Chapter 15 Vocabulary Terms Practice

This gives consumers three business days to cancel most contracts made with door-to-door salespeople.

• cease and desist order

• cooling-off rule

• bait and switch

• product liability

Today, the power of consumers has increased and this latin phrase is what we live by.

• caveat emptor

• caveat venditor

• caveat buyer

• star decisis

A purchaser of goods or service for PERSONAL use.

• business

• consumer

• regulatory agency

• caveat emptor

The FTC might issue this if they think a certain advertisement is unfair or deceptive

• cooling-off rule

• strict liability claim

• product liability order

• cease and desist order

According to the Food Drug and Cosmetic Act of 1938, food or drugs that contain a substance that reduces their quality is said to be _____________.

• misbranded

• adulterated

• injurious

• unfair and deceptive

Statements that INTENTIONALLY mislead consumers are illegal under consumer protection laws. Business that do this are guilty of _______________.

• unfair and deceptive practices

• fraudulent misrepresentation

• bait and switch

• product liability

Before consumer protection laws existed, this phrase was the standard in business transactions.

• caveat emptor

• caveat venditor

• caveat buyer

• stare decisis

This legal principle states that manufacturers and sellers may be responsible for injuries to consumers even if they did nothing wrong.

• product liability

• strict liability

• cease and desist

• caveat venditor

A statement that misleads or HAS THE POTENTIAL to mislead a consumer is known as ______________________.

• unfair and deceptive

• fraudulent misrepresentation

• bait and switch

• cease and desist

A sales person criticizes an advertised product, refuses to show you the advertised product, and when you ask to see the advertised product she shows you an upgraded version. What's going on here?

• the cooling-off rule

• fraudulent misrepresentation

• bait and switch

• misbranding