Consumer Protection

Consumer Protection: It is any activity to safeguard the consumer from exploitation by businesses.
Importance: It prevents the sale of unsafe goods,adulteration and hoarding, excessive prices, sale of inferior quality goods. It creates awareness among consumers about rights abpnd responsibilities and encourages them to take action against businesses who have defaulted. It provides platform to consumers to voice their complaints so that just practices are laid out in businesses. It educates consumers about unfair trade practices. It improves the image of hinest businessmen and aims at establishing an honest society. Businesses can know consumer comments about their commodities as there is a link between them and consumers due to consumer protection programmes. It aims at uniting consumers and providing quality products at the right prices.
Actions that seller can take when faulty goods are returned by buyer: He should check the goods and see where the fault lies. He should try to solve it. If it is not repairable, then he can issuecredit note to buyer. He can refund the money paid or replace faulty goods with fit for purpose goods. He needs to contact his supplier so that no more faulty goods are received.
Actions that buyer can take when he receives faulty goods from seller: He can return it. He can contact the supplier and share the problem with him. He can contact a trusted friend andsee whether the problem can be solved. He can ask for a refund.
How to make a successful complaint?
Communicate with the supplier and clearly present the problem to him. Provide all details of the transaction as an evidence that the transaction took place and payment was made. State the problem and what action you want the seller to take to restore the problem. Call via telephone and talk directly. Clearly hear the response of the seller and the tone used. Meet the seller if required. Go with a friend so that you have a witness. Write letter or emails so the seller can have uour complaint jn writing. If seller does not respond after one letter, send another letter. Show copy of the documents of transaction and notthe original version.
Consumer rights:
The right to be informed. They have the right to know all details about products that are available in the market. The right to a healthy environment and safe products. Goods must not harm the natural environment or affect the personal health of consumer. Products should be environment friendly. The right yo be heard, represented and receive compensation for faulty goods or unsatisfactory services. Producer should listen to consumer feedback and prepare best quality products. They should be provided alternatives or refund when they complaining against faulty goods that they paid for.
The right yo choose. There are various products from many different companies and manufacturers that are availablefpr consumers to buy.They can buy anyone of the goods they have in the market. They should buy that which they consider best according to price and quality. Ina competitive commercial environment,high quality products should be made available by retailers at competitive prices.  

Location of Business

• For a primary producer, it is important to be located close to markets. He needs to be located in an area with competition as this will attract people. Power supply needs to uninterrupted and there needs to be an adequate amount of raw materials and reliable supply to ensure that production does not stop. Being near to suppliers is not important. It is important to know land and planning rules. There needs to labour supply with required skill. It needs to ahve good communication with manufacturers. Transport facilities are very important as goods need to be moved quickly to market and raw materials needs to be supplied quickly. Government incentives will also affect location. It needs to be in a secure area to prevent theft. It does not need to be accessible to people. Personal factors are also not important. Industrial inertia is important.
• For a wholesaler, closeness to markets is very important. It needs to be located where there is competition. It does not rely in power supply or raw materials. It needs to be loacted close to suppliers. It needs to know about land and planning rules. There must be labour available to work in the warehouse. It needs good communication to contact buyers. Transport facilities are very important consideration. Government is unlikely to affect its location. It needs to be located in a secure area. It is not important to be accesible. Industrial inertia is not important. It may locate where it finds personal pleasure.

Post Offices

• Maldives provides postal services like post offices. Letter post is provided for sending documents. Parcel post is available for sending goods.Airmail is available to send to domestic and international.Poste restanate facilitues are provided for people who have no permanent house. Express mail is provided by EMS. Registered post is used to send documents when it is neccesary to know whether they have been delivered. Private boxes are also available for hiring and temporary usage
• Letter post will be used to send a complaint to a retailer. Goods may be faulty. Retailer may send statement of account to customers. This provides summary of transactions with customers in a trading period. Letters for job interviews will also be sent by letter post. A comapny may be expanding and thus needing to employ more people.

Role of Warehouses

Functions of Warehouse:

• To provide storage for raw materials and components of the manufacturing process
• To protect goods from theft , deterioration and damage and weathering.
• To help in stockpiling. Production can be done ahead of demand.
• To provide packaging, grading, sorting and labelling before sale of goods.
• To keep prices stable
• To provide product collection and distribution.
• To offer special facilities
• To break bulk quantities into smaller quantities.
• To inspect goods before prospective buyers purchase them.
• To meet unexpected demand

Importance:

• Just in time supply and delivery of goods
• Storage of surplus goods which can be sold later for profit
• Prevent business from running out of supply thus helping to maintain stable rate of inventory turnover.
• Reduces transport and distribution costs

Seasonal production:

• Seasonal production means to produce goods at certain times of the year for which there is a stable demand throughout the year.Warehouses store these goods and release them throughout the year to retailers to maintain supplies and stable prices.
• Seasonal demand means to produce goods throughout the year for which there is demand at only certain times of the year.Warehouses store these goods and release them when demanded to maintain price stability.

International Transport

• Ports are usually controlled by port authorities.These may be owned by government or privately-owned enterprises or by city councils or joint ventures.

Port authority:An organisation that controls a port

• Ports should be situated whre there is permanent deep water.They need to be protected from natural hazards.
• Itvis important to have giid facilities at the port so as to ensure swift movement of goods into and out of the country.
• Ports should be able to handle ships of different sizes.Seaports are point of entry to a country.

Services provided at seaports:

1. Clear waterways and marked channels.There may be need of dredging, the removal of debris, protecting the environment of port.
2. Tugs and pilots for moving ships
3. Wharves with cranes, gantries and dock labour yo load and unload cargo and containers.
4. Container terminals with special handling equipment for containers
5. General warehouses for non-dutiable goods, bonded warehouses for dutiable goods,cold storage warehouses for perishables
6. Outside storage area for stacked containers awaiting loading
7. Repair facilities with wet and dry docks.
8. Good infrastructure.There must be access by rail or road from port to other major cities.
9. Facilities where customs authority and immigration authority can operate
10. Office space for the port authority and freight forwarders
11. Maintenance of Road and rail track within the port area
12. Parking area for cars and trucks
13. Passenger terminals and ferry terminals

• Airport authorities operate airports.They are responsible for management and maintenance of airport.

Airport authority:An organization that controls airport.Example:British Airport authority.

Transport

• Logistics is the  management of flow of goods from producer and manufacturer to consumer ot marketplace.
• Transport is a crucial part of this process so that customers do not run out of supplies
• The growth of containerisation has aided this process
• Transport has helped to create an interdependent world. It encourages countries to specialise and benefit from comparative advantage
• Effective transport leads to expansion of business.They look for markets far away especially abroad.
• Transport also moves people.They get wider choice of job. They can earn more money by travelling to a firm which pays higher value for their skills. It is used to visit shops and for leisure.  

Advantages of Road transport:

• Flexible form of transport.It can be adjusted as regards timetable and frequency of visits.
• Door to Door delivery without trans-shipment.
• Fast and cost-effective for short distance.Recent developments have made it more suitable for long distance also.
• Accessible to a wider range of area

Disadvantages:

• Slow for long distances
• Unsuitable for carrying bulk
• High cost of operating
• Traffic jams cause delay
• Limitations on time given to drivers for which they can use vehicles.These laws are imposed by govt.
• Increased social costs have to be paid by taxpayer when a truck damages a road. 
• Causes a lot of pollution 

Advantages of rail

1. Suitable for bulk and heavy goods 
2. Companies can own company trains to transport their own goods.These are part of marshalling yards.
3. Give easy access to passengers to reach CBD as they are located on city centres.
4. Causes less air pollution compared to road transport.
5. Less workers needed to operate than road transport

Disadvantages:

1. The need for trans-shipment of goods.
2. Slow and expensive for short distances 
3. Cannot go everywhere
4. High cost of maintenance and set up
5. Rail is inflexible in terms of timetable
6. Train crash recieves more publicity than truck crash on roads.

Communication

Advantages of Oral Communication:

• It can develop into a discussion
• It can be enhanced by non-verbal communication
• It gives immediate impact
• It can be interactive

Disadvantages:

• It may take a long time
• There is no written record
• Non-verbal signals may conflict with verbal saying
• Some people are better communicators than others
• The conversation may not be planned

Advantages of Written Communication:

• Permanent record
• Time for planning a reply is given
• Evidence in case of dispute
• Technical and complex information can be supplied
• It can be supplemented by visual, numerical data
• Identical copies can be sent to many people
• Less chance of misunderstandings

Disadvantages:

• Time-taking process
• No instant feedback
• May be badly written
• May not be read in full
• May be costly
• Difficult to explain complex information

Telephone is a means of communication that enables a conversation to take place without bejng visible to one another.
Advantages:

• One to one communication with instant feedback
• Discussion can take place
• Immediate contact
• Personal approach

Disadvantages:

• person called may not be available
• No record of conversation
• Costly over long distances
• time difference may cause difficulty with international calls
• Signal may be poor