1. Street Law A Semester Review PART II Mr. Cross 2010-2011

2. Warranties A warranty is a seller’s guarantee about the quality and performance of goods and services The warranty may also include a statement of what the seller or manufacturer will do if a problem occurs If the seller does not honor the warranty, the seller has breached, or broken, his or her contract with the consumer

3. Types of Warranties Express Warranties – An express warranty is a written or oral statement concerning the quality, or performance, of goods offered for sale – For example, a salesperson who says that a certain TV will not require repairs for five years has offered an express warranty that is enforceable by law Implied Warranties – Even if there is no written warranty, the consumer still has protections if the item fails to work properly or for an adequate length of time – An implied warranty is an unwritten promise, created by law, that ensures a product will do what it is supposed to do

4. Limited Warranties There are three types of limited warranty: warranty of merchantability – an unwritten promise that the item sold is at least of average quality for that type of item warranty of fitness – exists when a consumer tells a seller what the specific purpose of the item will be – A salesperson who sells an item with this knowledge has created an implied warranty that the product will work for the stated purpose warranty of title – a seller’s promise that he or she owns the item being offered for sale and is not selling stolen property

5. Deceptive Sales Practices Door-to-Door and Telephone Sales – some door-to-door and telephone salespeople who place intense pressure on people to buy items they do not really want or that may not even exist Referral Sales – A seller may tell consumers that they can save money by telling other customers to buy items from that seller – Sellers like this practice, called a referral sale, because it gets them more business without advertising Bait and Switch Bait and switch is a deceptive advertising practice in which the “bait” gets the customer to buy a particular item, and then the seller tries to “switch” the customer to a more expensive item Disclaimers A disclaimer is an attempt by the seller to limit responsibility to the consumer in case anything goes wrong

6. Credit and Credit Cards Checking and saving accounts are the primary types of bank accounts ◦ To withdraw money from a checking account, a person may write a check, withdraw cash from an automatic teller machine (ATM), or use a debit card (which automatically withdraws money from a checking account) Using credit means buying goods and services now and paying for them later People who lend the money are called creditors, and those who borrow it are called debtors Debtors usually pay additional money, in the form of interest, for the privilege of borrowing the money

7. Credit and Credit Cards Credit score ◦ Based on several factors ◦ Credit history, payment history, length of credit history Raising your credit score ◦ Several ways to positively affect your credit score ◦ Keeping your balance low ◦ Being a “balance payer” ◦ Paying your credit card bills on time ◦ Having a small amount of credit cards

8. Consumer Housing/Auto Law Rental properties ◦ Landlord – owner of the rental property ◦ Tenant – the person renting the property Must sign a lease agreement before transaction is complete ◦ Usually 6, 12 or 18 months Buying a home ◦ The loan obtained to buy a home is a mortgage Things to consider before buying a car: Safety Warranty Price Fuel Economy Quality Insurance Costs