Consumer Protection by ewghwehws


									Coach Johnson
Understanding Business and Personal Law
   What is the UCC and what is its purpose?
   What is a warranty?
   What happens when a sales contract is
   Why is it necessary for consumers to be
    protected against unethical practices?
   How are businesses liable for products sold to
   UCC (Uniform Commercial Code)
     Business statutes
      Combine commerce laws = Single unified code
     ▪ Simplified, clarified, and modernized laws
     ▪ All relate to commercial transactions (Buying/Selling)
                                View the UCC
    ▪ Governs:
      ▪   Oral
      ▪   Written
      ▪   Internet Sales
      ▪   Also some leasing of Goods (Tuxedos, Cars, etc)
   Express Warranties
    1.  Statement of fact or promise by seller
      a) “This car is fully functional and working”
    2. Description of goods
      a) “Will heal burn or irritate skin”
    3. Use of sample or model
      a) “See Picture A for example”
   Written Warranties
     $15 or more (must be given) (what is an example?)
      ▪ 15 days, 30 days, 90 days, 1 year, etc
     Why?
   Implied Warranties
     Not written
     Only goods, not services
     Must have seller, buyer, good, price
   Three Types:
    1.   Warranty of Fitness for a particular purpose
       a) Ask store clerk for assistance in buying correct paint
    2. Warranty of Merchantability
       a) Properly packaged, made
    3.   Usage of Trade
       1. Items are equal and in the condition stated
       2. Ex: Stolen Items, Liens, No Paperwork, etc
   Magnuson-Moss Warranty Act
     Involve Interstate commerce
     Buy and Sell across states
     Product over $10 and sold across states

  Must express one of the two:
1. Full – Fix or Replace
2. Limited - Anything Below Full (parts, not labor)
   Caveat Emptor vs. Caveat Venditor
   What questions to ask?
     Where are they manufactured?
     Do they perform as advertised (how do you know)
     Is it worth the cost/risk?
   Retailer
     Wal-Mart
     Best Buy
   Manufacturer
     Microsoft
     Norelco
   Federal Trade Commission
   Better Business Bureau
   Courts
   Do not have to give Warranty but;
     Seller must refrain from making any express
     Use appropriate language that will exclude
      implied warranties
   Example: Disclaimer
   A product you bought was defective
   The company clearly stated warranty or;
   The company implied product was something it was
   Compose a one-page Business Letter to
   Describe complaint, argument, solution, and
    conclusion to letter. Make sure to stick to
    Business Letter format.
   Bring in a product that represents a “claim”
     Best Shampoo on market
     Better 3G coverage
     Funnier than “The Hangover”

   You have two days to bring in your product,
    and you will have to explain it to class for a
    daily grade
   Cease and Desist Orders
   Bait and Switch
   Unordered Merchandise
     Sample or Gift
     Cannot send a Bill
   Must ship within stated time
     30 days if not stated
     Contract/Order can be cancelled it not
   Item must be as described
     Cannot be a “representation” of something or
     replica unless stated
   If injured from a product
     Can recover damages for loss
   Strict:
     Manufacturer sold product (not another buyer)
     Product unreasonably dangerous
     Defect caused injury
     Defect was not caused by user
     Harm came from use
   Must bear name of Manufacturer
   Can’t be sold after date
   Common name must be given
   Can remove at anytime if proved to be
   Ways to discourage some products:
     High Taxes (Cigarettes and Alcohol)
     Warning Labels (Cigarettes, Cough Syrup, etc)
     Prohibition (Cigarette ads)
   A B C’s of Federal Trade Commission Poster
   Partners Given

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