Chapter 14

Question 0

Caveat emptor

Answer 0

“let the buyer beware”

Question 1

Consumer

Answer 1

An individual who acquires 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 on behalf of many others similarly wronged

Question 4

cease and desist order

Answer 4

requires the company to stop the specified conduct

Question 5

consent order

Answer 5

a voluntary, court enforceable agreement to stop an illegal or questionable practice

Question 6

restitution

Answer 6

the return to customers of money wrongfully obtained

Question 7

the Consumer Product Safety Act

Answer 7

has the authority to issue and enforce safety standards for consumer products

Question 8

adulterated

Answer 8

a product that doesn’t meet the minimum standard for purity and quality set by the FDA

Question 9

Food and Drug Administration (FDA)

Answer 9

sets standards for cosmetics, foods and drugs

Question 10

unfair trade practice

Answer 10

dishonest, fraudulent or anticompetitive business method

Question 11

competition

Answer 11

the force that drives businesses to create new and better products and service

Question 12

false and misleading advertising

Answer 12

deceives, makes untrue c,aims of quality or fails to reveal important facts

Question 13

bait and switch

Answer 13

luring buyers to the store with an understocked, low priced good and then redirecting them to a more expensive product

Question 14

corrective advertising

Answer 14

FTC may order the advertiser to admit wrongdoing and state the truth in future advertisements.

Question 15

the 3 elements of a lottery

Answer 15

chance, consideration and payment

Question 16

mislabeled goods

Answer 16

mislabeling a good to make it more marketable

Question 17

product liability

Answer 17

the mixing of responsibility to compensate buyers, users, and bystanders for injuries caused by a defective product

Question 18

warranty

Answer 18

assurance that the seller makes about the quality and performance of a product governed by the UCC

Question 19

privity of contract

Answer 19

the relationship that exists as a result of a legally binding agreement

Question 20

recovering damages

Answer 20

based in breach of warranty, torts of fraud, negligence or strict liability

Question 21

express warranty

Answer 21

an assurance of quality or promise of performance explicitly made by the seller, may be oral or written

Question 22

magnuson-moss act

Answer 22

states the seller must make written warranties available on products over $15

Question 23

full warranty

Answer 23

express warranty that obligates the seller to repair or replace a defective product without cost to the buyer within a reasonable time

Question 24

limited warranty

Answer 24

express warranty that provides less protection than full warranty

Question 25

puffing

Answer 25

greatly exaggerated sales talk, sellers opinion

Question 26

implied warranty

Answer 26

an implicit warranty obligation imposed by law on all sellers

Question 27

warranty of title

Answer 27

seller warrants that he has title of the foods to transfers

Question 28

warranty against encumbrances

Answer 28

goods are free of claims of a 3rd party, unpaid balances will be paid off before delivery

Question 29

warranty against infringement

Answer 29

a merchant makes an implied warranty that the goods delivered will be free of 3rd party’s claim for patent, copyright, or trademarked infringement

Question 30

warrant of merchantability

Answer 30

requires that the goods be fit for the ordinary purpose for which such goods are used

Question 31

exclusion of warranties

Answer 31

seller may sell goods without any warranties on goods that are sold “as is” or “with all faults”

Question 32

disclaimer

Answer 32

a notice of exclusion that must be written and easily noticed

Question 33

lemon laws

Answer 33

exists at both state and federal levels to protect consumers who have purchased a defective product