales and marketing from the entrepreneur to the consumer. The consumer transaction means the agreement written in consumer protection law: the seller is the entrepreneur and the buyer is the consumer.
The seller is responsible for supplying impeccable products to the buyer. If there is a deficiency in the product, the seller is responsible for it. There is a deficiency in the product, if it does not meet the expectations the buyer can expect according to the agreement. The product has to meet the agreed expectations for the sort, quantity, quality and other features.
If there is no other agreement, the product has to meet the expectations normally described for that kind of a product. The product has to meet the normal expectations for the durability, too. The product has to suit for the special purposes it is used for, if the seller is aware of these expectations while the deal is concluded.
The product has to meet the expectations the seller has referred to while presenting the sample or model. It also has to be packed properly. The product might have a defect, if the seller has not given sufficient instructions for the use or assembling the product.
Case: Defect in a product
Alma has a small shoe store for ladies in the downtown area in a capital city. She has two employees, Agnes and Rihan. She sells different kinds of shoes in her store; for example casual shoes, evening shoes, flip flops, flippers, training shoes and running shoes.
Lisa bought brand new shoes for 150 dollars from Alma´s shoe store. After using them for a couple of months, the leather seam in the left shoe tore one centimetre. Lisa made a complaint to Alma. Alma told Lisa that she had misused the shoes and she refused to change the shoes for impeccable ones. However, Alma wanted to grant a discount of 20 euros to Lisa.
Read the consumer protection law and answer: What rights does Lisa have as a consumer? What responsibilities and rights does Alma have as a seller?
The seller has to deliver the buyer impeccable products. If there is a defect in the product, the seller is responsible for it. All the damages in the product are not defects. The defects can occur because of ordinary use (for example the keyboard of a computer can fade). The misuse of a product can cause defects (for example leaving the mobile phone on the roof of a car in the rain).
If there is a defect in the product, the buyer has the right to demand the seller to repair the damage. This is one of the seller’s rights. The seller has the right to deliver a new impeccable product to the buyer. If the seller is not willing to repair the damage or deliver a new, impeccable product, the buyer has the right to demand a discount. The discount has to correspond with the value of the damage (for example the repairing costs).
If the seller does not compensate for the damage in some way, the buyer has the right to demand the cancellation of the deal. To cancel the deal is absolutely the ultimate way of acting. It is the seller’s responsibility to compensate the harm caused to the buyer, for example the costs of returning the product.
In this case, Lisa has made the complaint within a reasonable time after she had noticed the tear in the seam. It is the matter of the high value of the shoes, and that the life span should be more than a couple of months. If the seller claims that the reason for the tear is Lisa’s misusing the shoes, the seller has to prove the misuse (for example walking in the rain with leather shoes). If the seller can’t prove the misuse, she has to compensate for the damage.
The seller has accepted to refund 20 dollars as a discount. In this case, the compensation is not enough, because the shoes cost 150 dollars. The seller should repair the shoes at her own expense, give a bigger discount or give a new pair of shoes. The seller should refund the extra costs for the buyer, for example any travel or telephone costs.
Case: Defect in an electrical product
Alex has bought a mobile phone at Teleshop. He needs the mobile phone when he is working at his food store. After a couple of weeks, the phone stopped functioning properly: it did so without any notice even if the battery was charged. Alex took the mobile phone back to the shop and demanded a new one. Should the seller accept his demand?
Read the consumer protection law and answer: What rights does Alex have as a consumer? What responsibilities and rights does a seller have?
The seller has to deliver the buyer impeccable products. If there is a defect in the product, the seller is responsible for it. All the defects are not damages. The defects can occur because of ordinary use (for example the keyboard of a computer can fade). The misuse of a product can cause damages (for example leaving the mobile phone on the roof of a car in the rain).
If there is a defect in the product, the buyer has the right to demand the seller to repair the damage. This is one of the seller’s rights. The seller has the right to deliver a new, impeccable product to the buyer.
In this case there is a defect in the product that Alex bought, and he has made a complaint correctly to the seller. Alex wants to have, however, a new product as soon as possible.
The seller has the right to repair the product; there is no need to give a new product right away. The seller has the right to repair the product a couple of times. If the product has to be repaired several times, it is easier for the consumer to get a totally new product or even to cancel the deal.
Case: Faulty product bought at a sale
Alma had bought a blouse for 70 dollars at a sale. Even if Alma followed the washing instructions, the pearls on the blouse loosened in the first wash and the blouse became practically unusable. Alma went to the shop and demanded the cancellation of the deal and a full refund.
Read the consumer protection law and answer: What rights does Alma have as a consumer? What responsibilities and rights does the seller have?
The seller explained that normally Alma has the right to change the product for another one, but in this case she does not, because the blouse was on sale. There was a sign attached to the pillar near the cash desk saying: “the products on sale cannot be returned or changed”.
The seller has to deliver Alma impeccable products. If there is a defect in the product, the seller is responsible for it. If there is a defect in the product, Alma has the right to demand the seller to repair the damage. To do so is one of the seller’s rights. The seller has the right to deliver a new, impeccable product to Alma.
If the seller doesn’t compensate for the damage or deliver a new, impeccable product, Alma has the right to demand a discount. The discount has to correspond with the value of the damage (for example the mending costs). If the seller is not willing to compensate for the damage in some way, Alma has the right to cancel the deal. To cancel the deal is definitely the ultimate way to act. The seller is responsible for the extra costs caused to the buyer when returning the product, (for example the travel and telephone costs).
If it is not additionally agreed, the product has to be suitable for the common use of that kind of products and it has to meet the expectations concerning the durability. Alma has bought a marked down product. The product was on common sale. It was not marked down because of a defect. If the product is marked down because of the defect (for example a stain in the cloth), the buyer has to be informed before purchasing the product.
In that case Alma should understand that the product was marked down because of a defect (and the buyer cannot later refer to the defect). That was not the case with Alma´s blouse, the product was sold as impeccable and the defect in the product did not appear until it was washed.
If the seller doesn’t want to refund the product, the seller has to prove that Alma has washed the product in the wrong way (for example by washing another, similar blouse according to the washing instructions. In that case the pearls should not loosen). The seller can’t diminish Alma´s right to an impeccable product by informing one-sidedly that “the marked down products cannot be returned or changed”. The seller has to change the product for a similar one or cancel the deal and give Alma a full refund.
In this case, there is a defect in the product Alma bought and she has made a complaint correctly to the seller. The consumer wants to have, however, a new product as soon as possible. The seller has the right to repair the product; there is no need to give a new product right away. The seller has the right to repair the product a couple of times. If the product has to be repaired several times, it is easier to demand a new one.
Case: Rules and regulations for minors
Alex’s 11 years old daughter went to a pet shop. She wanted to buy a turtle for 20 dollars. How should the seller proceed?
Read the consumer protection law and answer: What responsibilities and rights does a seller have?
The seller is handing over an animal to quite a young child. The seller should make sure that the child has the right to make quite a big purchase and that she has the permission to get a pet.
The seller has the right to make sure that the animal will be taken care of. The seller should ask the child to come to the shop with an adult and bring some kind of written permission signed by the guardian telling that they are aware of the purchase.
2. HYGIENE
Food hygiene proficiency is regulated by local laws. Operators in the food business are required to ensure at their own expense that employees handling foodstuff are given training and instructions relevant to their work. In addition, employers/operators in the food business shall ensure that persons, whose work is to handle unpackaged, easily perishable foodstuffs in spaces for foodstuffs, have food proficiency certificates (hygiene passports) proving these people’s food hygiene proficiency.
Practical proficiency involves applying knowledge and proficiency confirmed by a certificate or acquired otherwise in everyday work. In implementing the principle of hygiene proficiency it is important that company employees as well as the management are committed to maintaining good hygiene.
Case: Hygiene in a shop
Alex has learned that hygiene can be divided in different areas. He wants to improve hygiene in his shop. Alex calls you and wants you to help in the following areas of hygiene. Find out what he could do to improve:
· Food hygiene
· Goals for food hygiene
· Microbiology
· Food poisoning
· Risks for food hygiene
· Hygienic working methods
· Personal hygiene
· Cleaning
· In-house control
· Hazard analysis and critical control points