Chapter 14-1

Question 0

Caveat Emptor

Answer 0

Let the buyer beware

Question 1

Consumer

Answer 1

An individual who requires goods that are intended primarily for personal, family, or household use

Question 2

Caveat Venditor

Answer 2

Let the seller beware

Question 3

Class Actions

Answer 3

Allows one or several persons to sue not only on behalf of themselves but also for many others wronged

Question 4

Cease-and-desist order

Answer 4

Order requiring company to stop specified conduct

Question 5

Consent order

Answer 5

Voluntary, court enforceable agreement to stop an illegal or questionable practice

Question 6

Restitution

Answer 6

Return of money wrongfully obtained

Question 7

Licensing

Answer 7

Protection of consumers by government starts with licensing

Question 8

Consumer Product Safety Act

Answer 8

Law created the consumer product safety commission and gave it authority to issue and enforce safety standards for most consumer products

Question 9

Food and drug administration

Answer 9

Requires that the production facilities for cosmetics, food, and drugs be clean

Question 10

Adulterated

Answer 10

A product that does not meet fda standards

Question 11

Us department of agriculture

Answer 11

Inspects canners, packers, and processors of poultry and meat entering interstate

Question 12

Unfair trade practice

Answer 12

Method of business that is dishonest or fraudulent or that illegally limits free competition

Question 13

Competition

Answer 13

Force that drives efficient businesses to create new and better product and service

Question 14

False and misleading advertisement

Answer 14

Intentionally deceives, makes untrue claims of quality or effectiveness, or fails to reveal critically important facts

Question 15

Bait and switch

Answer 15

Business advertises a low priced, under stocked item, when buyer arrives it is sold out and is reduced to buy an expensive item

Question 16

Federal trade commission

Answer 16

Main responsibility for preventing false and misleading advertisement

Question 17

Corrective advertisement

Answer 17

Requires advertisement to admit the wrong doing and state the truth in a prescribed number of future advertisement

Question 18

Three elements to a gamin scheme

Answer 18

(1) money (2) chance (3) prize

Question 19

Confidence games

Answer 19

Involve fraudulent device whereby victim is persuaded to trust swindler with victims money or other valuables in hope of a quick gain

Question 20

Unfair pricing and service

Answer 20

Intentionally misrepresenting that goods are being sold at a considerable discount and stating that the price charged for the goods is wholesale price