ADMS 2610 Lecture 8 - Government Regulation of Business

Consumer Protection Legislation

Laws designed to protect consumers from hazardous products and unfair business practices.

Caveat Emptor

Latin phrase meaning 'let the buyer beware,' indicating that the buyer is responsible for checking the quality of goods.

Merchantable Quality

The standard of quality suitable for resale, meaning goods must be fit for their intended use.

Duty of Disclosure

The obligation of lenders or sellers to reveal the true cost of credit to the borrower.

Sale of Goods Act

Legislation that sets out special rules for the sale and quality of goods.

Express Warranties

Formal promises made by sellers regarding the quality or condition of goods sold.

Unconscionable Transactions

Contracts that exploit a consumer's vulnerability or result in unfair advantage to the seller.

Regulatory Body

An organization that supervises and enforces laws within specific sectors, like the Liquor Control Board.

Loss-Leader Selling

A pricing strategy where goods are sold at a loss to attract customers.

Bait-and-Switch

A deceptive marketing tactic where a low-priced item is advertised but replaced with a higher-priced item upon sale.