Business chapter 15

Most consumer complaints are resolved by

Returning to the place of purchase

The consumer movement

To fight against unfair business practices, consumers united to demand fair treatment from businesses, giving rise to what is known as the consumer movement. (the first 4 rights were created in 1962 under President John F. Kennedy)

Consumer responsibilities

- Be Honest - Be Reasonable - Be Active: Report unethical business practices. - Be Informed: Learn about laws and agencies that protect your rights and how to report a violation. - Be Involved: Be an informed voter, make concerns known to government agencies, and do not unnecessarily waste resources.

Common consumer concerns

- Debt collection - Auto sales/repair/warranties - Home repair/construction - Credit cards - Internet goods and services - Lending and mortgages - Telemarketing

Legal actions available to help consumers

- Mediation/arbitration - Class action suits - Small claims court - Use of a lawyer

Main sources of consumer information

- Product testing organizations - Media sources - Government agencies (FDA) - Business sources - Personal contacts (word of mouth)

Main categories of shopping locations

- Traditional retail stores - Contemporary retail stores - Non-store shopping

Consumer complaint process

1) Contact/return the place of purchase 2) Contact the company headquarters 3) Involve a consumer agency 4) Take legal action.

Decision making steps for making a purchase

1) Identify your needs or wants 2) Know the choices available 3) Determine your desired satisfaction 4) Evaluate alternatives 5) Make the decision

Consumer rights

1) The right to be informed: know about products 2) The right to safety: safety warnings 3) The right to choose: product options 4) The right to be heard: express complaints 5) The right to a remedy 6) The right to consumer education: know about what a company stands for 7) The right to service: working products

A company refused to refund $10 to more than 4,000 customers. This situation might result in the use of

A class action suit

Mediation vs. Arbitration

Mediation: involves the use of a third party who tries to resolve the complaint between the consumer and the business. Arbitration: results in a decision that is legally binding. After hearing both sides and considering evidence, the arbitrator makes a decision.