Chapter 32 Vocabulary

Question 1

Advertising that misleads consumers, either by making unjustified claims about a product’s performance or by omitting a material fact concerning the product’s composition or performance.

Answer 1

Deceptive Advertising

Question 2

Advertising a product at an attractive price and then telling the consumer that the advertised product is not available or is of poor quality and encouraging her or him or purchase a more expensive item.

Answer 2

Bait-And-Switch Advertising

Question 3

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Answer 3

Cease-And-Desist Order

Question 4

New advertising that is undertaken to correct earlier false claims that were made about a product.

Answer 4

Counteradvertising

Question 5

An order requiring a firm that has engaged in deceptive advertising to cease and desist from false advertising in regard to all the firm’s products.

Answer 5

Multiple Product Order

Question 6

Laws that allow buyers of goods sold in certain transactions to cancel their contracts within three business days.

Answer 6

Cooling-Off Laws

Question 7

A set of rules issued by the Federal Reserve Board of Governors to implement the provisions of the Truth-in-Lending Act.

Answer 7

Regulation Z