Explain the regulation of business conduct

Question

Explain the regulation of business conduct towards consumers?

Answer 1

To reduce pressure selling, statutes provide a cooling-off period after door-to-door sales. To discourage businesses from sending unsolicited goods to consumers, the recipient of such goods may use them without becoming liable for their price. To discourage sellers from creating standard-form contracts that provide self-help remedies in the event of consumer default, statutes impose two constraints.

First, once buyer has paid a specified portion of the purchase price, a seller loses the remedy of repossession.

Second, there are limits on the circumstances in which a seller or creditor can enforce an acceleration clause (whereby the unpaid balance of the price becomes payable as soon as the buyer defaults).