Chapter 14 Consumer Protection

Question 0

Caveat Emptor

Answer 0

A phase that traditionally guided consumers in the market place that means “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

Unfortunately

Answer 2

The products often are offered by huge corporations which are not always responsive to consumer complaints

Question 3

Caveat Venitor

Answer 3

Meaning “let the seller beware”, today any seller who deceives a consumer maybe sued by the consumer as well as by the governmental agency

Question 4

Class Action

Answer 4

Allows one or several persons to sue on the behalf of many others who have been wronged

Question 5

Cease-and-desist Order

Answer 5

An order by governmental agency requiring the company to stop the specific conduct

Question 6

Consent Order

Answer 6

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

Question 7

Restitution

Answer 7

Gov’t agency may order money wrongfully obtained to be returned to the customer

Question 8

Licensing

Answer 8

Certain business and institutions must be listened and pass inspection to operate

Question 9

Unsafe Products

Answer 9

If a product is determined hazardous, the manufacturer, distributor and retailers of the product must issue a recall, repair the product, replace it, or refund the money

Question 10

Consumer Product Safety Act

Answer 10

Enacted in 1972

Question 11

Consumer Product Safety Commission

Answer 11

Has the authority to issue and enforce safety standards for most consumer products

Question 12

Adulterated

Answer 12

A product that does not meet the minimum standard for purity and quality sete by FDA

Question 13

FDA Requirments

Answer 13

• requires that the production facilities for cosmetics, food and drugs be clean and that the products be prepared from ingredients fit for human use.
• without FDA approvals new drugs cannot be marked in this country.
• required that labeled on the products give the name, address of the manufacture, quantity and nutritional labeling.
• regulates which drugs are safe for users and determines which drugs are prescription and which maybe sold “over the counter”

Question 14

US Department of Agriculture

Answer 14

Inspects canners, packers, and processors of poultry and meat ensuring the products are free of disease and processed under sanitary conditions

Question 15

Weights and Measures Division of the National Institutive of Standards and Technology

Answer 15

Promoted uniformity in the measurements of gallons of gas, pound of bananas etc.

• inspections are down about once a year
• violations of the weights and measure laws are punishable by fine, imprisonment or both

Question 16

Unfair Trade Pratice

Answer 16

Dishonest, fraudulent, or anticompetitive business method

Question 17

False and Misleading Advertising

Answer 17

Deceives, make untrue claims of quality, or fails to reveal important facts

Question 18

Bait and Switch

Answer 18

Luring buyers to the store with a understudied, Lowe price good and then redirecting them to a more expensive product

Question 19

Corrective Advertising

Answer 19

FTC may order the advertiser to admit wrong doing and state the truth in future advertisements

Question 20

Illegal Lotteries and Confidence Games

Answer 20

• a required payment of money or something else of value to participate
• the winner(s) to be determined by chance rather than skill
• a price to be won

Question 21

Unfair Pricing and Service

Answer 21

Intentionally misers ending that goods are being sold at a considerate discount

Question 22

Mislabeled Goods

Answer 22

Mislabeling a good to make it more marketable

Question 23

Product liability

Answer 23

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

Question 24

Warranty

Answer 24

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

Question 25

Private of Contract

Answer 25

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

Question 26

Express Warranty

Answer 26

An assurance of quality or promise of performance explicitly made by the seller; maybe oral or written

Question 27

Margnuson Moss Act

Answer 27

States the seller must make written warranties avavbkenon products over $115

Question 28

Expressive Warranties

Answer 28

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