Chapter 24 Flashcards
What are the goals of consumer protection laws?
To protect consumers in contracts for the purchase, unfair selling and marketing practices, and from physical harm and injury
What are Unfair Practices?
Illegal business practice that exploit the unequal bargaining position of consumers. Eg. When business intentionally targets customers with physical infirmity, ignorance, inability to understand the language or the agreement
What is False or Misleading Representation?
Promotional statement made to a consumer that is false, deceptive or misleading. Eg. goods that are endorsed or sponsored when they aren’t, goods are new but they are used.
Who is a Consumer?
Individual who purchases goods primarily for personal, domestic or household purposes, businesses CANT be consumers
What business practices are controlled and regulated by the Consumers Protection Act?
Door to door sales, Time shares, Fitness clubs, Used cars, Multi-level marketing, Debt collection
What is the goal of competition law?
Promote fair, competitive and efficient marketplace, Strengthen businesses’ ability to adapt and compete in global markets, give small and medium sized businesses the ability to compete, and to provide consumers with competitive prices, product choices and info need to make informed buying decisions
What is Due Diligence?
What a reasonable person would have done in a similar circumstance
What does the Competition Act do?
Restricts mergers and acquisitions, Prohibits anti-competitive practices, Prohibits false/misleading claims, provides reviewable illegal practice
What are Anti-Competitive Practices?
Price Fixing(conspiring w/competitors to fix the price charged), Bid Rigging(suppliers conspire to fix the bidding process in a manner that suits their collective need), Abuse of dominant position(anti competitive acts by a dominant company to prevent/lessen competition, Predatory pricing, Refusal to supply(cutting them off from a facility, product supply, or market.), Tied selling(only sell if consumer but other, less desirable goods too), and Fake prices(mislead about the ordinary price of a product)
