BLAW-CH 20

Redhibition

A civil action available under Louisiana law against the seller and/or manufacturer of a defective product.

Regulation Z

A set of rules issued by the Federal Reserve Board of Governors to implement the provisions of the Truth-in-Lending Act.

Bait-and-Switch Advertising

Advertising a product at a very attractive price and then, once the consumer is in the store, saying that the advertised product either is not available or is of poor quality. The customer is then urged to purchase a more expensive item.

Deceptive Advertising

Advertising that misleads consumers, either by making unjustified claims concerning a product's performance or by omitting a material fact concerning the product's composition or performance.

Cease-and-Desist Order

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Validation Notice

An initial notice to a debtor from a collection agency, required by federal law, informing the debtor that he or she has thirty days to challenge the debt and request verification.

Multiple Product Order

An order issued by the Federal Trade Commission to a firm that has engaged in deceptive advertising by which the firm is required to cease and desist from false advertising not only in regard to the product that was the subject of the action but also in regard to all the firm's other products.

(T/F): A consumer can include a note in his or her credit file to explain any misinformation in the file, but the misinformation cannot be deleted.

False

(T/F): A consumer cannot rescind a contract freely entered into.

False

(T/F): One who leases consumer goods in the ordinary course of business does not have to disclose any material terms in writing.

False

(T/F): The Fair Debt Collection Practices Act applies to anyone who attempts to collect a debt.

False

(T/F): There are no federal agencies that regulate sales.

False

"Cooling-off" Laws

Laws that allow buyers a period of time, such as three business days, in which to cancel door-to-door sales contracts.

Counteradvertising

New advertising that is undertaken pursuant to a Federal Trade Commission order for the purpose of correcting earlier false claims that were made about a product.

(T/F): Advertising will be deemed deceptive if a consumer would be misled by the advertising claim.

True

(T/F): An advertiser cannot fax ads to consumers without their permission.

True

(T/F): Labels must be accurate.

True

(T/F): The TILA applies to creditors who, in the ordinary course of business, sell goods on credit to consumers.

True

(T/F): The same laws that apply to other media generally protect consumers online.

True