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Consumer Economics Issues in America

by: Garman, E. Thomas

Consumer Economics Issues in America

by: Garman, E. Thomas

ISBN 13:
9780759352629
ISBN 10:
0759352623
Edition: 9th
Format: Hardcover
Copyright: 08/15/2005
Publisher: Custom Publishing

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Summary

The ninth edition of Consumer Economic Issues in America, is a comprehensive update of one of the most thorough and readable texts in the field. The text is straightforward and highlights the fundamental consumer economic issues affecting all consumers. Author E. Thomas Garman educates and empowers students as they gain knowledge of their rights and responsibilities as consumers. An emphasis is placed on understanding the American economic system, consumer concepts, evaluative criteria and environmental issues. The book takes a normative, pro-consumer viewpoint.

Preface

xxvii

Foreword

xliii

Virginia H. Knauer

About the Author

xlv

Part One: Some Perspectives

What is the Consumer Interest?

(22)

Economic Activities Performed by Consumers

(2)

Earning

(1)

Consuming

(1)

Utilizing

(1)

Borrowing

(1)

Saving

(1)

Investing

(1)

Taxpaying

(1)

Consumer Sovereignty in the Marketplace

(1)

Consumer Problems in an Imperfectly Competitive Market

(2)

What Are ``Consumer Problems?''

(1)

Consumers Shop in Imperfect Markets

(1)

The Seller-Consumer Conflict Will Always Exist

(1)

The Consumer Interest

(3)

A Price-Quality Model is Useful but Incomplete

(1)

The Consumer Interest is About Value for Money and Equity

(1)

Consumer Interest #1: Seeking Value for Money

(1)

Consumer Interest #2: Seeking Equity for All Consumers

(1)

Eight Important Consumer Rights

(2)

The Consumer Interest as a Special Interest Group

(1)

The Interests of Consumers Differ from Public and Business Interests

(4)

Economic Insight: Discrimination Harms Consumers and Sellers

(1)

Issue for Debate: Young Shoppers are Discriminated Against

(1)

The Public Interest

(1)

One's Consumer and Public Roles Differ

(1)

Business and the Consumer Interest

(1)

Government Often Promotes the Consumer Interest

(1)

Conflicts Between the Public and Consumer Interests

(1)

How Consumers Pursue Their Interests

(2)

Review and Summary of Key Terms and Concepts

(1)

Useful Resources for Consumers

(1)

``What Do You Think'' Questions

(2)

The Consumer Movement

(19)

The Early Periods of the Consumer Movement

(4)

Awakening to Consumer Problems: Before 1890

(1)

Early Consumer Movement: The 1890s through the 1920s

(1)

Renewed Consumer Interest: 1929 through the 1950s

(2)

Consumerism: The 1960s and Early 1970s

(1)

Responses to Consumerism

(4)

Business Response

(1)

Did You Know? Ralph Nader is the Nation's Leading Consumer Advocate

(1)

Government Response

(1)

Did You Know? Social Change is an Evolutionary Process

(1)

What Makes Consumer Movements Successful?

(5)

Rising Expectations of Consumers

(1)

Scandals and Dramatic Crises

(1)

Charismatic People

(1)

Active Government Organizations

(1)

Active Private Organizations

(1)

Poor Economic Conditions

(1)

Today's Consumer Movement

(2)

Economic Insight: What Does the Consumer Movement Do?

(1)

Review and Summary of Key Terms and Concepts

(1)

Useful Resources for Consumers

(1)

``What Do You Think'' Questions

(2)

Part Two: Facing Consumer Problems Successfully

Consumer Rights, Responsibilities and Remedies

(25)

Legal Rights of Consumers

(2)

Implied Warranty Rights are Powerful Legal Rights

(1)

Warranty of Merchantability

(1)

Warranty of Fitness for a Particular Purpose

(1)

Express Warranty Rights

(1)

Consumer Update: Do You Have to Mail in the Warranty-Registration Card?

(1)

Key Consumer Economic Concept: Rule #1 of Consumer-Life---When in Doubt About a Purchase, Always Put it on Your Credit Card

(1)

Other Legal Rights Exist

(1)

Moral Rights of Consumers are Legitimate Expectations

(2)

General Moral Rights

(1)

President Kennedy's Consumer Bill of Rights

(1)

Consumer Rights for All Americans

(1)

Issue for Debate: Colleges Should Publish Quality Indicators for Students

(1)

Responsibilities of Consumers

(3)

Regarding the right to choose, consumers have the responsibility to

(1)

Regarding the right to safety, consumers have the responsibility to

(1)

Regarding the right to information, consumers have the responsibility to

(1)

Regarding the right to voice (or to be heard), consumers have the responsibility to

(1)

Regarding the right to redress or remedy, consumers have the responsibility to

(1)

Regarding the right to environmental health, consumers have the responsibility to

(1)

Regarding the right to service, consumers have the responsibility to

(1)

Regarding the right to consumer education, consumers have the responsibility to

(1)

Key Consumer Economics Insight: Privacy in Consumer Transactions is Under Threat

(1)

Why People Don't Complain

(1)

Remedies to Resolve Consumer Problems

(1)

Effective Complaining Should Follow a Sequence

(5)

The Local Business

(1)

The Manufacturer

(1)

Did You Know? How to Get a Copy of the Consumer Action Handbook

(1)

Self-Regulatory Organizations

(3)

Consumer Action Agencies

(1)

Consumer Update: Complain on Internet Gripe Sites

(1)

Small Claims and Civil Courts

(1)

Use Small Claims Lawsuits to Sue When Necessary

(1)

Damages to Ask for When Suing

(1)

How Consumers Can Break a Contract

(1)

Did You Know: How to Get Out of a Contract

(1)

Techniques of Last Resort: How to Fight Back---And Win!---Against Rip-offs and Frauds

(4)

Did You Know? Consumer Power Disciplines and Improves the Marketplace

(4)

Review and Summary of Key Terms and Concepts

(3)

Useful Resources for Consumers

(1)

``What Do You Think'' Questions

(2)

Appendix Issue 3-A: Writing a Letter of Complaint

(2)

Rip-offs and Frauds in the Marketplace

(41)

Why Rip-offs and Frauds Exist in the Marketplace

(1)

General Guidelines to Avoid Rip-offs and Frauds

(3)

Be Cautious in Marketplace Dealings

(1)

Issue for Debate: Consumers Accept the False Promises of Television Commercials

(1)

Ask Lots of Questions

(1)

Things Never to Do

(1)

Be Informed Before Going Shopping

(1)

Know Your Rights

(1)

Be Alert to Signs of Being Ripped Off

(1)

When in Doubt

(1)

Economic Fraud is Rampant Among Big Corporations

(4)

Consumer Update: Top Ten Corporations that Lied to Fleece Consumers

Internet Frauds and Scams

(2)

Rip-offs---and There Are Many---Are Not Illegal

(9)

Issue for Debate: The State Lottery Rip-off is Against the Consumer Interest

(1)

Rental Cars---A Scumball Industry that Rips Off Consumers

(1)

Rental Car Prices that ``Take You for a Ride''

(1)

Prepaid Gas Option and Hidden Fees are Rip-offs

(1)

Overpriced, Unneeded Insurance

(1)

Credit- and Debit-Card Registration Services---Rip-offs?

(1)

Identity Theft Insurance---Rip-off?

(1)

Diet, Health and Fitness Products---Rip-offs?

(1)

Weight-Loss Products and Centers---Rip-offs?

(1)

Consumer Update: Job Search Companies---Rip-offs?

(1)

Supplemental Insurance (Health, Cancer, Life)---Rip-offs?

(1)

Credit-Life, Disability- and Unemployment-Insurance

(1)

Income Tax Refund Anticipation Loans---Rip-offs?

(1)

A List of Probable Rip-Offs

(1)

A List of Probably Rip-Offs

(3)

Key Topic in Consumer Economics: Be Aware of Identity Theft

Negative Option Buying Plans---Rip-offs?

(1)

Deceptions and Unfair Practices

(4)

Unfair and Deceptive Advertising

(2)

Proving Deceptions and Unfair Practices

(1)

Consumer Update: The Five Biggest Lies Told to Consumers

(1)

Puffery Statements are Legal

(1)

Bait and Switch Advertising is Illegal

(1)

Consumer Update: Classified Advertisements are Full of Lies

(1)

Telemarketing and Mail Scams

(6)

Mail Fraud

(1)

Telemarketing to Get Your Money

(1)

Consumer Update: Telemarketing Crooks Can Get Your Cash

(1)

Sweepstakes

(1)

Fake Sweepstakes Clubs

(1)

Prizes and Free Gifts

(1)

Consumer Update: Gifts and Prizes...What They Really Are

(1)

Contests

(1)

Many Charities Are Not What They Claim to Be

(1)

Consumer Update: Telemarketing Recovery Room Scams

(1)

Pricing and Buying Rip-offs

(3)

Hidden Product Prices Deceive Consumers

(1)

Buying Clubs

(1)

Coupon Books

(1)

Vacation Certificates

(1)

Rent-to-Own

(1)

Vehicle Sales and Repairs

(2)

High-Balling the Value of the Trade-in Allowance

(1)

Low-Balling the Price of a New Vehicle

(1)

Automobile Repair Scams

(1)

Investment Swindles

100

(5)

The Investment Swindler's Game

100

(1)

Consumer Update: Many Infomercials are Rip-offs

101

(1)

Ponzi Schemes Are Illegal

101

(1)

Pyramid Schemes Are Illegal

101

(1)

Consumer Update: Referral Rebate Sales are Illegal Pyramid Schemes

102

(1)

Consumer Update: Chain Letters are Illegal Pyramid Schemes

103

(1)

Multi-Level Network Marketing Investments Are Legitimate

104

(1)

Financial Planning Seminars

104

(1)

Student Traveling Sales Jobs

104

(1)

Review and Summary of Key Terms and Concepts

105

(1)

Useful Resources for Consumers

106

(1)

``What Do You Think'' Questions

107

(1)

Laws That Help Consumers

108

(40)

Laws on Sales Transactions

108

(12)

Telemarketing Regulations

109

(1)

``Do Not Call'' Registry

109

(1)

Rules Telemarketers Must Follow

110

(1)

Charitable Solicitations Regulations

110

(1)

``900-Number'' FCC Regulations

111

(1)

Switching or ``Slamming'' Telephone Regulations

111

(1)

Unordered Merchandise Regulations of the Postal Service

112

(1)

Negative Option Mail-Order Rule of the FTC

112

(1)

FTC's Mail and Telephone Order Merchandise Regulations

113

(1)

COD (Cash on Delivery) Rule of the Postal Service

113

(1)

FTC's Door-to-Door Sales Cooling-Off-Period Regulations

113

(1)

Door-to-Door Sales Cooling-Off-Period Laws in States

114

(1)

Cooling-Off Laws for Health Spas, Timeshares, Campground Contracts, Mortgage Refinancing, Mortgage Refinancing, Credit Repair

115

(1)

Vehicle Leasing

115

(1)

Airline Travel Rights

115

(1)

Delayed or Canceled Flights and Missed Connections

116

(1)

Bumping

116

(1)

Delayed and Lost Luggage

117

(1)

Pet Lemon Laws

117

(1)

Weight-Loss Center Laws

117

(1)

Rent-to-Own Laws

118

(1)

Deliveries and Installations Laws

118

(1)

Moving Companies

118

(1)

Bank Insurance Sales

118

(1)

Privacy Laws

119

(1)

Opt Out of Offers for Credit Cards and Other Financial Products

119

(1)

Opt Out of Mail, Telephone and E-mail (Business Sponsored System)

120

(1)

Internet Privacy Law

120

(1)

Medical and Banking Privacy Laws

120

(1)

Privacy Complaints

120

(1)

Laws on Vehicles

120

(4)

Odometer Fraud Law

120

(1)

Motor Vehicle ``Buyer's Orders'' Laws

121

(1)

Lemon Laws for New Vehicles

121

(1)

Used Vehicle Lemon Laws

122

(1)

Used Vehicle Lemon Branding Laws

122

(1)

Secret Warranty Disclosure Laws for Vehicles

122

(1)

Federal Trade Commission Used Car Rule

122

(1)

Vehicle Repair Laws

123

(1)

Laws on Warranties

124

(2)

Magnusson-Moss Warranty Act

124

(1)

Standards for Companies that Offer Warranties

124

(1)

Disclaiming Implied Warranties is Prohibited Except When Something is Sold ``As Is''

125

(1)

Full and Limited Warranties May Be Offered

125

(1)

Did You Know? What Those Confusing Warranty Phrases Mean

126

Informal Dispute Procedures are Encouraged

125

(1)

Laws on Housing

126

(2)

Renter's Security Deposits

126

(1)

Late Possession of the Rental Property

127

(1)

Habitability of Rental Unit

127

(1)

Community Reinvestment Act

127

(1)

Fair Housing Act

127

(1)

Home Mortgage Disclosure Act

128

(1)

State Housing Discrimination Laws

128

(1)

Laws on Credit

128

(11)

Limited Liability on Credit Cards

128

(1)

Electronic Funds Transfer Act

129

(1)

The EFTA Applies to Electronic Transfers, Debit Cards, and Credit Cards Used as Debit Cards

129

(1)

Correcting EFT Errors on Periodic Statements

129

(1)

Lost EFT Cards

130

(1)

Did You Know? Your Insurance Likely Already Covers Lost Credit and Debit Cards

130

(1)

Automatic-Billing Disputes

130

(2)

Fair Credit Reporting Act

132

(1)

Consumers Have the Right to Know the Contents of Their Credit File, Including Medical Information

132

Did You Know? How to Get a Copy of Your Credit Report

131

(1)

Rights Exist if a Poor Credit Report Results in an Adverse Action

132

(1)

Fair Credit Billing Act

133

(1)

Consumers Get to Keep $50 of the Disputed Amount if the Credit Card Company Fails to Follow the Rules

134

(1)

Reason #1 to Challenge a Credit Bill---Consumers are Not Liable for the Errors of Others

134

(1)

Reason #2 to Challenge a Credit Bill---It Appears to Be an Unauthorized Charge

135

(1)

Reason #3 to Challenge a Credit Bill---Unsatisfactory Goods

135

(1)

When Necessary, Consumers Should Write Firm Letters to Merchants and Credit Card Companies

135

(1)

Equal Credit Opportunity Act

136

(1)

Fair Debt Collection Practices Act

136

(1)

Fair Credit and Charge Card Disclosure Act

137

(1)

Did You Know? Refuse to Pay Punitive Interest Rates

137

(1)

Home-Equity Loan Consumer Protection Act

137

(1)

Home Ownership and Equity Protection Act

138

(1)

High Cost Mortgage Act

138

(1)

Review and Summary of Key Terms and Concepts

139

(1)

Useful Resources for Consumers

140

(1)

``What Do You Think'' Questions

141

(1)

Appendix Issue 5-A: Sample Letters Challenging Credit Card Charges

142

(6)

Complaint Letter Challenging an Error on a Credit Card Bill

142

(1)

Complaint Letter to Merchant Requesting Credit for an Unsatisfactory Purchase

143

(1)

Complaint Letter to Credit Card Company About an Unsatisfactory Purchase

144

(1)

Complaint Letter to Supervisor at Credit Card Company

145

(1)

Example of an ``Explanatory Consumer Statement'' to Add to One's Credit Report to Tell the Consumer's Side of a Dispute

146

(2)

Part Three: The Challenging MARKETPLACE

The Capitalistic American Marketplace

148

(28)

How an Economic System Functions

148

(5)

Socialism as an Economic System

149

(1)

Capitalism as an Economic System

150

(1)

Property Rights

150

(1)

Profit Motivation

151

(1)

Competition

151

(2)

Mixed Economic Systems Predominate Today

153

(1)

Allocating Resources in the U.S. Economy

153

(6)

Types of Resources

153

(1)

Economic Insight: Capitalism is Full of Shortcomings

154

Resource Availability

153

(1)

How Resources are Allocated

154

(1)

The Price Mechanism at Work

155

(1)

An Economic Focus On . . . Standard and Level of Consumption and Living

155

(2)

The Circular Flow of Economic Activity

157

(1)

The Multiplier Effect

158

(1)

How the U.S. Government Tries to Manage the Economy

159

(4)

Fiscal Policies: Taxing and Spending

159

(2)

Did You Know? Bush's Gigantic Federal Budget Deficits

Monetary Policies: Managing Money and Credit

161

(1)

Reserve Requirements

162

(1)

Open-maker Operations

162

(1)

Discount Rate

163

(1)

Scarcity, Democracy, and Capitalism are at the Essence of American Society

163

(1)

Scarcity

163

(1)

Democracy

164

(1)

Capitalism

164

(1)

Broad Social and Economic Goals of American Society

164

(9)

Primary Goal: Economic Freedom

165

(1)

Primary Goal: Economic Efficiency

165

(1)

Primary Goal: To Promote Public Well-being and Safety

166

(1)

Primary Goal: Full Employment

166

(1)

Primary Goal: Price Stability

166

(1)

Stages in the Economic Cycle

167

(1)

Primary Goal: Economic Growth

168

(2)

Economic Insight: Indicators of Economic Confidence

170

Primary Goal: Economic Productivity

169

(3)

Primary Goal: Economic Security

172

(1)

Economic Insight: Taxes are Low on Low-and Middle-income People

Primary Goal: Economic Equity and Justice

172

(1)

Review and Summary of Key Terms and Concepts

173

(1)

Useful Resources for Consumers

174

(1)

``What Do You Think'' Questions

175

(1)

Economic Concepts Critical to Consumer Success

176

(20)

Demand in a Market Economy

176

(4)

How Demand Affects Prices

177

(1)

The Demand Curve Slopes Downward and to the Right

177

(2)

Demand is Characterized by its Elasticity

179

(1)

Supply Affects Prices

180

(2)

The Supply Curve Slopes Upward to the Left

181

(1)

Several Non-Price Determinants of Supply Exist

182

(1)

Market Equilibrium is the Ideal Where Price Meets Supply

182

(2)

When Supply and Demand Does Not Work

184

(1)

Farm Prices Often are Not Set by Supply and Demand

184

(1)

Price Ceilings are Occasionally Imposed by Government

184

(1)

Price-Fixing Eliminates the Competitive Forces of Supply and Demand

185

(1)

Income and Substitution Effects

185

(7)

Opportunity Cost

185

(1)

Did You Know? Going to College Has Opportunity Costs

186

(1)

Marginal Cost

186

(1)

An Economic Focus On...The Propensity to Consume

186

(3)

Diminishing Marginal Utility

189

(1)

An Economic Focus On...Indifference Curve and Budget Line Analysis

189

(3)

Review and Summary of Key Terms and Concepts

192

(1)

Useful Resources for Consumers

192

(1)

``What Do You Think'' Questions

193

(1)

Appendix Issue 7-A: The Life Cycle and Permanent Income Hypotheses

193

(3)

Life Cycle Hypothesis

193

(1)

Permanent Income Hypothesis

194

(1)

Shortcomings of Models

194

(2)

Consumers in the Global Marketplace

196

(26)

World Economic Problems

196

(6)

Economic Problem: Excessive Population Growth

197

(1)

Economic Problem: Damaging Pollution

198

(1)

Economic Problem: Crime, Corruption and Anarchy

199

(1)

Economic Insight: Capital Flight Hurts Developing Countries

199

(1)

Economic Problem: Income Inequality

199

(1)

Economic Problem: Persistent Poverty

200

(1)

Economic Problem: Excessive Military Spending

200

(1)

Economic Problem: Growing External Debt

200

(1)

Economic Insight: Developing Countries Make Good Trading Partners

201

(1)

Economic Problem: Market Reforms

201

(1)

Key Economic Concepts in Global Trade

202

(3)

Pareto Efficiency: Economic Trade is a ``Win-Win'' Situation

202

(1)

Economies of Scale

202

(1)

Absolute Advantage

202

(1)

Comparative Advantage

203

(1)

An Economic Focus: The Consumer Interest in International Trade

203

(2)

Globalization and the United States

205

(4)

Criticisms of Globalization

206

(1)

Economic Insight: The U.S. Exports ``Its Values'' Around the World

206

(3)

Benefits of Globalization

The Future of Trade and Globalization

Free Trade

209

(4)

The Benefits of Free Trade

209

(1)

Some Barriers to Free Trade

210

(1)

An Economic Focus On...How the Supply of and Demand for Labor Affect Wage Rates in Developing Countries

211

(1)

The Results of Protectionism

212

(1)

U.S. Industrial Policy of Managed Trade

213

(1)

Economic Insight: Cartels Overcharge Consumers

214

Regional Trade Agreements and the World Trade Organization

213

(3)

North American Free Trade Agreement

214

(1)

European Union

214

(1)

Did You Know? Consumer Protections Threatened by Trade Agreements

215

(1)

The World Trade Organization

215

(1)

The International Consumer Movement

216

(4)

Consumers International

216

(1)

Consumers International is a Strong Voice for Consumers

217

(1)

Consumers in Developing Countries are at Risk to the ``Dark Side'' of Marketing Consumers International Seeks Social Justice and Fairness

218

(1)

Consumers International Seeks Social Justice and Fairness

218

(1)

United Nations Guidelines on Consumer Protection

218

(1)

An Economic Focus: China's Consumer Movement

219

(1)

Review and Summary of Key Terms and Concepts

220

(1)

Useful Resources for Consumers

221

(1)

``What Do You Think'' Questions

222

(1)

Government Regulation of Economic Interests

222

(24)

The Economic Role of Business in Society

222

(2)

Why Businesses Operate as They Do

223

(1)

Social Responsibilities of Business

223

(1)

Self-Regulation is Essential to Good Business Practices

224

(2)

Purposes of Self-Regulation

224

(1)

Examples of Self-Regulation

225

(1)

Chambers of Commerce

225

(1)

Better Business Bureaus

225

(1)

Standards-Setting Organizations

226

Advertising Self-Regulation

225

(1)

Other Trade Associations

226

(1)

Why Governments Regulate

226

(8)

Economic Insight: Why Government Takes on So Many Jobs

226

(1)

Government Attempts to Create External Benefits

227

(1)

Consumer Update: Some Things that Government Does Right!

228

(1)

Economic Insight: The Costs of Government Regulation are Paid by Consumers

229

(1)

Governments Encourage or Discourage Certain Behaviors

229

(1)

When is it Desirable for Government to Control the Market?

229

(1)

Utility Companies are Regulated by Government

230

(1)

Public Utility Commissions Regulate Utility Companies

230

(1)

Deregulation of Companies

230

(1)

An Economic Focus On...Large-Scale Production and Price Regulation

231

(2)

Economic Insight: The Historical Culture of U.S. Government Regulation

233

(1)

The Effects of Little or No Competition are Economic Fraud

234

(4)

Government Sometimes Prohibits Competition

234

(1)

Agricultural Marketing Orders and Cooperatives

235

(1)

Economic Insight: Top Ten Corporate Price-Fixers

235

(1)

Economic Insight: A Dozen Ways Big Business Gets Government to Help Them Overcharge Consumers

236

(1)

Profit Protections for Farmers and Ranchers

236

(1)

Government's ``Too-big-to-fail'' Doctrine

237

(1)

Exemptions from Antitrust Laws

Protection for the Insurance Industry

237

(1)

Government Gets Businesses to Sign Consent Agreements

237

(1)

Government Laws Against Illegal Business Practices

238

(6)

Antitrust Laws

238

(1)

Unreasonable Methods of Monopolizing Behavior

239

(1)

Illegal Business Practices

239

(1)

Economic Concentration

240

(1)

Large Mergers

241

(2)

Unfair Methods, Acts and Deceptive Practices

243

(1)

Price Discrimination

243

(1)

Economic Insight: Antitrust Tools to Promote Fair Competition

243

(1)

Review and Summary of Key Terms and Concepts

244

(1)

Useful Resources for Consumers

245

(1)

``What Do You Think'' Questions

245

(1)

Government Regulation of Consumer Interests

246

(18)

Special-Interest Groups and Government Regulation

246

(2)

Lobbyists are Important to Effective Government

247

(1)

Consumers Have Lobbying Organizations

247

(1)

Regulations are Negotiated

248

(1)

How Governments Regulate

248

(6)

Administrative Agencies: The ``Fourth'' Branch of Government

249

(1)

Executive (Dependent) and Independent Agencies

249

(1)

Powers of Regulatory Agencies

250

(1)

Investigative Power

250

(1)

Quasi-legislative Power: Rulemaking Authority

250

(1)

Informal Rulemaking

250

(1)

Formal Rulemaking

251

(1)

Quasi-Judicial Power

251

(1)

Agencies with All the Powers

251

(1)

Did You Know? Consumers Sometimes Lack ``Standing'' to Sue

252

(1)

State and Local Government Consumer Protection

252

(1)

States Follow One of Four Legal Approaches

253

(1)

Unconscionability

253

(1)

State Attorneys General and Consumer Problems

253

(1)

Office of Consumer Affairs

253

(1)

Weights and Measures Offices

254

(1)

Consumer Watchdogs on Public Boards

254

(1)

How Lawmakers Strengthen Consumer Protection Laws or Undercut and Weaken Them

254

(1)

Federal Trade Commission Powers

255

(2)

Quasi-Judicial Powers

256

(1)

Quasi-Legislative Powers

257

(1)

Benefits and Costs of Government Regulation

257

(1)

Benefit-Cost Analysis is a Tool

258

(1)

Specification and Performance Standards

259

(1)

Sources of Regulatory Inadequacy

259

(1)

Review and Summary of Key Terms and Concepts

260

(1)

Useful Resources for Consumers

261

(1)

``What Do You Think'' Questions

262

(2)

Part Four: Information Processing

Policymaking and Consumer Issues

264

(24)

Policymaking in the United States

264

(4)

Power Clusters

265

(1)

Attentive Public and Latent Public

265

(1)

How Public Policy is Shaped

266

(1)

Power Cluster Behavior

266

(1)

Money, Power and the Status Quo

266

(2)

Do Big Corporations Own American Politics?

PAC Support for Democrats and Republicans

268

(1)

How Government Helps Resolve Public Policy Disputes

268

(3)

Government's Political Biases

268

(1)

Government Makes Public Policy Decisions

269

(1)

Government Resolves Public Interest Disputes

269

(2)

Economic Idealogy and Political Beliefs

271

(8)

The Neoclassical Belief System

The Managerial Belief System

273

(1)

The Reformist Belief System

274

(1)

Political Belief Systems

274

(1)

Conservatism

275

(1)

Liberalism

275

(1)

Political Party Beliefs

276

(1)

Consumer Update: Humorist P.J. O'Rourke on Democrats and Republicans

277

(1)

What are Your Economic and Political Belief Systms?

278

(1)

Consumer Update: Communitarian: A Political Ideology Between Conservatism and Liberalism

279

(1)

Support for Consumer Protection Proposals

279

(1)

Analyzing and Resolving Consumer Issues

280

(2)

Constructive Thinking

280

(1)

Purposeful Analytical Thinking

281

(1)

Preparing Alternative Solutions

281

(1)

Government Action in Creating Solutions

282

(1)

Consumer Update: How to Successfully Move a Consumer Issue Forward

282

(2)

Lobbying the Government Decision-making Process

283

(1)

The Legislative Process

283

(1)

Know Your Lawmakers

283

(1)

Know Your Issue

284

(1)

Resolution Through Cooperation

284

(1)

Review and Summary of Key Terms and Concepts

285

(1)

Useful Resources for Consumers

285

(1)

``What Do You Think'' Questions

286

(1)

Appendix Issue 11-A: Proposed Consumer Protection Laws

287

(1)

Decision-making

288

(25)

Reasons Why Decision-making is Difficult

288

(9)

Consumers Search for Value

289

(1)

Numbers and Complexities of Products

Consumer Update: Buy Textbooks on the Internet

290

(1)

Consumers Follow Rules of Thumb

290

(1)

Irrational Marketplace Decisions

290

(1)

Style Over Substance

290

(1)

Consumers Ignore the Discount Rate

291

(1)

Payoffs from Information Processing

292

(1)

Price Discrimination is Good for Informed Consumers

292

(1)

Did You Know? Frequent-Buyer Loyalty Programs

292

(1)

Decision-making Time is Limited

293

(1)

Searching and Comparison Shopping

293

(1)

Key Topic in Consumer Economics: Advertising Dollars Censor Consumer Access to Information

293

(1)

Good Buys and Best Buys

294

(1)

An Economic Focus On...Information Search in the Buying Process

294

(2)

Key Topic in Consumer Economics: Poor Consumers are Disadvantaged in the Marketplace

296

(1)

Lifestyles, Values and Decision-making

296

(1)

Geistfeld Model of Consumer Choice

297

(6)

Indifference Curves

297

(1)

Budget Constraint

298

(1)

Maximizing Satisfaction

299

(1)

Purchasing With Inadequate Information

300

(1)

Consumers Need Two Types of Information

301

(1)

First Need---Budget Constraint Information

301

(1)

Second Need---Indifference Curve Information

302

(1)

A Concluding Comment on Consumer Choice

303

(1)

Consumers Often are Pro-environment

303

(4)

Consumer Update: On the Difference Between an Environmentalist and a Consumer Advocate

304

(1)

Green Labeling

304

(1)

Consumer Update: Coalition for Environmentally Responsible Economies

305

(1)

Free Riders and Pollution

305

(1)

Public Goods

305

(1)

Public Bads

306

(1)

Ways of Controlling Negative Externalities

306

(1)

Consumer Update: Global Warming and the Asian Brown Cloud

307

(1)

Advertising Truth to Consumers

307

(4)

Consumer Update: Products With the Largest Advertising Expenses

308

(1)

Types of Truth in Advertising

308

(2)

Issue for Debate: Top-Ten Corporations Caught Lying in False Advertising

310

Advertising Directed at Children

309

(1)

Marketing to Children

310

(1)

Advertising to Captive Schoolchildren

311

(1)

Review and Summary of Key Terms and Concepts

311

(2)

Useful Resources for Consumers

``What Do You Think'' Questions

The Planned Buying Process

313

(27)

General Buying Behaviors of Consumers

313

(4)

Habit Buying

313

(1)

Impulse Buying

314

(1)

Key Consumer Economic Insight: The Shopping Scene

314

(1)

Conspicuous Consumption

314

(3)

Issue for Debate: Americans Should Reject Materialism

Planned Buying for Important Purchases

Did You Know? Life Expectancy of Consumer Products

317

(1)

Sources of Buying Information for Consumers

318

(2)

Consumer Reports Magazine

318

(1)

Other Sources

319

(1)

Economic Insight: Judging Quality with Brand Names, Store Brands and Generic Brands

320

(1)

Defining the Problem in the Context of Your Needs and Wants

320

(2)

Can Bonnie Afford to Buy an Automobile?

321

(1)

How Much Automobile Can Bonnie Get for Her Money?

321

(1)

Used Car Prices

322

(1)

Identifying Possible Alternatives

322

(2)

Key Topic in Consumer Economics: Dealer Ploys to Get You to Pay More Money

323

(1)

Key Topic in Consumer Economics: Auto Safety Ratings and Repair Cost Estimates

324

(1)

Comparing Choices

324

(7)

Secret Warranties Exist

326

(1)

Key Topic in Consumer Economics: Take the Cash Rebate or a Low-Interest Loan?

327

(1)

Key Topic Insight: Weak Automobile Bumpers

327

(1)

Did You Know? How Much Does It Cost to Drive?

328

Service Contracts and Extended Warranties are Bad Deals

326

(3)

Leasing is a Good Choice for Some Consumers

329

(1)

Financing Options

330

(1)

Establishing Priorities

330

(1)

Negotiating

331

(3)

The Goal of Negotiation

331

(1)

Negotiating Price

332

(1)

Key Topic in Consumer Economics: False Auto Price Advertising

332

(2)

Haggle, Use One-Price Shopping or a Buying Service

334

(1)

Selecting, Accepting and Evaluating

334

(2)

Key Topic in Consumer Economics: Tips on Buying a Used Vehicle

335

(1)

Review and Summary of Key Terms and Concepts

336

(1)

Useful Resources for Consumers

337

(1)

``What Do You Think'' Questions

337

(3)

Part Five: Consumer Economic Issues

Food Issues

340

(21)

American Eating Habits

340

(8)

Key Topic in Consumer Economics: Why Learn About Food and Health?

341

(1)

About Food and Health?

341

(1)

Calorie Intake and Weight

341

(1)

The Poor Quality of American Diets

342

(1)

Consumer Update: Advertising Food to Kids on Television

343

(1)

Scientific Evidence Links Diet to Disease

343

(1)

Good Nutrition and Good Health

344

(1)

Key Topic in Consumer Economics: The Poor Pay More for Food

344

(1)

The Importance of Low-Fat Eating to Good Health

344

(1)

Consumer Update: Unhealthy Theater Popcorn

345

(1)

Issue for Debate: Food Health Claims Should be Better Regulated

Healthy Eating is Not Difficult

345

(1)

Nutritional Labeling and Education Act

346

(2)

USDA's Food Guide Pyramid

348

(1)

Agencies and Laws that Protect Food Consumers

348

(8)

U.S. Department of Agriculture

348

(1)

Consumer Update: How Good is Food Safety in the United States?

349

(1)

Food and Drug Administration

349

(1)

Issue for Debate: Genetically Engineered Food Products Should be Labeled as Such

350

(1)

Food Additives

351

(1)

Intentional and Incidental Additives

352

(1)

The GRAS List

352

(1)

Sulfites in Foods

352

(1)

Pesticides in Foods

353

(1)

Sweeteners

353

(1)

Food Preservatives

354

(1)

Organic Food Labeling

354

(1)

Research Conducted on Animals

355

(1)

Research and a Risk-Free Society

355

(1)

Anti-Competitive Practices in the Food Industry

356

(1)

Agreements that Squeeze Out Competitors

356

(1)

Agricultural Marketing Orders

356

(1)

Economic Concentration in the Meat Packing Industry

357

(1)

Questionable and Confusing Food Selling Practices

357

(2)

Review and Summary of Key Terms and Concepts

359

(1)

Useful Resources for Consumers

360

(1)

``What Do You Think'' Questions

360

(1)

Health Care Issues

361

(25)

The Challenges of Purchasing Health Care Services

363

Did You Know? Life Expectancies in Years

Guidelines on How to Purchase Services

361

(2)

Did You Know? Questions to Ask Your Health Care Provider

The Bruised and Broken U.S. Health Care System

363

(6)

Highest Health Costs in the World

364

(2)

The Insured and the Uninsured

366

(1)

Young People Overpay

367

Why Health Care Reform Always Fails

366

(1)

Reform is Difficult

367

(2)

Consumer Update: Medical Privacy Protections

Reform Proposals

Medical Malpractice Damages

The Medical Care Market Has Characteristics That Make It Difficult to Reform

Consumer Update: Toxic Shock Syndrome

369

(1)

Prescription and Over-the-counter Drugs

369

(8)

What are Drugs?

370

(1)

Pre-market Review of Prescription Drugs

370

(1)

Prescription Drugs Cost Lots More in the United States

371

(1)

Generic Drugs

372

(1)

Problems and Dangers of OTC Drugs

372

(1)

Aspirin and Similar Pain Relievers

373

(2)

The Main OTC Pain Relievers

Consumer Update: Advertising Drugs: Illegal, Unethical or Both

Dietary Supplements: Lies and Dangers

375

(2)

Smoking and Health

377

(5)

Ugly Health Links of Smoking

377

(1)

Smoking and Death

378

(1)

Secondhand Smoke Kills 40,000+ Every Year

378

(1)

Issue for Debate: Government Should Encourage Americans to Have Better Diets and Do Less Smoking and Drinking

379

(1)

Tobacco Executives Told the Worst Lies in History

379

(1)

The Future

380

(1)

Issue for Debate: Raise Cigarette Taxes to Discourage Consumption

381

(1)

Alcohol and Health

382

(2)

Key Topic in Consumer Economics: Why Do Some People Persist in Harming their Health?

382

(2)

Review and Summary of Key Terms and Concepts

384

(1)

Useful Resources for Consumers

384

(1)

``What Do You Think'' Questions

385

(1)

Product Safety Issues

386

(27)

Product Safety and Effectiveness

386

(3)

Many Products Cause Injuries

387

(1)

Did You Know? Toy Safety Recommendations for Gift Givers

387

(1)

Causal Factors in Injuries

388

(1)

Consumer Update: Top Ten Sellers of Unsafe Products

388

(1)

Benefit-Cost Analysis and Safety

389

(3)

How Much Risk is Acceptable?

390

(1)

Did You Know? General Motors' Price on Fire Deaths Used to be $2.40

390

(1)

Measuring Risk for Public-Policy Decisions

391

(1)

Factors to Consider in Making Product Safety Decisions

391

(1)

Consumer Update: Responsibilities of Consumers in Product Safety

392

(1)

The Consumer Product Safety Commission

392

(6)

CPSC Legal Mandates and Responsibilities

393

(1)

CPSC Authorities and Powers

393

(2)

CPSC Injury Data-Collection System

395

(1)

CPSC Rulemaking Procedures

395

(1)

CPSC Rulemaking Authority

396

(1)

Certain Factors Must be Considered in CPSC Rulemaking

396

(1)

Needed Consumer Product Safety Regulations

397

(1)

The National Highway Traffic Safety Administration

398

(6)

NHTSA Legal Mandates and Authorities

398

(1)

Did You Know? Vehicle Death Rates

399

(1)

Consumer Update: Bridgestone-Firestone Tires/Ford Explorer SUV Tire Blowouts Scandal Shows that NHTSA Needs More Powers to Police the Market

399

(1)

NHTSA Mandates

400

(1)

NHTSA Recalls

400

(1)

Consumer Update: Vehicle Rollover Risk Ratings

401

(1)

NHTSA Vehicle Crashing and Testing

402

(1)

NHTSA Safety Standards

402

(1)

Issue for Debate: The U.S. Should Require Daytime Running Lights on Vehicles

Air Bag Safety

402

(1)

Issue for Debate: Motorcycle Safety Helmets Should be Mandatory

403

(1)

Needed Vehicle Safety Regulations

403

(1)

Issue for Debate: SUVs Should be Efficient or Taxed, Just Like Automobiles

404

(1)

Criticisms of Government Product Safety Efforts

404

(1)

Product Liability Lawsuits---A Powerful Weapon of Consumers---Under Assault by Conservatives

405

(6)

Punitive Damages Penalize Only the Worst Behavior

406

(1)

Did You Know? Silicone Breast Implant Lawsuit

407

(1)

Today's Product Liability Laws Protect Consumers

407

(1)

Consumer Update: Top Ten Product Liability Lawsuits

408

(1)

Criticism of Product Liability Lawsuits is Unwarranted

408

(2)

Issue for Debate: Sealed Court Records by Greedy Corporations Should be Prohibited by Law

410

(1)

Review and Summary of Key Terms and Concepts

411

(1)

Useful Resources for Consumers

411

(1)

``What Do You Think'' Questions

412

(1)

Banking, Credit and Housing Issues

413

(30)

Banking Problems and Issues

413

(5)

Rising Bank Fees

413

(1)

Ugly Fees and Penalties for Bouncing Checks

414

(1)

Overdraft Protection Fees

414

(1)

Banks Hate Credit Unions

414

(1)

Truth in Savings Law

415

(1)

The Savings and Loan Scandal

415

(1)

Deregulation of Banking is Hard on Consumers

416

(1)

The Need for Basic Banking

417

The Unbanked

416

(1)

Key Topic in Consumer Economics: The Poor Pay More for All Financial Services

417

(1)

Credit Problems and Issues

418

(13)

Aggressive Credit-Card Solicitations

418

(2)

Buying on Credit is a Negative Sale

420

(1)

Late Fees, Penalty Interest Rates and Overcharges

420

(1)

Consumer Update: Top Ten Greedy Credit Card Companies

421

(2)

Paying Only the ``Low Minimum Monthly Payment''

423

(1)

Did You Know? Bad Credit Boosts Insurance Costs

423

(1)

Grace Period Rip-offs

423

(2)

Two-Cycle Method Rip-off

425

(1)

An Economic Focus On...Usury Laws and the Supply and Demand for Consumer Credit

425

(3)

Consumer Update: Consolidate Student Loans

428

Card Blocking May Create Penalties

427

(1)

The Rule of 78s Prepayment Penalty

428

(2)

Mistakes in Credit Files

Consumer Update: Bad Credit Records Plague Consumers, Especially African-Americans

Did You Know? Alternatives for Getting Out of Debt

430

New Bankruptcy Law

429

(2)

Housing Problems and Issues

431

(9)

The High Cost of Housing in America

431

(1)

Did You Know? Housing Subsidies for the Poor and Some Recent College Graduates

432

(1)

Predatory Lending

432

(1)

Discrimination in Credit, Housing and Insurance

433

(1)

Consumer Update: Examples of Discrimination

434

(1)

Did You Know? How to Report Credit Discrimination

435

(1)

Redlining Discriminates

435

(1)

Consumer Update: Community Reinvestment Act Ratings

436

(1)

Appraisers Are Regulated, but Not for Average Consumers

436

(1)

Mandatory Defect-Disclosure Laws

436

(1)

Agents Should Disclose to Buyers Whom They Represent

437

(1)

Bargaining is Necessary to Reduce Sales Commissions

437

(3)

Kickback Fees and Up-charges

440

(1)

An Economic Focus On...The Supply and Demand for Housing

Escrow Rip-offs

440

(1)

Review and Summary of Key Terms and Concepts

440

(1)

Useful Resources for Consumers

441

(1)

``What Do You Think'' Questions

442

(1)

Insurance and Investment Issues

443

(22)

Consumer Problems and Issues in Insurance

443

(10)

Consumer Rights in Insurance

443

(1)

Did You Know? Insurance Company Don'ts

444

(1)

Insurance is a Profitable Industry

444

(1)

Noncompetitive, Poorly Regulated Insurance Industry

444

(1)

No Federal Regulation

444

(1)

State-approved Price-fixing

445

(1)

Price-fixing with Anti-group and Anti-rebate Laws

445

(1)

Collusion Between Insurance Companies and Auto Repair Shops

445

(1)

Poor State Regulation Means High Prices

446

(1)

Consumers Go Online to Buy Insurance for Less

446

(1)

Reforms for the Auto Insurance Industry

447

(1)

No-fault Insurance

447

(1)

Benefits of No-Fault Insurance

447

(1)

Michigan No-Fault Insurance

447

(1)

Pay-at-the-Pump No-Fault Insurance

447

(1)

``No Pay, No Play'' Insurance

447

(1)

Pay-per Mile Auto Insurance

447

(4)

Beware of Life Insurance Being ``Sold'' as a Retirement Plan

451

(1)

Tips for Buying Life Insurance

451

(1)

Title Insurance for Homes-A Rip-off

452

(1)

When Insurance Companies Go Broke

452

(1)

Consumer Update: Clue Reports on Homes

453

(1)

Consumer Problems and Issues in Investments

453

(10)

Investor Rights

453

(1)

Fraud and Thievery in Corporate America

Consumer Update: Top Ten Corporations Caught Lying to Investors

454

(1)

Most Financial Advisors are Biased

454

(3)

All Bank Investments are Not Insured

457

(1)

Arbitration Means Giving Up Your Right to Sue

Retirement Plans at Risk

458

(1)

Types of Retirement Plans

458

(2)

Many Risks Exist

Did You Know? Divorced Women's Right to Ex-husband's Pension

460

(1)

Consumer Update: Estimate Your Retirement Needs

461

(1)

Timeshares are Not Investments

462

(1)

Review and Summary of Key Terms and Concepts

463

(1)

Useful Resources for Consumers

464

(1)

``What Do You Think'' Questions

465

(1)

Appendix: Careers in Consumer Affairs

465

Career Opportunities in Consumer Affairs

465

Job Responsibilities

465

(1)

Career Development Opportunities

466

(1)

Entry-level Job Titles in Consumer Affairs

466

(1)

Entry-level Employers of Consumer Affairs Graduates

466

(1)

Lifelong Career-Development Opportunities

466

(1)

Career Options

466

(1)

Jobs in Business

467

(1)

Jobs in State and Local Government

467

(1)

Jobs with the Federal Government

467

(1)

Jobs in Federal Offices in Local Communities

467

(1)

Jobs in Consumer and Public Interest Organizations

467

(1)

Curriculum Requirements

467

(1)

Competencies of Graduates

468

(1)

Sample Letters for Employment

468

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Consumer Economics Issues in America

Consumer Economics Issues in America

9780759352629

0759352623

Summary

Table of Contents

Supplemental Materials

Write a Review

Amazon no longer offers textbook rentals. We do!

Consumer Economics Issues in America

Consumer Economics Issues in America

9780759352629

0759352623

Summary

Table of Contents

Supplemental Materials

Write a Review

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