Consumer Protection Review pt2

pyramid

A chain letter is an example of the type of confidence game known as a(n) _______ sales scheme.

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

encumbrances

Backyard Fun Inc. purchases swing sets and slides from manufacturer Swing City at wholesale cost and then resells them to consumers like Bruce. Once Bruce pays for the swing set and slide and they are delivered, Swing City can not take it from Bruce's backyard because Backyard Fun failed to pay its manufacturer's invoice. This implied seller's warranty that assures Bruce that the merchandise is free of third party claims is known as the warranty against

puffing

Exaggerated sales talk such as "best on the market" or "incredible quality" is called

caveat emptor

The Latin phrase that means "let the buyer beware" is

illegal lottery

The cheerleaders at Ben's high school decide to raffle off an MP3 player to earn money to go to the upcoming competition. Each ticket costs $5 and the winner receives $100 as determined by a drawing. When Ben buys three tickets he is participating in the commission of a felony called an

disclaimer

When Derrick purchased several used fax machines for his business, the seller required him to sign this statement. "I understand the machines I purchased are secondhand. I further agree to take the equipment 'as is' thereby relinquishing the seller's liability for repairs under any warranty expressed or implied." This document is an example of a(n)

Consumer Product Safety Commission

receives reports from the nation's hospitals on product-caused injuries.

bait and switch

Low Cost Store places an advertisement in its local newspaper which reads "Tiny-Tot Tricycles only $29.95. This offer available only on Friday, July 13, when our store will open early at 8 a.m." Jill drives to Low Cost at 6 a.m. and is among the first three people to enter the store to purchase the advertised tricycle only to learn that the item is already "sold out." A sales clerk then redirects her to a better tricycle that costs $36.45. Low Cost has used a type of improper advertising tactic known as

Food and Drug Administration

____________________ determines which drugs are prescription and which may be sold "over-the-counter."