1、Chapter 1 Consumer ProtectionYu LingLaw School of JUFELearning Objectivesl(1)Explain the concept of consumer the essentials of a consumerl(2)Describe the rights of consumer,comparing the obligations of business operatorsl(3)Analyze how should we protect consumer?l(4)Expound a consumer to enforce his
2、 legal rightsContentsConsumerObligations of Business OperatorsSettlement of Disputes The Basic Theory Of Consumer Protection513412Syllabus uCompetition law claims to seek benefits for consumers,but consumers often have little voice in shaping the law.uWhy?Competition Laws Dilemma What happeningWhat
3、happening Inferior milk powder Kentucky Fried Chicken with Sudan Red 1Food made by dirty oil fake Toxic food1.Consumer 1.1 Definition Consumer is a person who pursues purchasing and using commodities or receiving services for daily consumption.1.2 Catalogue of consumers Consumers are:Purchasers of c
4、ommodities Users of commodities Receivers of servicesconsumerpurchasersusersreceivers of servicesWho is a consumer?Question My mother bought a bottle of Coca-Cola from a supermarket.My father,my sister,my brother and Yaoming all enjoyed it.But only Yao suffered from upset stomach after drinking it.a
5、)Who among these people are consumers?Why?b)Does the person who doesnt pay for the commodity qualify as a consumer?c)Does the person who isnt injured by the commodity have the same rights as someone who is?2.Rights of ConsumersRight to securityRight to knowRight to choose Right to a fair deal Right
6、to demand compensation Right to form public organizations Right to acquire knowledge Right to be respected Right to exercise supervision 2.1 Right to security Consumers shall,in their purchasing and using of commodities or receiving services,enjoy the right of the inviolability of their personal saf
7、ety and safety of property.Consumers shall have the right to demand business operators to supply commodities and services up to the requirements of personal and property safety.Question Two ladies(Miss A and Miss B)were dining in the same restaurant.They fell into conflict to get the only vacant tab
8、le.Miss A called her friends for help.They hurried to the restaurant.After beating Miss B too badly,they run away.Without information of these men and Miss A,can Miss B sue for damages?Who is the defendant?QuestionnaireStudents do the questionnaire by raising their hands.1.How many of you have bough
9、t apples by yourself?2.How many of you have bought an apple with a label?3.How many of you find the label is to hide the flaws?4.What do you think it is right to do that by fruit vendors?5.Which kind of right is injured?2.2 Right to know Article 8 Consumers shall enjoy the right to obtain true infor
10、mation of the commodities they purchase and use or the services they receive.The essentials of TRUE:Objective Entire RealContents including:Prices Origin Manufacturers Usage Functions Standards Grades Main ingredientslDate of production lTerms of validity lCertificates of inspection lOperation instr
11、uctions lAfter-sale services lInformation relating to contents,standards and cost of servicesSyllabus Case Study A Piece of News P：Dong Yanbin,a Ph.D student at CUPLE D:SARFT (the State Administration of Radio Film and Television)the cinema F:Lust,Caution was been cut so much that he couldnt underst
12、and what the film wanted to say.Reason of action:The D infringed upon Ps consumer rights(Right to know and fair deal)Claim:apologies and 500 Yuan in psychological damagesVoice from P I felt greatly disappointed after seeing the movie.Compared to Eileen Changs original,the incomplete structure of Lus
13、t,Caution makes it hard for the audience to appreciate the movies art,Syllabus Case Study:Ill-fated Carrefour Fact Chongqing price control department preliminarily identified that a Carrefour shop in Chongqing conducted under false pretenses in sales promotion.Some goods that were sold at the normal
14、 price in the shop were labeled“discount”.The consumers werent aware of it.The price control department said that they are collecting some proofs and the shop will be fined between 20,000-200,000 Yuan as soon as the shops false pretenses are verified.Questions How do Carrefour shops cheat consumers?
15、What is the secret in Carrefours price label?Goods that were sold at the normal prices were labeled“discounted price”.The labeled price is different from the actual price.2.3 Right to choose Consumers shall enjoy the right of free choice of commodities or services.The right to choose includes:to cho
16、ose from which business operators to get commodities or services from to choose among varieties of articles or forms of services to buy or not to buy any kind of commodities,or to accept or not to accept any item of services to make comparisons,differentiations and selectionsQuestionnaireWhen you ar
17、e wondering to buy a mobile phone,please list the choosing procedure and the content.1.To buy or not to buy?2.Where to buy?3.What kind of mobile phone?4.To buy a bare mobile phone or a pricing package?Syllabus Class DebateWhether the corkage fee should be charged?A corkage fee is a charge imposed on
18、 the customers who bring their own drinks into a restaurant for consumption.32 Pros:Business operators have the right to free operation.Cons:It violates the consumers right to choose and right to a fair deal.1.When business operators rights conflicts with consumers rights,which one will prevail?2.Ho
19、w can business operators enjoy their right to free operation?Divergent Questions Consumer protection laws always pay more attention to consumers rights.But it doesnt mean business operators cannot enjoy their own rights.According to Chinese legislation,they also can enjoy it.35 Business operators sh
20、ould abide by the following two principles:(1)Notify consumers clearly before their consumptions.(2)Charge a reasonable fee.The actual cost of the corkage fee may vary depending on the location of the restaurants,the price of the drinks and so on.Red wine￥50 Corkage fee￥100362.4 Right of fair deal A
21、rticle 10 Consumers shall enjoy the right of fair deal.Consumers shall,in their purchasing commodities or receiving services,have the right to obtain fair deal prerequisites such as guarantee of quality,reasonable prices and correct measurement,and have the right to refuse any compulsory transaction
22、 of business operators.2.4 Right of fair deal Detailed rights are:to obtain fair deal prerequisites such as guarantee of qualityto obtain reasonable pricesto obtain correct measurementto refuse any compulsory transaction of business operators2.5 Right to demand compensations Lets suppose Mary bought
23、 a box of Mooncake from a store for a special discount and got some ice-cream as a bonus.Her husband Mike and their 4 kids all enjoyed it.But only Mike suffered from an upset stomach after eating it.Mike spent 2000 and 3 days in the hospital.Questions:(1)Can Mike get compensation for his suffering?(
24、2)Who should be responsible for the medical fees and lost wages?A.The store B.The manufacturer C.Both of them(3)What types of compensation are available to Mike?(4)What must Mike do to get his compensation?(5)Can the store and/or the manufacturer use“The ice-cream was free,so we have no legal respon
25、sibility”as a defense?1.Who?(1)Who are eligible for compensations?(2)From whom can consumers get compensation?2.What type of compensation is possible?3.How to get the compensation?Right to demand compensations 2.5.1 Eligible parties Eligible parties are consumers who suffered from personal injury or
26、 property damages as a result of their purchasing or using of commodities,or receiving of services.2.5.2 Responsible Parties Liability for a product defect could rest with any party in the products chain of distribution.These are:The manufacturer,wholesalers,retail sellers or any party who assembles
27、 or installs the product.For product liability to occur,at some point the product must have been sold in the marketplace.Thus,someone who sells a product at a garage sale would probably not be liable in a product liability action.2.5.3 What is the compensation?circumstancecompensation includesGenera
28、l casemedical and nursing expenses;lost wagesWhen physical disability is causedassistance tools;living subsidies;disability compensation funds;living expenses to cover the dependents of the disabledIf there is a fraudthe consumers can ask for punitive damages,which is three times(3x)the price of the
29、 commodity purchased or the fee for the service received by the consumer;or 500 yuanGenerally speaking,compensation reflect the amount of actual damages.Liebeck v.McDonalds Restaurants,P.T.S.,Inc.,No.D-202 CV-93-02419,1995 WL 360309(Bernalillo County,N.M.Dist.Ct.Aug.18,1994)P:Stella Liebeck D:McDona
30、lds Restaurants F:P,a 79-year-old woman who suffered third-degree burns when she accidentally spilled hot coffee in her lap after purchasing it from a McDonalds restaurant.P was hospitalized for eight days while she underwent skin grafting,followed by two years of medical treatment.Liebeck v.McDonal
31、ds Restaurants,P.T.S.,Inc.,No.D-202 CV-93-02419,1995 WL 360309(Bernalillo County,N.M.Dist.Ct.Aug.18,1994)Ps attorneys argued that at 180190 F(8288 C)McDonalds coffee was defective,claiming it was too hot and more likely to cause serious injury than coffee served at any other establishment.McDonalds
32、had refused several prior opportunities to settle for less than what the jury ultimately awarded.Liebeck v.McDonalds Restaurants,P.T.S.,Inc.,No.D-202 CV-93-02419,1995 WL 360309(Bernalillo County,N.M.Dist.Ct.Aug.18,1994)Decision:A twelve-person jury reached its verdict on August 18,1994.Applying the
33、principles of comparative negligence,the jury found that McDonalds was 80%responsible for the incident and Liebeck was 20%at fault.Though there was a warning on the coffee cup,the jury decided that the warning was neither large enough nor sufficient.They awarded Liebeck US$200,000 in compensatory da
34、mages,which was then reduced by 20%to$160,000.They awarded her$2.7 million in punitive damages.Liebeck v.McDonalds Restaurants,P.T.S.,Inc.,No.D-202 CV-93-02419,1995 WL 360309(Bernalillo County,N.M.Dist.Ct.Aug.18,1994)The trial judge reduced the final verdict to$640,000,and the parties settled for a
35、confidential amount before an appeal was decided.How to commend?uIts unusual.uThe case is considered by some to be an example of frivolous litigation.ABC News called the case the poster child of excessive lawsuits.u“Stella Awards”:to give awards to people who filed outrageous and frivolous lawsuits.
36、2.6 Right to form public organizations Article 12 Consumers shall have the right to form public organizations for the maintenance of their own legitimate rights and interests according to law.2.7 Right to acquire knowledge The knowledge concerning:consumption protection of consumer rights and intere
37、sts Consumers should make efforts to:master the knowledge of their necessary commodities or services master the skill in operation thereof master the skills to apply the commodities in the correct way raise their consciousness of self-protection2.8 Right to be respected The contents are:human dignit
38、y Though Im ugly,I have the right to public space.national customs and habits Im a member of ethnic group that doesnt allow pork.2.9 Right to exercise supervision Consumers shall have the right to exercise supervision over commoditiesservicesthe work of protection of consumer rights and interests3.O
39、bligations of Business OperatorsPlease list and recite obligations of business operators.3.1 Fulfill their obligations stipulated in law and contracts.3.2 Listen to the consumers opinions and accept consumers supervision.3.3 Guarantee that the commodities and services meeting the requirements for pe
40、rsonal or property safety.If there are serious defects they should immediately report to the administrative departments concerned,inform the consumers,and adopt measures to prevent damage.3.4 Provide consumers with authentic information.3.5 Indicate their real names and marks.3.6 Supply invoices to
41、consumers.3.7 Guarantee the quality,functions,usage and term of validity.3.8 After-sale services.3.9 No unfair and unreasonable stipulations.3.10 Cant infringe on consumers.may not insult or slander consumers may not search the body of consumers or the articles they carry with them and may not viola
42、te the personal freedom of consumers4.Settlement of DisputesHow to Protect Your Rights as a Consumer?Case study A story about Joyces lost wallet.There key points:(1)The wallet was stolen in a business store.(2)The store had no monitoring system,thus Joyce couldnt get the record to find out who stole
43、 her wallet.(3)Joyce lost more than 400 in this case.Questions(1)Can Joyce get compensation for her losing wallet?(2)Who should be responsible for this400?A.The store -B.The thief -C.Both of them(3)If the thief cannot be found,who should be responsible for this400?Why?(4)Can the store use“Joyce boug
44、ht nothing from our store,so we have no legal responsibility”as a defense?(5)What must Joyce do to get her compensation?Contents(1)Is Joyce eligible for the compensation?Eligible parties are consumers who suffered from personal injury or property damages as a result of their purchasing or using of c
45、ommodities,or receiving of services.(2)From whom can Joyce get compensation?Theoretically speaking,the thief should be responsible for it,because he is the person who has committed this tort(tortfeasor).In fact,with no video or any other records,Joyce cannot find out who is the tortfeasor.Whereas,th
46、e store,who was failed to provide a safe shopping environment,should pay for it.(3)Can the store use“Joyce bought nothing from our store,so we have no legal responsibility”as a defense?The legislation has authorized some kinds of consumers rights to the person who is just considering whether to buy
47、or not to buy in a business place.So the store cannot use“Joyce bought nothing from our store,so we have no legal responsibility”as a defense.(4)What must Joyce do to get her compensation?To get her compensation,Joyce has to show some proof.To get her compensation more quickly,Joyce should negotiate
48、 it with the store at first.ThenDisputationsNegotiate with business operatorsAsk Consumer associations for Mediation Appeal to Administrative departments Ask Arbitral organs for Arbitration File to The court To show some proof and to take the following measures listed in the diagram.(5)Is Joyce in a
49、 passive role during the course of protecting her rights as a consumer?To enforce the consumers legal rights doesnt totally depend on the business operators,but also depend on the consumers behaviors.1)To choose a legitimate business operator,2)To keep all the possible proofs.3)To behavior legally.T
50、o enforce the consumers legal rights doesnt totally depend on the business operators,but also depend on the consumers behaviors.This activity aims to elaborate how a consumer should enforce his legal rights.Question Look at the picture,then discuss:Where you will accept the extra gift?Why?How should
