Consumer and Housing law

Contracts – Chapter 22

Piotrowski

Bell-ringer

• Correct the sentence and fill in the blanks with two of the words below so that the statement is true.

–consumer–caveat–offer–acceptance

What is a consumer?

• A person who buys goods or services from a seller.

• In the Past-- “caveat emptor” :

•Buyer beware!

What did this force people to do?

• Look out

• Be aware

• Do homework

• Do research

• Look into background of seller

• Ask for opinions of others

Craig’s List

www.craigslist.com

A website designed for people to come together to buy, sell, barter, get

information…etc.

Buyer Beware!

Law is more balanced today!

• Consumers have right to be be correctly informed.– Quality– Price– Credit

Consumers have responsibility to be fair and honest.

Contracts

• What is a contract?

• It is an agreement between two or more persons to exchange something of value.

• Legally binding

• Failure to meet agreement – breach of contract

Elements of a Contract

• A legal contract contains:– Offer by one party (directly)– Acceptance by another (certain actions)– Consideration (something of value is exchanged)

– You order food at a restaurant (offer)– They begin cooking (acceptance)– Money for a burger (consideration)

Value?

• The law says nothing about whether the items are of equal value…

• Good deals and bad deals are not protected. (with exceptions: gouging)

• People entering contracts must be legally competent to make a deal.

• Does not include illegal activity.• $4.50 for a Coke at the beach on a

Summer Day.

Legal Contract?

• Adam says to Basil, I’m going to sell my car for $500.00.

• Basil replies, “All right, here is the money, I’ll take it.”

Legal Contract?

• You tell a friend you will give her $10.00 if she walks across an old wooden bridge. She says nothing, but starts walking across the bridge.

Legal Contract?

• A friend offers you $100.00 to steal some books from a library. You do it, and seek your friend out for the money.