almost all states and the federal government have enacted laws and set up agencies
to protect the consumer (the retail purchasers of goods and services) from inferior,
adulterated, hazardous or deceptively advertised products, and deceptive or fraudulent
sales practices. Federal statutes and regulations govern mail fraud, wholesome poultry
and meat, misbranding and adulteration of food and cosmetics, truth in lending,
false advertising, the soundness of banks, securities sales, standards of housing
materials, flammable fabrics, and various business practices. The Magnuson-Moss
Act (1973) sets minimum standards for product warranties, makes a company that financed
the sale responsible for product defects, and creates liability (financial responsibility)
for "implied" warranties (when the circumstances show that a warranty of lack of
defects was intended) as well as express (specific) warranties. Mail fraud may include
fake contests, "low-ball" price traps (bait and switch), supposed credit for referrals
of your friends, phoney home improvement loans with huge final payments, and swamp
land sales. Some states' laws regulate and give some protection against high-pressure
door-to-door sales, false labeling, unsolicited merchandise, abusive collection
practices, misleading advertising and referral and promotional sales. Almost all
states have agencies set up to actively protect the consumer.
See also bait and switch fraud implied warranty product liability securities
law dictionary, legal
dictionary, online law dictionary, legal terms dictionary,
online legal dictionary, legal definition, legal
terms and definition, Best online Dictionary, Law
Dictionary Software, Download Law Dictionary, law
dictionary, legal dictionary, online law dictionary,
legal terms dictionary, online legal dictionary,
legal definition, legal terms and definition, Best
online Dictionary, Law Dictionary Software, Download
Law Dictionary
