LES 305 Exam 3 questions with verified
answers
Assumption of risk - correct answer ✔✔Defense in negligence cases that prevents an injured party from
recovering if it can be established that the injured party realized the risk and engaged in the conduct
anyway.
Consent Decree - correct answer ✔✔For administrative agencies, a type of plea bargain; a settlement
document for an administrative agency's charges.
Implied warranty of merchantability - correct answer ✔✔A warranty that the goods are of average
quality; given in every sale of foods by a merchant.
Express warranty - correct answer ✔✔Expressed promise by seller as to the quality, abilities, or
performance of a product.
Privity - correct answer ✔✔Direct contractual relationship.
Misuse - correct answer ✔✔In product liability, a defense based on the plaintiff's failure to follow
instructions or use of a product for improper purposes.
Contributory negligence - correct answer ✔✔Negligence defense that bars an injured party from
recovering any damages if the injured party acted in a negligent way and contributed to her own injuries.
Corrective advertising - correct answer ✔✔FTC remedy that requires a company to run ads explaining
previous deceptive ads or run a new statement in future ads.
Strict liability - correct answer ✔✔Liability without fault
Bait and switch - correct answer ✔✔Term given to advertising technique in which a low-price product is
advertised and then the customer is told that the product is unavailable or is talked into a higher-priced
product; prohibited by the FTC.
, Disclaimers - correct answer ✔✔A provision in a contract that eliminates liability such as a warranty
disclaimer or a disclaimer of tort liability.
Unconscionable - correct answer ✔✔A defense to an otherwise valid contract that is grossly unfair to
one side in the contract.
Implied warranty of fitness for a particular - correct answer ✔✔Warranty given by seller to buyer that
promises goods will meet the buyer's specified needs.
Comparative negligence - correct answer ✔✔In negligence, a defense that allocates responsibility for an
accident between the plaintiff and defendant when both were negligent and allocates the recovery in
proportion to liability.
Federal Trade Commission (FTC) - correct answer ✔✔Federal agency responsible for regulation of unfair
and deceptive trade practices, including deceptive advertisements.
Caveat emptor - correct answer ✔✔Latin term for "Let the buyer beware".
Immigration and Naturalization Act - correct answer ✔✔Original federal act governing employer
obligations on employing immigrants
Minimum Wage - correct answer ✔✔Under FLSA, all employees must be paid a minimum wage.
Pension Protection Act of 2006 - correct answer ✔✔Federal law that imposes additional funding and
disclosure requirements on employers who have employee pension plans.
Employee Retirement Income Security Act of 1974 (ERISA) - correct answer ✔✔Congressional act
establishing requirements for disclosure and other procedures with relation to employees' retirement
plans.
Overtime Pay - correct answer ✔✔Pay rate required for work beyond the maximum forty-hour work
week for covered workers.
answers
Assumption of risk - correct answer ✔✔Defense in negligence cases that prevents an injured party from
recovering if it can be established that the injured party realized the risk and engaged in the conduct
anyway.
Consent Decree - correct answer ✔✔For administrative agencies, a type of plea bargain; a settlement
document for an administrative agency's charges.
Implied warranty of merchantability - correct answer ✔✔A warranty that the goods are of average
quality; given in every sale of foods by a merchant.
Express warranty - correct answer ✔✔Expressed promise by seller as to the quality, abilities, or
performance of a product.
Privity - correct answer ✔✔Direct contractual relationship.
Misuse - correct answer ✔✔In product liability, a defense based on the plaintiff's failure to follow
instructions or use of a product for improper purposes.
Contributory negligence - correct answer ✔✔Negligence defense that bars an injured party from
recovering any damages if the injured party acted in a negligent way and contributed to her own injuries.
Corrective advertising - correct answer ✔✔FTC remedy that requires a company to run ads explaining
previous deceptive ads or run a new statement in future ads.
Strict liability - correct answer ✔✔Liability without fault
Bait and switch - correct answer ✔✔Term given to advertising technique in which a low-price product is
advertised and then the customer is told that the product is unavailable or is talked into a higher-priced
product; prohibited by the FTC.
, Disclaimers - correct answer ✔✔A provision in a contract that eliminates liability such as a warranty
disclaimer or a disclaimer of tort liability.
Unconscionable - correct answer ✔✔A defense to an otherwise valid contract that is grossly unfair to
one side in the contract.
Implied warranty of fitness for a particular - correct answer ✔✔Warranty given by seller to buyer that
promises goods will meet the buyer's specified needs.
Comparative negligence - correct answer ✔✔In negligence, a defense that allocates responsibility for an
accident between the plaintiff and defendant when both were negligent and allocates the recovery in
proportion to liability.
Federal Trade Commission (FTC) - correct answer ✔✔Federal agency responsible for regulation of unfair
and deceptive trade practices, including deceptive advertisements.
Caveat emptor - correct answer ✔✔Latin term for "Let the buyer beware".
Immigration and Naturalization Act - correct answer ✔✔Original federal act governing employer
obligations on employing immigrants
Minimum Wage - correct answer ✔✔Under FLSA, all employees must be paid a minimum wage.
Pension Protection Act of 2006 - correct answer ✔✔Federal law that imposes additional funding and
disclosure requirements on employers who have employee pension plans.
Employee Retirement Income Security Act of 1974 (ERISA) - correct answer ✔✔Congressional act
establishing requirements for disclosure and other procedures with relation to employees' retirement
plans.
Overtime Pay - correct answer ✔✔Pay rate required for work beyond the maximum forty-hour work
week for covered workers.
