BL Chapter 7: Consumer Law and Contracts

Question 1

When a store advertises bargains that do not really exist in hopes of luring in customers

Accepted Answer

Bait and switch

Question 2

What is the term for the collection of laws that govern various types of business transactions?

Accepted Answer

Uniform Commercial Code

Question 3

Which of the following are examples of goods?

Accepted Answer

Books, Clothing, Food

Question 4

The dominant element of a contract determines if the UCC laws for the sale of goods applies.

Accepted Answer

True

Question 5

Warranty of fitness for a particular purpose is...

Accepted Answer

An implied warranty that goods will be fit for specific use

Question 6

This is a legal interest in the protection of property from injury, loss, or destruction

Accepted Answer

Insurable Interest

Question 7

This is a merchant's written promise to hold an offer open without consideration.

Accepted Answer

Firm offer

Question 8

Sales law applies to which of the following?

Accepted Answer

Sale of goods

Question 9

A guarantee, usually by a seller to a buyer, that a product will perform as promised

Accepted Answer

Warranty

Question 10

An express warranty is a representation on the quality of products & can be made in what 3 ways

Accepted Answer

By the use of a sample or model, By a statement of fact or promise by the seller, By a description of the goods

Question 11

The governmental agency that promotes free trade and fair competition

Accepted Answer

Federal Trade Commission

Question 12

The statute of limitations cannot be reduced to less than...

Accepted Answer

Twelve months

Question 13

Requires lease agreements to include certain terms, such as number of payments and amount

Accepted Answer

Consumer Leasing Act

Question 14

Under the telemarketing sales rule, calling times are restricted to when?

Accepted Answer

8am and 9pm

Question 15

When a breach of contract occurs, some of the seller's remedies include all EXCEPT:

Accepted Answer

Refuse to accept the goods

Question 16

What are the three types of implied warranties?

Accepted Answer

Warranty of merchantability, Warranty of title, Warranty of fitness for a particular purpose

Question 17

Any commonly used method of dealing in a particular area is called...

Accepted Answer

Usage of trade

Question 18

Someone who buys or leases goods, real estate, or services for personal, family, or household

Accepted Answer

Consumer

Question 19

This is a business or person who regularly deals in the sale of goods

Accepted Answer

Merchant

Question 20

An oral sales contract is enforceable for goods totaling less than...

Accepted Answer

$500.00

Question 21

Under this act, a written warranty on goods exceeding $10 must disclose whether it is limited

Accepted Answer

Magnuson-Moss Warranty Act

Question 22

This rule gives your 3 business days to cancel a transaction made off the seller's premises

Accepted Answer

Cooling-off rule

Questions 22