Neco 2020 Commerce Question 13

Practice objective / multiple choice question 13 from the 2020 Neco Commerce examination.

Neco 2020 Commerce Objective / Multiple Choice Hard Difficulty
Question 13 NECO • 2020 • COMMERCE • objective

A consumer buys a washing machine for ₦120,000. The sales contract contains a clause that, if the consumer returns the machine within 30 days for any reason, a restocking fee of \(25\%\) of the purchase price plus a handling charge of ₦5,000 must be paid. The consumer returns the machine after 20 days because it is defective. Under the Consumer Protection Act, any restocking fee may not exceed \(10\%\) of the purchase price and handling charges may not exceed ₦2,000. Is the clause unfair, and if so, how much money is the consumer entitled to recover from the seller (in naira)?

Answer Options

A. The clause is unfair; the consumer can recover ₦15,000.
B. The clause is fair; the consumer owes ₦5,000.
C. The clause is unfair; the consumer can recover ₦25,000.
Correct Answer D. The clause is unfair; the consumer can recover ₦21,000.
Correct Answer
D
Correct Option:
The clause is unfair; the consumer can recover ₦21,000.

About This Question

This is Neco 2020 Commerce Question 13. It is one of the objective questions from the 2020 Neco Commerce examination.

Difficulty level: Hard .

View More Neco 2020 Commerce Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support