legal environment of business chapter 24

consumer law

the body of statutes, agency rules, & judical decisions protecting consumers of goods & services from dangerous manufacturing techniques, misleading, unfair credit practices, deceptive advertising & other such practices

deceptive advertising

advertising that misleads consumers, either by making unjustified claims about a products performance or by omitting a material fact concerning the products composition or performance

bait-&-switch advertising

advertising a product at an attrative price & then telling the consumer that the advertised product is not available or if of poor quality & encouraging her or him to purchase a more expensive item

multiple product order

an order requiring a firm that has engaged in deceptive advertising to cease & desist from false advertising in regard to all the firm’s products

counteradvertising

new advertising that is undertaken to correct earlier false claims that were made about a product

“cooling-off” laws

laws that allow buyers of goods sold in certain transactions to cancel their contracts within three business days

regulation Z

a set of rules issued by the federal reserve board of governors to implement the provisions of the Truthin-Lending Act

validation notice

an initial notice to a debtor from a collection agency informing the debtor that he or she has 30 days to challenge the debt & request verification