statement of intention. Bankruptcy. A preliminary statement filed by the debtor in a Chapter 7 case, in which the debtor details whether property secured by consumer debt will be retained or surrendered and whether the property is claimed as exempt. • The statement usu. must be filed before the first creditors’ meeting or within 30 […]
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plain-language law. Legislation requiring nontechnical, readily comprehensible language in consumer contracts such as residential leases or insurance policies. • Many of these laws have genuinely simplified the needlessly obscure language in which consumer contracts have traditionally been couched. [Cases: Consumer Protection 6; Insurance 1773. C.J.S. Credit Reporting Agencies; Consumer Protection §§ 29–31, 33–39, 60–65; Insurance
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cognovit (kog-noh-vit). [Latin “he has conceded (a debt or an action)”] An acknowledgment of debt or liability in the form of a confessed judgment. • Formerly, credit contracts often included a cognovit clause in which the consumer relinquished, in advance, any right to be notified of court hearings in any suit for nonpayment — but
A dual agreement consisting of an agreement by the consumer to purchase goods or services (usu. at an inflated price) and an agreement by the seller to compensate the consumer for each customer (or potential customer) referred to the seller. — Also termed referral sales agreement. Cf. PYRAMID SCHEME. [Cases: Consumer Protection 12. C.J.S. Credit
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Home Owners Warranty. A warranty and insurance program that, among other coverage, insures a new home for ten years against major structural defects. • The program was developed by the Home Owners Warranty Corporation, a subsidiary of the National Association of Home Builders. Builders often provide this type of coverage, and many states provide similar
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false advertising, n. 1. The tortious and sometimes criminal act of distributing an advertisement that is untrue, deceptive, or misleading; esp., under the Lanham Trademark Act, an advertising statement that tends to mislead consumers about the characteristics, quality, or geographic origin of one’s own or someone else’s goods, services, or commercial activity. • Under §
Uniform Deceptive Trade Practices Act. A 1964 model state statute that codified many common-law intellectual-property torts, such as trademark infringement, passing off, trade disparagement, and false advertising, and that provided additional consumer protection against other forms of commercial deception. • The Act provides a laundry list of prohibited practices, all involving misrepresentation. — Abbr. UDTPA.
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bait and switch. A sales practice whereby a merchant advertises a low-priced product to lure customers into the store, only to induce them to buy a higher-priced product. • Most states prohibit the bait and switch when the original product is not actually available as advertised. — Also termed bait advertising. [Cases: Consumer Protection 7.
Magnuson–Moss Warranty Act (mag-n[schwa]-s[schwa]n mawsormos). A federal statute requiring that a written warranty of a consumer product fully and conspicuously disclose, in plain language, the terms and conditions of the warranty, including whether the warranty is full or limited, according to standards given in the statute. 15 USCA §§ 2301–2312. [Cases: Consumer Protection 6. C.J.S.
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