1. Law for Business and Personal Use © Thomson South-Western CHAPTER 14 Consumer Protection 14-1Protection through Governmental Action 14-2Protection through Action by the Consumer

2. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 2 14-1 14-1Protection through Governmental Action GOALS Explain the need for governmental involvement in the marketplace Identify protections against substandard goods Recognize unfair trade practices

3. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 3 FOCUS Who is a consumer?

4. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 4 GOVERNMENTAL PROTECTION IN TODAY’S MARKETPLACE Consumer caveats Class actions Governmental procedure

5. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 5 Define the terms caveat emptor and caveat venditor.

6. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 6 PROTECTION AGAINST INFERIOR SERVICES AND GOODS Licensing Unsafe products Adulterated food, drugs, and cosmetics Improper weights and measures

7. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 7 What commission sets safety standards for most consumer products?

8. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 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

9. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 9 List at least six forms of unfair trade practices.

10. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 10 14-2 14-2Protection 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

11. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 11 FOCUS What legal action can the individual consumer take to protect herself or himself?

12. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 12 WHAT IS PRODUCT LIABILITY? Expansion of product liability Privity of contract Recovering damages

13. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 13 Under what product liability approach is a person injured by a defective product most likely to recover damages?

14. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 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

15. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 15 HOW IMPORTANT ARE WARRANTIES? Implied warranties given only by merchants Warranty against infringement Warranty of merchantability Exclusion of warranties Lemon laws (continued)

16. Law for Business and Personal Use © Thomson South-Western Chapter 14 Slide 16 Distinguish express and implied warranties.