1. 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. CHAPTER 15 Consumer Protection 15-1 15-1Protection Through Governmental Action 15-2 15-2Protection Through Action by the Consumer

2. 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. Chapter 15 SLIDE 2 15-1Protection Through Governmental Action GOALS Explain the need for governmental involvement in the marketplace Identify protections against substandard goods Recognize unfair methods of competition

3. 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. Chapter 15 SLIDE 3 GOVERNMENTAL PROTECTION IN TODAY’S MARKETPLACE Consumer caveats Class actions Governmental procedure

4. 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. Chapter 15 SLIDE 4 CHECKPOINT Define the terms caveat emptor and caveat venditor.     

5. 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. Chapter 15 SLIDE 5 PROTECTION AGAINST INFERIOR SERVICES AND GOODS Licensing Unsafe products Adulterated food, drugs, and cosmetics Improper weights and measures

6. 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. Chapter 15 SLIDE 6 CHECKPOINT What commission sets safety standards for most consumer products?     

7. 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. Chapter 15 SLIDE 7 PROTECTION AGAINST UNFAIR METHODS OF COMPETITION 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

8. 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. Chapter 15 SLIDE 8 CHECKPOINT List at least six forms of unfair methods of competition.     

9. 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. Chapter 15 SLIDE 9 15-2Protection 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

10. 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. Chapter 15 SLIDE 10 WHAT IS PRODUCT LIABILITY? Expansion of product liability Extent of warranty coverage Recovering for tortious conduct

11. 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. Chapter 15 SLIDE 11 CHECKPOINT Under what product liability approach is a person injured by a defective product most likely to recover damages?     

12. 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. Chapter 15 SLIDE 12 HOW IMPORTANT ARE WARRANTIES? 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

13. 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. Chapter 15 SLIDE 13 HOW IMPORTANT ARE WARRANTIES? Implied warranties given only by merchants Warranty against infringement Warranty of merchantability Exclusion of warranties Lemon laws

14. 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. Chapter 15 SLIDE 14 CHECKPOINT Distinguish express and implied warranties.     

15. 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. Chapter 15 SLIDE 15 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

16. 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. Chapter 15 SLIDE 16 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

17. 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. Chapter 15 SLIDE 17 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

18. 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. Chapter 15 SLIDE 18 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.