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DO NOW:ANSWER THE QUESTIONS ON YOUR DO NOW HANDOUT
BASED ON YOUR KNOWLEDGE OF THE LAW
AIM: HOW ARE CONSUMERS PROTECTED IN THE
MARKETPLACE?
WOULD YOU EAT THIS?!
Why did Kraft recall 6.5 million boxes of Macaroni and Cheese?
What would you do if you were a customer and ate one of the affected boxes of Mac and Cheese?
What are some future implications for Kraft due to this situation?
WHAT IS A CONSUMER?
Consumer Individual who acquires goods that are intended
primarily for personal, family, or household use. A consumer is protected in the marketplace
through actions that they take on their own as well as actions that the government takes to ensure this protection.
Caveat Emptor “Let the buyer beware”
Caveat Venditor “Let the seller beware”
CONSUMER ACTIONS
Class Actions Allows one or several persons to sue not only on
behalf of themselves, but also on behalf of many others similarly wronged.
GOVERNMENTAL ACTIONS (REACTIVE)
Cease- and- Desist Order An order issued by a governmental agency requiring a
company to stop a specified conduct subject to civil penalties if violated
Consent Order A voluntary, court-enforceable agreement to
stop an illegal or questionable practice Restitution
The return to customers of money wrongfully obtainedRecall (Voluntary by Company or Government
Issued) When a product is removed from the market or a
correction is made to the product because it is either defective or potentially harmful
GOVERNMENT PROTECTION (PROACTIVE)
Licensing Licensing and inspections of certain businesses
are required in order to protect customers. i.e. doctors, teachers, lawyers, hospitals, nursing
homesUnsafe Products
Consumer Product Safety Act: This act created the Consumer Product Safety Commission which has authority to issue and enforce safety standards for most consumer products
PROTECTION AGAINST INFERIOR GOODS AND SERVICES
Adulterated Food, Drugs and Cosmetics FDA (Food and Drug Administration)
Requires that the production facilities for food, drugs and cosmetics be clean
Requires that the products be prepared from ingredients fit for human use or consumption
Regulates and approves drugs Requires labels on all products
Adulterated: a product that does not meet the minimum standards for purity and quality
USDA (U.S. Dept. of Agriculture)
USDA (U.S. Dept. of Agriculture)
Improper Weights and Measures
Improper Weights and Measures
Inspects processors of meat and poultry entering interstate commerce
Make sure meat is free of disease and that conditions are sanitary
Most states must inspect and test weighing and measuring devices at least once a year
PROTECTION AGAINST INFERIOR GOODS AND SERVICES
LET’S REVIEW…
Name and explain 2 actions a consumer can take if they feel there rights were violated in the marketplace.
Name and explain 2 steps the Federal Government has taken in order to protect consumers from inferior goods.
WHAT IS YOUR VERDICT?
Eliza had just purchased a classic sports car but did not like the color. He saw a newspaper advertisement for “car painting, $99.99 complete.” He went to the place of business, contracted for the service, and selected a dark blue metallic finish. However, when the paint job was completed and Eliza examined the car, the color was obviously light blue. Eliza complained, but the manager claimed the color was close enough to the color selected and refused to make any correction. How can Eliza resolve the problem in his favor?