LES 305 ASU Koretz Exam 3 Terms
Question and answers verified to pass
2025
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.
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.
Caveat Emptor - correct answer ✔Latin term for "Let the buyer beware".
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.
Consent Decree - correct answer ✔For administrative agencies, a type of
plea bargain; a settlement document for an administrative agency's charge.
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 their 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.
,Disclaimers - correct answer ✔A provision in a contract that eliminates
liability such as a warranty disclaimer or a disclaimer of tort liability.
Express Warranty - correct answer ✔Expressed promise by seller as to the
quality, abilities, or performance of a product.
Federal Trade Commission (FTC) - correct answer ✔Federal agency
responsible for regulation of unfair and deceptive trade practices, including
deceptive advertisements.
Implied Warranty of Fitness for a Particular Purpose - correct answer
✔Warranty given by seller to buyer that promises goods will meet the buyer's
specified needs.
Implied Warranty of Merchantability - correct answer ✔A warranty that goods
are of average quality; given in every sale of foods by a merchant.
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.
Privity - correct answer ✔Direct contractual relationship
Strict Liability - correct answer ✔Liability without fault
Unconscionable - correct answer ✔A defense to an otherwise valid contract
that is grossly unfair to one side in the contract; a defense to an otherwise
valid contract.
,Acceptance - correct answer ✔Offeree's positive response to offeror's
proposed contract.
Article 2 of the Uniform Commercial Code (UCC) - correct answer ✔Uniform
laws adopted in 49 states governing sales contracts for goods. Goods are
tangible and movable.
Bilateral Contract - correct answer ✔Contract in which both parties make
promises to perform; a promise is given in return for another promise.
Bill of Lading - correct answer ✔Receipt for goods issued by a carrier; used
as a means of transferring title in exchange for payment or a draw on a line of
credit.
Charitable Subscriptions - correct answer ✔A promise to make payment to a
charitable organization; a pledge; it is enforceable even though the charity
gives nothing in exchange.
Common Law - correct answer ✔British law and customs that were adopted
in the US by judicial precedent. In contracts, the common law rules apply to
contracts for services and real estate.
Consideration - correct answer ✔Money or something of value; a legal
detriment.
Counteroffer - correct answer ✔A new offer made in return by one who
rejects an unsatisfactory offer.
Digital Signature - correct answer ✔Authorization for a contract provided via
electronic means.
, Electronic Signatures in Global and National Commerce Act of 2000 (E-SIGN)
- correct answer ✔A federal law that recognizes digital signatures as
authentic for purposes of contract formation; E-sign puts electronic signatures
on equal footing with signatures on paper contracts.
Executed Contracts - correct answer ✔Contracts in which performance has
been completed.
Executory Contracts - correct answer ✔Contracts that have been entered
into but not yet performed.
Express Contract - correct answer ✔Contract agreed to orally or in writing.
Force Majeure - correct answer ✔Clause in a contract that excuses
performance in the event of war, embargo, or other generally unforeseeable
event.
Implied Contract - correct answer ✔A contract that arises from
circumstances and is not expressed verbally or in writing by the parties.
Mailbox Rule - correct answer ✔Acceptance is effective upon mailing if
properly done.
Merchant's Firm Offer - correct answer ✔Under 2-205 of the UCC, an offer
required to be held open if made in writing by a merchant, even though no
consideration is given.
Question and answers verified to pass
2025
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.
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.
Caveat Emptor - correct answer ✔Latin term for "Let the buyer beware".
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.
Consent Decree - correct answer ✔For administrative agencies, a type of
plea bargain; a settlement document for an administrative agency's charge.
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 their 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.
,Disclaimers - correct answer ✔A provision in a contract that eliminates
liability such as a warranty disclaimer or a disclaimer of tort liability.
Express Warranty - correct answer ✔Expressed promise by seller as to the
quality, abilities, or performance of a product.
Federal Trade Commission (FTC) - correct answer ✔Federal agency
responsible for regulation of unfair and deceptive trade practices, including
deceptive advertisements.
Implied Warranty of Fitness for a Particular Purpose - correct answer
✔Warranty given by seller to buyer that promises goods will meet the buyer's
specified needs.
Implied Warranty of Merchantability - correct answer ✔A warranty that goods
are of average quality; given in every sale of foods by a merchant.
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.
Privity - correct answer ✔Direct contractual relationship
Strict Liability - correct answer ✔Liability without fault
Unconscionable - correct answer ✔A defense to an otherwise valid contract
that is grossly unfair to one side in the contract; a defense to an otherwise
valid contract.
,Acceptance - correct answer ✔Offeree's positive response to offeror's
proposed contract.
Article 2 of the Uniform Commercial Code (UCC) - correct answer ✔Uniform
laws adopted in 49 states governing sales contracts for goods. Goods are
tangible and movable.
Bilateral Contract - correct answer ✔Contract in which both parties make
promises to perform; a promise is given in return for another promise.
Bill of Lading - correct answer ✔Receipt for goods issued by a carrier; used
as a means of transferring title in exchange for payment or a draw on a line of
credit.
Charitable Subscriptions - correct answer ✔A promise to make payment to a
charitable organization; a pledge; it is enforceable even though the charity
gives nothing in exchange.
Common Law - correct answer ✔British law and customs that were adopted
in the US by judicial precedent. In contracts, the common law rules apply to
contracts for services and real estate.
Consideration - correct answer ✔Money or something of value; a legal
detriment.
Counteroffer - correct answer ✔A new offer made in return by one who
rejects an unsatisfactory offer.
Digital Signature - correct answer ✔Authorization for a contract provided via
electronic means.
, Electronic Signatures in Global and National Commerce Act of 2000 (E-SIGN)
- correct answer ✔A federal law that recognizes digital signatures as
authentic for purposes of contract formation; E-sign puts electronic signatures
on equal footing with signatures on paper contracts.
Executed Contracts - correct answer ✔Contracts in which performance has
been completed.
Executory Contracts - correct answer ✔Contracts that have been entered
into but not yet performed.
Express Contract - correct answer ✔Contract agreed to orally or in writing.
Force Majeure - correct answer ✔Clause in a contract that excuses
performance in the event of war, embargo, or other generally unforeseeable
event.
Implied Contract - correct answer ✔A contract that arises from
circumstances and is not expressed verbally or in writing by the parties.
Mailbox Rule - correct answer ✔Acceptance is effective upon mailing if
properly done.
Merchant's Firm Offer - correct answer ✔Under 2-205 of the UCC, an offer
required to be held open if made in writing by a merchant, even though no
consideration is given.
