Law for Business and Personal Us Law for Business and Personal Us © Thomson South-Western CHAPTER 14 Consumer Protection 14-1 Protection through Governmental Action 14-2 Protection through Action by the Consumer
Dec 16, 2015
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
CHAPTER 14Consumer Protection
14-1 Protection through Governmental Action
14-2 Protection through Action by the Consumer
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 2
14-114-1 Protection through Governmental Action
GOALS Explain the need for governmental
involvement in the marketplace Identify protections against
substandard goods Recognize unfair trade practices
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 3
FOCUS
Who is a consumer?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 4
GOVERNMENTAL PROTECTION IN TODAY’S MARKETPLACE
Consumer caveats Class actions Governmental procedure
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 5
Define the terms caveat emptor and caveat venditor.
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 6
PROTECTION AGAINST INFERIOR SERVICES AND GOODS
Licensing Unsafe products
Adulterated food, drugs, and cosmetics Improper weights and measures
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Chapter 14Slide 7
What commission sets safety standards for most consumer products?
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Chapter 14Slide 8
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
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 9
List at least six forms of unfair trade practices.
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 10
14-214-2 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 UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 11
FOCUS
What legal action can the individual consumer take to protect herself or himself?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 12
WHAT IS PRODUCT LIABILITY?
Expansion of product liability Privity of contract Recovering damages
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Chapter 14Slide 13
Under what product liability approach is a person injured by a defective product most likely to recover damages?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 14
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
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 14Slide 15
HOW IMPORTANT ARE WARRANTIES?
Implied warranties given only by merchants Warranty against infringement Warranty of merchantability
Exclusion of warranties Lemon laws
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