1. Based on the Consumer Product Safety Act, mark all that qualifies a product as defective. (Check all that apply) a.Poor design b.No warning lables of side effects c.Manufacturing Defects d.Inadequate instructions and warnings on proper use e.Mislabeled package 2. If you buy an electronic device at a yard sale, you can take it back to them if it does not work based on warranty of merchantability. True False 3. Which is not an element of a contract? Capacity Consideration Fair/equal Offer Acceptance 4. Product liability requires that only the manufacturer can be held responsible for injuries due to unsafe or defective products. True False . 5. If a minor lies about his or her age to purchase a product prohibited to minors, the minor has not committed a criminal offense. True False 6. The Lemon Law for defective cars varies by state? True False 7. A manufacture may alter food and drugs even if the product then falls below standards. True False 8. Which type of insurance coverage is needed to cover damages you cause to someone else's property when you hit their garage with your car? Medical Coverage Collision Coverage Property damage liability coverage Comprehension Coverage 9. You are interested in modeling and have a modeling agent you have been talking with to help you get started. The model agent has a commercial offer but the agent tells you that if you do not agree to use her as the agent she will make sure you never get another offer to model. What is the reason this contract would be void if you agree to it? Misrepresentation Undue Influence Mistake Economic Duress 10. Kathy bought a car. The car cost $4500. Her annual percentage rate is 1.5%. When she is finished paying the loan she paid $5800 for the car due to the interest she paid. How much was her finance charge? $5800 $1300 $4500 1.5% 11.A contract is not enforceable by law. True False 12. A door-to-door sales person is selling vacuum cleaners using the technique of taking up the person's time to convince them to buy the vacuum. He puts lots of pressure on the person by telling them there is no better deal, but more importantly the sales person does not leave until he gets a signed contract to purchase the vacuum. What is the reason this would be a voidable contact? Mistake Duress Undue Influence Misrepresentation 13. Bill received an unordered calendar from the local charity so he must pay money to the charity. True False 14. Warranty of title requires a person who sold (unknown to them) a stolen item to refund the money to the person who bought it. True False 15. There are three ways to convey an express warranty: statement of fact, use of a model, and written warranty. True False 16. Sally moved out of her parents' house at age 17 and was legally emancipated from her parents. She entered a contract with a Rent-to-Own company so she would have furniture for her apartment. She later decided she did not want the furniture because she would be wasting her money renting it. She is able to void the contract because she is a minor. True False 17. Joe bought a pipe for a plumbing problem he had at his house. He consulted one of the sales people in the plumbing store, and he told Joe which pipe to use. However the pipe broke from the water pressure. Based upon what warranty can Joe return the pipe? Limited Warranty Warranty of fitness for a particular purpose Full warranty Warranty of merchantability 18. Which is not an example of unfair and deceptive practices? False Advertising Bait and Switch Fraudulent Misrepresentation Price Markup 19. You attended a home party and ordered baskets. Your total was $75.00. The day after the party you decided you do not want the items. Based on the Cooling-Off Rule you have 7 days to cancel your order. True False 20. When one party notifies the other party that they will not be fulfilling the contract prior to the date the contract was to be fulfilled, it is called: Cancelled Contract Breach of Contract Unfulfilled Contract Anticipatory Breach 21. Ken did not make his payments to the car dealership for the past 6 months. What can the car dealership do? Repossess Ken's car Contact his bank and request they pay them Report him to the Better Business Bureau Charge him a higher interest rate 22. Which reason listed allows either party to void the contract? Bilateral Mistake Undue Influence Unilateral Mistake Duress 23. If a minor decides to disaffirm the contract, it is possible to disaffirm the whole contract or parts of the contract. True False 24. Consumer protection laws protect you even when you purchase the product from another consumer. True False 25. The difference between a voidable contract from an unenforceable contract is that a voidable contract will not be enforced in court. True False 26. A minor can get out a sale of Ipad because they paid $100 more than the market value for it. True False 27. Which is not a rule for telemarketers? Must stop calling if you request them to stop. Calling times are only between 8 a.m. and 5 p.m. The telemarketer must tell you they are trying to sell something and who they are selling for. Illegal to withdraw money from your account without permission. 28. To bring a strict liability case, which does not need to be shown? Product was used as intended Prodect defect caused the injury Product was defective Product manufacturer did not use due care 29. Which is not a reason the Food, Drug and Cosmetic Act would consider a product faulty? Adulterated Misbranded False Advertising Injurious 30. A sale is not considered a contract. True False 31. If you are unsure about a business prior to using their services, you can contact the Better Business Bureau to learn more about the business. True False 32. A breach of a warranty is breach of a contract. True False 33. An adhesion contract is an agreement to the terms of the car dealer selling the car and it will have small-print terms. True False 34. Punitive damages are monetary damages that you would get even above the actual damages. It is used as a form of punishment. True False 35. Your product warranty says it will fix or replace defective product at no charge to you. What type of warranty is this? Warranty of Fitness for a particular purpose Warranty of Merchantability Full warranty Limited Warranty 36. You must have comprehension insurance and collision insurance on your car to protect against liability if you hurt someone else. True False 37. As soon as a person reaches the age of 18, they must always comply to all contracts they agree to when they are 18 or older. True False 38. Your product warranty only promises to cover parts. You are responsible for labor costs. What type of warranty is this? Warranty of Fitness for a particular purpose Full warranty Limited Warranty Warranty of merchantability 39. Rescind means to cancel a contract. True False 40. Susan bought a car on her own when she was 17. A month after her 18th birthday her car broke down. She tried to give the car back and said she could void the contract because she was under 18 when she bought it. If Susan is correct, mark True. If Susan is incorrect, mark False. True False 41. Breach of contract occurs only when both parties fail to perform the duties set out in the contract. True False 42. For a fraudulent contract to exist, it must have Unilateral Agreement Mistake Material Fact Duress 43. Which is not an express warranty? Our pogo sticks are backed by our three year warranty. Email us for a free copy. I-Radio guarantees 24/7 service. Bike Seats guarantees the seat will always stay soft. Read about our 90 day limited warranty on our website. Our hockey stick is backed by a lifetime warranty. Good for as long as you have the stick. Write to receive lifetime warranty. 44. Cease and desist orders can be used for false advertising and defective products. True False 45. You go into a Sheetz and use the computerized ordering system and order a sub. You pick the sub up at the counter once it is made. What type of contract is this? Implied Contract Expressed Contract 46. What is it called when a court order is used to compensate an injured party when money will not be adequate? Injunction Ratify Specific Performance Equitable Damages