Unit 8 Consumer Law

Consumerism Consumer-a person who acquires goods that are intended primarily for personal use.

Consumerism Caveat Emptor Let the buyer beware Consumers have to be careful Better Business Bureau BBB-was created to help consumers. Caveat Venditor -let the seller beware Current market place is this!!

Class Actions A lawsuit that allows one or many to sue as one whole group to settle the damages for the group. Ex: Drug Companies, Toyota Camary

Cease and Desist Order Government Procedure Stops the company from specific actions such as making a product, selling or removing from shelves. Consent order -volunteer court enforceable agreement to stop an illegal or questionable practice

CPSC Consumer Product Safety Commission This agency helps with getting products recalled if dangerous or removed from sales Recalls, Safety Hotline, Concerns about safety regulations

FDA Federal Drug Administration This agency helps to regulate our food and testing of drugs before they are released to market. Food Testing, Labeling, Inspections of food processing plants, marketing claims of drugs and the safety of drugs

FTC Federal Trade Commission This agency monitors advertising and unfair trade practices Ex. Bait & Switch, Price Fixing, Mislabeled goods, Industrial Spying, Schemes,

Warranties Express Warranty—an assurance of quality or promise of performance explicitly made by the seller. Ex: Use our brand of oil-need not change engine oil for 10,000 miles

Expressed Warranties Full Warranty-covers the replacement or fixing of the entire item with regards to parts and labor. Limited Warranty-not the entire coverage is offered. (maybe just parts not labor)

Implied Warranties Implied Warranty-the item will work as intended.

Lemon Law Covers chronically defective vehicles. Vehicle must be fixed under warranty usually at least 3 times before the vehicle could be replaced or refunded