1. Sales and Consumer Issues Objective 09.01 Interpret sales contracts and warranties within the rights and law of consumers. REGULATION OF SALES

2. Regulation of Sales Uniform Sales Act of 1906 –Revised to become the current Uniform Commercial Code Uniform Commercial Code (UCC) 1952 –Article 2 regulates sales –Article 3 regulates negotiable Instruments

3. Purpose of UCC Combine laws of trade from all states Simplify, clarify and modernize laws Expand and encourage commerce across state lines Enable consumers to apply a uniform sales law when they travel across state lines** except Louisiana

4. Regulation of Sales Statute of Frauds Applies to : –Sale of goods valued over $500 Requires: –Contract be in writing –Contract meet all requirements of writing Requirements of Writing Include: Date Place Parties Subject matter Price Signatures

5. Regulation of Sales in the US Constitution Commerce Clause of Constitution –Article 2, Section 8, [3] –Federal government derives its power to regulate business from the Commerce Clause –Congress has the power to regulate commerce “among the several states” –Federal government regulates any business that affects “interstate commerce” –Federal powers broadened in 1900s by Supreme Court rulings –Many federal regulatory acts and agencies enforce the statutory and administrative laws created to protect consumers

6. Interstate Commerce Commission (ICC) Regulates trade (commerce) between states in US Determines trade practices, rates and routes for business crossing between state lines Affects all states who have adopted the laws of the Uniform Commerical Code

7. Federal Trade Commission (FTC) Prohibits deceptive and unfair trade practices among businesses Key concept: FAIR PRACTICES Very broad act that created numerous laws and agencies to regulate special areas

8. Antitrust Laws Purpose: –To foster competition and fair trade –To eliminate restraint of trade caused by Monopolies Price fixing Price discrimination –Are all monopolies a bad thing for consumers? –Why are some monopolies, such as utility companies, legal?

9. Antitrust Acts Sherman Antitrust Act of 1890 –First antitrust law –Evolved from the “Robber Baron” historical period Clayton Antitrust Act of 1914 –Clarifies laws on monopolies, fair trade, price fixing and price discrimination Robinson-Patman Act of 1936 –Protects small businesses from price discrimination

10. United States Postal Service (USPS) Established to provide a federal system of mail Protects consumers from mail fraud with federal USPS regulations

11. Federal Communications Commission Licenses and regulates the operation of airwaves that are utilized in: –Television –Radio –Telephone –Telegraph

12. International Law-Regulation of Sales Contracts for International Sale of Goods (CISG) A United Nations (UN) agreement PURPOSES: 1.To develop international trade 2.To remove legal barriers that limit trade between countries 3.To promote friendly business relations between countries Governs contract formation and the rights and obligations of the buyers and sellers.

13. International Law-NAFTA North American Free Trade Agreement –Purpose: to reduce trade barriers and encourage free trade between countries in North America and to stimulate economic growth –Agreement between: United States Canada Mexico

14. International Law The European Union (EU) An economic coalition of Western European Countries Purpose: to reduce barriers to commerce and stimulate economic growth among the member nations

15. European Union Actions Established a common monetary unit – the Euro- in Western European countries to reduce the barrier of exchange rates and multiple currencies Reduced tariffs between member nations to encourage commerce Modified commercial laws to simplify trade among member nations