Transcript CHAPTER 14 Consumer Protection

CHAPTER 15
Consumer Protection
15-1 Protection Through Governmental
Action
15-2 Protection Through Action
by the Consumer
LAW for Business and Personal Use
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15-1
Protection Through
Governmental Action
 GOALS
 Explain the need for governmental involvement in
the marketplace
 Identify protections against substandard goods
 Recognize unfair methods of competition
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 2
GOVERNMENTAL PROTECTION
IN TODAY’S MARKETPLACE
 Consumer caveats
 Class actions
 Governmental procedure
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 3
CHECKPOINT

 Define the terms caveat emptor and caveat
venditor.
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 4
PROTECTION AGAINST INFERIOR
SERVICES AND GOODS
 Licensing
 Unsafe products
 Adulterated food, drugs, and cosmetics
 Improper weights and measures
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 5
CHECKPOINT

 What commission sets safety standards for
most consumer products?
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 6
PROTECTION AGAINST UNFAIR
METHODS OF COMPETITION
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Agreements to control or fix prices
False and misleading advertising
Illegal lotteries and confidence games
Unfair pricing and service
Mislabeled goods
Other unfair methods of competition
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 7
CHECKPOINT

 List at least six forms of unfair methods of
competition.
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 8
15-2
Protection Through Action
by the Consumer
 GOALS
 Describe the protection afforded consumers by
the law of product liability
 Identify the various warranties that may apply to a
sales transaction
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 9
WHAT IS PRODUCT LIABILITY?
 Expansion of product liability
 Extent of warranty coverage
 Recovering for tortious conduct
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 10
CHECKPOINT

 Under what product liability approach is a
person injured by a defective product most
likely to recover damages?
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 11
HOW IMPORTANT
ARE WARRANTIES?
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Requirements of express warranties
Opinions v. warranties
Express warranties made by all sellers
Implied warranties given by all sellers
 Warranty of title
 Warranty against encumbrances
 Warranty of fitness for a particular purpose
Continued on the next slide
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 12
HOW IMPORTANT
ARE WARRANTIES?
 Implied warranties given only by merchants
 Warranty against infringement
 Warranty of merchantability
 Exclusion of warranties
 Lemon laws
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 13
CHECKPOINT

 Distinguish express and implied warranties.
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 14
PREVENT
LEGAL
DIFFICULTIES
 For your protection as a consumer . . .
 Be wary of Internet or phone solicitations that
offer deals that seem too good to be true. They
are often just that. Such offers often involve real
estate or precious metals. Fraudulent offers of
free gifts and travel also are common.
 Be cautious of “bargains.” Usually they are
authentic, but occasionally they are a part of a
bait-and-switch scheme or they are loss leaders
surrounded by overpriced goods.
Continued on the next slide
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 15
PREVENT
LEGAL
DIFFICULTIES
 Do not gamble. Remember that even in free and
honest gambling contests, the vast majority of
participants receive nothing.
 When you have a valid complaint about a
fraudulent or unfair business practice, take action.
Complain to the business involved, the Better
Business Bureau, the local prosecutor, the state
attorney general, the FTC, the CPSC, and any
other governmental body with jurisdiction. If all
else fails, consider taking legal action.
Continued on the next slide
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 16
PREVENT
LEGAL
DIFFICULTIES
 Try to stay informed about product defects. Watch
the stores where you shop for recall
announcements. Pay special attention to recall
notices you receive in the mail.
 When in doubt about a product, consult the
CPSC. Sign up to receive notices about banned
products.
 Be aware that not every assurance of quality or
performance made by a seller is a warranty.
Continued on the next slide
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 17
PREVENT
LEGAL
DIFFICULTIES
 Know the implied warranties for goods you buy
and watch for sellers’ statements of limitation.
 Make certain that any express warranty you
receive is in writing to avoid later disputes as to
its meaning or existence.
 Use special care in buying goods “as is.” Inspect
the goods to be sure that you are willing to take
them without the benefit of warranties.
LAW for Business and Personal Use
Chapter 15
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 18