Chapter 21: Warranties and Consumer Protection Law Vocabulary

Vocabulary practice flashcards defining key legal terms, consumer protection statutes, agency functions, and regulatory concepts from Chapter 21.

Warranty

A seller's or lessor's legally enforceable promise to a consumer concerning the quality and/or functionality of a product.

Express Warranty

A warranty created when a seller expressly represents that goods have certain qualities, efficiency, or factual characteristics.

Puffery

A nonfactual statement commonly used in advertising (such as "This car gets great gas mileage") that does not constitute an express warranty.

Implied Warranty

A UCC-imposed warranty that applies to goods automatically in specific circumstances even if the seller makes no express promises.

Implied Warranty of Merchantability

A warranty applying to every sale of a product from a merchant that warrants the product is fit for its ordinary use and conforms to industry safety standards in packaging and labeling.

Implied Warranty of Fitness for a Particular Purpose

An implied warranty created when a seller knows of a buyer's desire to use a product in a specified way and the buyer relies on the seller's advice and recommendation.

Warranty Disclaimer

A statement made in a conspicuous writing (such as using capital letters, bold print, or phrases like "as is" or "with all faults") that releases a seller from express or implied warranties under UCC conditions.

Magnuson-Moss Warranty Act

A federal law regulating written express consumer warranties offered by sellers/lessors and creating a federal cause of action for breach of consumer warranties contained in state statutes.

Federal Cause of Action

A statutorily created right to sue a violator directly in federal court, granting federal courts specific subject matter jurisdiction over statutory violations.

Full Warranty Label

A warranty label under the Magnuson-Moss Act requiring sellers to honor repair or replacement promises for defects and state a specific term of duration.

Limited Warranty Label

A warranty designation under the Magnuson-Moss Act indicating that the seller does not bind itself to full warranty promises in specified ways.

Consumer Product Safety Commission (CPSC)

The federal regulatory agency created by the Consumer Product Safety Act to research, institute, and enforce safety standards for consumer products posing potential injury risks.

Federal Trade Commission (FTC)

An administrative agency established by the FTCA of 1914 charged with the broad mandate of preventing unfair and deceptive acts or practices in commercial transactions.

Consumer Financial Protection Bureau (CFPB)

An independent agency housed within the Federal Reserve charged with setting rules, enforcing policy, and protecting consumers from fraud or unfair practices in consumer credit and loan markets.

Consumer Review Fairness Act (CRFA)

A 2016 federal law that protects consumers' ability to post honest reviews of businesses on forums like social media by banning contract provisions that restrict, penalize, or seize rights to such reviews.

Bait and Switch

An illegal sales practice where an item is advertised at a favorable price or terms with no intention of selling it, and the seller discourages purchase of that item to upsell a higher-priced alternative.

Do Not Call Registry

An FTC-established registry allowing consumers to sign up to block unsolicited commercial telemarketing calls.

Federal Odometer Act

A federal law making vehicle odometer tampering a crime, prescribing repair procedures, requiring mileage disclosures, and granting victims a remedy of triple actual damages.

Lemon Laws

State statutes requiring auto manufacturers to repurchase new or used vehicles that have significant manufacturing defects that cannot be repaired within a reasonable time or number of attempts.

Food, Drug and Cosmetic Act (FDCA)

A statute creating the FDA to regulate the testing, manufacturing, distribution, and labeling of foods, medications, medical devices, and cosmetics.

Adulterated Food

Food defined by the FDA as containing a filthy, putrid, or decomposed substance or being otherwise unfit for consumption.

Consumer Credit Protection Act (CCPA)

The core federal statutory regulation of consumer credit transactions, governing terms disclosure, credit reporting, antidiscrimination, and debt collection.

Truth in Lending Act (TILA)

A component of the CCPA requiring lenders to disclose loan terms to consumers through uniform methods of computation, focusing primarily on finance charges and annual percentage rates (APR).

Regulation Z

A Federal Reserve Board regulation under TILA requiring specific written disclosures of finance charges, APR, and hidden fees prior to the consummation of a credit transaction.

Home Equity Line of Credit Notice of Right to Cancel

A disclosure document required by federal law that grants borrowers the legal right to cancel a home-secured credit account without cost within three business days of specified triggering events.

Equal Credit Opportunity Act (1974)

A federal statute making it unlawful for creditors to deny credit or charge higher interest rates based on race, religion, national origin, color, gender, age, or marital status.

Credit CARD Act of 2009

Federal legislation protecting consumers from sudden credit card rate hikes and hidden fees, while imposing strict co-signer or income requirements for applicants under age 21.

Fair and Accurate Credit Transactions Act (FACT Act)

A 2003 law providing identity theft protections by requiring credit bureaus to freeze reporting on disputed fraudulent accounts and creating a national fraud alert system.

Credit Freeze

A free service mandated by federal law that restricts access to a consumer's credit file to prevent identity thieves from opening unauthorized new accounts.

Consumer Leasing Act (CLA)

A statute under TILA that regulates consumer equipment and vehicle leasing relationships by mirroring loan protections like standardized disclosures and APR information.

Fair Credit Reporting Act (FCRA)

A law setting privacy rights for credit reports, guaranteeing free annual report access, and mandating the removal of obsolete negative credit entries after seven years or bankruptcy after 14 years.

Fair Debt Collection Practices Act (FDCPA)

A federal statute regulating third-party collection agencies that prohibits abusive, intimidating, misleading, or inconvenient collection practices against consumer debtors.

Regulation F

A December 2021 FDCPA regulation setting rules on debt collection communications, disclosure requirements, opt-out rights, call frequency limits, and bans on legal action for time-barred debt.

Consent Order

An order issued by an administrative agency reflecting a violator's agreement to pay civil fines and accept disciplinary sanctions, carrying the full legal effect of a court order.