LAW 525 Chapter Notes - Chapter 1: Lawn Darts, Market Failure, Small Claims Court
Document Summary
Can occur when consumers purchase products unware of the hazards and risk that may result from the consumption or use of those products: products are manufactured, sales practices, advertising campaigns are developed. Actual transaction phase: terms and conditions and warranties and guarantees are stipulated, sales and purchases are made, consumer information is collected, and credit arrangements are made (privacy issues - information online, purchase of something = must have consent. Post-transaction phase: redress (ex: remedies for broken products, etc. , consumer information is used/exchanged with third parties, and loan payments are collected. Free market: a market economy where buyers and seller are allowed to transact freely (buy, sell, and trade) based on a mutual agreement on price without state intervention (e. g. , taxes, subsidies or regulation) Market failure: market failures occurs when goods and services are not distributed efficiently, from a consumer (and public policy) perspective, this is problematic when market failures detract from meaningful consumer choice about goods.
