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When does the CPA apply?
- The CPA applies when a supplier promotes (advertises) or supplies (for example sells or rents) goods or services in the ordinary course of business to a consumer where consideration (for example money) is given by the consumer to the supplier.
- For example:
John buys a second hand motor vehicle from a car dealership for R10 000. John is the consumer and the car dealership is the supplier. Both parties are bound to the CPA as:
- John is the consumer (he is an individual who receives the motor vehicle).
- The car dealership is the supplier (the dealership sells John the motor vehicle).
- The transaction is undertaken in the ordinary course of business (the car dealership, everyday, sells motor vehicles to consumers as its business).
- Consideration is given for the transaction (John pays R10 000 for the motor vehicle to the car dealership).