Blaw Essay

331 words - 2 pages

Ch. 21: Consumer protection
Deceptive advertising
* Are you telling the truth?
* Bait and Switch
* A practice of advertising a product way below market value (good deal) no stock so they run out fast
The Role of the FTC
* Receive complaint
* Issue cause and desist order
* Order counter advertising
* Telephone consumer protection act (enforced by FCC)
* Telemarketing and Consumer Fraud and Abuse Act
* Unsolicited merchandise in mail
* 3-day rule – 3 day cooling off period
* You have 3 days to get your money from a door salesman back ...view middle of the document...

Errors in billing.
Fair Credit Reporting Act
* Notification if denied credit or insurance on the basis of a credit report
* On written request credit agency must
Protection for debtors: The Fair Debt Collections Practices Act
* This law place limits on what the professional debt collector can do when trying to collect money from you
The Sherman Act of 1890: Two major parts
* Sec. 1: restraint of trade
* A. Per se violation
* B. Rule of reason: factors…
* Purpose of agreement
* Power to achieve purpose
* Horizontal restraint
* Price fixing
* Group boycott
* Division of markets
* Trade associations (OK)
* Can’t use that organization to price fix, can’t set your prices
* Vertical restraints (rule of reason)
* Territorial restrictions
* Resale price maintenance agreements
* Sec. 2: monopolization
* Predatory pricing: selling below cost in order to eliminate competition
The Clayton Act of 1914
* Sherman Act broad; Clayton Act deals with specific practices
* Price discrimination
* You can break rule if your selling retailer large quantity
* Exclusionary practices;
* Exclusive dealing contract: buyer of goods prohibited from buying goods of a competitor
* Enforcement and exemptions
* DOJ (prosecuting authority) and FTC

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