Ch 14 Flashcards
Any method of business that is dishonest or fraudulent.
Unfair trade practice
An individual who acquires goods primarily for personal use
Comsumer
The government agency that issues and enforces safety standards from most consumer products.
CPSP
A court action that allows one or several persons to sue on the behalf of others.
Class action
The practice of luring customers to a store by advertising a few, low-priced items
Bait and switch
The phrase that means “Let the seller beware”
Caveat venditor
An order that requires a company to stop a certain conduct
Cease and desist
A phrase that means “Let the buyer beware”
Caveat Emptor
An untrue claim of quality or effectiveness
False advertising
The government agency that regulates the production of safe food and drugs
FDA
The government agency that prevents false and misleading advertising
FTC
A classification for products that do not meet the FDA’s standard for purity and quality.
adulterated
A form of gambling where no skill is required to win
Lottery
The force that drives efficient businesses to create new and better products and services
Completion
voluntary, court-enforceable agreement to stop an illegal practice.
Consent order
The return of wrongfully obtained money to a customer
Restitution
What is exaggerated sales talk called?
Puffing
What is an unstated warranty that is imposed on all sellers?
Implied
What kind of warranty provides less coverage than a full warranty?
Limited
What is a seller’s statement about a product’s quality called?
Warranty
What is a notice of an exclusion?
Disclaimer
What is the unauthorized use of a product
Infrigentment
What is a claim of a third party called?
Encumbrance
What kind of warranty includes an explicit assurance of quality or promise of performance by the seller?
Express
In what kind of warranty does the seller recommend a product to the buyer for a specific purpose?
Fitness
What kind of warranty requires that goods be fit for ordinary purposes for which such goods are used?
Merchantabilty
What is the tort that could be the basis for a product liability suit?
Negligence
What is the tort that could be the basis for a product liability suit?
Negligence
One type of liability
Strict
What is the relationship between contracting parties called?
Privity
If this person alters a product, no liability exists.
User
