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

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

Chapter 14Slide 7

What commission sets safety standards for most consumer products?

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

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

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

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

(continued)

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

Chapter 14Slide 16

Distinguish express and implied warranties.