Upgrade to remove ads
BUS law 265- Unit 11- Consumer protection
Terms in this set (24)
if a buyer purchased a product and the product didn't work or caused harm, it is the buyers fault
Caveat Emptor established the
Federal trade commisions act (ftc)
What did caveat emptor give the federal trade commissions power to do?
power to regulate unfair and deceptive methods of competition
what are the FTC's regulations on advertising?
ads must be truthful and non deceptive (you must prove your adds are true)
what is a deceptive ad?
an ad that contains a statement or omits information that is likely to mislead consumers acting reasonably
what is an unfair ad?
an ad that causes consumer injury
endorsements by celebrities must refelct the celebrities
what is a bait and switch?
when an advertiser advertises an item at a low price to attract customers and then tries to sell the item at a higher price once the customer is in the store
what are the defenses to bait and switch?
saying "while supplies last" in an ad
displaying a sign that says "we're out"
"quantities are limited"
is bait and switch legal or il;egal?
what is a product comparison?
comparing one product along side a competitors product
is product comparison legal or illegal?
in product comparison, you must use the competitors product
what is one kind of claim that the FTC pays the most attention to?
ads that makes claims about health or safety
what is one FTC penalty for false advertising?
a cease and desist order (forcing the advertiser to stop)
what does the credit in lending act state?
that credit terms have to be clearly disclosed
what does the equal opportunity act state?
that creditors cant discriminate against anyone
what is an express warranty?
a specific promise or claim made to a seller by a buyer as to the quality, ability, or performance of the product
what kind of situations do express warranties arise in?
packaging, advertising, negotiation process
are express warranties created by statements of fact or opinion?
statements of fact
what is an implied warranty?
a warranty the court assumes exists based on the roll of the seller
what is an example of an implied warranty?
when you buy a ball and expect it to bounce
what is an implied warranty of fitness for a particular purpose?
a seller promises the buyer that goods will beat the buyers specific needs
what is an example of an implied warranty of fitness for a particular purpose?
suing callagaz over a photo lense because they specialize in photography
This set is often in folders with...
Unit 12 Anti trust
BUS law 265 unit 13 business organizations
You might also like...
Chapter 10 Business law
LES: Week Nine (Third Exam)
BLS CH 10 Product Liability
Business Law Chapter 7
Other sets by this creator
Geology final exam
digital media planning ca 321
Geography test 2 unit 7, 8, 9, 10
atmospheric process test 1