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18 Cards in this Set

  • Front
  • Back
“Cooling-Off” Laws
Laws that allow buyers to cancel door-to-door sales contracts within a certain period of time, such as three business days.
Bait-and-Switch advertising
Advertising a product at an attractive price and then telling the consumer that the advertised product is not available or is of poor quality and encouraging her or him to purchase a more expensive item.
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.
Counteradvertising
New advertising that is undertaken to correct earlier false claims made about a product.
Deceptive advertising
Advertising that misleads consumers, either by making unjustified claims about a product’s performance or by omitting a material fact concerning the product’s composition or performance.
Express Warranty
A contractual promise concerning the quality, condition, description, or performance of the goods being sold or leased.
Implied Warranty
A warranty that arises by law because of the circumstances of a sale rather than by the seller’s express promise.
Implied Warranty of Fitness for a Particular Purpose
A warranty that goods sold or leased are fit for the particular purpose for which the buyer or lessee will use the goods.
Implied Warranty of Merchantability
A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased, are properly packaged and labeled, and are of proper quality.
Lien
An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
Product Liability
The legal liability of manufacturers, sellers, and lessors of goods for injuries or damage caused by the goods to consumers, users, or bystanders.
Regulation Z
a set of rules issued by the Federal Reserve Board of Governors to implement the provisions of the Truth-in-Lending act.
Unreasonably Dangerous Product
A product that is so defective that it is dangerous beyond the expectation of an ordinary consumer or a product for which a less dangerous alternative was feasible but the manufacturer failed to produce it.
What implied warranties arise under the UCC?
Implied warranties that arise under the UCC include the implied warranty of merchantability, the implied warranty of fitness for a particular purpose, and im­plied warranties that may arise from, or be excluded or modified by, course of dealing, course of performance, or usage of trade.
Can a manufacturer be held liable to any person who suffers an injury proximately caused by the manufacturer's negligently made product?
Privity of contract is not required for recovery by an injured plaintiff on the ground of negligence in a product liability action. In other words, a manufac­turer is liable for its failure to exercise due care to any person who sustains an injury proximately caused by a negligently made product, regardless of whether the in­jured person is in privity with the manufacturer.
What are the elements of a cause of action in strict product liability?
Under Section 402A of the Restatement (Second) of Torts, the elements of an ac­tion for strict product liability are as follows:

1. The product must be in a defective condi­tion when the defendant sells it.
2. The defendant must normally be engaged in the business of selling (or distributing) that product.
3. The product must be unrea­sonably dangerous to the user or con­sumer because of its defective condi­tion (in most states).
4. The plaintiff must incur physical harm to self or prop­erty by use or con­sumption of the product.
5. The defective condition must be the proximate cause of the injury or damage.
6. The goods must not have been substan­tially changed from the time the product was sold to the time the injury was sustained.
What defenses to liability can be raised in a product liability lawsuit?
Defenses to product liability include plaintiff’s assumption of risk, product mis­use, and comparative negligence, as well as the attribution of injuries to com­monly known dangers. Also, as in any suit, a defendant can avoid liability by showing that the elements of the cause of action have not been properly pleaded or proved.
When will advertising be deemed deceptive?
Deceptive advertising occurs when a reasonable consumer is misled by an ad­vertising claim (although vague generalities and obvious exaggerations are permissible).