Capacity Strategy Game Exercise Outline Example | Topics and Well Written Essays - 250 words

Capacity Strategy Game Exercise - Outline Example Building too much capacity and selling my product at a very low price would mean being in the red and paying out interest on accumulated debts during every period (Henderson 2008, p.16). I think that the capacity cost (at GBP 10 per period) is relatively low, and therefore once I have put up entry costs I will stick around for a long time. In this scenario, even if you end up with profits that are relatively low (on top of your starting cash) you will probably earn more than most of your competitors (An & Fromm 2005, p.11). After taking into consideration all the factors mentioned above, I think that a capacity of 200 units would be the best option for me; let me explain why. First of all, minimum demand was 140 BTS while maximum demand was 260 BTS; this gives us a mean of 200. Apart from this, most of the time demand fluctuated between 160 and 240 BTS; this also gives us a mean of 200. In light of the fact that the two most important factors here (the average demand and the average fluctuating figure) both equal 200, it would only be wise to hold 200 units because it appears like that is what the market dictates (Klammer 2006,

Review and Response of the Reading Essay Example | Topics and Well Written Essays - 500 words

Review and Response of the Reading - Essay Example She then goes on to talk about some of the more provocative art forms, especially in context of African Americans. Her detailed analysis of the various African American arts, which challenge the established morals of the society is very enlightening. I was particularly impressed by her thorough research in the field, as she refers to a number of artistic displays, some of them long since extinct. According to her, these arts, which were created by the African American, may be considered by many to be pornographic on the face of it, but when you look at these at another level, you realize that through these provocative art forms these African American artists are trying to point out how there bodies were used and abused over the years of slavery. Most of these artistic displays are extremely provocative, like the play by Robbie MacCauley’s â€Å"Aunt Sally’s Rape†, where she poses nude. To the upholders of false morality, this play may seem to be pornographic, but it has a much deeper meaning in that brings out the humiliations faced by the African American slaves who had no right even over their own body. This and several other arts mentioned by Fusco serve to bring out the irony of African American fate whose bodies were abused for the viewing pleasure of the white audience even as they had no control over it and than the moralistic people denounced these very black people for being pornographic. Nayland Blake in his dialogue with talk about some his similarly provocative arts. The most outstanding of his works is the â€Å"Gorge† where we see him being fed continuously for sixty minutes on the video. The fact that Blake is legally Black and the person feeding him on the video is also black is discussed in details in this dialogue. According to Blake, the notion of race has led to the African Americans being subjected to a number of horrors historically. Both Fusco and Blake talk about the horrors

Quality Control Department Essay Example for Free

Quality Control Department Essay In an attempt to cut costs in the Quality Control Department of XYZ Deli, it is important to first identify the costs to determine which aspects of the company’s quality control process can be eliminated, if any at all. Quality control costs can be divided into three different classifications. These classifications are prevention costs, appraisal costs and failure costs (Stevenson, 2008). Prevention costs are costs generated in the process of impeding product mistakes or flaws in order to supply customers with XYZ Deli brand quality products or to improve current products. Prevention costs are the most indispensable of the quality control costs. It is less expensive and much less difficult to repair a flaw or defect before the product reaches the customer. Prevention costs include not only planning and administrative procedure costs, but also education/training and increased equipment maintenance costs. It is important that all employees are trained accurately throughout the quality control process in order to produce XYZ Deli quality products and to ensure a decline in the possibility of erroneous design and productivity (Stevenson, 2008). Possible tradeoffs for this cost would be if employees are not trained properly, ensuring the job is being done correctly; may result in the production of unsatisfactory product. This could potentially create loss of sales or opportunity costs because the products are being poorly produced. However, increasing the time spent training employees could delay the production process. This would also create opportunity costs because the product would take longer to get  to the customer. While prevention costs are most vital, appraisal costs are necessary to ensure customers are being provided with the high quality products expected from the XYZ Deli brand. This would include costs of inspection of products to determine if product standards and parameters are being met, as well as to detect any product flaws. An example of appraisal costs is inspection costs. Inspection costs are incurred during the quality testing process. This includes the cost of the inspection facility and inspector auditor salaries, as well as any materials, appliances or tools used to test XYZ Deli brand products (Stevenson, 2008). A potential tradeoff to not inspecting product could also allow defective product to reach the customer, creating opportunity costs. Poorly produced products will not be well received. At any rate, the tradeoff for properly inspecting all the product being produced could set back the time it takes for the product to reach the market; also creating opportunity costs. Finally, failure costs are generated when components of the product or the product itself is faulty. Failure costs can be either internal or external. Internal failures are those detected in one of the production phases; before the product reaches the customer. There are numerous issues that contribute to an internal failure; such issues include: faulty materials received, improper handling of material, defective equipment, and improper use of equipment. Examples of internal failure costs are loss of production time, worthless material and the cost of regenerating previous work and/or the rebuilding of the product, as well as the cost of inspecting the reworked product. Other examples of internal failures include possible damage to equipment; possible safety issues causing employee injuries. External failures are failures that are identified after the customer has received the product. Such issues are not discovered during production or inspection process. These costs are much more expensive and much more difficult to correct because the product has already reached the consumer. Examples of a failure costs include managing customer complaints, accountability and possible litigation. Overseeing warranty issues, providing replacements and payments are also examples of failure costs. An  important failure costs to avoid is the loss of customer loyalty (Stevenson, 2008). Not only does XYZ Deli want to recruit new customers, it is important to retain current valued customers. Not finding a way to take care of the consumer may give the company a poor reputation, creating more opportunity costs. While each of these costs is expensive, they are necessary in maintaining the reputation of a growing company, such as XYZ Deli. Prevention appraisal costs are the preferable way to disperse funds because they prevent failure costs. Failure costs are much more expensive for the company, not only in terms of money, but also in terms of the company’s reputation, good will and the ability to retain current valued customers. If XYZ Deli spends the time and money on the appropriate such as ensuring proper training in production and inspection, the company will save money in the future. References Stevenson, W. (2008). Operations management (10th ed.). New York: McGraw-Hill ISBN-13: 978-0-07-337784-1.

Urbanism and Architecture Concepts

Urbanism and Architecture Concepts â€Å"Dwelling is the combination of architecture and urbanism† Dwelling, as a place to live, can be a house, a flat, an apartment or other place of residence. It is a place where human spent of most of their time while indoors. The concept of dwelling has been changed over the last hundreds years, in that period, the many dwelling building in different place of the world represent an unique local culture with different interior, exterior, structure, etc. However, in modern days, most of these symbols and architectural styles had already disappeared, dwelling buildings on this planet all blend into one style – Urbanism. It becomes more of an urban spaces, a place offers convenience and rest instead of an art product within its unique architectural style. Remmert Koolhaas was born in 1944 in Rotterdam, one of the greatest modernism architecture in the world. In early years he was a reporter and scriptwriter. After studying architecture between 1968 and 1972 in AASchoolArchitecture, and in Cornell University, with Zaha Hadid, Elia Zenghelis they established OMA. During his architecture life his famous works include Villa of Bordeaux, CCTV Headquarters in Beijing and Seattle Central Library in USA etc. In 2000, He acquired the Pritzker Architecture Price. His works are heavily based on surrealism combined with neoplasticism. Furthermore he adds the unique feature of the environment and society into building’s shape and structure in order to express different ideas and thoughts from human. Villa of Bordeaux is a perfect example showing Rem’s style dwelling, combining urbanism’s convenience and technology and beauties of the architecture. â€Å"Now we are left with a world without urbanism, only architecture, ever more architecture.† In the book â€Å"S, M, L, XL†, â€Å"What ever happened to urbanism†, Rem Koolhaas suggests that â€Å"Now we are left with a world without urbanism, only architecture, ever more architecture.†(S, M, L, XL, Rem Koolhaas, Bruce Mau, 1995, pp. 967). Of course urbanism still exist today, but the urbanism we have is the one different to what Rem Koolhaas described, it is the one impact by the modernization, it is a failure of urbanism. Nowadays urban expanding so quick with the negative impact from 20th century’s modern movement, in the past decades global economy and financial growth are slowly destroying traditional urban and its quality. This leads to the urban today where city is the form of citizen’s present needs as Rem described as â€Å"Exile to the virtual world†. (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 967) When architects designing cities, buildings or landscapes, too many things that cannot be controlled. Therefore architectu re is necessary or even essential for new urbanism. Rem suggests several points for the ideal ‘new urbanism’ should â€Å"no longer be concerned with the arrangement†¦ no longer aim for stable configurations†¦ denying boundaries†¦ discovering hybrids†¦reinvention of psychological space†¦Ã¢â‚¬ (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 969-971). In Bordeaux, an old couple wanted a new house after the husband experienced a car accident and has to spend the rest of his live on the wheelchair. Rem was the designer. Considering husband’s inconvenience, an elevator was added to the house as a representation of the urbanism, and turns into his personal world where he can find the sense belonging. In the villa he made the elevator a movable floor slab. Elevator moves among underground floor, ground floor and relatively enclosed first floor, beside is a wall vertically through the entire building, with all husband’s personal stuff, the arrangement is R.Koolhaas/OMA, Lemoine house, Floirac, near Bordeaux, 1994-98, In collaboration with Ove Arup. Preliminary sketch no longer a concern. While it is moving, this elevator becomes husband’s personal place and an independent space in the building. This becomes a type of urbanism’s â€Å"reinvention of psychological space†, denying boundaries of the floor. To husband’s point of view, the building is no longer separated as three different floors but as one structural space. Furthermore, this villa feature of hybrid of new urbanism by using different sorts of material is different parts of the building. Building was located on the top of the hill, surrounded with peaceful grass land and bush. Therefore the ground floor and first floor was mainly built by glass wall so that person live inside the villa can have the great view of Bordeaux city. Above the glass wall is the bedroom made by concrete, appear as a heavy box floating in the air determining a certain solution for layout of the building and quality of the space. However, glass wall cannot afford the weight of the conc rete slab, Rem use a special structure to solve the problem: A steel portal and a hollow piloti with a large diameter in reinforced concrete, reminiscent of the ones in the project for Agadir. To introduce a further, decisive degree of visual instability. (Roberto Gargiani, 2008, pp. 212). On the top of the concrete piloti is a long shiny stainless steel structure with the large concrete box on one side, on the other side is a large over-hanged concrete block buried in the patio garden, achieving equilibrium and make the top concrete box seems to float even more vividly. This technology is connected with the tradition launched by ledoux with the house pended. The perfect combination and hybrid of glass wall and concrete wall structure again express Rem’s ideal urbanism. The over-hanged concrete block buried in the patio garden. â€Å"Instead of enforcing coexistence, Bigness depends on regimes of freedom, the assembly of maximum difference.† It sounds impossible for an architect or even architects to control a large thing like skyscraper, large landscape or even a city. When the modernized urbanism meets architecture, the problem of the large occurs. â€Å"Beyond a certain scale, architecture acquires the properties of Bigness.† (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 494-516). Nowadays, between modernizations which is what citizens need and acquire, and architecture which is the art of the building, urbanism choose what citizens need and this is when architecture start to fall. Art and beauty of architecture is useless against urbanism. However, bigness is a solution, â€Å"it is the one architecture that can survive, even exploit†. (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 494-516). Just like what Rem said, Bigness is the solution or maybe the only solution for urbanism and architecture’s assembly. â€Å"Instead of enforcing coexistence, bigness depends on regimes of freedom, the ass embly of maximum difference.† Suggests Rem’s idea: by using bigness, freedom and large space to combine architecture and urbanism. Evoke the idea of bigness is to offer everyone live under urbanism maximum space, freedom and privacy. There are several uses of the bigness and in Rem’s residential work – villa of Bordeaux, such as elevator. In the theory of bigness: â€Å"The elevator – with its potential to establish mechanical rather than architectural connection.† (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 494-516). The art of architecture become useless in the large size building. To avoid this Rem turn the traditional elevator into a movable giant floor slab. Instead creating a single room for the husband, this elevator makes the all three floor as a space for husband, remain the technology of bigness and the ‘art’ of architecture at the same time. The R.Koolhaas/OMA, villa Lemoine, Floirac, near Bordeaux, 1994-98, in collaboration with Ove Arup. Elevator-living room with the mobile platform. elevator can move from opening public living room to private bedroom, gives him enough space but at the same time – regimes of freedom. Another example is the Glass wall under the concrete box bedroom. With a brief look from outside, the building looks like typical modernised urbanism type house. However the comparison of the top concrete close up type bed room and opening ground floor with glass wall surrounded represent the assemble of two different concepts and ideas. This villa has more than 400 metre square land and three floors. The large space combined with glass wall enlarge the sense of freedom and â€Å"The seeming failure of the urban offers an exceptional opportunity† Modernization heavily impact on urbanism on the negative side. Within globalization in urbanism, dwelling building all over the world are becoming more and more similar, some unique feature are decreasing. More buildings share same structure, same shape and same style. These took the original ‘urbanism’ away from the city, instead, urban become a solemn place full of steel framed building. This is the where Rem Koolhaas pointed out that â€Å"In a landscape of increasing expediency and impermanence, urbanism no longer is or has to be the most solemn of our decision; urbanism can be lighten up, become a Gay Science – Lite Urbanism.† (S, M, L, XL Rem Koolhaas, Bruce Mau, 1995, pp. 961-971). In modern days, under the fail urbanism, the new environment of urban is no longer a series place for living but a place where people can find themselves belong to, a place that not only bring them convenience and comfort, but also a simple place where they find enjoy to s tay, where they can find happiness and care. R.Koolhaas/OMA, villa Lemoine, Flo-rac, near Bordeaux, 1994-98, in col-aboration with Ove Arup .Intermediate upper-level plans;cross section In that case, Villa of Bordeaux can be the representation of ‘Lite urbanism’, building itself was a product of urbanism, offer people who live inside a place to rest, elevator offer husband who has to spent his life on wheel chair convenience, On the wall of the floating box, several holes with different height enable people at different level to look at the view outside. Furthermore about urbanism, house was locate on the top of the hill surrounded with no other building but quite grass land and bushes, different from the normal dwelling building locate in the city. Evokes an idea of the owner of the building who wants to take root of this place and live in seclusion. Without the crowd and noise, villa of Bordeaux becomes a representation of â€Å"Lite Urbanism†. Although the failure of the urbanism brings negative effects to cities, still Rem Koolhaas treats it as an opportunity at the same time and he designed lots of amazing architectural buildings such as Vil la of Bordeaux. Rem Koolhaas, 1996. Rem Koolhaas: Conversations with Students (Architecture at Rice). 1 Edition. Princeton Architectural Press. Roberto Gargiani, 2008. Rem Koolhaas/OMA (Essays in Architecture). 1 Edition. Rouledge http://wp.architecture.com.au/venicebiennale/venice-events/

Free Essays: Literary Sources of Frankenstein :: Frankenstein essays

Literary Sources of Frankenstein Frankenstein is considered to be the greatest Gothic Romantic Novel. It is also generally thought of as the first science fiction novel. I have always been impressed and amazed by the fact that Mary wrote this novel when she was eighteen years old. What experiences and powers of imagination led to such an innovative and disturbing work? The idea for the novel arose in the summer of 1816 when Mary Shelley was staying at Lord Byron's villa in Geneva Switzerland. Not only did Mary incorporate experiences from that summer into her novel, she also utilized the sources that she had been reading and studying. Two in particular were the Metamorphoses by Ovid and Paradise Lost by Milton. It is believed that Mary studied Ovid in April and May of 1815. The major element that Ovid supplied to the theme of Frankenstein, was his presentation of the Prometheus legend. This is acknowledged in the subtitle: Frankenstein, Or the Modern Prometheus. The creation of the monster is similar to this passage from Ovid: Whether with particles of heav'nly fire, The God of Nature did his soul inspire; Or earth, but new divided from the sky, And, pliant, still retain'd th'ethereal energy; Which wise Prometheus temper'd into paste, And, mix't with living streams, the godlike image cast... From such rude principles our form began; And earth was metamorphos'd into man. Lines from Frankenstein that reflect the above passage are; "I collected the instruments of life around me, that I might infuse a spark of being into the lifeless thing that lay at my feet." (p.51) "...that I may extinguish the spark which I so negligently bestowed." (Frankenstein p.101) The second important literary influence was Paradise Lost by Milton. ( If you have not read this, it is really worth the time. It is difficult, but is well worth the effort. I find that it is helpful to have a copy of Bullfinch's Mythology when reading it. Almost all of Milton's mythological references are explained in Bullfinch.) The influence of Milton's Paradise Lost can be seen directly from the epigraph of the 1818 edition of Frankenstein. "Did I request thee, Maker from my clay to mould me man? Did I solicit thee, from darkness to promote me?" The spirit of Paradise Lost permeates Frankenstein throughout the novel.

History Of Computers :: essays research papers

History of Computers Introduction:   Ã‚  Ã‚  Ã‚  Ã‚  The electronic computer has now been used commercially for less than 25 years. It grew out of a search lasting centuries for a more accurate, faster way to perform calculations.   Ã‚  Ã‚  Ã‚  Ã‚  Primitive and ancient man used his fingers, shells, beads, sticks, and other objects to keep track of numbers and sums. The development of paper and writing instrumentsmade it easier to record data, but gave little aid in manipulating it. Manual Devices:   Ã‚  Ã‚  Ã‚  Ã‚  A computer is sometimes defined as a system that mechanizes the processing of information. Even a manual device may fall under this definition if they are constructed in such a way that moving them by hand can produce the desired answer. Example: Abacus:   Ã‚  Ã‚  Ã‚  Ã‚  The abacus is the oldest-known mechanical computing aid. Its origin is uncertain. Many countries claim to have invented it. It was used in China as early as the sixth century B.C. and in the mediterranean areain ancient Greek and Roman times. It is still used in many parts of the world.   Ã‚  Ã‚  Ã‚  Ã‚  The abacus consists of beads strung on rows of wires suspended within a rectangular frame. A common form has a piece of wood dividing the beads, with five beads on one side, and two on the other side of the wood on each wire. Calculating Machines and their Inventors:   Ã‚  Ã‚  Ã‚  Ã‚  Through the centuries, several mathematical geniuses invented machinesto aid them in their calculations. The machines were never widely used and generally had no direct path to the later development of electronic computers. Example: Pascal:   Ã‚  Ã‚  Ã‚  Ã‚  Blaise Pascal (1623-1662) a French matematician, invented the first mechanical adding machine at age 19 in 1642. He became tired of adding long columns of figures while helping his father, who had been appointed administrator of Rouen by Cardenal Richelieu. His device had teen toothed wheels and many gears. Rotating wheels developed sums. A carry lever advanced the next wheel to the left one position when a sum exceeded 10. Punched Card Development:   Ã‚  Ã‚  Ã‚  Ã‚  Many of us are surprised to learn that the punched card industry is almost 200 years old. Furthermore, the first use of punched cards wasn’t for data processing, but rather for process control. Example: Jacquard:   Ã‚  Ã‚  Ã‚  Ã‚  Joseph Marie Jacquard (1752-1834), a French Weaver, in 1804 developed the first completly automatic loom, controlled by punched cards. Fearing that the machine would produce unemployment, workers attacked and destroyed his machine at Lyon. Aided by Napoleon, Jacquard rebuilt his machine, which os credited with promoting a thriving textile industry in France through the 1800s.

Business Law and Ethics Essay

Dealing with government regulation in business is an integral part of a manager’s responsibilities. Recognizing what actions might violate particular consumer protection regulations is crucial to protecting the company and to insuring its profitable operation. Government regulation is found every day in the operation of businesses large and small, and once understood, it allows managers to make good decisions regarding business practices. When you have completed this topic, you will be able to: †¢list the common types of regulations designed to protect consumers, †¢identify types of illegal consumer credit practices, †¢describe the warranty protection provided to consumers, and †¢describe the purpose and role of the Federal Trade Commission (FTC) in consumer protection. Read Chapter 40, â€Å"Consumer Law† Read the following chapter in Business Law and the Legal Environment: †¢chapter 40 (â€Å"Consumer Law†) Then respond to the following points in your notebook: †¢What is the role of the FTC? †¢Describe prohibited sales activities under the FTC Act. †¢How is consumer credit regulated? †¢What is the Magnuson-Moss Warranty Act? †¢What government regulations apply to consumer product safety? Consumer Law-statutes that protect consumers from the unscrupulous. Federal Trade Commission (FTC)=Created by congress in 1915 to regulate business. Most important agency enforcing consumer law. Prohibits unfair deceptive practices. FTC options for enforcing the law: 1. Voluntary Compliance When the FTC determines that a business has violated the law, it first asks the offender to sign a voluntary compliance affidavit promising to stop 2. Administrative hearing and appeals If the company refuses to stop voluntarily, the FTC takes the case to an administrative law judge (ALJ) within the agency. The violator may settle the case at this point by signing a consent order. 3.Penalties FTC can impose a fine for each violation of a voluntary compliance affidavit, a consent order, a cease and desist order, and an FTC rule. Section 5 of FTC Act- Prohibits unfair or deceptive sales practices. deceptive sales practices=An advertisement is deceptive if it contains an important misrepresentation or omission that is likely to mislead a reasonable consumer. Unfair acts or practices must meet 3 tests to considered unfair acts or practices: 1. It causes a substantial consumer injury 2. Harm of injury outweighs any benefit 3. The consumer could not reasonably avoid the injury FTC can find unfair if violates public policy w/o meeting tests Bait and switch advertisement= Merchant may not advertise a product and say bad things about it in order to sell a different item. Telemarketing= prohibits telemarketers from calling anyone on the do-not-call registry. And they cannot block their names and telephone number. Do not call registry= prohibits telemarketers from calling telephone numbers listed on the Do not call registry Mail or Telephone Order Merchandise has the following guidelines: Must ship an item within the time stated or within 30 days after the receipt of order; if it can’t ship by that time, they must send the customer a new ship date or the right to cancel order. *unordered merchandise received in the mail Consumers may keep as a gift Door to Door Rules- Salesperson is required to notify the buyer that the she has the right to cancel the transaction prior to midnight of the third business day thereafter Consumer Credit Regulations TILA Truth in Lending Act- requires lenders to disclose the terms of a loan in an understandable and complete manner. disclosures must be clear and meaningful.. Must disclose the finance charge and APR. TILA applies when: 1. It’s a consumer loan 2. The loan has a finance charge and will be repaid in more than four installments 3. The loan is less than $25,000 or secured by a mortgage 4. The loan is made by someone in the business of offering credit. High rate Home equity loans- lender must notify consumer at least 3 business days before closing that 1. He does not have to go through with the loan 2. He could lose his house if he fails to make payments Home Equity Loans-Rescission- Can rescind for up to 3 days after signing and after 3 years if the mortgage lender didn’t comply with TILA. Right to Rescind= Consumers have the right to rescind a 2nd mortgage for three business days after the signing. If the lender did not comply w/ TILA may rescind for up to 3 yrs. Credit card unauthorized charges- under TILA if consumer reports card stolen w/in 2 days only responsible for $50, after 2 days bank will only reimburse for losses over $500. Wait more than 60 days to report bank is not liable at all open end credit(credit card)= credit transaction in which lender makes a series of loans that can be re-payed at once or in installments. open ended credit required disclosures 1. the amount owed at the beginning of the billing cycle   2. amounts and dates of all purchases, credits and payments; finance charges and late fees 3. the date by which a bill must be paid to avoid these charges 4. either the consequences of making the monthly minimum payment or a toll free number at which to obtain such information. Close end credit(car loan)= One loan, borrower knows the amount and the payment schedule in advance subprime loans For subprime loans, a lender: (1) Must verify the borrower’s ability to repay the loan from income and assets other than the home’s value (2) May not charge a prepayment penalty if monthly payments can change in the first four years of the loan (3) Must collect property taxes and homeowner’s insurance for all first mortgages Home equity Loans Home Equity Loans-Enforcement= FTC generally has the right to enforce Truth in Lending Act and Consumers have a right to file suit. TILA provides additional consumer safe guards if: 1. APR is more than 10% higher than Treasury securities 2. Consumer pays fees and points at closing more than 8% 3. Loans that are less than 5 yrs cannot have balloon payments Advertising= Statute requires lenders to advertise their rates accurately. Can’t bait and switch. Bait and Switch= a merchant may not advertise a product and then disparage it to consumer in an effort to sell a different item and they must have enough items in stock to meet reasonable demand. Truth in Lending Act (TILA)= passed to ensure that consumers were adequately informed about the credit terms before entering into a loan and can compare the cost of the credit. TILA enforcement *FTC generally has the right to enforce TILA. TILA requires disclosures: Must be clear and in meaningful sequence, The lender must disclose the finance charge, and the creditor must also disclose the annual percentage rate. TILA advertisements- Under TILA lenders cannot advertise a loan as â€Å"fixed† if in fact its rate or payments will change In the event of a dispute between the customer and and a merchant the credit card company cannot bill the customer if: 1. customer makes a good faith effort to resolve dispute 2. the dispute is for more than $50 3. the merchant is in the same state or is within 100 miles of their home Fair Credit Bill Act (FCBA)- Under FCBA a credit card company must promptly investigate and respond to any consumer complaints about a credit card bill *provides additional protection for credit card holders. It allows a customer to dispute an item on their billing statement and demands that the company respond to your dispute. Fair Credit Reporting Act (FCRA)- helps to ensure that consumer credit reports are accurate and regulates the reporting agencies. Under FCRA: 1. A consumer report can be used only for a legitimate business need 2. A consumer reporting agency cannot report obsolete information 3. An employer cannot request a consumer report on any current or potential employee w/o the employees permission 4. Anyone who makes an adverse decision against a consumer because of a credit report must reveal the name and address of the reporting agency that supplied the negative info Fair and accurate credit reporting Act (FACTA)- created to reduce identity theft by providing consumers with one free credit report per year and making companies update their information. *Permits consumers to obtain 1 free credit report every year from each of the 3 major reporting agencies Fair Debt Collections Practices Act (FDCPA)= a collector must send the debtor a written notice containing the amount of debt, the name of the creditor to whom the debt is owed, and a statement that if the debtor disputes the debt (in writing), the collector will cease all collection efforts until it has sent evidence of the debt. *Debt collectors may not harass or abuse debtors Equal Credit Opportunity Act (ECOA)= Prohibits any creditor from discriminating against against a borrower on the basis of race, color, age, religion, national origin, sex or marital status or because the borrower is receiving welfare. Magnuson-Moss Warranty Act= Requires any supplier that offers a written warranty on a consumer product costing more than $15 to disclose the terms of the warranty in simple and readily understandable language before sale. *Magnuson-Moss Warranty Act does not require manufacturers or sellers to provide a warranty on their products. Consumer product safety Commission= Evaluates consumer products and develops safety standards. Consumer Product Safety Act (CPSA)= the goal is to prevent injuries from products. Consumer Leasing Act (CLA)= protects a person when leasing a car. Makes sure that the company discloses all important information in writing, so that the borrower knows what the payments, interest, penalties, rights, and warranties are. Debit Card= This item works like a check because money is taken directly from your account so their is no bill. Rules of a Debit Card: If you report it stolen before any purchases are made, you are not responsible for any amount. If you report it stolen with in two days, you are responsible for $50. If you report it stolen after two days, you are responsible for $500. Chapter Conclusion Virtually no one will go through life without reading an advertisement, ordering from a catalog, borrowing money, needing a credit report, or using a consumer product. It is important to know your rights. Chapter Review 1. The Federal Trade Commission (FTC) prohibits â€Å"unfair and deceptive acts or practices.† A practice is unfair if it meets the following three tests: †¢ It causes a substantial consumer injury. †¢ The harm of the injury outweighs any countervailing benefit. †¢ The consumer could not reasonably avoid the injury. 2. The FTC considers an advertisement to be deceptive if it contains an important misrepresentation or omission that is likely to mislead a reasonable consumer. 3. FTC rules prohibit bait and switch advertisements. A merchant may not advertise a product and then disparage it to consumers in an effort to sell a different item. 4. The FTC prohibits telemarketers from calling telephone numbers listed on its do-not-call registry. 5. Consumers may keep as a gift any unordered merchandise that they receive in the mail. 6. Under the FTC door-to-door rules, a salesperson is required to notify the buyer that she has the right to cancel the transaction prior to midnight of the third business day thereafter. 7. In all loans regulated by the Truth in Lending Act (TILA), the disclosure must be clear and in meaningful sequence. The lender must disclose the finance charge and the annual percentage rate. 8. In the case of a high-rate home equity loan, the lender must notify the consumer at least three business days before the closing that (1) he does not have to go through with the loan (even if he has signed the loan agreement) and (2) he could lose his house if he fails to make payments. If the duration of a high-rate home equity loan is less than five years, it may not contain balloon payments. 9. Under TILA, consumers have the right to rescind a mortgage (other than a first mortgage) for three business days after the signing. If the lender does not comply with the disclosure provisions of TILA, the consumer may rescind for up to three years from the date of the mortgage. 10. Under TILA, a credit card holder is liable only for the first $50 in unauthorized charges made before the credit card company is notified that the card was stolen. If, however, you wait more than two days to report the loss of a debit card, your bank will only reimburse you for losses in excess of $500. If you fail to report the lost debit card within 60 days of receipt of your bank statement, the bank is not liable at all. 11. In the event of a dispute between a customer and a merchant, the credit card company cannot bill the customer if: †¢ She makes a good faith effort to resolve the dispute †¢ The dispute is for more than $50, and †¢ The merchant is in the same state where she lives or is within 100 miles of her house. 12. Under the Fair Credit Billing Act, a credit card company must promptly investigate and respond to any consumer complaints about a credit card bill. 13. Under the Fair Credit Reporting Act: †¢ A consumer report can be used only for a legitimate business need †¢ A consumer reporting agency cannot report obsolete information †¢ An employer cannot request a consumer report on any current or potential employee without the employee’s permission, and †¢ Anyone who makes an adverse decision against a consumer because of a credit report must reveal the name and address of the reporting agency that supplied the negative information. The Magnuson-Moss Warranty Act requires manufacturers or sellers to provide at least a limited warranty on all products. (False) Answer:The Act does not require a warranty, but it does require that any supplier that offers a written warranty on a consumer product that costs more than $15 to disclose the terms of the warranty in simple, understandable language. The federal consumer protection laws are meant to protect consumers from the consequences of bad business decisions. (False) Answer: These statutes were passed by Congress and state legislatures to protect consumers from unscrupulous merchants. Under the Truth-in-Lending Act, the consumer is liable for the use of a credit card by unauthorized persons up to $500. (False) Answer: The Act makes a consumer liable for only $50. When a borrower uses his home as security for a second mortgage, the borrower has the right to rescind for: 3 business days. Answer: The TILA gives the consumer this right for up to 3 days after the signing. A commercial for basketball shoes included a testimonial from a famous basketball player. If the player does not use the basketball shoes in the ad:the ad is deceptive. Answer: Under the FTC Act, an advertisement is deceptive if it contains an important misrepresentation that is likely to mislead a reasonable consumer. The Consumer Leasing Act requires a lessor to disclose which of the following? The consumer’s right to terminate a lease early. Answer: Any right to early termination must be disclosed before a lease is signed.