| A | B |
|---|
| Product Liability | A manufacturer's and seller's responsibility for injury/damage caused by a defective product |
| Strict Liability | Makes some companies/people responsible for injuries/damages regardless of how careful and safe they were; often applies when a product is extremely dangerous |
| Lemon Law time period | First 18 months of car ownership |
| Type of car covered by lemon laws | New |
| You have a lemon if your car has the same problem __ or more times and can't be fixed | three |
| Consumer protection law | Any law that protects the interests of consumers |
| FTC | Federal Trade Commission |
| The agency that regulates advertising | FTC |
| Cease and Desist Order | Requires that the advertising in question be stopped and not continued in the future |
| Deceptive Advertising | Misleads consumers either by making claims that are not true or by failing to give important facts |
| Half truth | Information that is true but incomplete, leading consumers to a false conclusion |
| Bait and Switch Advertising | When a seller refuses to show an advertised item |
| Counteradvertising | When a company is ordered to correct false claims about a product at their own expense |
| Example of puffery | "World's Best Cup of Coffee" |
| Labels must be __. | easily understood |
| When listing ingredients, the first item is | what it contains the most of. |
| Cooling off statutes govern | door to door sales |
| Unsolicited merchandise | Merchandise you didn't order/request |
| Food and Drug Act | Established standards for foods, drugs, cosmetics, etc. |
| Drugs must be proven | safe and effective before they can be sold |
| All meat for human consumption | must meet inspection standards set by the FDA |
| Product warnings are | Warnings must be shown on labels of products that pose a potential threat to the consumer |
| Truth in Lending Act (TILA) | Requires sellers and lenders to disclose credit/loan terms so consumers can shop around for the best rates, etc. |
| Fair Credit Reporting Act | Requires that you are notified when credit companies are preparing your credit report |
| Creditors may NOT | threaten to physically harm you or your family if you don't pay your bills |
| UCCC (Uniform Consumer Credit Code) | Created to make all credit laws comprehensive and consistent |
