LAW 525 Lecture Notes - Lecture 1: Market Failure, Risk Management, Small Claims Court
19 Nov 2017
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Document Summary
When the purchase is made, there will be a warrantee. If product doesn"t work a certain way according to the law think that it is the law. So legislation tends to help/tip to the consumer"s side to balance it out (in the legislation, if there is any ambiguity in a contract, it will be interrupted in favor of the consumers) Legislations are put in place due to the lacking in tort and contract laws. Basic framework for market transactions arise from: contract law voluntary obligations between parties, tort laws obligations imposed by the common law (ie. courts) If there is only one provider, they can easily jack up the price and provide bad service/products, it gives no choices for the customers. Customers can"t go anywhere else: can occur when there are negative externalities and information failures occur. Tobacco if you want to sell this, you must have giant labels.
