Name______Date______Class______

Lesson 14-1 Protection through Governmental Action

Lesson 14-1 Outline

I.Governmental Protection in Today’s Marketplace

A.Consumer Caveats

B.Class Actions

C.Governmental Procedure

II.Protection Against Inferior Services and Goods

A.Licensing

B. Unsafe Products

1.Adulterated Food, Drugs, and Cosmetics

2.Improper Weights and Measures

III.Protections Against Unfair Trade Practices

A.Agreements to Control or Fix prices

B.False and Misleading Advertising

C.Illegal Lotteries and Confidence Games

D.Unfair Pricing and Service

E.Mislabeled Goods

F.Other Unfair Trade Practices

Lesson 14-1 Review

Vocabulary Review

Define the following vocabulary terms.

1.consumer

2.caveat emptor

3.caveat venditor

4. class actions

5.cease-and-desist order

6.consent order

7.restitution

8.unfair trade practice

9.bait and switch

Concept Review

10.How has government acted to protect consumers?

11.Explain the purpose of the 1972 Consumer Product Safety Act.

12.Name three federal agencies that help protect against substandard goods and briefly describe what they do.

13. Why is price fixing considered an unfair trade practice?

Goals Review

14.Why is there a need for governmental involvement in the marketplace?

15.What are the protections against substandard goods?

16.What are the unfair trade practices addressed by government?

Name______Date______Class______

Lesson 14-2 Protection through Action by the Consumer

Lesson 14-2 Outline

I.What is Product Liability?

  1. Expansion of Product Liability

1. Privity of Contract

2. Recovering Damages

II.How Important Are Warranties?

A.Requirements of Express Warranties

B. Opinions v. Warranties

C. Express Warranties Made by All Sellers

D. Implied Warranties Given by All Sellers

1. Warranty of Title

2. Warranty Against Encumbrances

3. Warranty of Fitness For a Particular Purpose

E. Implied Warranties Given Only by Merchants

1. Warranty Against Infringement

2. Warranty of Merchantability

F. Exclusion of Warranties

G. Lemon Laws

Lesson 14-2 Review

Vocabulary Review

Define the following vocabulary terms.

1.product liability

2.warranty

3.privity of contract

4.express warranty

5.full warranty

6.limited warranty

7.puffing

8.implied warranty

9.encumbrances

10.warranty of merchantability

11.disclaimer

Concept Review

12.What may product liability suits be based on?

13. Give an example in which there would be no liability even though an injury was suffered.

14.What information must be included in a written warranty?

Goals Review

15.What is the protection afforded consumers by the law of product liability?

16.What are the various warranties that may apply to a sales transaction?

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Chapter 14 Consumer Protection