Sales and Marketing of Goods PDF

Chapter 23 ========== Laws for sale and marketing of goods: - Protect the parties to the sale of goods transactions, particularly buyers - Protect consumers from physical harm - Promote a fair and competitive marketplace - Protect consumers from unfair selling and marketing practice...

Chapter 23 ========== Laws for sale and marketing of goods: - Protect the parties to the sale of goods transactions, particularly buyers - Protect consumers from physical harm - Promote a fair and competitive marketplace - Protect consumers from unfair selling and marketing practices Sale of Goods - The contract - The terms of the contract - The transfer of ownership - The terms relating to payment and delivery - The remedies for a breach - Caveat Emptor - "buyer beware" - Legislation - Common law rule created to counter the harshness of buyer beware - Sale of Goods Act -- 1893 - Contained implied set of terms for contracts and remedies - Conditions - Seller has the right to sell - Goods will be reasonably fit for their intended purpose - Goods will be of merchantable quality - Goods will correspond to any sample provided - Goods will correspond to any description provided - Warranties - Buyer will enjoy quiet possession of the goods, third party wont claim rights - Goods are free from liens and encumbrances in favour of third parties - Payment of the purchase prices for the goods will be made within a reasonable time - Delivery will be made within a reasonable time - Can be excluded in some business transactions if the parties agree to it - Only applies to goods, and only those that are sold - Shipping - Bill of lading - "shipping document" - Contract between seller and carrier - Cost, insurance, and freight contract - Included in purchase price - Seller is responsible for setting up insurance and shipping - Free on Board contract - Buyer decides shipping - Cash on delivery contract - Transfer of Title - Risk follows title - Not always transferred at delivery or payment - Specified in contract - Default rules if none are decided on: - Sale of specific goods in a deliverable state, title is transferred when the contract is made - Sale of specific goods and the seller is bound to do something to the goods to put them in a deliverable state, the title does not pass until the something is done and the buyer is notified - Sale of specific goods in a deliverable state but the seller is bound to do something to ascertain the price, the title does not pass until the something is done and the buyer is notified - Goods are delivered to the buyer on approval the title passes to the buyer: - When they signify approval - Retains goods without notice of rejection in a reasonable time - Sale of unascertained or future goods are in a deliverable state, title passes to the buyer when notified they are ready - Remedies - Whether or not the title has transferred affects the compensation - Damages for non-acceptance - Seller is entitled to if buyer refuses - Action for the price - Buyer must pay full amount if title has transferred Chapter 24 ========== Consumer protection law - Consumers are at a disadvantage when compared to businesses - Include protections for the provision of services - Unfair trade practices - Particular consumer transactions - Credit agreements - Safety standards - Labelling and packaging requirements - Remedies and enforcement Unfair practices - Targets vulnerable customers who are unable to understand the nature of the agreement - Sells at a price that grossly exceeds the price of similar goods or services - Calculated and cynical marketing schemes that subject customers to undue pressure - Persuades customers to buy when they are unlikely to be able to pay in full - Terms and conditions that are so unfair to the consumer as to be inequitable False or misleading claims - Goods are endorsed or sponsored when they are not - Have features, characteristics, or qualities that they don't have - New when used - Can be delivered or performed when can't - Service or part is required when its not - Special price, when its not - Exaggeration, innuendo, or ambiguity Direct marketing - Seller initiates contact with the prospective purchaser Online sales - Fastest growing area of retailing in Canada - Where do you get a refund if the website is gone? - Collect more private information - What jurisdiction - Required to disclose - Vendors name, address, contact information - description of goods and services - itemized list and price of items or services - description of additional charges - delivery arrangements - cancellation, return, exchange policies - provide copy of contract within reasonable time and provide opportunity to decline - vendor to pay for return or goods - purchaser can cancel if above not satisfied - vendor to provide refund Packaging and labelling - Consumer Packaging and Labelling Act (CPLA) - Prohibits false or misleading representations - Mandatory label information - Sizing and shape - Safe handling instructions Product safety - Consumer Product Safety Act (CPSA) Product design and manufacture - Protect inventions and product designs - Patents - Canadian Stands Association (CSA) - Voluntary guidelines - Motor Vehicle Safety Act Advertising Standards - Advertising Standards Canada (ASC) - Canadian Broadcast Standards Council (CBSC) Competition Law - Promote a fair, competitive and efficient marketplace - Strengthen businesses' ability to adapt and compete in global markets - Give small and medium sized businesses the ability to compete in the marketplace - Provide consumers with competitive prices, product choices, and the information they need to make informed decisions - Competition Act - Criminal or civil (reviewable) Mergers, Acquisitions, and Takeovers - Mergers are subject to review by the commissioner to avoid lessening or preventing competition False or Misleading claims -- federal law - Broad definition to include intentional and unintentional - Criminal or civil - Must be "material" - Deceptive Telemarketing - criminal - National Do Not Call List (DNCL) - Cant make false representations - Cant conduct contests or other games on which delivery of the prize is conditional on advanced payment - Offer free gifts to induce additional purchases - Require advanced payment if the price is grossly in excess - False Sale or Bargaining Prices - Reviewable offence to mislead consumers about the "ordinary" price - Volume test: a lot has been sold at that regular price within a reasonable time - Time test: offered for sale in good faith at that regular price for a substantial period of time - Sale above advertised price - Civil - Drip pricing: only part of a good or service's price is advertised - Double ticketing - If two or more prices, must be sold at the lower price - Criminal offence - Test and testimonials - Must be accurately stated and current - Comparative advertising - Comparing goods to those of competitors - Not prohibited unless claim is false - Performance claims - Reviewable to make claim not based on adequate or proper testing - Bait and switch - Advertised at a low price, but the supply is insufficient - When consumers come in, they are directed to a more expensive product instead - Deceptive prize notices - Criminal - Notify a person they won a prize, but demand payment before they can receive it Pricing conspiracies - Price fixing - Conspiring with direct competitors to control prices - Bid rigging - Suppliers conspire to fix the bidding process in a manner that suits their collective needs - Abuse of dominant position - Reviewable if engaging in behaviour that lessons or prevents competition - Price discrimination - Different prices for different consumers - Predatory pricing - Low prices to drive out competition - Price maintenance - Attempting to drive upward the final retail price Restrictive distribution practices - Resist temptation to control their distribution scheme to the extent that competition for their products is adversely affected - Aim for full disclosure of terms and conditions at each selling stage - Exclusive dealing - Only selling if purchasers agree not to buy other competitors products - Tied selling - Only sell if they buy other products too - Refusal to deal - Refuses to sell on same terms as offered to others Multi-level marketing - Product distribution structure that creates multiple levels of distributorships with commissions paid upwards - Different from **pyramid scheme**, which is illegal - Participants pay money for the right to receive compensation for recruiting new participants - Participants are required to buy a specific quantity of products, for the purpose of advertising, before allowed to join or advance - Knowing sold commercially unreasonable quantities of product (inventory loading) - Not allow to return products on reasonable commercial terms Promotional Contests - Operating lottery is criminal - Skill testing question or enter with no purchase necessary to avoid being considered lottery