Sales LawSales Law

Protection in salesProtection in sales

Consumer- An individual who acquires Consumer- An individual who acquires goods that are intended primarily for goods that are intended primarily for personal, family, or household use.personal, family, or household use.

Caveat Emptor- “Let the buyer beware.”Caveat Emptor- “Let the buyer beware.”– Consumers were thought to be adequately Consumers were thought to be adequately

protected by their own ability to judge a protected by their own ability to judge a product’s safety and utility.product’s safety and utility.

– Today, any seller who has deceived a Today, any seller who has deceived a consumer while contracting may be sued by an consumer while contracting may be sued by an individual as well as be subject to legal action individual as well as be subject to legal action by a government agency.by a government agency.

Caveat Venditor- “Let the seller beware.”Caveat Venditor- “Let the seller beware.”

Governmental ProceduresGovernmental Procedures Class Action Lawsuit- Allows one or several Class Action Lawsuit- Allows one or several

persons to sue not only on behalf of persons to sue not only on behalf of themselves, but on the behalf of others themselves, but on the behalf of others similarly wronged.similarly wronged.

Cease-and-desist order- Requires that a Cease-and-desist order- Requires that a company stops a specified conduct.company stops a specified conduct.

Consent Order- A voluntary, court-Consent Order- A voluntary, court-enforceable agreement to stop an illegal enforceable agreement to stop an illegal or questionable practice.or questionable practice.

Restitution- Permits a party to a contract Restitution- Permits a party to a contract to recover money or property.to recover money or property.

Licensing is a primary way that the Licensing is a primary way that the government protects consumers.government protects consumers.

CPSC- Consumer Product Safety CPSC- Consumer Product Safety Commission- Issues and Enforces safety Commission- Issues and Enforces safety standards for most consumer products.standards for most consumer products.

FDA- Food and Drug Administration- FDA- Food and Drug Administration- Requires that the production facilities for Requires that the production facilities for cosmetics, food and drugs be clean.cosmetics, food and drugs be clean.– Also requires that the products be prepared from Also requires that the products be prepared from

ingredients fit for human use or consumption. ingredients fit for human use or consumption.

Connor LisleConnor Lisle

Connor Lisle is a tool.Connor Lisle is a tool.

Connor Lisle has no friends.Connor Lisle has no friends.

Weights and Measures- The Weights and Measures- The government regulates standards for government regulates standards for weights and measurements.weights and measurements.– Gasoline, taxicab meters, grocery store Gasoline, taxicab meters, grocery store

scales, etc.scales, etc.

Unfair trade practice- Any method of Unfair trade practice- Any method of business that is dishonest or business that is dishonest or fraudulent or that illegally limits free fraudulent or that illegally limits free competition.competition.

What is the force that encourages What is the force that encourages efficient businesses to create new efficient businesses to create new and better products and services?and better products and services?

CompetitionCompetition

False and misleading advertising- Intentionally False and misleading advertising- Intentionally deceives, makes untrue claims of quality or deceives, makes untrue claims of quality or effectiveness, or fails to reveal critically important effectiveness, or fails to reveal critically important facts.facts.

– ““Best on the market” “superb quality” and the like are Best on the market” “superb quality” and the like are NOT false and misleading advertising. Such phrases are NOT false and misleading advertising. Such phrases are known as Puffing.known as Puffing.

Bait and switch- Luring customers in by Bait and switch- Luring customers in by advertising a cheap, out-of-stock product, then advertising a cheap, out-of-stock product, then directing the consumer to a more expensive directing the consumer to a more expensive product.product.

Federal Trade Commission (FTC)- Prevents false Federal Trade Commission (FTC)- Prevents false and misleading advertising.and misleading advertising.

Unfair Pricing and Service/Mislabeling Unfair Pricing and Service/Mislabeling goodsgoods

– Buy one get one free and inflating the Buy one get one free and inflating the price of one item is illegal.price of one item is illegal.

– Cigarette packaging must have Cigarette packaging must have warnings on it.warnings on it.

– Poison must have “Danger” on itPoison must have “Danger” on it– Packaging can’t be misleadingPackaging can’t be misleading

Other Unfair Trade PracticesOther Unfair Trade Practices Using brand name or trademark so similar to Using brand name or trademark so similar to

another that it confuses the public.another that it confuses the public.

Sending unordered products and demanding Sending unordered products and demanding payment or return of products.payment or return of products.

Industrial EspionageIndustrial Espionage

Fraudulent internet and telemarketing schemesFraudulent internet and telemarketing schemes

Figuring Financing improperlyFiguring Financing improperly