| A | B |
|---|
| Adulterated | A food or drug that contains any substance that will reduce its quality or strength below the minimum standard |
| Attorney general | The chief law officer of a country or state, at the federal level, the person who also holds the position of secretary of the Justice Department |
| Auction | A public sale to the highest bidder |
| Bait and switch | Advertising a non-existent bargain to lure customers so they can be sold a more expensive item |
| Barter | A transaction in which goods are exchanged for goods |
| Better Business Bureau | A private, non-government agency that logs complaints and passes them on to businesses that are members. BBB also makes complaints available for public viewing |
| Bill of lading | A receipt for shipment of goods given by a transportation company (carrier) to the shipper when the carrier accepts goods for shipment |
| Bill of sale | A receipt that serves as written or formal evidence of the transfer of ownership of goods |
| Bulk transfer | The transfer, generally by sale, of all or a major part of the goods of a business in one unit at one time |
| Carrier | A transportation company, ex: UPS, Yellow Freight, Fedex |
| Cash and carry sale | A sale where the buyer pays for the goods and takes ownership of the goods upon payment, risk attaches upon receipt of goods |
| Casual sellers | Parties who sell only occasionally or do not otherwise meet the definition of merchant. Also called a non-merchant |
| Caveat emptor | Latin for “Let the buyer beware” |
| Caveat venditor | Latin for “Let the seller beware” |
| Cease and desist order | A legally binding order issued by the court to stop a practice of using advertising that would mislead the public |
| Class action | A lawsuit that allows one or several persons to sue not only of behalf of themselves but also on behalf of many others similarly wronged |
| Cooling off rule | Adopted by the FTC to give consumers three business days to cancel most contracts made with door to door salespersons. The rule relates to sales of $25 or more made outside the salesperson’s regular place of business |
| COD | Collect on delivery; the carrier collects the price and transportation charges upon delivery and transmits this amOunt to the seller; ownership and risk transfer when the price is paid |
| Consignment sale | Goods are sent by a manufacturer to a retailer, but ownership and risk remain with the manufacturer until goods are sold. The retailer generally does not make payment for the goods unless goods are sold to consumer. If goods do not sell, retailer has right to return unsold goods to manufacturer |
| Consumer | An individual who acquires goods that are primarily intended for personal, family, or household use |
| Consumer Product Safety | Sets product standards for hazardous products |
| Contract to sell | A transaction in which the transfer of ownership is to take place in the future. Ex: crops, goods yet to be manufactured. |
| Contracts for the International Sale of Goods | The United Nations agreement that regulates international sales contracts |
| Credit sale | A sale that, by agreement of the parties, calls for payment for the goods at a later date; ownership transfers at the time of transaction, risk attaches upon receipt of goods |
| Delivery | The act by which the subject matter of the contract is placed within the possession or control of goods |
| Destination contract | Also called “Free on Board-destination” – requires seller to deliver the goods, title and risk of loss transfer to the buyer at the final destination of the goods |
| Disclaimer | A notice of exclusion that modify or excludes any implied warranty |
| Discount | Terms of an invoice where a % reduction is taken on the invoice $ amount |
| Existing goods | Goods that are physically in existence even though they may not be in a fully assembled and immediately deliverable condition |
| Express warranty | An oral or written guarantee by a manufacturer or seller |
| False and misleading advertising | Advertising that improperly deceives or conceals material facts |
| Federal Trade Commission | Federal agency that enforces the laws of fair trade including the Fair Trade Act |
| Firm offer | A merchant’s written promise to hold an offer open for the sale of goods |
| Food and Drug Administration | Sets product standards for food, drug, cosmetics and health aids |
| Free On Board | Means goods will be delivered free to the designated place, the location where the title and risk of loss transfer |
| Full warranty | An express warranty that obligates the seller to repair or replace a defective product without cost to the buyer within a reasonable time |
| Future goods | Goods that are not both existing and identified |
| Good faith purchaser | An innocent third party to a fraudulent transfer of goods who gives value for the goods and acquires rights in the property |
| Goods | All tangible, movable personal property. (per UCC does not include real or intangible property; ie land, money, stocks, bonds, contracts for services ) |
| Guarantee | A promise or assurance of the quality of a product |
| Identified goods | Goods that have been specifically designated as the subject matter of a particular sales contract |
| Implied warranty | A guarantee of quality imposed by law but not in writing |
| Lemon Laws | Protects consumers who return vehicles with major defects to authorized dealerships; exist at both state and federal levels |
| Limited warranty | A warranty that provides restricted protection |
| Loss leader | An item priced at cost to draw customers into a store |
| Lottery | A game of chance, not skills, requiring payment of money to participate and a prize to be won |
| Magnuson-Moss Act | Regulates the content of written warranties |
| Merchant | A seller who deals regularly in a particular kind of goods or otherwise claims to have special knowledge or skill in a certain type of sales transaction |
| Misbranded | False or misleading labeling or packaging of food, drugs, or cosmetics |
| Ownership | A collection of rights that allow the use and enjoyment of property |
| Net | Terms of an invoice where 100% of the stated price is paid; ex: noted in the terms section as n/30 meaning net amount due within 30 days of invoice |
| Parol Evidence Rule | Evidence of oral statements made before signing a written contract cannot be presented in court to change or add to the terms of that written agreement |
| Payment | Delivery of the agreed-upon price and the concurrent acceptance of it by the seller |
| Price | The consideration (money) for a sale or contract to sell goods |
| Product liability | Manufacturers and sellers are responsible for injuries to consumers when they place defective, unhealthy, or unsafe items on the market |
| Receipt of goods | The buyer takes physical possession or control of goods |
| Restitution | An order requiring the return of improperly obtained money or property |
| Risk of loss | The responsibility for loss or damage to goods |
| Sale | A contract in which ownership of goods transfers immediately from the seller to the buyer for a price |
| Sale on approval | A sale in which goods are delivered to the buyer in an “on trial” or “on satisfaction” basis |
| Sale or return | A completed sale in which the buyer has an option of returning the goods |
| Shipment contract | Also called “Free On Board – shipping point” – the buyer pays freight from the shipping point to the destination, the title and risk of loss transfer to the buyer at the shipping point even if buyer does not yet have possession of goods |
| Spamming | Sending mass, unsolicited advertisements over the internet |
| Tender of delivery | To place the goods at the buyer’s disposal or to give notice to the buyer that delivery can be received |
| Terms | How the payment for invoice is expected; if can be discounted, net payment , or interest added when past due |
| Title | The right of ownership to goods |
| Unconscionable contract | A contract (or clause in a contract) that would offend an honest person’s conscience and sense of justice. Contract terms do not need to be criminal nor violate a statue, but are merely unethical |
| Unfair trade practice | A practice that misleads or has the potential to mislead a consumer |
| Uniform Commercial Code | A collection of laws that governs various US business transactions. Article 2 of UCC governs the sales of goods and contracts to sell goods in the future |
| Unit pricing | Allows consumers to compare prices in relation to a standard unit of measure, such as an ounce or pound |
| Voidable title | If goods are acquired through fraud, a mistake, undue influence, or by a minor, the title may be voided if the injured party elects to do so |
| Warehouse receipt | Document given to a customer by the warehouse that is storing his or her goods |
| Warranty | The seller’s assurance to the consumer that goods are not defective and are suitable for the intended use |
| Warranty of title | Implied warranty that the seller of goods possesses a good, clean title to the goods and the title can be lawfully transferred to the buyer |
| Warranty of fitness for a particular purpose | Implied warranty in which the seller (who knows the intended use) guarantees that the goods are suitable and fit for the purpose of the buyer’s needs |
| Warranty of merchantability | Implied warranty that makes a merchant liable for goods that are not of fair quality and fit for the ordinary purposes for which such goods are used |
| Weights and Measures Division of the National Institute of Standards | Promotes uniformity in weights and measures laws, regulations, and standards |
