Chapter 14 - Consumer Protection

other unfair trade practices

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requirements of express earranties

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warranty of fitness for a particular purpose

a buyer who needs goods for a specific purpose often tells the seller about that purpose.

cease-and-desist order

a court order requiring a defendant to stop the specified conduct.

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a description of the product and any exclude parts

warranty against infringement

a merchant makes an implied warranty that the goods in which she or he normally deals shall be delivered to a buyer free of any third party 's claims for patent, copyright, or trademark infringement

disclaimer

a notice of exclusion

opinions v. warranties

a positive statement about the value of goods or a statement that is just the seller's opinion does not create a warranty

exclusion of warrnaties

a seller may offer to sell goods without any warranties. This is most likely to occur if the goods are known to have defects or if they are a new design or model

warranty

a statement about the product's qualities or performance that the seller assures the buyer is true

class actions

a suit in which one or several persons sue not only on behalf of themselves, but also on behalf of many others similarly wronged.

warranty against encumbrances

also implicit in the act of selling is the seller's warranty that the goods shall be delivered free of all encumbrances

express warranty

an assurance of quality or promise of performance explicitly made by the seller.

full warranty

an express warranty that obligates the seller to repair or replace a defective product without cost to the buyer within a reasonable time.

warranty of merchantability

an implied warranty made by every merchant who customarily deals in goods of a particular kind

consumer

an individual who acquires goods that are primarily intended for personal, family, or household use.

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any exclusion or limitation on incidental or consequential damages

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any limitation on how long implied warranties last

unfair trade practice

any method of business that is dishonest or fraudulent or that illegally limits free competition.

limited warranty

any warranty that provides less protection than a full warranty.

encumbrances

claims of third parties

express warranties made by all sellers

every seller is bound by any express statement of fact or promise that is part of the bargain.

puffing

exaggerated sales talk with which sellers overtake the merits of the goods they are trying to sell.

false and misleading advertising

false and misleading advertising intentionally deceives, makes untrue claims of quality of effectiveness, or rails to reveal critically important facts

warranty of title

implicit in the act of selling, the seller warrant that he or she has title to the goods and the right to transfer them. This warranty is implied by law

bait and switch

improper business practice involving luring buyers with an under stocked, low-priced good only to sell them a more profitable one.

unsafe products

large numbers of people are injured or killed each year by products in use around the home. As a response, in 1972 the Consumer Product Safety Act was enacted. The laws was created by CPSC.

caveat emptor

let the buyer beward

caveat venditor

let the seller be aware

mislabeled goods

mislabeling a good to make it more marketable is an unfair method of competition prohibited by law. Even the shape or size of a container must not mislead the consumer into thinking the package contains more than it does

this warranty does not arise when the buyer

personally selects the goods orders the goods according to the buyer's own specifications does not rely on the skill and judgement of the seller, because of independent testing or for other reasons

licensing

protection of consumers by government often begins with licensing suppliers of consumer services.

unfair pricing and service

some of the more common unfair pricing methods include intentionally misrepresenting that goods are being sold a t a considerable discount and stating that the price charged for the goods is a wholesale price

product liability

the affixing of responsibility to compensate buyers and users for injuries cause by a defective product.

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the availability of any informal methods of settling disputes

agreements to control or fix prices

the part of the free market system that serves the consumer best is competition. Competition is the force that drives efficient businesses to create new and better products and services.

privity of contract

the relationship that exists between or among the contracting parties as a result of their legally binding agreement.

resitution

the return of money wrongfully obtained

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the step by step procedure to obtain performance of warranty obligations

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the words "This warranty gives you specific legal rights, and you may also have the other rights which vary from state to state"

illegal lotteries and confidence games

to be a lottery, a gambling scheme or game must have three elements. 1) a required payment of money or something else of value to participate 2) the winner or winners to be determined by change rather than by skill 3) a prize to be won holding or participating in such a gambling scheme is illegal and violators are subject to fine and imprisonment

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to whom the warranty is extended

conducting "industrial espionage" to find out a competitor's sucess

unfair

conducting fraudulent telemarketing and internet schemes

unfair

failing to provide written warranties when required

unfair

figuring finance charges improperly

unfair

giving a corporation's purchasing agent money "under the counter" in exchange for an order from the supplier or paying a retail sales person "push money" for extra effort in promoting the manufacture's product

unfair

in door to door home solicitation sales, failing to notify purchasers that they have three days to cancel contracts for purchases of $25 or more.

unfair

sending unordered merchandise and demanding payment for it or its return. According to the federal law, when someone deliberately sends unordered merchandise through the mail, the recipient is under no obligation to return it or to pay for it.

unfair

using a brand name or trademarks so similar to a competitor's that it confuses the public

unfair

implied warranty

unstated warranty imposed by law in order to ensure minimal standards of contractual performance.

lemon laws

warranties are augmented by consumer self help laws called lemon laws

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what the warrantor will and will not do int he event of a breach of warranty

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when the warranty begins and when it ends