Contract Law: Analysis of Consumer Protection and Contracts

This assignment solution delves into the realm of contract law, focusing on consumer protection and the government's role in regulating private industries for the benefit of consumers. The analysis begins with a discussion on the rationale behind government intervention in contractual relations, using the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) as a key example. The solution examines various provisions of the CARD Act, such as the 21-day payment deadline, and explores the balance between individual choice and government control in consumer protection. Furthermore, the assignment addresses the enforceability of contracts and fair practices, addressing questions related to offerors, offerees, and the types of exchanges involved. It also covers scenarios involving false statements made during contract negotiations and examines the implications of contract terms. Finally, the solution references key legal acts and regulations in the UK and internationally to provide a comprehensive understanding of consumer rights and protections.

Running head: CONTRACT LAW
CONTRACT LAW
Name of the Student:
Name of the University:
Author Note:

1
CONTRACT LAW
1) Consumer protection by the government ensures that everyone has the right to access safe
and good goods and good quality services and right to be treated in a fair manner (Howells and
Weatherill 2017) Further the government must give effective solutions in case anything goes
wrong. Since it is difficult for the individual consumer to voice against any discrepancies, it
comes under the duty of the government to ensure that. In this article, the main principle of
consumer protection given by the government is being discussed together with the arguments to
justify it.
One of the primary problems in the benefit of consumers is the extent up to which the
government should interfere in the consumer protection. The government intervention in the
consumer protection is necessary where the consumers do not have the amount of information
needed to protect them. Government interference is also needed where consumer welfare is not
properly regarded in the oligopolistic markets (Mathis and Tor 2016). It is also mandatory where
a certain level of quality assurance is needed if the markets have to function or where products
imposing risk are needed to be removed from the market to ensure the safety of public money.
Consumer protection is nothing but a public good which will be not be present in optimum
quantity without any intervention from the government (de Meijer 2016).
Consumer protection is required as it protects the consumers by achieving sufficient
protection for all the consumers, ensuring that service or products response to consumer needs,
encouraging high standard of ethical business conduct, prohibiting abusive practice in business,
promoting sustainability in consumption and furthering cooperation internationally in consumer
protection (Howells and Wilhelmsson 2017). The primary reason of consumer protection by the
government is developing, maintaining or strengthening the policy governing it.

2
CONTRACT LAW
The advantages of the interference of the government for providing the consumer
protection are as follows:
 Providing important insight to consumer needs: It helps to understand the main
principle which forms the basis of consumer protection and how to deliver it;
 Defining the government’s roles and their liabilities: to understand the different roles
and the liabilities of the government for providing the consumer protection;
 Valuable time saving: It gives excellent criterion to develop the consumer protection
policy.
 Boost trade: it further infuses confidence and promotes the growth nationally and in
global markets by using the principles laid down in the international agreement and
standard.
 Ensure consisting approach: since the global markets are significantly inert connected,
it is significant to have harmonized solutions for solving the common problems.
Consumers are offered protection from various sources like legislation, industry code of
practice, enforcement agencies, standards and consumer categories. That the government
should be having a major role to play in consumer protection is a recently booming idea.
This trend, as per Kerwin, C.M. and Furlong, S.R towards the greater governmental
intervention in between the seller and buyer is not due to the visionary political idealism.
On the contrary, as held by De Gregori, T.R., it is one of the fundamental reasons in the
economic marketplace. The role of government must be ensuring perfect balance between
the seller and the buyer in the marketplace. The goal of the government for consumer
protection is not regulating the businessman but ensuring that he alone reaps the expected
benefits out of his business.

3
CONTRACT LAW
However, consumer protection does not come under the exclusive province of
government. Though the legislations only provide suggestions for further actions, for
better security, consciousness of the consumers is required. The concept of consumer
protection is growing very fast into a modern and highly complex law. Although in recent
years, United Kingdom has started to make important and effective advances in consumer
protection, still many things are left to be done. The legislations have numerous variable
possibilities. The pros and cons of such approach are evident not only by any particular
legislation but also by the effectiveness of such legislation in actual must be taken into
consideration. Efforts have to be taken to collect factual data required to cope with the
increasing number of consumer deception. There are many governmental and private
agencies which have to be coordinated and controlled together and the deceptive
operators must be kept under supervision as they extract million dollars every year from
the public.
The question to be answered here is whether choice of the individual is needed or
government control must be there. The main issue is whether human beings are free to
use as per their choice or the government control needed to regulate the productive efforts
of the individuals and the fruits out of it. In this regard, it can be said that individuals
must have the choice to regulate and control their own acts. The government however can
control the working of the private industries as all the individuals are vigilant enough to
protect their interests. For this reason, the Credit Card Accountability Responsibility and
Disclosure Act of 2009 or the CARD Act was passed by the US Congress and signed by
the then President Barack Obama. It basically contains several provisions regarding how
consumers must be interacted by the credit issuers like 21 days or more time limit must

4
CONTRACT LAW
be given to allow them to pay the outstanding bill and others. Similar type of acts or
legislations must be enacted to give protection to consumers such that their interests are
not affected by these companies. In this regard, an Intergovernmental Group of Experts
or IGE to provide consumer protection is being created by United Nations Conference on
Trade and Development (UNCTAD) to develop the international cooperation, evaluate
the working of the Member States and also to make general recommendations regarding
their application. The duty of the IGE is to carry out research in consumer problem for
ensuring their interest. Moreover, several acts namely the Unfair Contract Terms Act
1977, Sale of Goods Act 1979, Unfair Terms in Consumer Contract Regulations 1999,
Consumer Protection (Distance Selling) Regulations 2000, Electronic Commerce
Regulations 2002 and Consumer Protection from Unfair Trading Regulations 2008 were
enacted in UK already to protect the consumers and many others are in row to come into
effect.

5
CONTRACT LAW

6
CONTRACT LAW
References:
Consumer Protection (Distance Selling) Regulations 2000
Consumer Protection from Unfair Trading Regulations 2008
Credit Card Accountability Responsibility and Disclosure Act 2009
De Gregori, T.R., 2017. Power and illusion in the marketplace: institutions and technology.
In The Economy as a System of Power (pp. 53-65). Routledge.
de Meijer, C.R., 2016. The UK and Blockchain technology: A balanced approach. Journal of
Payments Strategy & Systems, 9(4), pp.220-229.
Electronic Commerce Regulations 2002
Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
Howells, G.G. and Wilhelmsson, T., 2017. EC consumer law. Routledge.
Kerwin, C.M. and Furlong, S.R., 2018. Rulemaking: How government agencies write law and
make policy. CQ Press.
Mathis, K. and Tor, A. eds., 2016. Nudging-possibilities, limitations and applications in
European law and economics(Vol. 3). Springer.
Sale of Goods Act 1979
Unfair Contract Terms Act 1977
Unfair Terms in Consumer Contract Regulations 1999

7
CONTRACT LAW
Question and answers:
1. C. No, because this was not legal and not moral.
2. Who is the Offeror? Brian
Who is the Offeree? Amy
What sort of exchange is this? None of the above
3. No, because the woman never accepted the repairman’s increased price.
4. Yes, because this was an implied contract governed by the pattern of performance and
payment that had been going on for several years.
5. False statements made during contract negotiations
A store sells a customer a cell phone, which both the store and the customer honestly
believe is brand new; in fact, the phone has been used previously for four months by
an employee of the phone manufacturer
6. Yes. This is a case for reliance damages; Judy had the apartment cleaned in
reasonable reliance on Juan’s promise to lease it.
7. No, because any argument that Vince might make about acting in good faith or the
course of dealing between the parties is defeated by the contract term on cancellation.
8. He should sue Henry for damages, which would total up to $75,000.
9. Yes, because Meghan was an intended third-party beneficiary of the Kitty-Ross
agreement.
10. Yes. Jesse can get this contract invalidated, either because Ken failed to perform or
because Ken acted fraudulently.