Chapter 17 Vocabulary & Review
  • 1. Caveat Emptor
A) "let the person beware"
B) “let the buyer beware”
C) "let the seller beware"
D) "let the consignment business beware"
  • 2. Caveat Venditor
A) "let the seller beware"
B) "let the consignment business beware"
C) "let the person beware"
D) "let the buyer beware"
  • 3. Consumer
A) any person who purchases or leases goods, services, or property primarily for personal, family, or business use.
B) any person who purchases or leases goods, services, or property primarily for personal, friend, or household use.
C) any person who purchases or leases goods, services, or property secondarily for personal, family, or household use.
D) any person who purchases or leases goods, services, or property primarily for personal, family, or household use.
E) any person who purchases or leases goods, services, or property primarily for business, family, or household use.
  • 4. Unfair and deceptive trade practice
A) practice that leads (or has the potential to lead) consumers to better business decisions
B) Better Business Bureau (BBB)
C) Consumer Protection Agency
D) practice that misleads (or has the potential to mislead) consumers
  • 5. Cooling-off rule
A) gives consumers three business days to cancel most contracts made with door-to-door salespersons.
B) gives consumers thirty business days to cancel most contracts made with door-to-door salespersons.
C) gives consumers two business days to cancel most contracts made with door-to-door salespersons.
D) gives consumers forty five business days to cancel most contracts made with door-to-door salespersons.
  • 6. Fraudulent misrepresentation
A) is any statement that has the effect of deceiving the buyer. This occurs when the seller misstates the facts about something that is important to the consumer.
B) is any statement that has the effect of deceiving the buyer. This occurs when the seller misstates the facts about something that is important to the buyer.
C) is any statement that has the effect of guilting the buyer. This occurs when the seller misstates the facts about something that is important to the consumer.
D) is any statement that has the effect of deceiving the buyer. This occurs when the buyer misstates the facts about something that is important to the consumer.
  • 7. Cease and Desist Orders
A) legally binding orders to stop a practice, to anyone using advertising that would mislead the public.
B) legally binding orders to stop a practice, to anyone using advertising that would lead the public to an educated decision
C) legally binding orders to stop a practice, to select businesses, people, and organizations using advertising that would mislead the public.
D) informal orders to stop a practice, to anyone using advertising that would mislead the public.
  • 8. Bait and Switch
A) advertising a nonexistent bargain to lure customers so they can be sold less expensive merchandise
B) advertising a nonexistent bargain to lure customers so they can be sold more expensive merchandise
C) advertising a product and legitimate price to lure customers so they can be sold more expensive merchandise
D) advertising a nonexistent bargain to lure customers so they can consider purchasing a less expensive item from that store.
  • 9. Product Liability
A) responsibility of the manufactures and sellers for injuries caused by products that are assembled with the highest quality
B) responsibility of both the buyers and sellers for injuries caused by products that are defective.
C) responsibility of the manufactures and sellers for injuries caused by products that are defective.
D) responsibility of the manufactures and sellers for resolutions caused by products that are defective.
  • 10. Adulterated
A) food or drug that contains any substance mixed or packed with it to reduce its quality or strength above the prescribed minimum standards.
B) food or drug that contains any substance mixed or packed with it to reduce its quality or strength below the prescribed minimum standards.
C) food or drug that contains any substance mixed or packed with it to enhance its quality or strength below the prescribed minimum standards.
D) food or drug that contains any substance mixed or packed with it to reduce its quality or strength below the prescribed maximum standards.
  • 11. Manufacturers and sellers are accountable for injuries caused by unsafe or defective items under the principle of
A) fraudulent misrepresentation
B) caveat emptor
C) product liability
D) warranty
  • 12. The law that enables the federal government to remove from the market any food shown to cause cancer is the
A) Strict Liability Rule
B) Right to Health Amendment
C) Delaney Amendment
D) Consumer Product Safety Act
  • 13. A consumer who wishes to cancel a contract made with a door-to-door salesperson must do so within
A) three days
B) 24 hours
C) two days
D) three weeks
  • 14. A food or drug containing an ingredient that reduces its standard quality is said to be
A) adulterated
B) misbranded
C) fraudulent
D) impure
  • 15. Unless a specific time for shipment of mail-order goods is stated, the goods must ship within
A) three months
B) three hours
C) three days
D) thirty days
  • 16. Advertising a nonexistent bargain to lure customers and then selling the customers more expensive merchandise is called
A) bait and switch
B) cease and desist
C) fraudulent misrepresentation
D) claim and change
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