Transcript Sales and Consumer Issues Objective 9.01 Interpret sales

Warm Up
• What is the UCC?
• Download 9.01 Part D Notes
Sales and Consumer Issues
Objective 09.01
Part D
Interpret sales contracts and warranties
within the rights and law of consumers.
REGULATION OF SALES
Regulation of Sales
•
Uniform Sales Act of 1906
– Revised to become the current Uniform
Commercial Code
•
Uniform Commercial Code (UCC) 1952
– Article 2 regulates sales
– Article 3 regulates negotiable Instruments
Purpose of UCC
• Combine laws of trade from all
states
• Simplify, clarify and modernize laws
• Expand and encourage commerce
across state lines
• Enable consumers to apply a
uniform sales law when they travel
across state lines** except Louisiana
Regulation of Sales
• Applies to :
– Sale of goods valued over $500
• Requires:
– Contract be in writing
– Contract meet all requirements of writing
Regulation of Sales in
the US Constitution
• Commerce Clause of Constitution
– Article 2, Section 8, [3]
– Federal government derives its power to regulate
business from the Commerce Clause
– Congress has the power to regulate commerce
“among the several states”
– Federal government regulates any business that
affects “interstate commerce”
– Federal powers broadened in 1900s by Supreme
Court rulings
– Many federal regulatory acts and agencies enforce
the statutory and administrative laws created to
protect consumers
Interstate Commerce
Commission (ICC)
• Regulates trade (commerce) between
states in US
• Determines trade practices, rates and
routes for business crossing between state
lines
• Affects all states who have adopted the
laws of the Uniform Commerical Code
Federal Trade Commission (FTC)
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Prohibits deceptive and unfair trade
practices among businesses
Key concept: FAIR PRACTICES
Very broad act that created numerous
laws and agencies to regulate special
areas
Antitrust Laws
•
Purpose:
– To foster competition and fair trade
– To eliminate restraint of trade caused by
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Monopolies
Price fixing
Price discrimination
– Are all monopolies a bad thing for
consumers?
– Why are some monopolies, such as utility
companies, legal?
Antitrust Acts
• Sherman Antitrust Act of 1890
– First antitrust law
– Evolved from the “Robber Baron” historical period
• Clayton Antitrust Act of 1914
– Clarifies laws on monopolies, fair trade, price fixing
and price discrimination
• Robinson-Patman Act of 1936
– Protects small businesses from price discrimination
United States Postal Service
(USPS)
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Established to provide a federal system
of mail
Protects consumers from mail fraud with
federal USPS regulations
Federal Communications
Commission
• Licenses and regulates the operation of
airwaves that are utilized in:
– Television
– Radio
– Telephone
– Telegraph
International Law-Regulation of
Sales
Contracts for International Sale of Goods (CISG)
A United Nations (UN) agreement
PURPOSES:
1. To develop international trade
2. To remove legal barriers that limit trade between
countries
3. To promote friendly business relations between
countries
Governs contract formation and the rights and
obligations of the buyers and sellers.
International Law-NAFTA
• North American Free Trade Agreement
– Purpose: to reduce trade barriers and
encourage free trade between countries in
North America and to stimulate economic
growth
– Agreement between:
• United States
• Canada
• Mexico
International Law
The European Union (EU)
• An economic coalition of Western
European Countries
• Purpose: to reduce barriers to commerce
and stimulate economic growth among the
member nations
European Union Actions
• Established a common monetary unit – the
Euro- in Western European countries to reduce
the barrier of exchange rates and multiple
currencies
• Reduced tariffs between member nations to
encourage commerce
• Modified commercial laws to simplify trade
among member nations