Retail stores lining a main street — eg The Corso, Dee Why shops. Usually specialty stores with personalised service
Supermarket
Large self-service stores — wide variety of food and household products. Now often include petrol stations and bakeries
Large specialty stores
Dominate one product area, large warehouses, bulk buying to undercut prices — eg Harvey Norman, JB Hi-Fi
Department stores
Large, sell many categories under one roof — eg Kmart, Myer, David Jones
⚠ Kmart = Department store, NOT discount variety. This came up in your practice test!
3 elements of a legally binding contract — ALL 3 must be present
1
Offer — a proposal by one party to enter into a legally binding agreement. eg "I will sell you my iPhone for $200."
2
Acceptance — when the other party agrees to the proposal. eg "Yes, I'll buy it."
3
Consideration — something of value exchanged by both parties. eg the $200 paid in exchange for the iPhone. May also be a promise to pay at a later date.
⚠ Jack/Cooper scenario: Cooper accepted and Jack offered BUT Cooper never brought money = NO consideration = NO valid contract. Answer = B.
Contract scenarios — does a contract exist?
Gemma & Zara laptop
Contract exists — offer, acceptance AND consideration (Gemma agreed to buy for $850). Gemma changing her mind doesn't cancel the contract.
Hamaub & Colleen car
Contract exists — written, signed, deposit paid ($1000 = consideration). Colleen cannot get deposit back just because she changed her mind.
Art dealer wrong price
May NOT be a valid contract — the dealer made a mistake. A contract requires genuine agreement, not an accident.
Consumer guarantees under ACL
Acceptable quality
A product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable
Fit for purpose
Goods must do exactly what they are sold to do (eg a "cat and dog hair removing" vacuum MUST remove pet hair)
Match description
Must match how they were advertised or labelled
Competition and Consumer Act 2010 (CCA)
🚨 The year is 2010 — NOT 1987. 1987 was the old Trade Practices Act. You wrote 1987 in your practice test!
Also includes
Fair Trading Act 1987 (NSW) — the state-level law
Consumer's 4 legal rights
1. Safe products (tested, directions provided). 2. Accurate product information. 3. Full disclosure of terms of sale. 4. Warranties and guarantees honoured.
Consumer protection bodies
ACCC (Federal)
Australian Competition & Consumer Commission. Enforces national consumer law and competition issues.
NSW Fair Trading (State)
Department of Fair Trading. Protects consumer rights at NSW STATE level. Go here if retailer refuses to help.
ASIC
Australian Securities and Investments Commission — financial services, banking, investment scams (federal)
Ombudsman
Investigates complaints about telecommunications, banking, insurance — deals with customer disputes
CHOICE
Independent not-for-profit. Publishes inquiries, advises government on consumer complaints
⚠ Q7 on your test: "NSW State government body" = NSW Fair Trading (C), NOT ACCC (A). The ACCC is FEDERAL!
3-step consumer redress process
1
Return to the retailer with proof of purchase. Explain the fault calmly. Request refund, repair, or replacement.
2
Contact NSW Fair Trading if refused. They mediate/negotiate between you and the trader informally. May need a formal written complaint.
3
CTTT / NCAT Tribunal if still unresolved. Their decision is legally binding.
⚠ In Q19c you only wrote step 1. 3 marks = 3 steps — one mark per step!
False and misleading advertising — 5 types
Fine print
Important conditions written in tiny font — difficult to read and easily missed
Unsubstantiated claims — eg "9 out of 10 people prefer X" when no survey was actually conducted
Country of origin
"Made in Australia" and "Product of Australia" have different legal meanings — accuracy in labelling is required
Packaging
Size and shape of package may give a misleading impression of the amount of contents inside
Scams
Definition
An illegal and fraudulent business set up to trick or take money from an unsuspecting victim
Types
Banking/online scams, pyramid schemes, lottery/competition scams, money transfer scams, identity theft, mobile phone scams
Scale
Every year, 1 in 20 Australians fall victim to some type of scam
Referral selling
Offered a "special deal" if you buy AND provide names of potential customers — illegal under ACL
Payment methods — advantages and disadvantages
Cash
Advantage
Accepted everywhere. No interest. No personal data at risk. Keeps spending in check.
Disadvantage
Can be lost or stolen. Inconvenient for large purchases. No record of spending.
Direct Debit
Advantage
Automatic — bank transfers funds to pay bills without you needing to remember. Prevents missed payments.
Disadvantage
Risk of fraud/stolen card details. Can overdraw your account if insufficient funds.
Afterpay
Advantage
Buy now, receive goods immediately, pay in 4 interest-free instalments.
Disadvantage
Encourages overspending. Late fees apply if you miss a payment.
Credit Card
Advantage
Convenient for online purchases. Buy now pay later. Points/rewards schemes.
Disadvantage
Attracts interest charges. Can lead to serious debt. Affects credit rating if missed.
Lay-by
Advantage
No interest. Pay in instalments before receiving the item. Good for budgeting.
Disadvantage
You don't receive the item until fully paid. Cancellation fees may apply.
BPAY / EFT / PayPal
Advantage
Convenient online payments. Secure encryption. No need to carry cards.
Disadvantage
Not accepted everywhere. Requires internet access. Potential for scams.
⚠ Direct debit vs lay-by: Direct debit = bank auto-transfers to pay an EXISTING bill. Lay-by = pay instalments BEFORE getting the item. You got Q11 wrong because of this!
Technology and cashless payments
EFTPOS
Electronic Funds Transfer at Point Of Sale — using debit/credit card at a register
Tap and go
Visa payWave / MasterCard PayPass — contactless payments under $100 by tapping card/phone
Smartphone apps
Apple Pay, Google Pay — allow electronic payments via phone
Barter
Swapping goods without money — problem: requires "double coincidence of wants." Solved by money.
Cashless society
Developments in computer technology have virtually turned Australia cashless — most prefer electronic transfer
The importance of financial management
Definition
Acquiring, saving and growing funds to live a full and satisfying life, now and into the future — requires planning and management
Budget
A spending plan detailing how much money will be earned and how it will be spent. Helps avoid debt, track spending, and achieve financial goals.
Personal budget benefits
Calculate expected income vs expenses, determine if you can afford things, keep out of debt, forecast highs/lows, plan savings for big purchases
Consequences of poor financial management
Legal consequences
Garnishee order
Court order allowing employer/bank to take money from wages/accounts and give to creditors
Writ of execution
Court order allowing a court official (sheriff/police) to seize and sell your property to pay debts
Bankruptcy
Where a person gives up control of their assets and finances, voluntarily or by court order
Liquidation
All company assets sold in order to pay the company's debts
Personal consequences
Lifestyle impact
Unable to satisfy needs/wants, inability to maintain lifestyle choices (hobbies, living arrangements)
Emotional impact
Feelings of self-doubt, regret, stress, physical/mental/emotional illness
Repossession
If loan was secured against an asset (car, house), lender has the right to take it and sell it
Social consequences
Relationship tensions
Breakdown between friends, family or co-workers — debt pressure causes arguments
Social isolation
Unable to afford social activities — going out to dinner, movies, events, gym membership
Goals achieved in 1–3 years (eg saving for a phone, holiday)
Medium-term plans
Goals achievable in 4–6 years (eg saving for a car)
Long-term plans
Goals achieved in 7+ years (eg buying a house, retirement savings)
Superannuation
Definition
Money set aside while you're working, saved in a compulsory account. Each time you are paid, your employer allocates a percentage of your income to the account.
Access age
The federal government is increasing the aged pension access age to 67 years
Purpose
The most common long-term financial goal — to fund a comfortable retirement
Why start early?
Compound interest means money grows faster the longer it is invested. Starting at 18 vs 30 makes a massive difference by retirement.
If you experience difficulty repaying due to illness or unemployment, you can apply to your credit provider for a hardship variation
Options
Extending loan period, smaller repayments over longer period, postponing repayments for agreed period
Warning
If you keep skipping repayments without arranging a variation, the lender can foreclose — seize your assets
Key factors affecting consumer decisions
Customer service
How a business delivers its product. Good service = brand loyalty + repeat customers. Poor service = opposite effect. 20% of customers generate 80% of profits.
Price
If price exceeds what you can afford you won't buy it. Consumers want best value for their money.
Convenience
How easy to access, use or get to. Many consumers do not have a lot of time — location, store hours, and online access all matter.
Marketing & advertising
Process of identifying customer needs and promoting products. If a campaign is successful, consumers are influenced into thinking they need the product.
Gender
Social construct describing roles of men, women, girls and boys. Female consumers may spend more on cosmetics; males on food/vehicles. Many common wants exist.
Age
Wants change over time. Young: entertainment/fashion. Adults: health/housing. Elderly: health services. Teens typically have a lower budget.
Disposable income
Higher income = more spending on luxury/lifestyle. Lower income = focus on essentials. Determines what kind of products are regularly purchased.
Social media
Influencers with large audiences promote products. The content they post often influences followers' purchasing decisions.
Environmental considerations
Growing awareness of pollution — consumers increasingly influenced to purchase products with minimal/recyclable packaging.
Cultural factors
Beliefs, customs, traditions and ways of life. Every individual has sets of habits and principles from family status and background that influence buying decisions.
Your exact mistakes from the 2025 practice test
🚨 Q7 — ACCC vs NSW Fair Trading. The question said "NSW STATE body." That is NSW Fair Trading (C), NOT ACCC (A). ACCC = federal. NSW Fair Trading = state. Memorise this!
🚨 Q11 — Direct debit vs lay-by. You chose lay-by. Direct debit = bank automatically pays an EXISTING bill. Lay-by = you pay BEFORE you receive the item. Completely different!
🚨 Q19a — You wrote "1987" for the CCA year. The correct year is 2010. Competition and Consumer Act 2010. 1987 was the old Trade Practices Act.
🚨 Q19b — You only wrote ONE guarantee but the question asked for TWO. Always underline how many points the question asks for.
🚨 Q19c — You only wrote step 1 of redress. For 3 marks you need all 3 steps: 1) retailer, 2) NSW Fair Trading, 3) CTTT/NCAT.
Command words — what does the question actually want?
Identify
Just NAME it — 1 mark, 1 sentence maximum
Outline
Brief explanation of the main points — don't go too deep
Describe
Give features and characteristics WITH some detail
Explain
Give REASONS, causes, or how something works — more depth required
Distinguish
Explain the DIFFERENCE between two things — define BOTH clearly
Rule: marks = points. 3 mark question = 3 clear points. 5 marks = 2 detailed consequences with explanation.
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PITTWATER HOUSE · 2025 ASSESSMENT TASK 1
Commerce 2025 Assessment
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