Mgmt 3040

Johnson and Wales University

Business Ethics Midterm

Akeem Charles

PHIL3040

Professor Moskwa

October 9th 2015

In taking a close look at the Business Management major, its evident that a degree in Business Management can be used in all industries since management goes across the board regardless of the type industry. The retail sales industry is more prevalent when one considers industries of interests. Within this industry, there are many acts that were passed over the years for consumer protection. These laws have improved the industry overall, never the less; with this ever changing world that we live in there are always loop holes that manufactures and supplier look to take advantage of. The Magnuson-Moss Warranty act requires manufacturers and sellers to explain warranty coverage, terms and exclusions.

The first consumer law was passed in 1906, laws protecting customers requires firms to provide detailed reliable information about about their products and services. The Magnuson-Moss Act closely relates to my industry of choice as it pertains to the retail industry. This act was passed by congress in 1975, like most laws, the Magnuson-Moss Act is reactive in nature (Ferrel).

Congress posed three main reasons for passing the Magnuson-Moss Act. Firstly, congress seek to improve customer satisfaction by giving information about terms and conditions about the product, by providing consumers with what the warranty covers. Secondly, the Act does not include oral warranties, Only warranties in black and white covered. Lastly, the Act does not apply to warranties on products sold for resale or for commercial purposes, the Act covers only warranties on consumer products.

Ever so often consumers are mislead by producers and suppliers into purchasing based on warranties. The Magnuson-Moss Warranty Act is a businessperson’s guide from the federal law governing warranties on consumer products (Federal Trade Commission).

The law recognizes two basic kinds...