Business Law Objective 6.01 Sales and Consumer Protection

Larry purchased items from the flea market. Larry is always careful due to CAVEAT EMPTOR. What does this term mean?

• Let the buyer beware

• Let the owner beware

• Let the seller beware

• Let the shipper beware

Which organization would most likely recall a children’s toy because it contained unsafe levels of lead paint?

• FDA

• USDA

• CPSC

• BBB

Over 10,000 women who once worked or currently worked for Wal-Mart have filed a class action lawsuit claiming that Wal-Mart discriminates against women. A class action lawsuit is an example of which of the following:

• FTC Pre-Notification of lawsuit ACT

• Remedies

• FTC class action tort reform Act

• Discrimination Stop Now Rule

John went to Radio Shack in response to an ad he saw for an Apple iPhone 5C for $59.96. When he arrived at Radio Shack the sales person told him they were out of the iPhone 5C but they had an iPhone 6 for $129.96. This is a classic example of:

• Bait the Hook marketing

• Take the Bait advertising

• Duck and Switch advertising

• Bait and Switch advertising

When a consumer complaint is not resolved, the last resort for a consumer to contact with the complaint is what?

• Appropriate regulatory agency

• Attorney to file a lawsuit

• Dispute resolution organization

• Small claims court

Rachel purchased a vacuum cleaner but was very displeased with the performance of the product. The first resource for Rachel to get the complaint resolved is what?

• Better Business Bureau

• Consumer Product Safety Commission

• Small claims court

• Store's customer service department

Using the scenario above, Estelle purchased $750 in clothing. The contract is required to be in writing in accordance with what law?

• Commerce Clause of Constitution

• Federal Trade Act

• Magnuson Moss Act

• Statute of Frauds

Jim no longer wants to receive solicitation sales calls via the telephone while at home. Jim called a 1-800 number to join the “do not call list national registry”. The law that makes this process possible is called:

• FTC Do Not Call Rule

• FCC Stop Solicitation Rule

• Telemarketing Sales Rule

• FTC Cooling Off Rule

Using the scenario, Estelle tries on a blue dress. Carmen says, "Wow that dress makes you look ten years younger!"

• Bait and switch

• Fraud

• Puffery

• Restitution

Rob's Roofing replaced shingles on Meredith's house. When the first hard rain and wind came, the house leaked. No one at Rob's Roofing is returning Meredith's calls. Another roofer looked at the poor workmanship and said the job needed to be redone. Meredith cannot afford another new roof. Who can Meredith contact to help her?

• BBB

• CPSC

• EEOC

• FTC