COLLEGE OF ARTS AND SCIENCES

Department of Economics

ECONOMICS 20.1
BASIC PRINCIPLES OF ECONOMICS WITH APPLICATIONS IN TAXATION,
AGRARIAN REFORM AND CONSUMER EDUCATION
Academic Year 2015-2016

INFORMATION
Weight: Part I of the Semi-Final Examination Name of Student: Emmil Joy B. Pador
Teacher: Mr Jhon Louie B Sabal, Section:BG
Assistant Instructor, Department of Economics

Instructions: This Case Study is the second part of your Semi-Final Examination. This is an individual
work following the objectives below:
a. Examine the Philippine Consumer Rights Act by enumerating and explaining the value of rights
and obligations of a consumer in the incessant search for truth and;
b. Identify loopholes on the Philippine Consumer rights and initiate relevant recommendations
using economic tools and concepts
This is your return demonstration in the class. Please limit only your answers in 3 pages.

QUESTION ANSWER
CONTEXT: Protect the interest of the consumer and
What events prompted the creation of RA 7394? promote his general welfare

Establish standards of conduct for business and

industry

GOALS: protection against hazards to health and safety;

What are the key goals of RA 7394?
protection against deceptive, unfair and
unconscionable sales acts and practices;

provision of information and education to

facilitate sound choice and the proper exercise
of rights by the consumer;

provision of adequate rights and means of

redress; and
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Department of Economics

involvement of consumer representatives in the

formulation of social and economic policies.

STRUCTURE: Department of Trade and Industry (DTI)

What are the implementing bodies of RA 7394?
What is the policy making body?
Department of Agriculture (DA)

Department of Education (DepEd)

Department of Health (DOH)

Bangko Sentral ng Pilipinas (BSP)

Securities and Exchange Commission (SEC)

MILESTONES: Consumers now are now given right to have

What are the positive impact to various sectors, safety form hazardous substances, from redress,
government and the consumers?
and etc

The governments various sectors can now

undergo research develop and establish quality
and safety standards, inspect and analyze
consumer products, to levy, assess, collect and
retain fees are necessary for the cost of
inspection, to investigate the cost of and
investigate product realated deaths.

CHALLENGES: Some of the issues might be the fund to used

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by different sector and the use of this act in an
What are the pertinent and emerging issues and evil way by the consumers since this act
problems encountered in the Implementation of
the Act? protects them it gives consumer much power
over other things.

The act also troubles product producers and

sellers which are very biased by the act since
they have to undergo a lot of test and
inspections before their products would be
sold and in turn costing them a lot.
ANALYSIS: The Consumer Act of the Philippines are very
What are the positive and negative areas of this important and helpful to our community and to
kind of Act?
the people that involve to the act of the
Philippines because we are the consumer and
they implement the interest of the consumer to
provide safety and quality.

The negative areas of the act is that some might

abuse it because of the ability of the act to
protect the consumers some of them might
even use the act to gain something from
themselves from the things they buy by lie
about the products are expired or the products
are hazardous which benefits the costumers for
their own gain.