Consumer Rights and Responsibilities

1 Chapter 23 Consumer Rights and ResponsibilitiesAfter completing this chapter, you will be able to: Section Consumer Rights Describe seven protections that are included in the Consumer Bill of Consumer Responsibilities Describe the Responsibilities of : What Responsibilities do I have for paying taxes on my investment earnings?A: Everyone is required to pay taxes on investments. The amount of taxes you owe on an investment is dependent on how much your investment grew, how long you held the investment, and on your tax bracket. Your tax bracket is the amount at which your regular income is taxed. It is important to fi gure taxes into your calcu-lations when comparing your investment choices. The difference they can make is startling. In fact, the tax advantage afforded to long-term capital gains is another big reason why long-term investing approaches work so John and Esperanza both fall in the 35% tax bracket.

2 John decides to make a single $10,000 investment at the beginning of the year and hold it into the next year. Esperanza moves her $10,000 from stock to stock throughout the year. John s investment doubles to $20,000, while Esperanza s increases by 125% to $22,500. However, because John s investment qualifi es as a long-term investment, he owes only $1,500 in taxes. Esperanza owes the full 35%, $5,250, because she bought and sold multiple times. At what rate was John taxed? Use a Variable to Represent a Percent Just as a variable can represent an integer, it can also represent a decimal or percent. Just as you would solve any other algebraic expression, isolate the variable on one side to determine its and Investing404 Unit 8 Buying Goods and ServicesPhoto Credit: vlkjdf;lkjeijeojf;ldkjl;dskfj; Knowledge Is Power Consumers can learn about ingredients by reading the labels on food products.

3 Do you compare the labels of food products before deciding which product to buy?Chapter 23 Consumer Rights and Responsibilities 405 Photo Credit: Photodisc Green/Getty Images (RF)404-419 405404-419 4058/23/06 3:54:55 PM8/23/06 3:54:55 PMSection RightsRead to Learn Describe seven protections that are included in the Consumer Bill of Main IdeaConsumers are protected by the Consumer Bill of Rights . The bill states that consumers have the right to be informed, the right to choose, the right to safety, the right to be heard, the right to have problems corrected, the right to Consumer education, and the right to Concept The Consumer Bill of RightsVocabularyKey Termsconsumer rightsconsumer movementproduct liabilitybait and switchAcademic VocabularyYou will fi nd these words in your reading and on your tests. Make sure you know their OrganizerList the benefi ts of each of the seven basic Consumer Rights in a fi gure like the one StandardsEnglish Language ArtsNCTE 1 Read texts to acquire new informationMathematicsAlgebra Represent and analyze mathematical situations and structures using algebraic symbolsGo to the Introduction to Business Online Learning Center through for a printable graphic about the importance of your Rights as a Consumer and the ways those Rights can impact your RightBenefi t of that RightThe Right to Be InformedThe Right to ChooseThe Right to SafetyThe Right to Be HeardThe Right to Have Problems CorrectedThe Right to Consumer EducationThe Right to Service406 Chapter 23 Consumer Rights and Responsibilities 406404-419 4068/23/06 3:55:06 PM8/23/06 3:55.

4 06 PMThe Consumer Bill of RightsImagine that you just bought an MP3 player. The fi rst time you play it, you do not hear a sound. The good news is that you have Rights as a Consumer . These Rights protect you when a product is 1962, President John F. Kennedy outlined what he called the Consumer Bill of Rights . The bill stated that every person has four basic Consumer Rights the right to be informed, the right to choose, the right to safety, and the right to be heard. These Rights received a lot of attention from the Consumer movement, a movement to pass laws protecting consumers from unfair and unsafe business practices. Over the years, three other Rights were added: the right to have problems corrected, the right to con-sumer education, and the right to Right to Be InformedAs a Consumer , you have a right to receive accurate informa-tion. Consumers can make wise decisions only if they have the information they need.

5 Businesses are required to provide certain details about their products. For example, drug companies must list the complete contents of every medicine. Clothing manufac-turers must list the fi bers used in materials. Packaged foods must show all ingredients, with the main one listed fi rst. Companies provide this information through product Right to ChooseBecause the United States has a market economy, its con-sumers can choose from a wide variety of goods and services. Businesses compete with each other to sell their products to con-sumers. They offer new products, lower prices, higher quality, or improved services to get you to choose their products. Competi-tion provides choices. A lack of it hurts about your Rights as a Consumer . Have you ever observed your Consumer protection Rights when dealing with a defective product you purchased?Product Safety Critical Reading Life is full of important decisions.

6 Think about the kinds of decisions that you make as you read the question below. A product your company makes has a slight design fl aw. You are the only one who knows about the problem, and the chances of it causing someone harm are negligible. The warning label that was printed, although thorough, does not address the design fl aw. To reprint the warning labels would put this product over budget. Decision Making Would you have the warning labels reprinted? Explain your Consumer Rights 407404-419 407404-419 4078/23/06 3:55:09 PM8/23/06 3:55:09 PMThe federal government has the power to keep markets com-petitive. It can use antitrust laws to break up monopolies or keep them from forming. Sometimes it will prevent a large company from buying a smaller one if the purchase would lead to control of a What type of economy gives its citizens the right to choose from a wide variety of goods and services?

7 The Right to SafetyYou have a right to products that are safe to use. Product liability is the legal responsibility that manufacturers have to make a safe product. For example, tools and appliances must include safety devices for your protection. Federal laws ensure that clothing, food, toys, and other items will not harm consum-ers. The Consumer Product Safety Commission enforces product-safety about how businesses compete to sell their products to consumers. Have you ever been affected by a lack of competition?Reader and Case StudyHP Wants Your Old PCs BackIt s pushing states to force recycling of TVs, computers, and other e-gear. Here s few years ago, when environmentalists in Washington State began agitating to rid local dumps of toxic old computers and televisions, they found an unexpected ally: hewlett - packard Co.

8 Teaming up with greens and retailers, HP took on IBM, Apple Computer, and several major TV manufacturers, which were resisting recy-cling programs because of the by HP s energetic lobbying, the greens persuaded state lawmakers to adopt a landmark program that forces electronics companies to foot the bill for recycling their old equipment. This bill puts our market-based economy to work for the environment, said Washington Governor Christine O. Gregoire as she signed the plan into law on Mar. movement to recycle electronic refuse, or e-waste, is spreading across the nation, and so is HP s clout. The company helped the greens win a big battle in Maine in 2004 when the state passed the nation s fi rst e-waste take-back STUDY Go to the Introduction to Business Online Learning Center through for the BusinessWeek Reader Case the components that are used to make a computer and the reasons those com-ponents should not end up in a landfi ll.

9 Write a letter to your state representative. Explain the reasons it is important to your future for your state to preserve the Learning 408 Chapter 23 Consumer Rights and 408404-419 4088/23/06 3:55:10 PM8/23/06 3:55:10 PMThe Right to Be HeardConsumers who have complaints about products or services have a right to be heard. Suppose you buy a bike helmet from a sporting goods store. After wearing the helmet a few times, you fi nd that the chinstrap keeps coming loose. You have the right to let the store know you are not satisfi ed with the helmet. Busi-nesses rely on customer satisfaction. The purpose of the customer service department is to listen to the concerns of Right to Have Problems CorrectedSometimes products do not work properly after they are pur-chased. Usually if a customer takes a defective item back to a store with a receipt, the business will replace it or issue a refund.

10 If a business cannot or will not correct a problem, consumers can write to the manufacturer to fi nd out how to get the mat-ter resolved. If the manufacturer will not help, a government agency might be your next step. Figure asks you to match each scenario with the appropriate Consumer Resources is an online resource for Consumer information from the federal government. It is designed so that consumers can locate information by category such as food, health, product safety, money, and transportation. How might this Consumer resource be useful to you? Real Real World WorldKnow Your Consumer RightsFigure Consumer Rights The Consumer Bill of Rights states that every person has the right to be informed, to choose, to be safe, to be heard, to have problems corrected, to receive Consumer education, and to receive service. Can you match the Consumer issue with the appropriate Consumer right?