Business Law II Chapter 17 Test

• Restitution is the return to customers of money wrongfully obtained
• Class action allows one or several persons to sue not only on behalf of themselves, but also on behalf of many others similarly wronged
• Caveat venditor means" let the seller beware"
• A consent order is a voluntary, court enforceable agreement to stop an illegal or questionable practice
• Caveat emptor means "let the buyer beware"
• Cease and Desist orders are typically issued by the federal government where a company is required to stop a specified conduct
• A consumer is an individual who acquires goods that are predominately used for personal, family, or household use
• False and misleading advertising restrains trade
• Privity of contract is the relationship that exists between or among contracting parties as a result of their legally binding agreement
• FTC stands for: federal trade commission
• Does the FTC govern warranties?

  No
• What are three remedies for injuries involving the use of substandard products or services?

  Class action, civil suit, and cease and desist
• Due to millions of individuals being injured annually by products the Consumer Product Safety Commission Act was drafted and passed into law in 1972
• What are the two main types of warranties?

  Express and implied
• Substandard goods are also classified as dangerous
• What are two ways consumer law protects consumers?

  Help to protect production sales and licenses
• What are two reasons why consumer laws were adopted?

  Provides remedies for people and help protect against production
• Unfair trade is defined as anything dishonest or fraudulent that restrains trade
• Products that don't meet the standards and purity set by the FDA are said to be adultered
• Full warranty are many times in the form of an express warranty that obligates the seller to repair or to replace a defective product without cost
• Implied warranty indicates sellers are to honor certain implicit, unstated warranties
• Express warranty provide an assurance of quality or promise of performance explicitly made by the seller
• Product liability is the understanding that manufactures are responsible for the outcomes of their product or service
• An express warranty is often called a legal instrument
• Puffing is an exaggerated positive statement said about a product or service
• Warranty of merchandisable means goods are to be sold for what they are typically used for
• Disclaimer are a notice of exclusion to the warranty
• Puffing can be a warranty if the seller claims content expertise in a contract.