Victims of unsafe products can sue manufacturer in

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Victims of unsafe products can sue manufacturer in tort (i.e. product liability) but must prove fault Can sue seller under contract law only if they purchased the product themselves (i.e. privity of contract applies) 15 - 24
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Unacceptable Business Practices Consumer protection legislation controls False or exaggerated claims The investigation of complaints Unconscionable transactions Legislation allows courts to interfere when unequal bargaining power is abusive 15 - 25
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Loan Transactions Consumer protection legislation Prohibits excessive rates of interest Requires that the true cost of borrowing be disclosed Prohibits misleading information in advertisements Requires moneylenders to be registered Controls credit reporting bodies 15 - 26
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In-class Exercise Get into groups Use a laptop or smartphone to find out what the true lending rates of payday loan companies are Investigate what types of claims they make and find out if they are clear about what regulates their business and what their terms and conditions are Examples of payday loan companies: Cash Money, Money Mart, Moneytree, Zippycash, DollarsDirect, Easyfinancial, etc. 15 - 27
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Debt –Collection Processes Legislation requires that debt-collection agencies be registered and licensed Some practices regulated Some jurisdictions allow civil suits against abusive debt collectors 15 - 28
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Bills of Exchange Act Act summarizes common law principles with regard to negotiable instruments Common law principles still apply Federal jurisdiction Negotiable instruments are: order where one person pays funds to another promise that funds will be paid out to another at some future date Note: an IOU is not a negotiable instrument unless it is designated payable on a certain date 15 - 29
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Negotiable Instruments Promissory Notes : maker promises to pay the amount stated Used for granting credit May bear interest and be paid by instalments Cheque : a bill of exchange drawn on a bank and payable on demand Primary purpose is the exchange of funds Certified Cheque : Stop payment cannot be placed on it if certified by a bank at the request of the payee 15 - 30
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HOMEWORK READ Chapter 15 Complete the chapter review questions 15 - 31
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