O-LevelCommerceConsumer protection7100/22 · May/June 2017 · Q520 Marks

T Ltd sells high-quality decorated pottery. It has recently received more complaints than usual about the quality of its products.

(a)(i)What is meant by saleable quality?[1]
(a)(ii)A customer has returned an expensive vase because it is cracked. State four actions T Ltd should now take.[4]
(b)T Ltd belongs to a trade association that has a Code of Practice. How will a Code of Practice help a consumer?[2]
(c)T Ltd wants to insure itself against a fall in profits. Would T Ltd be able to obtain this insurance? Give reasons for your answer.[4]
(d)(i)T Ltd operates in a country that is part of a trading bloc. Explain what a trading bloc is and give an example.[3]
(d)(ii)T Ltd trades with some countries that do not belong to a trading bloc. Discuss whether or not T Ltd should continue to export to these countries. Give reasons for your answer.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

[1]
[4] 1 mark for each action, maximum 4 actions.
[2] Up to 2 marks for one point.
[4] Up to a further 2 marks for valid reasons.
[3] Up to 2 marks for the explanation.
[3] 1 mark for the example.
[6] Level 2 (4–6 marks) Has discussed whether or not T Ltd should continue to export to these countries and given reasoning (if a candidate has presented a one-sided argument on home trade, award 4 marks max.).
[6] Level 1 (1–3 marks) Has commented on the statement.

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