Understanding Business and Personal Law

Chapter 15: Consumer Protection and Product Liability

Consumer Protection and Product Liability

1.
Under the Food, Drug and Cosmetic Act, faulty products include any product that has been
A)misbranded.
B)adulterated.
C)injurious.
D)all of the above.
2.
Bait and switch advertising is illegal because
A)the advertiser is trying to sell a different product than the one advertised.
B)the advertiser is trying to sell you something over the phone that you cannot see.
C)it violates the cooling-off rule.
D)it violates the negative option rule.
3.
It is unlawful for a realtor to avoid informing a potential buyer about a major structural problem in the house.
A)TRUE
B)FALSE
4.
Consumer protection laws do not protect you if you purchase
A)a product considered dangerous.
B)goods online.
C)goods from out of state.
D)goods from another consumer.
5.
The Consumer Product and Safety Act protects you from adulterated or misbranded food or health-related devices.
A)TRUE
B)FALSE
6.
Under product liability law, someone who is injured from a product's defective condition
A)is protected by the Better Business Bureau.
B)may not recover damages.
C)may recover damages.
D)can file a suit against the FTC.
7.
The cooling-off rule gives you
A)the ability to cancel a contract for most purchases made in the seller's regular place of business.
B)protection from abusive telemarketers who try and sell you products over the phone.
C)three business days to cancel contracts for most purchases made away from the seller's regular place of business.
D)one month to cancel contracts for most purchases made away from the seller's regular place of business.
8.
There is little you can do to stop unwanted telemarketing calls.
A)TRUE
B)FALSE
9.
The Better Business Bureau is a government agency that hears consumer complaints at the local and state levels.
A)TRUE
B)FALSE
10.
If you receive something in the mail that you did not order, you may keep the product without paying anything for it.
A)TRUE
B)FALSE
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