Gce Model Questions Vol1 2021 Commerce Question 14

A consumer buys a washing machine for \(\text{₦}150{,}000\) with a 2‑year warranty. The warranty contains the clause: "The consumer shall bear all costs of parts and labour for any repair, except where the defect is proven to be due to a manufacturing fault, in which case the supplier will cover 50 % of the repair cost." The machine develops a fault that requires a repair costing \(\text{₦}20{,}000\). Under the Consumer Protection Act, a term is unfair if it creates a significant imbalance to the detriment of the consumer.\n\n(a) State whether the above clause is likely to be deemed unfair.\n(b) If the clause is unfair, the Act requires the supplier to reimburse the full repair cost and to pay a penalty equal to \(20\%\) of the purchase price. Calculate the total compensation the consumer could claim.