Business and Consumer Law

Practice flashcards covering key vocabulary terms and definitions for business consumer law.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of a transaction.

Tort law

A body of law that allows an injured party to sue for damages caused by the negligent or intentional acts of another party.

Market failure

A situation in which goods and services are not distributed efficiently, leading to a lack of meaningful consumer choice.

Government intervention

Actions taken by the government to regulate or manage the economy or specific sectors to address market failures and protect consumers.

Risk management

The process of identifying, evaluating, and responding to potentially harmful events in a business context.

Privity of contract

A legal doctrine stating that only parties involved in a contract can enforce its terms, generally excluding third parties.

Duty of care

A legal obligation imposed on individuals to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Product liability

The legal obligation of manufacturers and sellers to ensure that products are safe and free from defects that could harm consumers.

Implied warranty

A legal assurance that a product will perform as expected and is fit for purpose, even if not specifically stated in the contract.

Ultra vires

A Latin term meaning 'beyond the powers'; refers to actions taken by a government or corporation that are beyond its authority.

Consumer protection laws

Regulations designed to ensure the rights of consumers, promoting fair trade, competition, and accurate information in the marketplace.

Charter of Rights and Freedoms

A document that forms part of Canada's Constitution, guaranteeing fundamental rights and freedoms to individuals.

Federalism

A political system in which power is divided between a central authority and constituent political units, such as provinces or states.

Pricing strategies

Tactics used by businesses to set the selling prices of their products, including considerations of competition, cost, and consumer demand.

Regulatory approach

A method of government intervention where rules are established to ensure compliance with standards, often overseen by regulatory agencies.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm to another.