Correct that for Cartesian product the relations need not be UNION compatible. But they still need to be compatible! Otherwise there are exactly the difficulties you point out. So the rule for Cartesian product is that there must be no attributes in common.
So if you have a clash of attributes, first you must rename the attributes before crossing. See http://en.wikipedia.org/wiki/Relational_algebra on 'Natural Join'. (That defines Nat Join in terms of Rename, Cartesian product and Projection.)
From the point of view of learning the RA, I would think of Natural Join as the basic operation. And Cartesian product as a degenerate form when there are no attributes in common. This is for example the approach that Date & Darwen take in their textbooks.