Ch. 23 Lecture Notes
Consumers make choices where they do not have access to the information they need
in order to make rational buying decisions.
o Sometimes this is because the suppliers are misinforming them.
o i.e. vitamin water, a product that is deceptive. No real health benefit. But there
is a perceived view on it. They are relying the consumer’s lack of perceived
information to make the decision to buy it.
Misinformation – the lack of information for consumers to make the right decision.
Monopoly = no choices for consumer to make
Location of consumer also important because of the number of available choices.
When products are dangerous or not good for safety, consumers are not willing to
prolong the choice overtime to buy it.
o Government regulates this to some extent
o The goal of government is to achieve gdp, tax revenue, etc. (healthy
economy), basically to promote trade and commerce.
o There needs to be a certain amount of “protection” to excite consumers to
enter the economy and buy the product. The protection ensures the product is
o The objective is to find a balance between the free market and protection of
buyers and consumers so that they are active and enthusiastic purchasers for
SALES OF GOODS ACT
Very out of date.
Applies to the sale of goods.
There has to be the transfer of money involved, and there has to be the transfer of
The act applies to the very good itself. The physical product.
o i.e. GTA5 the disc, but not the computer software. You have a right to use it.
SGA does not involve services
i.e. A is in contract with B. B sells eggs and does many services. They go to court and
court says the bottom line is a goods contract, not services contract. Cuz of the bacon
i.e. contract for services is for a specific skills, even if there was a sale of good
SGA helps us identify when good transfers from seller to buyer.
o When? Why do we care?
Risk comes with title
i.e. risk of loss, fires, etc.
o So both parties can manage risk appropriately.
The intention of parties can help us identify when the title transfers.
If not, then there are rules 1-5.
o You consider the rules only if and when the intention of title transfers between
parties cannot be determined o i.e. someone buys a canoe for $1000. Ted pays for the canoe, but comes back
tomorrow to take it. Middle of the night, it gets stolen. Who loses the canoe?
o (write rules