Business Law – Flashcards

Chapter 25

The Federal Trade Commission prohibits unfair and deceptive acts or practices. (True)

Has the authority to take action against those committing "abusive acts" against consumers. (True)

The Federal Trade Commission rules prohibit bait-and-switch advertisement. A merchant may not advertise a product and then disparage it (or make it unavailable) to consumers in an effort to sell a different item.

Under the Federal Trade Commission rules for this type of merchandise, sellers must ship an item within the time stated or, if no time is given, within 30 days after receipt of the order.

The Federal Trade Commission prohibits telemarketers from calling or texting numbers listed on its do-not-call registry.

The telephone consumer protection act prohibits telemarketers from making autodialed and or prerecorded calls or texts to cell phones and prerecorded calls to residential landlines unless the consumer unambiguously consents in writing.

Consumers may keep as a gift any unordered merchandise that they receive in the mail.

In all loans regulated by TILA, the lender must disclose information clearly.

Lenders must make a good faith effort to determine whether a borrower can afford to repay the loan. They may not coerce or bribe an appraiser into misstating a home's value. Nor may they charge prepayment.

If lenders give a qualified mortgage, they are deemed to have complied with TILA.

Credit card companies are not allowed to increase fees and interest rates on any charges already incurred until cardholder has missed two consecutive payments.

In the event of a dispute between a customer and a merchant, the credit care company cannot bill the customer if: She makes a good faith effort to resolve the dispute. The dispute is for more than $50 The merchant is in the same state where she lives or is within 100 miles of her house.

Under the Fair Credit Billing Act, a credit card company must promptly investigate and respond to any consumer complaints about a credit card bill.

Chapter 26

Environmental Protection Agency

Under the Clean Air Act, the EPA has the authority to regulate both the total amount of existing air pollution and its ongoing production. The EPA must also regulate greenhouse gases.

Under the Clean Water Act, any discharge into navigable water from a point source is illegal without permit (from the EPA or a state). The EPA must set national standards for water quality generally, and then each state has to develop plans to achieve these standards. States must also develop a plan for nonpoint source pollution.

The Clean Water Act prohibits any discharge or dredge and fill material into wetlands without permit.

The Resource Conservation and Recovery Act establishes rules for treating both hazardous and nonhazardous forms of solid waste.

Under CERCLA anyone who has ever owned or operated a site on which hazardous wastes are found, who has transported wastes to the site, or who has arranged for the disposal of wasted that were released at the side is liable for: 1) the cost of cleaning up the site 2) any damage done to natural resources 3) any required health assessments

Under the TSCA, manufacturers must register new chemicals with the EPA.

NEPA requires all federal agencies to prepare an environmental impact statement (EIS) for every major federal action significantly affecting the quality of the environment.

Chapter 28

Design Patent, Plant Patent, Utility Patent

Protects: An invention that is the tangible application of an idea. Requirements: Application approved by the PTO Duration: 20

Protects: The tangible expression of an idea, but not the idea itself. Requirements: Automatics once it is in tangible form. Duration: 70 years after death of the author or corporation; 95 years from publications or 120 years from creation, whichever is shorter.

Protects: Words and symbols that a business used to identify its products or services. Requirements: Must be used on the product in interstate commerce. Duration: 10 years, but can be renewed an unlimited number of times.

Protects: information that when used in business, gives its owner an advantage over competitors. Requirements: Must be kept confidential. Duration: As long as it is kept confidential.

Chapter 32

An individual, corporation, partnership, or any other legal entity.

A contract in which one person, in return for a fee, agrees to guarantee another loss caused by a specific type of danger.

The person who issues the insurance policy and serves as guarantor.

The person whose loss is the subject of the insurance policy.

The person who enter into the insurance contract and pays the premiums.

The consideration that the owner pays under the policy.

The person who receives the proceeds from the insurance policy.

An insurance policy must meet all the common law requirements for a contract - offer, acceptance, consideration, and legal capacity.

A person has an insurable interest if she would be harmed by the danger that she has insure against.

Insured have the right to void a policy if the insured makes a material misstatement or conceals a material fact.

Many courts have held that insurance policies contain a covenant of good faith and fair dealing and have found insurance companies liable for compensatory and punitive damages if they commit fraud, refuse to pay legitimate claims in a timely manner, or wrongfully refuse to settle a claim.

Property insurance covers physical damage to real estate, personal property (boats, furnishings), or inventory from causes such as fire, smoke, lightning, wind, riot, vandalism, or theft.