Waec Model Questions Vol1 2018 Commerce Question 50
Practice objective / multiple choice question 50 from the 2018 Waec Model Questions Vol1 Commerce examination.
A consumer buys a television advertised as "₦150,000 inclusive of 7.5% VAT". The seller charges ₦150,000 at checkout, then informs the consumer that the price shown excluded VAT and adds the VAT amount (7.5% of ₦150,000) demanding an extra ₦11,250. The market price of the same TV (excluding VAT) is ₦140,000. Under the Consumer Protection Act, advertised prices must be inclusive of all taxes. Determine whether the seller's action is unlawful, calculate the amount the consumer actually overpaid (if any) relative to the market price, and compute the penalty the seller must pay if the Act imposes a fine equal to twice the amount of the over‑charge per violation.
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About This Question
This is Waec Model Questions Vol1 2018 Commerce Question 50. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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