Ch. 15

Consumer Protection

• Caveat Emptor = Buyer Beware

• Caveat Venditor = Seller Beware

Consumer = user of goods for:

-Personal

-Family

-Household

Consumer Protection

• Litigation

• Government Licensing

• Unsafe Product Enforcement

• False/Misleading Advertisement

Litigation

• Torts/Negligence

• Strict Liability

• Class Action Law Suits

• Used for Intended Purpose– Anticipated use

Gov’t Licensing

• Unfair Pricing and Service– Assumption of risk– Comparative negligence

• Mislabeled Warnings/Labels

Unsafe Product Enforcement

• Cease and Desist

• Restitution

• Recall

False and Misleading Ads

• Knowing untrue facts – “Puffing”

• Bait and Switch– Rain Check

• Badge Engineering

• Unfair Trade (free trade competition)

Unfair Trade

• Price Fixing

• Anti Trust

• Mislabeling (failure to warn)

• “New” but used…

Protection

• FDA• CPSC (Fed)• Weights and Measures• Warranty

– Implied– Limited– Expressed

• Oral or Written