Book Opener

Consumer Product Safety ActThe federal Consumer Product Safety Act protects you from unreasonablerisk of injury while using consumer products that are soldin interstate commerce. Defects in products are divided into threecategories:l Manufacturing defects (e.g., a ladder with missing rivets)l Poor design (e.g., a toy with small parts that can be easily removedand swallowed)l Inadequate instructions and warnings about the safe use of theproduct (e.g., a chain saw that does not include instructions aboutusing the safety guard)Manufacturers and sellers who place items on the market must testthe quality and reliability (fitness) of all products before shipping. Theymust prove that the product has been tested and is safe. All manufacturersand sellers have the capability to recall the product if the needarises, and they must act quickly to address any valid complaints madeby users of the product.Food, Drug, and Cosmetic ActOne of the most important federal laws regarding product liabilityis the Food, Drug, and Cosmetic Act. This law prohibits the manufactureand shipment of faulty products in interstate commerce. Faultyproducts include any food, drug, cosmetic, or health-related device thatis injurious, adulterated, or misbranded.A food or drug is said to be injurious if it contains any substancethat may make it harmful to health. An adulterated food or drug isone that contains any substance that will reduce its quality or strengthbelow minimum standards. A food or drug is misbranded if its labelingor packaging is false or misleading.The Food, Drug, and Cosmetic Act requires that packaged drugsbear the name and address of the manufacturer and a statement of thequantity or weight of the contents. Labels on nonprescription drugs mustgive the common name of the drug if a trade name is used, and the labelsmust detail directions for the drug’s use. Labels must also caution againstany use that may be unsafe for children or harmful to the consumer ingeneral. The label must also indicate if the drug is addictive. The actprescribes criminal penalties for firms or individuals who violate this law.The federal government has the right to remove from the marketany food or food additive shown or believed to cause cancer in humansor animals. The government also uses several other methods to discouragethe sale of goods considered harmful to the public health. Thesemethods include the following:l Unusually high taxes. For example, there are special taxes known asexcise taxes on liquor and tobacco.Using theCooling-Off RuleA door-to-door salesrepresentative for vinylreplacement windowscontacted your neighbor,Joseph, at home.Joseph, a salesmanhimself, was aware ofthe cooling-off rule andagreed to buy the windows,knowing he hadthree days to cancel thecontract. Joseph knewhis windows did notneed to be replaced. Hejust wanted to annoythe salesman becausethe salesman hadbothered him at home.Is it ethical to buy aproduct if you know youare going to return it?Chapter 15: Consumer Protection and Product Liability 329