Unit 5 - Chapter 24

Question 1

_______ ____ Law is primarily concerned with protecting interests of consumers

Answer 1

Consumer Protection

Question 2

________ is an individual who purchases goods or services primarily for personal, domestic, or household purposes

Answer 2

Consumer

Question 3

In consumer protection law, the assumption is that consumers are at a _______

• -> not well informed
• -> not experienced in transactions

Answer 3

disadvantage

Question 4

Primary source of competition law in Canada is the federal _______ Act

Answer 4

Competition

Question 5

Main Goals of Consumer Protection Law

Answer 5

To protect consumers:

1. in contract for the purchase of goods and services
2. from unfair selling and marketing practices
3. from physical harm and injury

Question 6

____ ____ are illegal business practices that exploit the unequal bargaining position of consumers

Answer 6

unfair practices

Question 7

_____ sales are the fastest growing area of retailing in Canada

Answer 7

Online

Question 8

_______ Act sets out minimum packaging and labelling requirements for all prepackaged goods sold in Canada, other than drugs, cosmetics, and medical devices

Answer 8

Consumer Packaging and Labelling

–> encourages fair competition by ensuring consumers can compare price and quantity

Question 9

__________ Council is supported by the Canadian Association of Broadcasters (CAB) with the approval of the Canadian Radio-television and Telecommunications Commission (CRTC).

Answer 9

Canadian Broadcast Standards

–> has an equivalent code of ethics and complaints process, dealing specifically with promotion in broadcast media

Question 10

________ matters regulated by the Competition Act include price fixing and deceptive telemarketing

Answer 10

Criminal

Question 11

_________ matters regulated by the Competition act include misleading advertising and discriminatory practices

Answer 11

Civil “reviewable”

Question 12

______ is defence based on adopting reasonable steps to avoid the violation of a legal duty

Answer 12

Due Diligence

Question 13

A business can defend itseld by proving that the allegations are unfounded or that it exercised ____ in its advertising messages

Answer 13

due diligence

Question 14

Competition Act defines a _____ or ___ claim as occuriring when a person for the purpose of promoting, directly or indirectly, the supply of use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, makes a representation to the public that is false or misleading in a material respect

Answer 14

false or misleading

Question 15

Some marketers are keen to cater to consumer’s awareness of the environmental consequences of use of the products they choose and may overstate the features of their product. This is known as _____

Answer 15

greenwashing

Question 16

_____ sale is advertising a product as “on sale” when it is not - misleads consumers about ordinary price

Answer 16

False

Question 17

_______ ____ is failing to sell at the lower of the two or more prices marked on or otherwise appearing with regard to a product

Answer 17

double ticketing

Question 18

_________ is a marketing tactic where one advertises a product at a very low price to attract customers, then encouraging them to accept another product that is usually more expensive

Answer 18

Bait and Switch

Question 19

______ is conspiring with competitors to fix the prices charged for goods or services

Answer 19

price fixing

Question 20

_____ _____ is conspiring to fix the bidding process to suit collective needs of those submitting bids

Answer 20

Bid rigging

• -> manipulates the market through price
• -> no market impact needs to be proven

Question 21

In _________ position, anti competitive acts include buying up products to prevent the erosion of price levels, requiring suppliers to sell only to certain customers, and selling products below acquisition cost in order to discipline or eliminate competitors

Answer 21

abuse of dominant

Question 22

_______ is when prices are set unreasonably low in order to drive out the competition

Answer 22

predatory pricing

Question 23

___ ______ is the attempt to drive the final retail price of goods upward and the imposition of recriminations upon noncompliant retailers

Answer 23

price maintenance

Question 24

____ _____ is a criminal act under the Competition Act if:

• participants pay for right to receive compensation for recruiting new participants
• participants require to buy specific quantity before being allowed to join
• participants knowingly sold unreasonable quantities of the product (inventory loading)
• participants not allowed to return products on reasonable terms

Answer 24

pyramid selling