Gce Model Questions Vol1 2023 Commerce Question 20

Practice objective / multiple choice question 20 from the 2023 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2023 Commerce Objective / Multiple Choice Hard Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • objective

A consumer purchases a washing machine for \(\text{₦}120,000\) with a 2‑year warranty. The seller's warranty clause states that any repair claim within the warranty period incurs a fixed service charge of \(\text{₦}15,000\) plus a surcharge of \(20\%\) on the cost of any parts used. The machine develops a fault that requires replacement of a part costing \(\text{₦}8,000\). Calculate the total amount the consumer must pay under the clause and state whether the clause is likely to be considered unfair under consumer‑protection rules that deem a charge unfair if it exceeds the consumer's actual loss by more than \(50\%\).

Answer Options

A. Consumer must pay ₦16,600; the clause is fair
B. Consumer must pay ₦17,200; the clause is unfair
C. Consumer must pay ₦15,800; the clause is unfair
Correct Answer D. Consumer must pay ₦16,600; the clause is unfair
Correct Answer
D
Correct Option:
Consumer must pay ₦16,600; the clause is unfair

About This Question

This is Gce Model Questions Vol1 2023 Commerce Question 20. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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