NAME:______MOD.______
WARRANTIESThe ______and ______a seller makes to a buyer that becomes part of the sale.
Warranties are an ______to buy. Sellers are willing to stand ______and______that it is not defective and ______for the use intended.
If something goes wrong, they will ______or ______with no cost to you. Two types of warranties: Express & Implied Warranty
EXPRESS WARRANTY______or ______guarantee by manufacturer or seller.
Get it in ______. Read the ______.
b) If oral warranty – consumer advised to do what?______
PUFFINGStatement of______which does not create a warranty.
DESCRIPTION OF (b) Any ______of goods that is partof the ______GOODS creates express warranty (ex: catalog order)
USE OF SAMPLE OR(c) That is part of the ______creates express warranty.
MODELBreach of express warranty is different from sample/model shown.
IMPLIED WARRANTY2.Guarantee ______& warranties seller can ______. Implied warranties are ______in a court of law.
There are three types of implied warranties:
WARRANTY OFGiven by a ______--the person who sells goods.
MERCHANTABILITYExpectation from the good--______performance.
WARRANTY OF FITNESSCreated whenthe buyer purchases merchandisefor ______purpose
FOR PARTICULARand ______on seller’s knowledge and advicewhen selecting the good.
PURPOSE If no purpose indicated to seller,seller ______for breach of implied warranty.
WARRANTY OF TITLEWhen goods delivered to you, title wasgiven in 1)______,
2) ______from liens and other financial obligation, and ______.
MAGNUSON-MOSS If a product is valued at ______a warranty must be presented if WARRANTY ACT 1975 availablefor that product. This act provides the manufacturer three choices: 1.Manufacturer can issue______which indicates manufacturer
does not ______.
2. Manufacturer can issue ______which covers everything –
______or ______free policy for a reasonable length of time—time limits indicated. If product cannot be fixed, owner canchoose to ______or get ______.
3.Manufacturer can issue ______warranty . Read ______
so you know what is covered.
PRIVITY OF CONTRACTPeople who contracts ______with each other have ______
______which includes those in ______. Someone obtaining the goods ______are not covered by contract.
EXCLUSION OF WARRANTIES
CONSEQUENTIAL 1. Any loss than does not flow ______but only from
DAMAGES some of the ______or result of the act. ex: (smoke alarm, food within freezer)
AS IS/WITH ALL FAULTS2.Sign must be in ______, ______and ______.
FINAL SALEMust be ______, in ______,
in ______.
IMPLIED WARRANTY OF 1.If you know you have an ______and ______
FITNESS FOR HUMAN those produce anyway,you ______claimbreach of implied warranty
CONSUMPTIONof fitness for human consumption
.2.If you know you have an allergy to certain products and ______you ______havecertain products and given assurances, you ______them and have a ______,you have a claim.
TWO TESTS–deals specifically with what is contained within food.
FOREIGN/NATURAL (1)______WHICH ARE ______TO THE TYPE OF MEAT/FISH
TEST SERVED ______BE LEGITIMATELY CALLED A FOREIGN SUBSTANCE
***(ex) nail in mashed potatoes? Breach?______***(ex) ant in lettuce? Breach?______Stone in lettuce? Breach?______
***(ex) If guaranteed to be boneless—negligence???______
REASONABLY (2) “what is ______expected by the consumer as served
EXPECTED TEST not what might not be______to the ingredients of that food
prior to preparation. (ex:911 wings)
OHIO CONSUMEROhio is strong consumer protection state . Created statutes
ACT & SUBSTANTIVEto prohibit ______, ______,
RULESand ______sales practices.
SEVEN RULES UNDER THE OHIO ACT:
MAIL ORDER (1) You can notify the Federal Trade Commission if theyhave not
SALES shipped you an item you ordered within ______days.
After ______weeks, you can bring a lawsuit.
RAINCHECKS(2) If out of an item advertised, and given a slip to buy the item
at the advertised price when new shipments arrive, retailer
must be honored within ______days of issuance.
Exceptions to rain checks that protect the retailer:
1______items 2)______quantity of items.
REPAIRS & (1) If estimate $______or more, you have choices as consumer,
SERVICES a.______estimate—if you don’t want an estimate, just tell them
b.______estimate—told of estimate but not put in writing
c.______estimate—best consumer protection
(2)If estimate between $______to $______, written or oral, and
bill cannot be more than $______over estimate.
If estimate over $______, can only charge ______% more than estimate
PENALTY FOR BREAKING THE RULES:
3x amount over estimate or $200—whichever is more
ex: Estimate $100. Bill $150. (100 x 10%)
Pay the bill $150 and take them to small claims court.
***What is the total bill you are responsible for?______***What is the total bill the repair shop will pay? ______
BAIT ADVERTISING(4) “Bait and Switch”—responding to an ad because _____ price.
Key to proving Bait and Switch--you ______got to see the
______you came in for.
NEW FOR USED(5) Led to believe it is ______when it is not.
STORE POLICIESMust be ______posted— kept by ______.
PRIZESWhen you are told you have won a prize, must tell you a. ______of prize, and b.______of winning.
There is ______such thing as ______.
(1) Applies to______, ______, ______within the
first ______months or ______miles, whichever comes first.
Four examples of what would constitute a lemon:
1.______or more attempts to fix the ______problem.
2. In the repair shop a total of _____days--does not have to be ______.
3.______or more attempts to fix a number of ______problems that______the use, ______, or ______of car. 4. ______unsuccessful attempt to fix a problem that could cause ______or______injury.
Under Lemon Law, you have the right to ______or ______. You have ______months to request arbitration.
ARBITRATION ______
MEDIATION______
Not satisfield? Can bring lawsuit for ______or ______.
ODOMETERPenalty is ______times amount of damages or ______,
ROLLBACK AND whichever is more.
DISCLOSURE ACTOhio law: 1st offense - ______degree felony; penalty ______months
in jail and $______fine.
2nd offense - ____degree felony
penalty ______years in jail and $______fine.
PREPAID Examples:______
ENTERTAINMENT1)NO ______contracts allowed.
CONTRACT2)Contract can be no longer than ____ years.
3)______mile rule applies to both sides. If facility moves not more than______miles from its original location, they ______have to ______portion of your money. If you move more than ______miles away,
you ______get a refund on the unused money.
*** What do you think happens, if after one visit, the facility
does not fit your needs and you signed a contract? Can you
get a refund?______
ANTI-PYRAMID ______that requires consumers to paya ______
SALES LAWSmerely to obtain the right to ______investors is illegal.
1)______LETTERS
2)______Pyramids example:______
***What is Amway?______
***Why it is a pyramid sales program that is not illegal?
______
______
BUSINESS Regulates the sales of ______
OPPORTUNITYplans and provides required______and
PURCHASES ______periods to consumers
PROTECTION ACTbefore they sign contracts.
Reasonable cooling off period:______days.
HOME SALES 1._____ Day ______off period--can renege on agreement
SOLICITATIONS ACTbut it must be in ______.
2.Applies only to ______and ______over $______.
3. Must be in ______. No help if ______agreement
4. Penalty for abuse of this act: ______.
KEY: GET IT IN ______to win in court.
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