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Law I Deceptive Sales Practices Vocab

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

All of the following are true regarding telemarketing except

a)

it is the practice of selling or marketing goods and services by phone

b)

telemarketers are restricted to calling you between the hours of 8 A.M. and 9 P.M.

c)

telemarketers are required to tell you the total cost of products or services offered and any restrictions before you pay

d)

Even if you ask a telemarketer not to call you again, they are legally allowed to do so as long as they don't break any other laws regarding telemarketing

2.

substantiation of advertising is

a)

the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

d)

the right to take possession of or hold a debtor's property until the debt for the property is paid in full

3.

corrective advertising is

a)

the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

d)

the right to take possession of or hold a debtor's property until the debt for the property is paid in full

4.

Puffing is

a)

the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

d)

the right to take possession of or hold a debtor's property until the debt for the property is paid in full

5.

A lien is

a)

a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

d)

the right to take possession of or hold a debtor's property until the debt for the property is paid in full

6.

Bait and Switch is

a)

a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a telemeraketing scam where consumers are told they have "won the lottery" and simply have to give a credit or debit card number to collect their winnings

d)

when internet fraudsters send spam or pop-up messages that look like and claim to be from a business/organization you have dealt with in an attempt to trick you into entering personal financial information

7.

Phishing is

a)

a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

b)

an exaggerated statement or advertisement as to the desirability or reliability of a product or service

c)

a telemeraketing scam where consumers are told they have "won the lottery" and simply have to give a credit or debit card number to collect their winnings

d)

when internet fraudsters send spam or pop-up messages that look like and claim to be from a business/organization you have dealt with in an attempt to trick you into entering personal financial information

8.

All of the following are examples of common Federal consumer protection methods except

a)

setting standards for the quality, safety and reliability of certain goods and services

b)

providing safety information about products that consumers may want to buy

c)

issuing of rules meant to improve the operating of the marketplace. Federal regulations requiring most food manufactures to include nutritional info on their products is an example.

d)

by setting price ceilings and floors for products in order to regulate the economy and ensure that consumers are given a fair deal

9.

Class action refers to

a)

a lawsuit brought by one or more persons on behalf of a larger group

b)

what is done to compensate for an injury or to enforce some right

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

a voluntary agreement to stop a practice that is claimed to be illegal

10.

Remedy refers to

a)

a lawsuit brought by one or more persons on behalf of a larger group

b)

what is done to compensate for an injury or to enforce some right

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

a voluntary agreement to stop a practice that is claimed to be illegal

11.

Cease and Desist refers to

a)

a lawsuit brought by one or more persons on behalf of a larger group

b)

an act of restoring something to its owner, making good for loss or damage, or repaying illegally obatined money or property

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

a voluntary agreement to stop a practice that is claimed to be illegal

12.

Consent Decree refers to

a)

a lawsuit brought by one or more persons on behalf of a larger group

b)

an act of restoring something to its owner, making good for loss or damage, or repaying illegally obatined money or property

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

a voluntary agreement to stop a practice that is claimed to be illegal

13.

Restitution refers to

a)

a lawsuit brought by one or more persons on behalf of a larger group

b)

an act of restoring something to its owner, making good for loss or damage, or repaying illegally obatined money or property

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

a voluntary agreement to stop a practice that is claimed to be illegal

14.

Direct Action refers to

a)

an action that consumers take to make an impact on a business's or other organization's operations or profits

b)

an act of restoring something to its owner, making good for loss or damage, or repaying illegally obatined money or property

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

an intentional deception, lie, or dishonest statement made to cheat someone that results in harm

15.

Fraud refers to

a)

an action that consumers take to make an impact on a business's or other organization's operations or profits

b)

an act of restoring something to its owner, making good for loss or damage, or repaying illegally obatined money or property

c)

an order given by an administrative agency or a judge to stop some illegal or deceptive activity

d)

an intentional deception, lie, or dishonest statement made to cheat someone that results in harm