Chapter 29 Consumer Protection

1. Chapter 29Consumer Protection Twomey, Business Law and the Regulatory Environment (14th Ed.)

2. Credit, Collection, and Billing Methods[29-1] Chapter 29

3. The Legal Environment of the Consumer General Law Contract Tort Administrative Consumer Protection Law Advertising Seals of Approval Labeling Selling Methods The Consumer Contract Credit Cards Payments Defense Preservation Product Safety Credit, Collection, and Billing Methods Credit Standing and Reputation ProtectionReal Estate Sales Service Contracts Franchises The Defendant The Consumer Chapter 29

4. 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. Chapter 29

5. 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. Chapter 29

6. 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 card. Chapter 29

7. 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. Chapter 29

8. 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 general. Chapter 29