Book Opener

CHAPTERASSESSMENTAcquiring and Evaluating InformationLois wants to make some extra money. Whenshe read about an opportunity to knit babybooties at home for pay, she jumped at thechance. She paid a $100 fee and received herfirst shipment of yarn and instructions. Shefollowed the directions, knitted 50 pairs ofbooties, and sent them to the company. All 50pairs of booties did not meet the “standards” ofthe company. Lois felt that she had been rippedoff. Research the following topics:● Ways to prevent falling victim to work-athomeschemes● Information required to produce a one-pageconsumer alert document about this type offraudulent activity● How to avoid being scammedOrganize and share your document with otherstudents in the class.Unethical and Illegal Business PracticesDrugtech Sciences, Inc. designed a drug calledSleepPro that was intended to help people whohave problems sleeping. After years of costlydevelopment, it was approved and marketedto the public. Unfortunately, it was laterdiscovered by the company that using the drugposed serious health risks and it was incorrectlylabeled. However, the company decided to hidethe risks from consumers, and not to correct thelabeling.Debate12. Analyze the effects of unethical practiceson consumers. If Drugtech continues tomarket SleepPro, what are some of theethical consequences?13. Analyze the effects of illegal practices onconsumers. What are some of the risksfaced by consumers, who use SleepPro?14. Analyze the effects of illegal practices onbusiness. If government regulators becomeaware of the problems with SleepPro, whatare some of the consequences?15. Investigate laws and regulations resultingfrom unethical practices. What importantfederal law applies in this case, and how?For the following cases, give your decision andstate a legal principle that applies.16. Nick orders a digital camera over theInternet. After 40 days, he still has notreceived the camera, nor has he heard fromthe company. Nick asks for his moneyback. Must the company return his money,even if it is now ready to send the camera?17. A cosmetics company mails perfumesamples to people at random and then billsthem for the merchandise. Is the companyviolating a law? Explain your answer.18. Trailblazers, Inc. fails to complete all itssafety tests before shipping a newly manufacturedbike. A defect in the bike’s designcauses Juan Ramirez, 11, to suffer injury.Does the Ramirez family have any recourseagainst the company? Explain your answer.19. Belinda attends a holiday gift party. Shebuys and pays for several items totaling$88.77. The following day, Belinda realizesshe should not have spent so much money.Does Belinda have the right to get hermoney back? Explain your answer.20. Bobbi-Lee is awakened at 10:00 P.M.by atelemarketer selling magazine subscriptions.A week earlier, she had told a differentperson from the company to stop calling her.Has the company violated a law?334 Unit 3: Understanding Consumer Law