4 KEY TERMScompetition – a contest among sellers to win customers. Competition helps keep prices reasonable.monopoly – a situation in which there is only one company that sells a specific product or service.redress – a right to seek and receive a remedy, such as a refund or other compensation.
11 KEY TERMSconsumer movement – seeks to protect and inform consumers by requiring such practices as _________ advertising, product ___________ and improved _________ standards.Federal Trade Commission (FTC) – the most important federal ___________ _____________ agency.cease-and-desist order – Issued by the ______, this order requires a company to stop using a ___________ advertisement.Consumer Product Safety Commission (CPSC) – Agency created to protect consumers from _____________ products.
12 KEY TERMSwarranty - a company’s promise that a product will meet specific ___________ over a given time period or the company will repair/replace or give a ________ .full warranty – a written _____________ the promises the company will repair/replace a defective product within a specified time period at no charge.limited warranty – a written warranty that does not meet the standards of a full warranty because of specified _____________.implied warranty – an unwritten guarantee that the product is of ____________ ____________ to fulfill the purpose for which it was designed.
22 KEY TERMStrading up – The practice of pressuring consumers to buy a ______ ____________ product than they had intended.loss leader – An item priced ______ ______ to attract you to the store.Fraud - ___________ deception designed to secure unfair or unlawful gain.bait and switch – The practice of “baiting” consumers with an advertised but nonexistent bargain and then “switching” them to a more expensive product.pyramid scheme – a type of financial _______ in which people pay to join an organization in exchange for the right to sell memberships to others.