Key Terms
Consumer law
The area of law dealing with consumer transactions — obtaining credit, goods, real property, or services for personal, f
Consumer protection laws
Laws designed to protect consumers against unfair trade and credit practices involving consumer goods, and against fault
Four categories of purchaser protection
1. Labeling and packaging 2.
General rule
Advertising must be honest. Applies to all sales materials regardless of medium — print, electronic, social media, radio
Deceptive advertising
A material misrepresentation or omission likely to mislead a reasonable customer.
Plain version
It's a lie.
Hazardous materials
Products deemed dangerous to the consuming public. Includes drugs safe only in small amounts under medical supervision,
Debtor
Someone who owes an obligation — especially money — to another individual or business.
Five categories of debtor protection
1. Obtaining credit 2.
Purpose
Prevent abusive practices by debt collectors.
Does NOT apply to
Commercial credit transactions.
Marital and welfare status nuance
Relevant only to the extent they affect creditworthiness (e.g., marital assets and debts are fair to consider). Denying
ECOA also requires
Creditors must provide specific reasons for denying credit. This allows applicants to detect discriminatory denials or p
Applies to
Electronic direct deposits and withdrawals, ATMs, point-of- sale transactions.
Credit bureau
An organization that maintains and distributes information about a person's creditworthiness to creditors, insurance com