Unit 8

Question 1

The Economy

Answer 1

The system that controls and regulates all monetary and material goods, any resources, or labor about a specific group or society.

Question 2

consumers

Answer 2

Individuals who participate in economies by using their assets to purchase goods

Question 3

Assets

Answer 3

a person’s monetary or material resources (houses, cars, bank account, and investment funds.)

Question 4

Consumer law

Answer 4

a system designed to protect the rights of people who participate in an economy.

Question 5

consumer rights

Answer 5

Right to Safety, Right to Information, Right to Choices, Right to be Heard, Right to Redress, Right to Consumer Education, Right to Basic Needs, Right to a Healthy Environment.

Question 6

Consumer Responsibilities

Answer 6

Be educated, be truthful, have integrity, have courtesy, be sensible.

Question 7

Federal Trade Commission

Answer 7

an independent agency of the United States government whose principal mission is the enforcement of civil U.S. antitrust law and the promotion of consumer protection.

Question 8

Bureau of Consumer Protection

Answer 8

protects against fraudulent or unfair business actions. It is divided into eight divisions (the division of privacy and identity protection, division of advertising practices, division of consumer response & operations, division of enforcement, division of marketing practices, division of consumer response and operations, division of financial practices, and finally, the division of litigation technology & analysis.)

Question 9

Bureau of Competition

Answer 9

designed to keep monopolies from overshadowing the marketplace and preventing companies from charging higher prices.

Question 10

Monopoly

Answer 10

when one company owns all of the business for a particular product or service in a given area.

Question 11

Bureau of Economics

Answer 11

the impact of all the FTC’s actions, to determine how effective they are, and what the ramifications of each action are. They conduct studies, report to legislatures, and give testimonies.

Question 12

Consumer fraud

Answer 12

False-advertisement, defective products, get-rich-quick schemes, and other methods exist to trick people into spending their money.

Question 13

Contracts

Answer 13

protect consumers’ rights in the marketplace. They outline what each party is responsible for, and what the outcome of defaulting on that contract will be. They can be both written and oral (spoken) and some are considered more binding than others.

Question 14

Written contracts

Answer 14

legal documents that state the parties involved, the terms of the agreement, how to break the contract, and any time limits or monetary allowances.

Question 15

Oral contract

Answer 15

an agreement that is acceptable and unstated. It involves two or more parties acting in ways that are agreeable to both.

Question 16

Warranty

Answer 16

a type of contract that protects consumers from faulty products such as electronics or a new automobile.

Question 17

Express warranty

Answer 17

lists the conditions under which a product can be returned, and what the exchange policy is. It will list certain specific reasons for the return and the time frame for the return. It will also list what voids (or cancels) the warranty.

Question 18

Implied warranty

Answer 18

an unspoken warranty that is so common that people don’t need it to be specified.

Question 19

Lifetime warranty

Answer 19

It does not last for the lifetime of the purchaser; rather, it encompasses the expected lifetime of the purchase and covers unexpected issues with the product.

Question 20

Extended warranty

Answer 20

sometimes referred to as a service agreement, and is a warranty offered to consumers to cover a certain period of time beyond the standard time outlined in another type of warranty.

Question 21

VIN

Answer 21

the “vehicle identification number” that is unique to each car. For a small fee, the VIN number is run through a database and a report is generated that gives details about how many owners have had the car, whether it’s been reported stolen, and whether it had been in any accidents—or considered legally totaled.

Question 22

Fair Credit Reporting Act

Answer 22

designed to protect the interests of credit card holders. It outlines ways to regulate consumer information and decides how that information is to be used.