MGMT 311 Chapters 23&24

These agencies regulate important parts of the economy, making rules for large industries and businesses that affect the interests of the public

ex) FDA EPA SEC

executive- appointment of officers and veto power

legislative- enabling legislation allows congress to abolish an agency and to defund

judicial- court review of agency actions but this is subject to the exhaustion doctrine

published in federal register then code of federal regulations

you are required to follow and if not you get fined

-Informal agency actions do not create new substantive rule.

-Examples include

--Resolution of workers' compensation claims

--Determining social security benefits

--Granting governmental licenses, leases, and permits

--Contracting with government

Must be relevant to a lawful agency investigation, Must not be unreasonably burdensome and Must not be privileged.

4th amendment rights

federal trade commission act of 1914; created the FTC

-unfair trade practices

definition: when an unreasonable consumer would be misled by the advertising claim

- Cease and desist order

- Counter-advertising

- Multiple product order

- damages

- restitution- money back to consumer

requires a firm to stop an unfair business practice

- pulling an ad

-used by competitors suing each other for competition; trying to drag others away

-trademark registration

-treble DAS

-attorney fees

-costs of court

The Telephone Consumer Protection Act of 1991 (TCPA)

- prohibits telephonic solicitation for any sales by using an automatic telephone dialing system or a prerecorded voice system.

- illegal to transmit ads via fax without first obtaining the recipient's consent.

- enforced by FCC; $11,000/day for violations

- also allows for private lawsuits

1. consumer can recover loss or

2. $500 for each violation, whichever is greater

3. if willful or knowing violation of the act, court can triple the damages

a. before making a sakes pitch, telemarketer must inform the recipient that the call is a sales call and to identify the seller and the product

b. telemarketers must inform recipients of the total cost of the goods, any restrictions in obtaining or using the goods, and whether a sale will be considered final or nonrefundable

c. telemarketer must remove a consumers name from its list of potential contacts if the consume requets

Laws that allow buyers of goods sold in certain transactions to cancel their contracts within three business days.

ex) trade show sales, home equity laws, internet purchase contract, door to door sales

-requiring merchants to ship things in the time that they say and give notices to consumers if not on time

- requires merchants to issue a refund within a certain amount of time

1. Labels must be accurate and use words that are easily understood by the ordinary consumer

2. Sometimes, labels must specify the raw materials used, like cotton, nylon etc

3. Sometimes, a warning label is required.

1. the product

2. net quantity

3. serving size if numbers of servings is stated on label

4. manufacturer

5. package of distributor

1. protects consumers against misbranded and adulterated foods and drugs

2. establishes food standards, specifies safe levels of potentially hazardous food additives, and sets classifications of food and food advertising

3. FDA monitors and enforces FFDCA

a. drugs must be proven safe and effective before put on market

b. food additives suspected of causing cancer are banned

c. FDA regulates medical devices and equipment

1. applies to consumer products

2. excludes products intended for industrial purposes and consumer products already covered by other regulatory agencies

3. established the consumer product safety commission (CPSC)- handling consumer products not handled by other laws