Asked by Viviana Paola on Jun 04, 2024
Verified
a. What was the common law rule with respect to consumer transactions? How has this rule been changed by recent statutory enactments?
b. Why do you think there were so many consumer protection statutes passed in the last fifty years?
Consumer Transactions
Deals or agreements carried out between sellers and purchasers, specifically involving the acquisition of goods or services for personal, family, or household use.
Statutory Enactments
Laws or legal statutes officially passed and enacted by a legislative body.
Consumer Protection Statutes
Laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.
- Acquire knowledge about the provisions and defenses offered through various consumer protection regulations.
- Elucidate the importance and effects of legislative alterations on consumer finance regulations, with an emphasis on the Dodd-Frank Act.
Verified Answer
b. Students may speculate on this answer. There was for one of the first times in history an organized consumer movement that lobbied for more protection for consumers. With the advent of computers and large multinational companies, situations were arising in which consumers needed more protection in the law than the common law rule provided. The rule of caveat emptor works well and makes sense when sellers are small, local businesses, but it becomes unfair to the consumer buyer when the seller has more bargaining power as is the case today.
Learning Objectives
- Acquire knowledge about the provisions and defenses offered through various consumer protection regulations.
- Elucidate the importance and effects of legislative alterations on consumer finance regulations, with an emphasis on the Dodd-Frank Act.
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