Chapter 11 Consumer Rights Notes

Front 1

Neoclassical beliefs

Back 1

no monopolies

Free enterprise, competition
 Firms compete with prices
 Market is governed by competitive firms
 Laws and regulations are not necessary (self governing)
 Consumers are intelligent, informed, act in their best interest and cast dollar votes

Front 2

Managerial belief system

Back 2

 Corporate managers serve responsibly for workers, shareholders, consumers
 Large corporations dominate economy
 Price is important, as are advertising and service
 Against misleading advertising (Consumers don’t always make the best decisions)

Front 3

Reformist belief

Back 3

 Progressive and gradual changes
 Economy dominated by monopolies and oligopolies
 Little competition, corporations serve their own and shareholder’s benefit
 Concerned about marketplace fairness, especially for vulnerable consumers

Front 4

reformist continued

Back 4

 Consumers are not relatively powerless
 Consumers are influenced by advertising
 Consumer problems come from unchecked corporate power, excessive prices, unsafe products and difficulty getting redress
 Government should standardize and simplify information, prevent misleading information, set standards (Ex. APR)

Front 5

Conservatism

Back 5

 Limited government with most at local level, except defense
 Encourage personal achievement and responsibility
 2 Cardinal Beliefs:
 Private-property rights

 Free enterprise

 Self-help, empowerment, free markets & decentralized choice

Front 6

Liberalism

Back 6

 Government should bring about justice and equality of opportunity to improve society as a whole
 Challenge status quo
 Focus on the interest of the working people (protected by government)

Front 7

Evolution of consumer issue

Back 7

Problem identified
 Opinion leaders discuss/define problem
 Hearings are held; differences uncovered
 Parties negotiate solution
 Differences narrowed and mutually satisfactory solutions