Practice Consumer Law

Revision Tasks and Achievement Tests.

UNIT 11. Advertising and the Consumer

1. Complete the sentences, using the appropriate words from the box:

Persistent; confuse; puffing; desire; exaggeration; prohibited; widespread; enforce; mislead; controversial; intrusive.

1.The United States has always been a commercial society; but in recent years, advertising has become more ….

2.Advertising has also become more … and ….

3.One of the most … types of advertising involves tobacco.

4.In 1972, tobacco advertising was … on radio and television.

5.Although ads can be helpful, they can also …, deceive, and ….

6.Ads try to create a … for products that consumers don’t really need or want.

7.Laws that prohibit false or deceptive advertising are difficult to …, and deception can take many forms.

8.The difference between illegal advertising and … may be small, so consumers should be on guard.

9.If an ad tends to mislead about an important fact concerning the product, it is illegal; but if the ad is merely an …, it is probably puffing and legal.

2.Are the statements true (+) or false (-)? Correct the false statements.

1.The United States has always been a commercial society; but in recent years, advertising has become less widespread.

2.Advertising has become more persistent and intrusive.

3.Courts have ruled that government may regulate but not prohibit certain types of advertising.

4.More people die from smoking each year than from AIDS, accidents, fires, homicides, suicides, and drunk driving combined.

5.Ads are always helpful, they never mislead, deceive, or confuse.

6.Ads try to create a desire for products that consumers don’t really need or want.

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7.Corrective advertising means that the advertiser must admit the deception in all future ads for a specified period of time.

8.The difference between illegal advertising and puffing is vague.

9.If an ad tends to mislead about an important fact concerning the product, it is illegal; but if the ad is merely an exaggeration or a nonspecific opinion, it is probably puffing and legal.

UNIT 12. Ads that Appeal to Our Emotions

1. Complete the sentences, using the appropriate words from the box:

Associate; recommended; technique; seeing is believing; promotes; brand name; advertising.

1.Legal … influences people to buy things they really don’t want, need, or know much about.

2.Some ads … products with popular ideas or symbols, such as family, motherhood, wealth, or sex appeal.

3.The bandwagon approach is a technique that … the idea that everybody’s using the product.

4.Ads for certain medicines include the phrase, “… by doctors.”

5.A common television technique is based on the notion that … .

6.Some advertisers have been successful in getting consumers to connect one … with a certain product.

7.Whatever … advertisers use, you should learn to separate the product from the characters and images in its ads.

2.Are the statements true (+) or false (-)? Correct the false statements.

1.For many consumers, the biggest problem is false advertising.

2.Many ads try to sell products by appealing to the emotions.

3.The bandwagon approach is a technique that involves having famous athletes or movie stars advertise the product.

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4.Other ads try to convince consumers by resorting to the claims of authorities, such as doctors.

5.A common radio technique is based on the notion that seeing is believing.

6.Some ads appeal to emotion simply by trying to make us cry or feel bad.

7.If ads include catchy musical jingles, consumers remembered the jingle but not the product.

8.Because of many techniques advertisers use, it is always difficult to separate the product from the characters and images in its ads.

UNIT 13. Bait and Switch Technique

1. Complete the sentences, using the appropriate words from the box:

Bait; loss leaders; disparage; “switch”; violating; insincere offer.

1.The bait–and–switch sales technique involves an … to sell a product on terms that sound almost too good to be true.

2.The … is used to get the buyer into the store.

3.The seller tries to … the consumer to a more expensive item.

4.Salespersons who use the bait–and–switch technique are told to …, the advertised product and then refer the consumer to a higher–priced item.

5.Sellers can legally advertise specials at very low prices to get customers into their stores without … the bait–and–switch law.

6.The items offered in these specials are referred to as …, because the seller may lose money or make very little money on them.

2.Are the statements true (+) or false (-)? Correct the false statements.

1.Once the consumer is in the store, he or she finds that the

product is much more appealing than expected.

2.On some occasions, the product may not be available at all.

3.The seller then tries to “switch” the consumer to a cheaper item.

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4.As encouragement, the seller may be given a higher commission if he sells the lower–priced item.

5.If state law prohibits bait and switch, a consumer may be able to cancel a contract with a seller when the seller has used this technique.

6.Sellers can legally advertise specials at very low prices to get customers into their stores.

7.The items offered in these specials are sometimes referred to as loss leaders, because the seller may make very little money on them.

UNIT 14. Shopping by Mail

1. Complete the sentences, using the appropriate words from the box:

Monitors; watch out; shipped; commitment; comply; convenient.

1.Mail–order shopping is … .

2.According to federal law, you have a right to know when you can expect merchandise to be … .

3.Sellers must … with the promises in their ads.

4.The Federal Trade Commission … compliance with the mail–order rule.

5.Consumers should … for ads sent through the mail offering “free” items in exchange for subscriptions or memberships.

6.Offers of free items almost always require a … to purchase other items in the future.

2.Are the statements true (+) or false (-)? Correct the false statements.

1.Some consumers shop by mail.

2.Items offered by mail may cost less, and some items may be available that are not available in local stores.

3.Mail–order shopping never causes problems.

4.If no shipping date is stated, the merchandise must be shipped within 31 days of the seller’s receipt of your order.

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5.The Federal Trade Commission monitors compliance with the mail–order rule, which also applies to purchases made by telephone.

UNIT 15. Contracts

1. Complete the sentences, using the appropriate words from the box:

Infers; elements; cosign; competent; ratified; back out of; valid; remedy; affect; terms; enforceable; agreement.

1.A contract is an … between two or more persons to exchange something of value.

2.If one party to a contract does not carry out the promise, the other party is entitled to a … .

3.To protect yourself as a consumer, it is important to understand how contracts are formed and how they … your rights.

4.A legally binding contract must have certain … .

5.The two parties must agree exactly to the … of the contract.

6.The law … agreement from certain actions, such as signing a contract or beginning to carry out the terms of the bargain.

7.In every … contract, there must also be an exchange of consideration.

8.People entering into a contract must be legally … to make contracts.

9.Agreements to do something illegal or against public policy

are not … in court.

10.Be sure you understand and agree with all the terms before you accept; otherwise, it may be too late to … the deal.

11.Many stores require minors to have a parent or other adult … any major contract.

12.In most states, a minor who continues making payments on a contract after reaching the age of majority is considered to have … the contract.

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2. Are the statements true (+) or false (-)? Correct the false statements.

1.If one party to a contract carries out the promise, the other party is entitled to a remedy.

2.To have mutual agreement, it is enough for the parties to say “we agree.”

3.The values of the items being exchanged do not have to be the same.

4.People entering into a contract can be mentally ill or intoxicated.

5.Agreements to do something illegal or against public policy are also enforceable in court.

6.You should be quick to enter into a contract.

7.Minors may not make contracts.

8.The adult cosigner is responsible for making payments if the minor backs out of the deal.

9.Once the contract has been ratified, it can no longer be canceled.

UNIT 16. Written and Oral Contracts

1. Complete the sentences, using the appropriate words from the box:

Favours; evidence; take–it–or–leave–it; enforceable; unconscionable; illegal.

1.Certain kinds of contracts must be in writing to be ….

2.The law … written contracts.

3.If there is a written contract, a court will not listen to … of promises made before the signing of the contract.

4.Some contracts are unenforceable in court because they are … or against public policy.

5.Courts sometimes find that a contract is … .

6.A court is more likely to find a contract unconscionable when the consumer is presented with a contract on a … basis and there is very uneven bargaining power between the parties.

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2. Are the statements true (+) or false (-)? Correct the false statements.

1.For your protection, it is always better to have an oral contract.

2.An agreement between two persons to sell illegal drugs could never be enforced in court.

3.Courts sometimes find that a contract is so unfair, harsh, and oppressive that it should not be enforced.

4.Consumers are not allowed to make bad deals.

5.A court is more likely to find a contract unconscionable when an experienced seller is dealing with an uneducated consumer).

UNIT 17. Warranties

1. Complete the sentences, using the appropriate words from the box:

Exaggeration; breached; scope; apply to; rights; duration; express; guarantee; remedy; bargain; implied.

1.A warranty is a promise or … made by a seller concerning the quality or performance of goods offered for sale.

2.If the seller does not live up to the promises made in the warranty, the warranty is said to be … .

3.Warranties give consumers very important … .

4.When you look at a warranty, consider the … , the …, and the … .

5.There are two types of warranties: … and … .

6.An express warranty is a statement concerning the quality or performance of goods offered for sale that becomes a part of the … between the parties.

7.If the seller’s statement is merely an opinion or an obvious …, it is considered puffing, or sales talk, and cannot be relied on.

8.The warranty act does not … products that cost $15 or less.

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1.Are the statements true (+) or false (-)? Correct the false statements.

1.A warranty is a statement of what the seller will do to remedy the problem if the product doesn’t perform as promised.

2.All warranties are the same.

3.An express warranty is a statement – by demonstration – concerning the quality or performance of goods offered for sale that becomes a part of the bargain between the parties.

4.Since written warranties difficult to prove, it is always best to get an oral warranty.

5.Written warranties must also tell you exactly what is included and what is not included.

6.A limited warranty could cover some defects or problems and not others.

3.Translate the following sentences into English:

1.Гарантия – это обещание продавца, касающееся качества и технических характеристик товара, а также обязатель- ства продавца по исправлению неполадок, в случае их возникновения.

2.Перед совершением покупки необходимо узнать о пре- доставляемых гарантиях (длительности гарантийного периода, исправление каких неполадок включает в себя гарантия и что потребуется от покупателя в случае воз- никновения неполадок).

3.Существуют два типа гарантийных обязательств – пря- мая и связанная гарантия.

4.Прямая гарантия является частью сделки при покупке товара.

5.Поскольку устные гарантийные обязательства всегда очень трудно доказать и не все, что говорит продавец является гарантией, лучше иметь письменную гаран- тию.

6.Гарантия должна содержать все необходимые условия, быть написана понятным языком и предоставляться по- купателю до совершения покупки.

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Revision Tasks and Achievement Tests.

7.По условиям полной гарантии, неисправный товар дол- жен быть в краткие сроки починен или заменен бес- платно (включая доставку и установку), если починить товар невозможно, покупателю возвращают деньги.

UNIT 18. Implied Warranties

1. Complete the sentences, using the appropriate words from the box:

Properly; dealers; express; stolen; defects; merchantability; title; promise.

1.Many consumers believe they have no protection if a new product without … warranties does not work.

2.An implied warranty is an unwritten …, created by law, that a product will do what it is supposed to do.

3.Implied warranties apply only to products sold by … .

4.A warranty of … is an unwritten promise that the item sold is of at least average quality for that type of item.

5.A warranty of … is a seller’s promise that he or she owns the item being offered for sale.

6.If a person sells … goods, the warranty of title has been broken.

7.Carefully inspect for … any goods you buy.

8.If you fail to use the product…, you may cancel the warranty.

2.Are the statements true (+) or false (-)? Correct the false statements.

1.An implied warranty is an unwritten promise, created by

law, that a product will do what it is supposed to do.

2.Implied warranties apply to all products.

3.A warranty of merchantability is a seller’s promise that he or she owns the item being offered for sale.

4.A warranty of fitness for a particular purpose is an unwritten promise that the item sold is of at least average quality for that type of item.

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5.A warranty of title exists when a consumer tells a seller before buying an item that it is needed for a specific purpose or will be used in a certain way.

6.If you fail to use the product properly, or if you use it for an improper purpose, you may cancel the warranty.

Achievement Test 2 (Units 10–18)

Find suitable endings to these sentences (sometimes more than one option is possible):

1. Consumers should be cautious regarding sales offers made by telephone because:

A – some salespeople use high–pressure tactics and smooth talk to get you buy things that you otherwise wouldn’t buy.

B – many fraudulent schemes are conducted this way.

C – the cooling–off period of three days does not apply to telephone sales.

D – your credit card number may be used to get your money.

2. Tobacco advertising is controversial because:

A – it is everywhere.

B – smoking is the nation’s leading preventable cause of death. C – it is prohibited on radio and television.

D – more billboards are located in neighborhoods where poor people live than elsewhere.

3. Ads sometimes mislead consumers because:

A – they try to create a desire for products that consumers don’t really need or want.

B – they appeal to emotions.

C – they are based on the seller’s opinion and personal taste. D – they provide the kind of factual information needed to

make a wise buying decision.

4. Sales techniques appeal to our emotions because:

A – they associate products with popular ideas or symbols and promote the idea that everybody’s using the product.

B – they have famous athletes or movie stars to advertise the product and try to convince consumers by resorting to the claims of authorities.

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