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Unformatted text preview: C HAPTER 23 S ALES & M ARKETING : T HE C ONTRACT , P RODUCT , & P ROMOTION Objectives After studying this chapter, you should have an understanding of: • the scope of marketing law • the legal obligations associated with the product component of marketing • the legal obligations associated with the promotion component of marketing Learning Outcomes • Understand how the marketing campaign is subject to marketing law (page 567) • Understand the voluntary and prescribed rules relating to product design and manufacture (page 579) • Understand the terms in every sale of goods contract that are implied under the Sale of Goods Act (page 571) • Understand the implications of the distinction between a breach of an implied condition and a breach of an implied warranty (page 572) • Understand the purpose and requirements of the Consumer Packaging and Labelling Act (page 580) • Understand the power of the Competition Bureau to sanction misleading advertising (page 583) • Understand which selling practices are prohibited and which are controlled (page 584) Chapter Summary An effective marketing campaign cannot lose sight of the regulations controlling the manufacture of the product, its packaging, and its promotion. The many regulations in these fields are designed to foster competition, protect consumers from dangerous or poorly designed products, provide information to consumers to help them make an informed choice, and protect the consumer from unfair advertising. The contract relating to the purchase of the product is modified by legislation to protect consumers, by implying certain terms that the manufacturer or retailer may not otherwise have included in the contract. Powerful remedies are available to the consumer for breach of these implied terms. Regulations relate not just to the sale of the product itself, but also to the way it is packaged and the information required on the label. The manner in which the product is promoted comes under close scrutiny by the Competition Bureau. A marketing campaign should be drafted in compliance with the risk management plan. © 2008 BY N ELSON , A DIVISION OF T HOMSON C ANADA L TD . PART 7: SALES AND MARKETING Study Outline Use this outline to prepare a complete set of notes for this chapter. Marketing Law – page 567 _______________________________________________________________________ _______________________________________________________________________ Contract of Sale – page 568 __________________________________________________________________________ ______________________________________________________________________ Sale of Goods Act_________________________________________________________ Breach of condition____________________________________________________ Breach of warranty_____________________________________________________ Consumer Protection Legislation_____________________________________________ Transfer of title _______________________________________________________...
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