Neco 2018 Commerce Question 34
Practice objective / multiple choice question 34 from the 2018 Neco Commerce examination.
A washing machine is advertised at \(\text{₦}85{,}000\). The contract states that a return within 30 days incurs a restocking fee of 12% of the purchase price plus a fixed administrative charge of \(\text{₦}3{,}500\). The Consumer Protection Act caps such fees at 8% of the purchase price plus a maximum fixed charge of \(\text{₦}2{,}000\). The consumer discovers a defect after 20 days and can either (i) return the machine and receive the refund after deductions, or (ii) keep the machine and receive a 5% goodwill discount on the purchase price. Which option gives the lower net outflow for the consumer, and does the restocking fee comply with the Act?
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About This Question
This is Neco 2018 Commerce Question 34. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Hard .
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