Bus Law - Chapter 14

caveat emptor

let the buyer beware

caveat venditor

let the seller beware

class action lawsuit

lots of people joining a lawsuit on behalf of other/self

cease-and-desist order

order to stop illegal practices

consent order

volunarily stop illegal practices

restitution

compensation for doing wrong

corrective advertising

correct misleading actions/advertisments

bait and switch

lure in with understocked item to switch you over to more profitable items inside

3 elements of a lottery

1. pay to play
2. win by chance or luck
3. prize awarded

chain letters

illegal to participate or start

price fixing

agreement between many companies with same product to set a price

restraints of trade are valid?

patent, apprentice, copyright, non-compete clause

monopoly

one company controls all or most of a market/industry

collective bargaining

employer must negotiate good faith with employees over things such as pay, working conditions, hours, etc.

door-to-door sales

3 day cooling off period, can get out of an agreement due to the added pressure

warranty of title

seller has the right to transfer ownership and no one else has the rights to the property

warranty of merchantability

requiring that the goods fit the ordinaty purposes for which goods are used

warranty of fitness for a particular purpose

asserts that goods are suitable for the special purpose of the buyer and such warranty will not be satisfied by mere fitness for general purposes

warranty against encumbrances

the seller warrants property is free of any liens/encumbrances unless they are specifically stated in the deed

express warranty

assurance of quality or performance explicitly made by the seller

warranty

statement about the products qualtities or performance that the seller assures the buyer is true

full warranty

express warranty that obligates the seller to repair/replace a defective product without cost to the buyer within reasonable time

implied warranty

warranty obligation implicity imposed by law on all sellers

disclaimer

sign, label, or warning reducing a bailee’s duty of care; also, notice of exclusion in a warranty

puffing

greatly exaggerated sales talk