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The United States Consumer protection Act

  1. Adequacy of representation is never a requirement while clarifying out a class action.

  2. The economy loss rule is a judicially created rule requires that the claims for economic loss must be brought in tort not contract, as there is no adequate rationale or theoretical explaining that non-user and non-consumers have to be denied recovery against the manufacturer of the defective product. The reason for extending the strict liability doctrine to innocent bystanders is driven by desires to minimize risks of personal injury or property involved.

  3. The prerequisite for the credit card holder does not confirm for a $50or above figure for the transaction to be effected.

  4. The statute of limitation for a breach of a warrant in Texas is 3 years upon written contract.

  5. Under the Texas Deceptive trade practice Act a dog is never recognized as a good.

  6. Caveat emptor means buyer beware

  7. The lodestar method is used to compute damages for the attorneys’ fees

  8. American is not a bureau in US

  9. A debt collector may not call the consumer once tells debt collector that the employer does not allow such calls.

  10. Actual damages does not include pain and suffering

  11. The term ‘upside-down’ implies that the consumer was tricked in buying the house by the seller

  12. Basis of challenging an arbitrator’s decision is by either of this fraud, evident partiality, misconduct and disregarding the law. So none of the listed terms is not the basis required in court.

  13. Charge for goods not received, charge for goods that are defective, charge for more than the contract price, charge bills that ware paid last month are all consider as billing error under the Fair Credit Billing Act.

  14. Voluntary negotiation is not binding unless the parties agree to have the contract binding.

  15. Damage of mental anguish, Attorney’s fees, damage for medical bills and damages for the medical bills are all covered in case breach of a warranty according to the US consumer protection Act.

  16. An attorney suing to collect a debt owned visa will not apply in the Fair debt collection practices Act

  17. The Punitive damages under the Texas deceptive trade practice Act may not be recovered

  18. The Texas deceptive trade practice Act requires notice is sent to the defendant 30 days before the lawsuit is filed.

  19. Credit card Act, Arbitration fairness Act and the Consumer financial protection agency Act are all enacted into laws in US.

  20. The net worth of the defendant is termed to be inappropriate standards of evaluating the punitive damages according to the US constitution.

  1. False. First the age of the son can not allow him to file a lawsuit in case the product fails to meet the warrant or and consumer terms conditions on the purchase contract. But the father can be allowed to file any claims.

  2. True. This way we are able to limit forms of fraud or cheating of people’s identity. The credit card agencies in United States recently conducted data analysis associated to consumer data companies noting that usage of stolen credit cards aimed at obtaining credit or other benefits.

  3. True. The jury role in American courts interprets the laws as given and gives his or her impartial verdict, according to the prescribed Act of legislation.

  4. False. When individual are harmed by an unsafe product they can choose a cause of action. Under the theory of breach of express warranty or any direct relationship they may sue for damages incurred.

  5. False. Debit card unlike the credit card funds are paid by transferring and the customer can withdraw cash along with their purchase.

  6. True. This is one efficient attempt by business to avoid class action exposures. These benefit both consumer and the seller as it prevents consumers from filing individual claims in arbitration.

  7. False. The strict product liability Act 402A points out that in product liability case the claimant in order to recover, must prove that the product was defective when it left the hands of the seller.

  8. False. The law allows for one to order one free copy of credit report from consumer reporting companies every 12 months. However, this information is already in your credit card once the user registered identity.

  9. True. Take for instance wholesalers and retailers make their orders from the dealers or manufacturers. This grants them the right under the consumer law to qualify as customers or users. Specifically if the products bought are used in facilitating trading task.

  10. False. It’s a consumer law addressing various consumer protection issues which may cross the line of good business practices or ethics.

Question B

Harassment or abuse during debt collection

The US consumer law under Fair debt collection practice Act, finds it against the law for debt-collector to engage in any transactional dealings portrays unaccepted natural consequence that are of to harass, dominate or abuse any clients or party in connection with collection of debt . In our case GBH and RGB feel short of respecting this act as address in the consumer law (Minneti, 2011). It is quit evident that actions taken by both debt collecting firms were of abuse and personal harassment as they are responsible for damages incurred partly leading the buyer to be hospitalized. Part of the harassment or personal abuse may include

  1. Use of threats violence or any other illegal means to harm the physical person, status or property of any individual.

  2. Use of wicked language with a usual consequence of abusing the hearer or reader.

  3. Making a publication of a list of consumers who refused to pay debts, except to consumer reporting agency or individual customers who meet claims of section 603 (f).

Damages and liability claims

Except as otherwise offered by this segment any debt collector whose practice does not meet or act in accordance with to the provision as demanded in this consumer acts with value to any entity is legally responsible to pay damages that are equivalent to sum value equal to the damage incurred, this may include

  1. The tangible damage sustained by the individual that resulted from such failure

  2. For any action taken to the defendant additional damages as the court decide allowing damages compensation which does not exceeding $1,000.

  3. For a class action the amount for each identified plaintiff can be recovered and is established by the liability of any action as the court determines other factors that seem relevant to the case claims.

According to Minneti (2011) claims, it is normal that people take out hire purchase or conditional sale when purchasing a furniture or electronics. A hire purchase agreement is a debt, in this arrangement the creditor don’t own the goods until the debt is settled. Until this payment is fully made, the goods belong to the seller where they were bought from. A credit arrangement terns to be of problem to both borrower and the credit giver, the US consumer law has given mended the courts to help parties in the credit arrangement. If the borrower is in position to pay back the debt in reasonable installments, the court confirms the creditor to keep the goods.

How HP differ from ordinary Credit

Hire purchase agreement has different terms compared to the ordinary credit arrangement. With a HP agreement there are certain rules which apply this include

  1. Goods under this arrangement can not be sold off by the buyer until the credit balance is settled

  2. Creditors can ask for return of goods if the buyer does not make regular payments

The ordinary credit arrangement the buyer enjoys the following terms

  1. Owns goods and can make a sell of the goods on credit

  2. Can be asked by the seller to pay for the goods and not return back the goods. In determining all these agreement paperwork tells what kind of agreement the parties choose to be involved in.

Falling behind the Credit Payment

If the borrower falls behind contract payment, creditor may ask the borrower to have the goods returned. However, in a case were more than a third of the debt is paid. The creditor only needs a court order when they want to move goods from the borrowers’ property. This can not apply to public places for instance, with an agreement on a car; a creditor can remove it from the street without a court order (Minneti, 2011).

There are proper procedures that have to be followed for goods on credit to be returned. For a case were the buyers have paid more than a third of the valued debt, the creditor is expected to get a return order from the court which forces the buyer to have bought items returned (Minneti, 2011). This only takes place after a court hearing, but before the court hearing the court send a claim form which requires and grants you the chance as the buyer to returns the goods on personally. The court will also send an admission form to the buyer, on this buyer is expected to:

  1. Explain her financial situation

  2. Make a new offer of monthly payments to the creditor

The admission form has to be taken back to the relevant court within 14 days. The court will then talk to the creditor to see if they may accept the buyers new terms. If they do accept, the hearing will be cancelled on the other hand if they don’t approve of the changes, or the buyer fail to return the form, the hearing as scheduled goes ahead. The decision will be handed to the court in deciding whether or not to enforce the return order or suspend it. In this arrangement, there will an enforcement if the buyer misses on paying another payment later on. Similarly, if the buyer is allowed to keep the goods the court plays the role of setting new monthly payment, where the buyer fails to attend the hearing, the judge usually will grant the return order (Minneti, 2011).

How to end credit agreement

This is well achieved when the buyer hands back goods. It is very important to have the creditor informed in writing that you are terminating and ending your agreement. If this process is not considered, the creditor will treat this as a voluntary termination and the buyer will not benefit from the 50% limit on the buyer’s total liability. It remains important that a copy of this letter involving termination is kept in case proof may be needed there after (Minneti, 2011). The agreement paperwork will give details of any special conditions the creditor has for ending an agreement.

Question C

Pros and cons of Consumer laws of enforcement methods regulation

There several law enforcement measures that have been put in place. For instance, the DMCA was designed to strike a balance that is needed as per the regular customers or clients and those of the producers or original developers of the ideas. The main concern for the issues in this sector is control over piracy or ultimate reduction of piracy (Minneti, 2011). The law has been in place for almost a decade and piracy has not been wiped out neither by many imposed measures it has never been reduced to the desired standards. On the contrary, achievement or collapse of this protective act entirely depends on these involved in the whole process of achieving reduction of this practice across our societies. Most generated debates have pointed out consumers to be the main obstacle in achieving the required measure in implementing the Act. Hence, both sides are based on the clients’ decisions and there involvement in reduced and ultimately controls piracy. There are tough arguments that exist from both sides. On the contrary, they both agree there have been involuntary penalty to the requirements of the DMCA.


Regardless of the voiced resistance over piracy, disagreement and the fear-mongering, DMCA have no considerable support and this is not only from the business venture in this industry and entertainment world but also amongst real stake holders in the industry such singers, comedian among other performer. Their elaborative attitude against this practice, concern the copyright law which is developed to improve incentives to the performer and musical group in creating an original content. According to the claims by Minneti (2011) the group concerns identifies research limitations as an requirement essentially in doling with this evil in shielding intellectual possessions in this digital age, just as law opponents see difficulty in enforcing cerebral property rights as crucial requirement for protecting freedom of expression. The concentration of the media business has contributed greatly to the power Media business has to influence government changes in enforcing the copyright law and duration.

There other popular demands in the legalization of global trade, on this the DMCA appeals for common sense idea. That is wrong to break through the locks to digital content and technological devices allowing this have to be outlawed. According to the claims behind all these certify that that it is not only wrong for the economy but also responsible for billions of dollars lost in revenue. There pros and corns associated with regulating consumer laws in attempt to effectively and efficiently monitor debt collection terms and treatment of parties involved, reduce unfair deceptive act and practice and over how these laws can be enforced (Minneti, 2011) .

  1. Authority where competitions for both laws are fictional, avoidance of the unnecessary clashes that may delay implementation of any law enforcement is highly welcomed. As it allows for institution to make a balanced view by initiating consensus of other law. In so doing a cost saving measure is achieved as it limits dependency on the national budget.

  2. For separate bodies, the law set up allows each institution to handle issues for which is best empowered. This allows for specifications for the authority that further allows for extensive coverage of all issues dealt with in the consumer law, as much focus is driven on consumer law other than completion law.

  3. It generates concerns that allow for flexibility in both implementation and enactment of the consumer law, as it gives the consumer authority and freedom to act independently as opposed to the completion authority.

  4. Coordinating with the line ministries becomes much easier, as accountability to the ministry also creates possible lower variances of objectives and the vested interests.

  1. Law enforcement technical agencies in handling complex issues

  2. Challenges in the passing the laws into function as comprehensive laws which cover both issues without necessarily appearing on board.

  3. Most of these results in separate bodies makes decisions that negatively affects the interests of other party for instance, the consumer authority making decisions the are negative thus affecting firms and completion.

  4. Some of the Acts are costly in implementing them as two bodies with a varied budgetary allocation requirement are part of the issues to cater for in fulfilling the required enforcement procedure.

Consumer protection has been an important objective global aspect. The focus has since been improved and the rights of the consumers through out the globe appear to have shifted towards ways of enforcing such rights (Minneti, 2011). The US law makers for instance appear to be looking at the sector of competition and consumer protection. The commission goes to great length avoiding the term class actions referring only to the somewhat mystifying term collective redress. In this context know offenders are seriously expected to see the jury trials and punitive damages in Europe, the collective redress as envisaged by the European commission would incorporate a number of important elements from the US system of class actions that are currently unknown to many European countries. These include discovery methods for establishing evidence, which raises questions of who benefits from such actions in opt-in or opt-out mechanisms for instance, the introduction of contingency fees dabbed ‘no win no fee’ and to whether the losing party has to beer the cost of the proceedings and the opponent’s costs.

Question 3

Rico as a civil suit option for the consumers in 1970, the US legislative body approved into law the Racketeer influenced and corruption organization Act (RICO), purposefully in addressing reeducation of the organization misdeed of this nature in the United States. This was achieved through improving the legal practices and measure used in the evidence gather and presentation process through set up new strict prohibitions and providing enhanced suctions and new remedies dealing with unlawful activities of those engaged in organized crime. The most common causes of action asserted in a case involves defective products are warranty, negligence and product liability. A sale of goods may involve express implied warranties (Minneti, 2011). Negligence is established through proving a duty, breach of that duty and ultimately causing damages. The guidelines on strict product liability are incorporated into section 402A of the American Consumer law. In these Act it is considered that one who sells any product in a defective condition which is unreasonably decorous to the user or consumer or either of his property is subject to liability for physical damage incurred by the user or his or her property if it meets the following terms

  1. The business is engaged in selling such items or products

  2. The products do not reach the consumer in the right conditions expected or any substantial changes in the contract agreement

These set of laws apply, although the selling business has to exercise all possible requirements in the manufacturing and selling of his product before the end user purchase the product from or attempts to enter into any contractual relation with the selling entity.

Liability of the seller and the damage awarded

Here we get to establish when Ford Company is liable, under section 402A. While establishing to what damages is the plaintiff entitled and how this differ from liability for breach of warrant. There enacted legislation Acts that governs this form of seller customer arrangement which basically dictates on how the rules should be applied.

  1. In the section Act segment 402A of the US consumer Act the section states allows for a special regulation that is applicable to the vendor supplying these products. The law is strict on legal responsibility, making the sellers accountable to the consumer even though he has exercised all the achievable care in preparing and making a sale of the item for consumption. This is one requirement inserted in the section law that deals with laxity in delivery of the quality desired from the manufacturers, for convenience and when referred to other relevant law section on this matter on negligence. The regulations requirements stated on this case are not limited and there for it does not disqualify legal responsibility based upon the alternative grounds of negligence of the supplier were such negligence acts can be confirmed.

Business committed in selling product

The requirement regulation in this section applies to any individual or firm involved in business of supplying products for consumption. It there for, applies to any producer or maker of such product. However, the business regulation rules only apply to an irregular seller whose products are partly or as a whole are regarded as part of these businesses. The requirements under this rule based on special responsibility for safety standards of the public which is taken care of by the one entering into product supply business for human consumption and especially those products that may harm or reduce consumers’ safety and that of their property.

In reviewing the elements of this consumer safety Act, it is fundamental to consider the prerequisite conditions available for the liability. For instance the plaintiff must establish that there damages ware proximately caused by the characteristic of the product that renders it unreasonably anticipated use of the car supplied from Ford Company. The petitioners in this case have to hold on to the negligence theory and rely on strict liability in tort. The error is granted to the defendant Ford motor Company in decorously manufacturing car products that ware way below the required user standards. There are enough claims in support of this lawsuit and that the defective conditions of the car are existed in many models as reported by many users of the company product. This is said to be responsible for damages caused to the company product consumers and the liability lies well in the hands of the manufacturers.

In resolving this question, we first examine the privity provision of the Texas version of the uniformed commercial code and provisions on the states that refuses recovery per personal injuries in breach of the code (Minneti, 2011).

The uniform commercial code as enacted by the Texas legislation remains neutral on the requirement of privity. The code specifically is designed to govern commercial transactions between parties in privity, and personal injuries recovery has to be construed narrowly. The forum state legislature in its enactment, section 2-318 alternative A of this code rejects the broader provisions of alternative B and C, there by evincing legislative intent to have limits on specific class of claimants (Minneti 2011). However, there are rules that way beyond the Texas code providing remedy for the parties suffered personal injuries. The Court of Civil Appeals, on this reasons that the code is drafted only with intension of governing relations between immediate buyers and the sellers, the factor which remains relevant to the decisions essentially are based on rejecting the privity as a requirement in actions based on strict liability in tort. The reason for increased liability is designed to minimize risks of personal injury or property damage. In this law a manufacturer who places in commerce a product renders danger to life by reasons of some defect is strictly liable.


Minneti, J. J. (2011). An overview of the United States Legal System. Journal of the US Consumer protection laws.