Chapter 29 Consumer Protection

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					          Chapter 29

    Consumer Protection

 Twomey, Business Law and the
Regulatory Environment (14th Ed.)
Credit, Collection, and Billing Methods [29-1]

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  The Legal Environment of the Consumer
                               General Law
                               Contract Tort

                                     Consumer Protection Law
                                          Seals of Approval
                                           Selling Methods
                                       The Consumer Contract
                                             Credit Cards
       The Consumer                           Payments                    The Defendant
                                        Defense Preservation
                                            Product Safety
                               Credit, Collection, and Billing Methods
                              Credit Standing and Reputation Protection
                                          Real Estate Sales
                                          Service Contracts

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                          Chapter 29 Summary

With the modern era of consumer protection, society
has accepted the premise that equality before the law is
not appropriate to the marketplace, where modern
methods of marketing, packaging, and financing have
reduced the ordinary consumer to a subordinate
position. To protect the consumer from the hardship,
fraud, and oppression that could result from being in
such an inferior position, the law has, at many points,
limited the freedom of action of the enterprise with
which the consumer deals.

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                       Chapter 29 Summary [2]

Consumer protection laws are directed at false
and misleading advertising; misleading or false
use of seals of approval and labels; and the
methods of selling, requiring the disclosure of
terms, permitting consumer cancellation of
home-solicited sales, and, in some states,
prohibiting referral sales.

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                       Chapter 29 Summary [3]

   The consumer is protected in a contract
   agreement by regulation of its form,
   prohibition of unconscionable terms, and
   limitation of the credit that can be extended to
   a consumer. Credit card protections include
   prohibition of the unauthorized distribution of
   credit cards and limited liability of the
   cardholder for the unauthorized use of a credit

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                       Chapter 29 Summary [4]

Included in consumer protection laws are the
application of payments; the preservation of
consumer defenses as against a transferee of the
consumer’s contract; product safety; the protection
of credit standing and reputation; and (to some
extent) real estate development sales, franchises,
and service contracts. Lemon laws provide special
protection to buyers of automobiles for personal,
household, or family use.

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                       Chapter 29 Summary [5]

When a consumer protection statute is violated,
an action may sometimes be brought by the
consumer against the wrongdoer. More
commonly, an action is brought by an
administrative agency or by the state attorney

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