Refers to laws designed to aid retail consumers on goods & services that have been improperly manufactured/delivered/performed/handled/described. Such laws provide the retail consumer with additional protections & remedies not generally provided to merchants (and others who engage in business transactions). The laws do so on the premise that consumers do not enjoy an “arm’s-length” bargaining position (with respect to the business-people with whom they deal). Therefore, the legislature believes that these consumers should not be strictly limited by the legal rules that govern recovery for damages among businesspeople.
EXAMPLE:
John contracted with a company (to put aluminum siding on his house). The company transfers the contract to a financial firm, and receives the amount John had agreed to pay the company (less a small discount – with respects to the financial firm). Under basic commercial law, if the company does not perform the work satisfactorily, John will still have to pay the financial firm, because that area of law protects the firm [as a holder in due course] from claims against the company once the firm assumes the contract. But under some states’ consumer-protection laws, the firm must take responsibility for the company work (in most instances).
