The assumption that a consumer's preference ordering obeys the law of transitivity means: 

 A consumer's tastes never change.

If a consumer's tastes do change, then their new preferences must be consistent with their previous tastes. 

A consumer's preference ordering is consistent. 

If a consumer prefers vanilla ice cream to chocolate ice cream, they must prefer vanilla ice cream to strawberry ice cream.

If a consumer receives more of a good, then their utility from consuming that good must decline.

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