MGT 340 Exam 3 Vocab Summer Session

Non-dischargeable debts

-student loans -taxes -alimony/child support -criminal fines/restitution Non-dischargeable Debts - a. these are debts that you cannot get rid of by going through a bankruptcy. You would still be responsible for these types of debts. a. Taxes - If you owe a lot of money in taxes to local, state, or federal government you cannot get rid of those going through a bank a bankruptcy. You are still stuck with these debts. b. Student Loans - Most student loans are non-dis-chargeable debt. You cannot get rid of them because they are backed by the government. The gov. will always get pay; you cannot discharge that in a bankruptcy. c. Child Support - you cannot get rid of child support debt going through a bankruptcy.

Process of Bankruptcy

1) Petition 2) Protection 3) Trustee 4) Creditor Priority 1. Petition - A bankruptcy is usually started when someone files a petition. a. Voluntary - this is where the debtor him/her or itself files the bankruptcy petition. b. Involuntary - this is where the creditors force the debtor into filing the bankruptcy. They almost file the petition on the debtor behalf, usually a creditor would do this to protect any assets that the debtor has. 2. Protection - when the petition is file regardless of who files it, protection or relief is given to the debtor. Any effort to collet debt now has to go through the bankruptcy court. 3. Trustee - After petition is file a trustee appointed. Appointed by the bankruptcy court usually an attorney that understand bankruptcy law. 4. Creditor Priority - trustee a. Secured Creditors - they have rights to a particular asset own by the debtor. E.g. If you borrow money to by a car the finance company you pledge that car as a collateral for the loan. b. Priority Creditors - You are a Priority creditor because the US bankruptcy code says you are. So, you are not secured. Meaning you get to stand next in line behind secure creditor. E.g. a business that who owe wages to employees. You file bankruptcy because you can't pay them c. General Creditors - You're not secure, you don't have priority, but you are a general credit. E.g. hospital, doctor's office, credit card company.

Unfair/Deceptive Advertising

1. FTC Remedies - what are some things the FTC can do in a way of sanction. if you are found to have engaged in deceptive or unfair advertising what can the FTC do to correct that? The FTC can find the business whose engage in deceptive or misleading advertising it just a financial penalty. Civil in nature but can be substantial. FTC can make you run a corrective ad., reimbursement to customer and fine.

Judicial Function of an Administrative Agency

1. Hearings - (court system) Agencies can conduct hearings. They can conduct a formal rule making hearing, also, conduct adjudication. a. Rule-making - the outcome of a rule-making hearing affects the entire industry. E.g. if the EPA set forth a new regulation the outcome of that public hearing under the formal approach would affect the entire industry. b. Adjudications - only affect the specific parties involved. E.g. if the EPA accuses company x of violating a particular regulation there will be a hearing potentially and the outcome of the adjudication would only affect company x. 1) Consent Order - Most adjudications are resolve through a consent order or decree. Basically, the agency I'll fix the problem and move forward. 2) Hearing - you do not have the right to a jury trial at an administrative proceeding. a) ALJ - Administrative Law Judge presides over these hearing. Like a bench trial. The administrative law judge will determine fact how this usually presented if EPA would have to present evident if company x did committed a violation. After company x will presents evident why they are not violating. b) Appeal - they would have to exhaust all administrative remedy before bringing their appeal to a court. Would have to go through all appeal stages.

Executive Function

1. Investigations - Agencies can conduct their own investigation. For example, if somebody informs the EPA that a particular factory is dumping too many pollutants into the water way. The EPA can go and investigate. If somebody informs OSHA of unsafe working condition in a particular place of business OSHA can go and conduct an investigate. Permits/Licenses - These can be used to utilize in a sense to control behavior business or parties. E.g. If you want to do some in regard to a particular business you have to have a license for a doctor, practice law, etc.

Tortfeasor

1. Is the one who commits the torts. In a lawsuit the tortfeasor would be the defendant. This is the one the plaintiff thinks cause damage or the injury.

Type of Administrative Agencies Federal Level

1. Regulatory Agencies - These agencies have the authority to regulate/pass laws. E.g. the IRS, OSHA, SEC. 2. Executive Departments - E.g. the department of agriculture, Justice, education 3. Non-Regulatory Welfare Agencies - these are non- regulatory they do not have the authority to regulate us. Oversee E.g. VA. Public health service, Social security service.

Agency Power

1. Rulemaking Process a. Informal - They give us notice the federal register act anytime an agency wants to create a new rule. How they tell us they have to post it and put it in the federal register. If the agency is utilizing the informal process after they post the proposed regulation in the federal regulation, they will then allow a period for comment. E.g. consumer, business, advocacy group could post. b. Formal - this is formal because what happen is the agency will conduct a public hearing. Anyone could show up such as businesspeople, advocacy group, law maker etc. people could testify, and a record is taken.

Goal of Tort

1. is to make the injured party whole again. How do we make the injured party whole again in our court system by financial compensation? This could be compensatory damages, medical expenses, lost income, pain and suffering, could include punitive damages.

Bankruptcy

A legal process to get out of debt when you can no longer make all your required payments it not just for consumer it for business also. A. History - Bankruptcy is a federal law. Bankruptcy take place in the US Bankruptcy court that only deal with bankruptcy.

Which of the following individuals is protected against defamation claims through a qualified privilege?

A non-government official who relies on and cites an official public document while making a public allegation. Explanation Qualified privilege is one whereby the defendant must act in good faith and without malice to secure immunity from a defamation claim. Under fair report privilege, if one relies on an official public document or a statement made by a public official and cites the document or public statement when making the alleged defamatory statement, no cause of action for defamation occurs unless the speaker knows the statement is false.

Limits on Agency Power

A. Congress - (legislative Branch of Gov.) how can congress limit the authority of administrative agencies? One way is through the budget. Congress has some control; however, they don't have exclusive control. They have influence on the money available to agencies. Congress creates agencies through enabling legislation. 1. Budget - One way is through the budget. Congress has some control; however, they don't have exclusive control. They have influence on the money available to agencies. B. Enabling Legislation - Congress creates agencies through enabling legislation. So it this idea if they create you they can get rid of you also. C. President (executive) 1. Budget - the president has some say power the budget. When it come to the dollars and cents that agencies are receiving the president also has a say in. 2. Appointment - the president gets to appoint the head of the agency. Which is a significant exercise of power. D. Courts (traditional state/ Federal) 1. Biggest Threat - this threat of an appeal is the biggest threat to agencies power. The threat of judiciary review. 2. Narrow Approach - the mind set that court are fairly reluctant to overturn agencies decision.

Sources of Law

A. Constitution - (Government) are in extension of the gov. operation within the boundary of the constitution. B. APA - Is the Administrative Procedures Act. Federal legislation designed to set forth uniform procedure for agencies to follow. C. Congress - It is congress that creates our administrative agencies. How congress create these agencies they pass law that called enabling Legislation. Each has their own enabling legislation. E.g. workplace safety congress creates OSHA

Consumer Protection

A. Consumer Protection - The area of law design to protect consumer. Late 60s early 70s the law really started to protect consumers.

Element of a Tort

A. Defenses - come from the defendant. 1. Contributory Negligence - the defendant/tortfeasor would try to prove that the plaintiff was negligent or contributed to his or her injury. 2. Comparative Negligence - Weighting of the negligence between parties. You are going to ask the jury to access or determine fault between party. Then your going to reduce the plaintiff overall reward by the percent of their own negligence. 3. Assumption of the risk - this is where the defendant will prove that the plaintiff was aware of a damaged and the voluntarily proceed the risk. The plaintiff assumed the risk. Base on consent.

Development of Law

A. Development of Law 1. Caveat Emptor - what the buyer beware. Seller were not liable for defects in their product. Rather it would be the buyer responsibility to be on the look out and take appropriate action. Requirement Privity - A contract term. Basically, required an injured consumer to be in privity (contractual relationship) with the one responsible for the defect before they could recover.

Types of Warranty

A. Express Warranty - a sellers promise to a consumer concerning the quality or functionality of a product. Foundation it must be a representation of a fact before the warranty is created. Can be created orally or written. E.g. and advertisement. B. Implied Warranty 1. Implied Warranty of Merchant-ability - its created by operation of law it automatically attaches to the sales transaction. The law provides for this type of warrant. You have to purchase from a merchant to get this protection. A Merchant is somebody who routinely and regularly engages in the buying and selling in a particular of goods. Merchants are sellers/buyers but not all seller is merchant. The protection you get from an implied warranty. It basically said that the good are fair average quality or they fit for ordinary purposes. 2. Implied Warrant of Fitness for a Particular Purpose - this also created by operation of law. When you purchase a good from a seller, regardless, whether they are merchant or not. You don't have the buyer has to purchase from a merchant just any seller of good automatically attaches the promise to the buyer that the goods will be suitable for the use the buyer has proposed. The buys going to prove that the seller knew of the buyer desire to use the product in a certain way and the buyer also have to demonstrate to prove that the buyer relied on the seller advise and recommendation. E.g. If I decide I want to hike and I want a pair of boot and they suggest the best and on the hike they started to fall off. I use the implied warrant of fitness.

Goal of bankruptcy

A. Goals a. From the debtor's perspective- give the debtor (one who owe money) a fresh start. b. From the creditor's perspective (one who are owe money) make sure some credit don't take unfair advantage over creditor.

Odometer Tampering

A. Odometer Tampering - when mileage on a car appear to be lower that it actual is. 1. Federal Odometer Act - Provided sanctions for those found guilty or responsible for odometer tampering. 2. Sanctions a. Charge with criminal penalty b. Civil sanction you could be held responsible with odometer tempering and the damages you would have to pay would be triple.

Sources of Law

A. President - Gets to appoint who is in charge/run. B. Federal Register Act - the Federal Register Act oversees the publication of agency information. 1. US Government Manual - this like a phone book, basic contact info. For all the agencies and their location. 2. CFR - theI this is where we keep all agency regulation. When agency set forth a regulation and its end up in its final form it goes to the CFR. 3. Federal Register - is a daily publication. It updates and supplement the CFR. So if an agency has an existing regulation and they think about changing/amending an existing one they have to give us notice.

Agency Power

A. Rulemaking (Legislative) - Agencies and authority to make law. Just like congress create and make law agency does. Has the ability to create three type of rules.

Telemarketing

A. Telemarketing - congress pass the telephone consumer protection act, also the telemarketing consumer fraud and abuse prevention act. 1. Do Not Call - one way to combat telemarketing. Consumer can place they phone number and they would opt out of telemarketing calls. 2. 900 # -

Product Quality

A. Warranties 1. Define of warranty - Tend to protect us when it come product quality issues. Stems from contract law. Normally when we have a product and it does when to do what we want it to do. We would get out money back. 2. Sales Puffing - This is where the seller of a product puffs up the product so consumer may buy it.

Elise was injured when her Proper Pour coffee pot spontaneously shattered. Elise may pursue a products liability claim against Proper Pour under all of the theories of liability listed below, except

Assumption of Risk, Explanation In a products liability case, the injured party may pursue a legal remedy against the seller under one of three theories of liability: (1) negligence, (2) warranty, or (3) strict liability. In the above scenario, Elise can pursue her products liability claim under any of these three theories. Assumption of risk is a defense the seller might be able to use in response to a products liability claim and is not a theory of liability.

The intentional touching of another person, without that person's consent, in a harmful or offensive manner is called _____.

Battery,

Types of Bankruptcy

Chapter 7, 11, 13 a. Chapter 7 - this bankruptcy refer to as a straight bankruptcy or a liquidation petition. The mean test require that a debtor do not make too much money. Depend on a person household size and income they can't file a chapter 7. Its available to people and business. It can be voluntarily or involuntarily file. b. Chapter 11 - the reorganization petition and can be file by people and businesses. It can be voluntarily or involuntarily filed, or you can be forced by your creditors into a chapter 11 if the statutory requirement is not satisfied. Not discharge debt as the chapter 7. Chapter 11 get protection from the bankruptcy court. c. Chapter 13 - this the wage earner petition or plan. This is only for people business may not file a chapter 13. Another limitation of chapter 13 is that individuals must have a steady stream income and have relatively limited amount of debts and be able to pay off 3-5 years. Your getting the same amount of money weekly monthly.

Intentional Tort (Civil)

Civil Battery - the civil is intentional touching another in an armful or an offensive manner without legal justification or consent. Civil Assault - Is intentional causing another to believe they are about to be the victim of a battery, or it is an incomplete battery. Defamation - is an intentional tort. 1. False Statement - is a like could be about someone's reputation, character, or integrity. This false statement must be specific and fairly peculiar. 2. Published to a 3rd Party - this false statement must be published or told to a third party. a. Slander - this is spoken defamation. b. Libel - this is written defamation. 3. Damages - as a plaintiff have to prove damages. 4. Defenses - D. False Imprisonment - its intentional detaining a person against his or her will for any period of time.

Credit Transaction

Credit Transactions A. Consumer Credit Protection Act 1. TILA - Truth In Lending Act Protections - this is portion for consumer. To make sure that debtor consumers/borrower are treated fairly through the adequately of credit terms. Financial institution should enclose information. Referred to a (regulation Z act) All credit term must be given to the borrower. 2. ECOA - Equal Credit Opportunity Act Protections - ECOA was pass by congress to try to ensure that credit would be awarded or denied based on the merits of the applicant. The ability to pay or barrow money. The primary motivation behind the ECOA was discrimination against race and gender. 3. Credit Cards a. CCARD Act - Credit Card Accountable Responsibility and Disclosure Act. The CCARD Act is enforce by the federal trade commission. b. Protections - The primary reason was to protect young adult. Protection for the consumer. 4. FACT Act - The Fair and Accurate Credit Transaction Act. This was gear towards identity theft to protect consumer from becoming victim of identity theft. 5. FCRA - Fair Credit Reporting Act this was geared to give consumer protection when it comes to credit report. 6. FDCPA - Fair Death Collection Practices Act this is another piece of federal legislation. This applies to consumer deaths and consumer death collection. Not commercial death and commercial death collection. Only apply to third party collectors, not the original creditor but normally 3rd party agencies. a. Collector not supposed to call after certain hours after 9pm b. Should avoid inconvenient places to collect death c. Not suppose arrest consumer d. Not to Abuse e. Not to Use physical force

Elements of the tort of negligence

Duty, Breach, Causation, Damages 1. Duty - here the plaintiff have to demonstrate that a duty of care was owed. We have to act as reasonable and prudent people. 2. Breach - The plaintiff have to prove the defendant/tortfeasor breach the standard of care or fall short. 3. Causation - Basically looking for a causal link. Meaning a sufficient connect between the plaintiff injury and defendant conduct. E.g. if I go to get my tire change and as a leave on of the tire fall of because it was attached properly. Damages - the plaintiff have to show they have damages

A failure to act can never be considered a tort, even if it causes a loss to or injury to another party.

False, Explanation A tort is a civil wrong where one party has acted or, in some cases, failed to act, and that action or inaction causes a loss to be suffered by another party. The law provides a remedy for one who has suffered an injury by compelling the wrongdoer to pay compensation to the injured party.

In the absence of a manufacturing or design defect, the mere failure to warn cannot render a product unreasonably dangerous.

False, Explanation Failure to warn may render a product unreasonably dangerous even in the absence of any manufacturing or design defects. One common category of inadequate-warning cases involves prescription drugs, but the theory of unreasonable danger applies to all products that carry some danger in use (such as a lawn mower or snow thrower).

Oliver is a retailer who sells outdoor equipment and gear. Oliver is unaware that one of the insect repellent brands he sells can cause a dangerous allegoric reaction, particularly in children. Because Oliver did not actually know that the repellent was dangerous, a court could not impose strict liability on Oliver.

False, Explanation In this situation, Oliver could still be liable for a strict liability tort. Strict liability torts, in which a tortfeasor may be held liable for an act regardless of intent or willfulness, applies primarily in cases of defective products and abnormally dangerous activities. A retailer, who is unaware of the potential danger his products might cause, can still be liable if his products cause actual damage.

The Federal Odometer Act gives victims of odometer tampering a remedy for damages but does not make altering vehicle odometers a criminal offense.

False, Explanation The Federal Odometer Act makes it a crime to change vehicle odometers and requires that any faulty odometer be plainly disclosed in writing to potential buyers. In addition to giving the Secretary of Transportation the authority to enforce the statute, the law provides victims of odometer tampering with a remedy of triple the actual damages suffered. However, the lawsuit must take place within two years of the date of purchase.

Unfair/Deceptive Advertising

III. Unfair/Deceptive Advertising - (Focus) any sort of advertising that designed to mislead the reasonable consumer. 1. Includes a. Pricing - pricing term must be accurate. When it comes to advertising, marketing. You must be truthful. b. Performance Claims - are not problematic in a sense there is nothing wrong with making claims about your product ability or effectiveness. When you make these claim about your product ability and effectiveness. Those claims must be accurate by reliable scientific evidence. c. Celebrity Endorsements - company spent quite a bit on celebrity. That a marketing too. If a celebrity is making a claim about a product that claim has to be truthful and has to be based on their own experience. If the statement they are making is not based on their own personal experience they have to disclose the source of their information. d. Bait and Switch - is a marking too the FTC deem deceptive. A store will advertise a very low-price item and then once the customer take the bait an in the store the sake person will divert the customer attention to a more expense item. a. Product comparison these are encourage by the government. The FTC doesn't get involve because it involves company. E.g. you are doing a taste test for ice and you......

Categories of Torts

Intentional, Negligent, Strict liability 1. Intentional Torts - involve deliberate or voluntary act. The act is intentional. 2. Negligence - is arm cause by accident, usually in carelessness. E.g. car accident case, slip and fall case, profession malpractice. Not someone intentionally doing it. 3. Strict Liability - Is a no-fault concept. We are going to hold somebody responsible for arm cause without proof of carelessness. Regardless of how careful a you are you still going to be held responsible injury. E.g. wild animal.

Which of the following statements is the best example of puffery in advertising, assuming that the product fails to meet the seller's claims?

Our desserts, made of the richest cocoa, will make you want more. Explanation The statement that best exemplifies puffery is "Our desserts, made of the richest cocoa, will make you want more." This is an example of puffery because there is no way to verify words such as "richest" and "more." The Uniform Commercial Code (UCC) makes a distinction between factual promises and "puffery." Puffery is a nonfactual statement commonly used in advertising with such claims as "made of the richest cocoa."

To prove a defamation claim, plaintiff must prove that the defendant's statement was

Provably false, Explanation In order to qualify as defamatory, the statement made about the plaintiff must be false, not merely unkind. Moreover, if a statement was pure opinion, that statement is not defamatory. That is, a defamatory statement is one that must be provably false.

Federal Regulatory Agency

Purpose - the purpose or the reason the government created the Federal regulatory Agency is to combat unfair and deceptive trade acts and practices.

Tort

Some type of interference with someone or someone's property. That result in injury or damage to that person or their property. Civil wrong. Initiated by individuals.

Which of the following statutes was driven primarily by the civil rights movement of the late 1960s and 1970s to prevent the practice of considering gender or race in credit decisions?

The Equal Credit Opportunity Act. Explanation The Equal Credit Opportunity Act was driven primarily by the civil rights movement of the late 1960s and early 1970s to prevent what was then a relatively common practice of considering gender or race in credit decisions. The law also applies to charging higher interest rates based on discriminatory factors.

Administrative Law

The body of law that defines, regulates, and limits the exercise of authority by administrative agencies. Focus on Federal Administrative Agencies.

Causes of Bankruptcy

Too much debt/bad spending Volatile economy Medical expenses Divorce A. Causes a. Due to mismanage of money b. Quick access to credit card c. From consumer/people medical expenses d. Divorce e. Last of high paying job f. Downturn/volatility in the economy.

Employees of print media organizations are afforded a qualified protection from defamation liability so long as they have acted in good faith and without malice.

True, Explanation Employees of media organizations (e.g., television, radio, periodicals) are afforded a qualified protection from defamation liability. So long as the media have acted in good faith, without malice, and without a reckless disregard for the truth, the media is protected from liability through privilege as a defense for unintentional mistakes of fact in their reporting.

Products liability laws that cover individuals who are injured by a product may take the form of state common law or state statutes.

True, Explanation Laws that cover individuals who are injured by a product, known as products liability laws, may take the form of state common law or state statutes that expressly impose liability for injuries that result from products. These statutes are based primarily on the Restatements and are relatively uniform from state to state.

According to the Uniform Commercial Code (UCC), a seller may disclaim an implied warranty.

True, Explanation The UCC allows a seller to disclaim both implied and express warranties under certain conditions. In order to disclaim a warranty, the seller must do so in a conspicuous writing by using, for example, capital letters, bold print, or a larger font that stands out from the rest of the writing.

The Federal Trade Commission (FTC) defines a deceptive practice as one that is likely to mislead a reasonably prudent consumer and result in some sort of detriment to the consumer.

True, Explanation Courts have been very deferential to the FTC's wide-ranging authority over advertising, price disclosures, and representations made during the sales process of consumer goods. Under this authority, the FTC has promulgated regulations that define a deceptive practice as one that is likely to mislead a reasonably prudent consumer and that resulted in some sort of detriment to the consumer.

Charitable organizations are not included in the Do Not Call list prohibitions established by the Federal Trade Commission (FTC).

True, Explanation The FTC established the Do Not Call Registry whereby consumers may sign up to be on a list that protects them from certain unsolicited calls by telemarketers. Charitable organizations, certain political organizations, and businesses with whom the consumer has had past commercial contacts are exempted from the Do Not Call list prohibitions.

Which of the following advertising strategies is likely to be considered a legal (and not deceptive) advertising method?

Using the tune of a famous song as the background score for an advertisement. Explanation Using the bait and switch technique, misrepresenting price of competitors, and using a phrase such as "clearance priced" when the items are not discounted in price are examples of deceptive advertising. Using the tune of a famous song as the background score for an advertisement is not an example of deceptive advertising.

The Food and Drug Administration (FDA) generally outlaws selling _____ food, which is unfit for consumption.

a. Adulterated, Explanation The FDA regulations define specific food safety processes, procedures, and standards, such as the requirement that employees handling food wear rubber gloves and hair netting. The statute also sets out a broader catchall standard by outlawing any generally adulterated food that has potential for public harm. The FDA defines adulterated food as that which contains a "filthy, putrid, or decomposed substance" or any food "unfit for consumption."

1. Which of the following is likely to be covered by the Truth in Lending Act (TILA)?

a. Allan, who borrows money from a commercial bank to buy a house. Explanation Allan, who borrows money from a commercial bank to buy a house, will be covered under the TILA. The TILA only covers creditors that are regularly engaged in extending credit for goods and services (such as banks, department stores, suppliers, wholesalers, and retailers) plus those that are regularly engaged in arranging credit that is for personal, family, or household goods (such as a mortgage broker).

Types of Agency Power

a. Procedural - set forth the agency internal operating structure. How to navigate your way through the agency. b. *Interpretive - These do not really have the effect of law. The agency opinion on its own regulation. E.g. In a complex business deals of some sort of buy/sell agreement and you needed to account for the tax consequences of that. You look at the tax code and you don't know how to handle the complexity you could talk to the IRS. They could issue and interpretive ruling. c. Legislative - they have the effect of law. We as business people we tend pay attention to these legislative rules. Because these are the ones, we conform our behavior to and if do not conform there will be a negative consequence. Negative consequences from agencies from not following agencies regulations usually come in the form of a fine usually civil. E.G can shut down your business if OSHA decide that you not following a certain regulation, they can shout you down.

The Fair Debt Collection Practices Act (FDCPA) prohibits collector contact

after the debtor requests the collection agent to cease contact. Explanation The FDCPA prohibits collector contact (1) at inconvenient times, such as early morning or late night calls, or at inconvenient places, such as the debtor's place of employment or sites of social events; (2) after the collector is informed that the debtor is represented by an attorney; or (3) after the debtor gives written notice that she refuses to pay the debt and requests the agent to cease contact.

Unreasonably Dangerous

contains a danger beyond that which would be contemplated by the ordinary consumer

Tortious Conduct

is the tortfeasor wrongful conduct. The wrongful conduct that cause injury that cause the damage.

Under the doctrine of res ipsa loquitur, the injured party can prove a negligence claim by

using the facts of the case to create a presumption of negligence. Explanation The doctrine of res ipsa loquitur (a Latin phrase meaning "the thing or matter speaks for itself") is deep-seated in American tort law. This doctrine allows an injured party to create a presumption that the tortfeasor was negligent by pointing to certain facts that infer negligent conduct. Through res ipsa loquitur, the injured party can make a successful negligence claim without showing exactly how the tortfeasor behaved.

Administrative Agency

Administrative Agencies A. CFPB - Consumer Financial Protection Bureau 1. Consumer Lending - prove oversight for consumer lending 2. Loans and Credit Cards - make sure that consumer are being treated fairly. B. CPSC - Consumer Product Safety Commission is another federal regulatory agency 1. Federal Regulatory Agency 2. Purpose - designed to regulate safety standards for consumer product Exam C. FDA - Food and Drug Administration is another federal regulatory agency 1. Federal Regulatory Agency 2. Purpose - it regulates the testing, the manufacturing, the distribution of foods, medicine, medical devices, and cosmetics. FDA involvement, Food safety procedures, illness due to contamination,

Federal Trade Commission (FTC).

TC - Federal Trade Commission Is another federal regulatory agency.

Products Liability (Strict Liability)

This when people or injured by a defective product

Negligence

I. arm cause by accident usually carelessness. Somebody conduct did not live up to a certain minimal standard of care. E.g. driving car, playing football, working on a house.