chapter 3 consumer protection. know your consumer rights
TRANSCRIPT
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Chapter 3
Consumer Protection
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Know Your Consumer Rights
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Consumer Rights and Responsibilities 3.1
1962, John F. Kennedy Consumer Right = Consumer Responsibility
Right to Safety = Right to be Informed = Right to Choose = Right to Be Heard = Right to Redress = Right to Consumer =
Education Right to a Healthy =
Environment
Use Products Safely Use Information Choose Carefully Express Satisfaction/
Dissatisfaction Seek Redress Be an Educated Consumer
Contribute to a Healthy Environment
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Consumerism
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Government and Consumer Protection 3.2
Governmental Organizations
These organizations were set up by the government to protect consumers
FTC CPSC EPA USDA NHTSA BBB (not a govt. agency) State Attorney General US Post Office
Warranties
Companies promise that the product will meet specific standards, or they will repair, replace, or refund
(Magnuson-Moss Warranty Act)
Full Warranty Limited Warranty Implied Warranty
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Math Activity 3 – Saving Energy & Money
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Formulas to determine if saving energy is saving you money.
Simple Payback – the number of years it takes for the annual savings in energy cost to equal the additional purchase cost of the energy-efficient model. Simple Payback =
Additional purchase price / annual savings in energy cost Ex: The energy-efficient item costs $50 more than the
non energy-efficient item but will save you $26 in energy costs a year, so the simple payback is:
$50 / $26 = 1.9 years That means it will take you about 2 years of savings to
pay off the difference but every year you use the item after that is a savings of $26.
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Formulas to determine if saving energy is saving you money.
Net Savings – The amount you save during the entire life of the product, minus the additional purchase cost
Net Savings = Annual energy cost saving X expected life of the product – additional purchase price
EX: You will save $26 a year for the 11 years you expect to use the item, but it cost an additional $50 for that item
$26 X 11years - $50 = $236 net savings Over the life of the item you will save a total of $236 for
spending $50 now.
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Formulas to determine if saving energy is saving you money.
Rate of Return – The percentage of savings in energy cost.
Rate of Return = annual energy cost savings / additional purchase cost
EX: You will save $26 a year but had to spend $50 to do that. What is your rate of return?
$26 / $50 = 0.52 or 52%
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Math Activity 4 – Entrepreneurship and Profit
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How to find Profit Revenue – The money collected from customers by a
business Expenses – The money businesses spend to stay in
business (materials, payroll, taxes, rent, etc.) Net Profit – The difference between what a business
collected and what the business spent.Net Profit = Revenue - Expenses
Ex: A business collected a total of $8,000 for the month is sales and after adding up all of its expenses came up with a total of $5500, its net profit would be:
$8,000 - $5,500 = $2,500 for the month If the business made that same profit for the quarter, they
would have made:$2,500 X 3months = $7,500
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Reading a Table
Month Income Expenses Profit
January $345,876 $222,987
February $275,900 $150,009
March $399,325 $290,900
April $419,976 $270,356
May $334,654 $190,703
Figuring and Comparing Profit
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Computing Quantities
We know there are 12 months in a year and 365 days in a year.
How many months in 15 years? 15 years X 12 months = 180 months
How many days in 15 years? 15 years X 365 days = 5,475 days
How many years in 3,500 days? 3,500 days / 365 days per year = 9.6 years
How many months in 3,500 days? 9.6 years X 12 months per year = 115.2 months
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Going Out of Business Sale or Scam?
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Deception and Fraud 3.3
Legal but Deceptive Trading Up Sale Price Suggested Retail Price Loss Leader
Illegal and Fraudulent Bait and Switch Pyramid Schemes Telephone Fraud
Protect yourself from deception and fraud by being an alert consumer.
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How to Complain
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Resolve Consumer Problems 3.4
Resolve the Problem The Complaint Process Government Involvement to Help Consumers