Finance accounting solution - Coursework Example

Finance and Accounting Solution Affiliation Finance and Accounting, Finance Solution The actions of the are mischievous. Retail stores are required by law to accept goods returned and either offers an exchange, refund or credit to the customer. However, this is applicable only if the goods are faulty or developed a defect that was not caused by the customer. Also, the goods sold must match the descriptions given and be of satisfactory quality. If this is not so, the customer has the right to return the goods.

Hence, the actions of the student are inappropriate, and they display her dishonesty. If the suits met the student’s expectations and did not have defects, she is only exploiting the return policy of the shop.The student’s actions have consequences. If the store owner discovers the student’s mischievous actions, he can take legal action against her. Additionally, the business relationship of the two will be ruined, and the student may not be allowed to purchase from the store anymore. There are consequences to the store such as suffering losses because of the fraudulent returns by the student.

Return fraud costs retail shops billions every year. Due to this, retailers are trying to come up with policies that curb the behavior, but still protect legitimate customers (Paul, 2012).There are ways through which retailers account for returned merchandise. First, the goods are examined, and their value is determined. If the goods are in good condition, they are restocked and sold again at new prices. However, if the merchandise is not in good condition and cannot be sold again, the retailer bears the loss of both the profit and the cost of acquiring the goods.

ReferencePaul, J. (2012). Casebook on Contract Law. Oxford, UK: Oxford University Press.