Consumer Law and Contracts

The cooling-off rule gives you 3 business days to change your mind about a sale. 

• True
• False

The statute of limitations for sales contracts is three years.

• True
• False

A limited warranty gives limited information.

• True
• False

When a buyer breaches a sales contract, the seller may cancel the contract.

• True
• False

Law requiring that written express warranties for goods more than $10 meet certain requirements

• Parole Evidence Rule
• Nader-Clayton Warranty Act
• Right of Warranty Law
• Magnuson-Moss Warranty Act

A guarantee that goods are free of financial obligation, or lien, is called a ____________

• limited warranty
• warranty of privity
• warranty of merchantability
• warranty of title

Another name for warranty is ______________

• Protection
• Assurance
• Covenant
• Guarantee

The law that protects you from unreasonable risk when using a product is called the _______

• Consumer Product Safety Act
• Federal Consumer Protection Act
• Consumer Leasing Act
• State Trade Commission Act

The Texas Deceptive Trade Practices Act was created to protect consumers against _____________

• False & misleading business practices
• Deceptive product advertising
• Fraudulent lease agreements
• Misleading charges on utility bills

With a _________warranty, you should read it carefully to determine what the warranty provides.

• Full
• Limited
• Express
• Implied