1. Chapter 15 Consumer Protection
11/8/2018
Chapter 15 Consumer Protection
15-1 Protection through Governmental Action
15-2 Protection through Action by the Consumer
Chapter 15
LAW

2. 15-1 Protection through Governmental Action
GOALS
Explain the need for governmental involvement in the marketplace
Identify protections against substandard goods
Recognize unfair trade practices
Chapter 15

3. GOVERNMENTAL PROTECTION IN TODAY’S MARKETPLACE
Chapter 15
11/8/2018
GOVERNMENTAL PROTECTION IN TODAY’S MARKETPLACE
Consumer caveats
Class actions
Governmental procedure
Chapter 15
LAW

4. Define the terms caveat emptor and caveat venditor.
Chapter 15

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

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

7. PROTECTION AGAINST UNFAIR TRADE PRACTICES
Agreements to control or fix prices
False and misleading advertising
Illegal lotteries and confidence games
Unfair pricing and service
Mislabeled goods
Other unfair trade practices
Chapter 15

8. List at least six forms of unfair trade practices.
Chapter 15

9. 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
Chapter 15

10. WHAT IS PRODUCT LIABILITY?
Expansion of product liability
Privity of contract
Recovering damages
Chapter 15

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

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
Chapter 15

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

14. Distinguish express and implied warranties.
Chapter 15

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
Chapter 15

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
Chapter 15

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
Chapter 15

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.
Chapter 15