Jentz 11e-IM-Ch44 - Chapter44 Title BusLawSeal.eps Creator...

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Chapter 44 Consumer Law See Separate Lecture Outline System I NTRODUCTION Many federal and state administrative agencies are focused on what has become a vast area of govern- ment regulation—consumer protection.  Consumer transactions broadly include transactions that involve an ex- change of value for the purpose of acquiring goods, services, land, or credit for personal or family use. Federal and state laws protect consumers from unfair trade practices, unsafe products, discriminatory or unreasonable credit requirements, and other problems related to consumer transactions.  This chapter focuses primarily on federal legislation. A DDITIONAL  R ESOURCES A UDIO  & V IDEO  S UPPLEMENTS The following  audio and video supplements  relate to topics discussed in this chapter— 95
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96           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION PowerPoint Slides To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint slides compiled for Chapter 44. Drama of the Law II   Consumer Protection C HAPTER  O UTLINE I. Deceptive Advertising Deceptive advertising is generally defined as advertising that may be interpreted as false or misleading. Deception and half-truths are contrasted with puffing, and examples are provided. A NSWER   TO  V IDEO  Q UESTION  L TR . A Is the auto dealership’s advertisement for the truck in the video deceptive? Why or why not?  Advertising will be deemed  deceptive  if a consumer  would be misled by the  advertising  claim.   Although the advertisement contained information that was true (they had the truck for sale at the listed price), the FTC “Guides Against Bait Advertising,” discussed in the chapter, prohibits advertising a very low price for a particular item that will be unavailable to the consumer.  In this situation, the dealership only had one truck available at that price, a fact stated in very small print that the consumer would not likely see.         A NSWER   TO  V IDEO  Q UESTION  L TR . B Is the advertisement for the truck an offer to which the dealership is bound?   Does it matter if Betty detrimentally relied on the advertisement?  No, an advertisement is generally an invitation to make an offer rather than an offers.  The dealership has not obligated itself in any way to sell the truck to Betty.  Only in rare circumstances—if an advertisement is very specific, for example—will a court interpret an ad to be an offer.  In this situation, the ad is general, and the court will not likely find it to be an offer.  It also
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