1. Sales Contracts

2. The Law of Sales Applies to tangible, movable, personal property
Example
Real Estate
Goods (clothing, books, automobiles, pets, etc)

3. Payment
When the buyer delivers the agreed price and the seller accepts it

4. Receipt of Goods The buyer takes physical possession of the goods
Also known as Delivery
Title of all property is transferred to the buyer

5. When Does Ownership Transfer?

6. If the seller is to deliver the goods to their destination
Title transfers when the goods arrive at the buyer’s specified destination

7. If the seller is to ship, but not deliver, the goods to their destination
Title passes to the buyer when the goods are delivered to the carrier

8. Cash, Check or Credit Sales
Title transfers at the time and place when the sales contract is made

9. Collect on Delivery (COD) Sales
The seller obtains title, control, and possession of the goods until the items are paid for

10. Sale on Approval “Trial Offers”
Sellers keep the title and ownership rights until the buyer approves of the product.
The buyer is liable for any damage to the goods due to negligence

11. Auctions Title passes when the money is exchanged With Reserve
The auctioneer may withdrawal the goods at anytime before announcing completion of the sale
Without Reserve
The goods will be sold to the highest bidder regardless of price

12. Statement to assure the product’s qualities or performance
Warranties
Statement to assure the product’s qualities or performance

13. Expressed Warranty Made explicitly by the seller Example:
May be spoken or written
Example:
A car salesperson stating that the car you are purchasing will not need an oil change for 50,000 miles
Warning: Make sure the person is not just puffing to make a sale (being vague)

14. Full Warranty
Expressed warranty that obligates the seller to repair or replace a defective product without cost to the buyer and within a reasonable time

15. Limited Warranty Provides less protection than a full warranty
The seller must identify what it will cover

16. Implied Warranty
An implicit, unstated warranty obligation imposed on all sellers in order to ensure minimal standards
Example:
The food you buy is fit for human consumption
You new MP3 player will work when you use it for the first time

17. Exclusion of Warranties
Must be stated that no warranty is included
Seller must refrain from making any expressed warranties

18. Product Liability
If goods are defective and dangerous the producer, manufacturer, suppliers, and sellers may all held responsible for any injuries

19. Purchasing Products

20. Uniform Commercial Code (UCC)
A standard set of business laws regulating the sale of goods nationwide

21. Agencies Who Help Regulate the UCC

22. Consumer Product Safety Commission (CPSC)
Has authority over most consumer goods
Receives reports on unsafe products.
It can order:
Recall
Repair
Replacement
Refund
Ban from marketplace
Fines/imprisonment of offenders

23. Food and Drug Administration (FDA)
Regulates drugs, cosmetics, and food
Determines Adulterated products
Products that do not meet minimum standards

24. FDA REQUIRES
Products be made with ingredients fit for human consumption
Product Labels Include
Manufacture's Name
Address of the manufacturer, packagers, or distributor
Reveal the quantity included in the package
Uniform nutritional labeling

25. FDA Requirements
Drug be inspected and followed for safety and approval for sale either by prescription or over-the-counter

26. US Department of Agriculture (USDA)
Inspects meats and meat processing plants
Ensures products are free from disease
Check for sanitation

27. National Bureau of Standards
Fixes standards of weights and measures for
Gasoline pumps,
Supermarket scales,
Taxicab meters, etc.
Violations are punishable by fine, imprisonment, and confiscation of goods

28. The Federal Trade Commission (FTC)
Protects against any methods of business that are dishonest, fraudulent, or limit competition
For Example:

29. Making Agreements to Control or Fix Prices
Illegal to conspire to set prices

30. Using False Or Misleading Advertising
Bait and Switch
advertising a nonexistent bargain to lure customers and then selling the customers ore expensive merchandise

31. Conducting Illegal Lotteries
A business can not use any gambling scheme or game that
Requires payment of money to participate
to promote sales

32. Using Unfair Pricing Methods
Most common illegal activity
Examples
Saying price is wholesale when it is not
Artificial Two-for-one Deals
Loss Leaders
Advertising a popular item at less than cost to get customers in, and then charging higher prices on other goods
Deceptive Estimates

33. Selling Used Articles as New
Most common when product is sold with no indication that it is used
Example?

34. Identity Theft
Utilizing another person’s unique personal information to secure unlawful gain

35. Other Unfair Trade Practices
Use a brand-name or trademark similar to a competitor's
Sending unordered merchandise to consumers and demanding payment or return
You do not have to pay or return the items
Businesses selling door-to-door must give buyer 3 days to cancel orders

36. EXCEPTIONS TO THE LAWS Patents Copyrights
Allow the inventor to have exclusive rights to sell the product for 17 years
Copyrights
Allow the author to have exclusive rights to written or artistic work

37. Require licensing of employees
How Do Governments Promote Compliance With Consumer Protection Statutes?
Require licensing of employees
Service businesses are required to provide estimates and detailed bills for all services
Example: Auto mechanic
Frequent inspections of businesses

38. What Can You Do If You Are A Victim ?

39. Personal Remedies Consumers Can Sue the Company Themselves
very costly
Join A Class Action Suits
Two or more people acting on behalf of a larger group that has been harmed by a product
Everyone gets a portion of the settlement

40. Government Remedies Cease and Desist Order
government order telling the company to stop a specific action
Consent Order
defendant voluntarily stops harmful practice rather than go through legal battles
Order Restitution
Business is forced to return the money (or products) to consumers