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BLAW Final - CHAPTER 44 What federal agency is charged with...

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CHAPTER 44 What federal agency is charged with preventing unfair and deceptive trade practices? The Federal Trade Commission (FTC) is the federal agency in charged with preventing unfair and deceptive trade practices. What is meant by puffing in advertisements? Can it be false and/or misleading? Advertising is deceptive if a consumer would be misled by the advertising claim. Puffing : Vague generalities and obvious exaggerations are permissible and not considered deceptive. Advertising that appears to be based on factual evidence but in fact is not will be deemed deceptive. Advertising that contains “half-truths” (presented information is true but incomplete) leads consumers to false conclusions and is also deceptive. What do federal and state laws require as to the information that is given on labels and packages? In general, labels must be accurate, and they must use words that are easily understood by the ordinary consumer. In some instances, labels must specify the raw materials used in the product. In some instances, the product may carry a warning (cigarettes) Fair Packaging and Labeling Act requires that labels identify product, net quantity of contents, quantity of servings, manufacturer and packager or distributor. What do “cooling off” laws provide concerning door-to-door sales contracts? Most states require that, for door-to-door sales, consumers have a post-sale “cooling-off” period during which they can cancel (rescind) their purchase without any obligation (usually 2-3 days). Generally, do the federal statutes dealing with credit protection apply to all transactions or only those involving businesses that extend credit? Applies to businesses that lend funds, sell on credit or arrange for the extension of credit and only to debtors who are natural persons. What is the Consumer Product Safety Commission and what does it do? Conducts research on safety of individual consumer products and sets standards for such products. Can ban the manufacture and sale of any product that it deems to be potentially hazardous to consumers. Can also order imminently hazardous products to be taken off the market and require manufacturers to report on any products already sold or intended for sale if the products have proved to be dangerous. CHAPTER 45
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Who has standing to file a common law nuisance suit and what must be proved for a plaintiff to succeed? Person liable if he uses his property in a manner that unreasonably interferes with others’ rights to use or enjoy their own property. Courts often deny injunctive relief because nature and extent of hardships imposed on polluter or community outweigh benefits to property owner, but will award damages. (if the factory is the core of economy) To have compensation relief, a property owner must identify a distinct, specific harm; separate from that affecting the general public (e.g., commercial fishermen have standing to sue river polluter). This harm is identified as “private” nuisance.
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