Consumer Law Dictionary

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Adhesion Contract

A fine-print consumer form contract which is generally given to consumers at point-of-sale, with no opportunity for negotiation as to it's terms, and which, typically, sets out the terms and conditions of the sale to advantage the seller.

Bait and Switch

To lure a customer by advertising, at a very attractive price, a reputable product and then to denigrate it in favour of another product offered at a higher price.

Car Ringing

The movement of stolen vehicles through to sale to unsuspecting new purchasers.

Cartel

An agreement between two or more merchants to create or control a monopoly, to lessen or prevent competition.

Caveat Emptor

Let the buyer beware or that the buyers should examine and check for themselves things which they intend to purchase and that they cannot later hold the vendor responsible for the broken condition of the thing bought.

Compound Interest

Interest paid on both principal and previously accumulated interest and added to the principal for purposes of future calculations of interest.

Consumer Debt

Debt incurred by an individual primarily for a personal, family, or household purpose.

Consumer Debtor

A term of bankruptcy law designating debtors who have debts under a prescribed amount.

Consumer Fraud

An act or omission in the conduct of trade or commerce designed to mislead a consumer.

Consumer Goods

Goods that are used or acquired for use primarily for personal, family or household purposes.

Consumer Proposal

A summary form of bankruptcy for qualified individuals.

Consumer Scam

A deceptive sale of goods or services to a consumer designed to extract money unreasonably excessive given the services rendered or goods provided, if any.

Cramming

The practice of imposing unauthorized charges on consumer credit card and other billing statements

Credit Card

A plastic card issued to concede to the holder, upon presentation to authorized stores or service providers, products or services on credit.

Deceptive Trade Practice

An intentional act or omission in the course of trade or commerce that has the tendency or capacity to mislead or create the likelihood of deception.

Direct Tax

A tax demanded from the very persons who it is intended or desired should pay it.

Disclaimer

A renunciation or refusal of rights or liability which might otherwise fall upon the person.

Double Escrow

The secret use of escrow funds with those of another escrow fund, for the purposes of financial gain by the holder of the escrow funds, and without the knowledge of the owners of the two funds.

Double Ticketing

A sales strategy in which a merchant puts two price tags on a product to lure the consumer to the till where he/she is asked to pay the higher of the two ticketed prices.

Dragnet Clause

A clause in a credit agreement which purports to secure future liabilities.

Fair Market Value

The hypothetical most probable price that could be obtained for a property by average, informed purchasers.

Garnishment

The seizing of a person's property, credit or salary, on the basis of a law which allows it, and for the purposes of paying off a debt.

Guarantee or Guaranty

A back-up debtor who steps in if the primary debtor defaults.

Hitman Scam

A consumer scam usually conducted by email in which the recipient is approached by an alleged assassin who seeks money in lieu of completing his task.

Identity Theft

The wrongful taking or using another person's identifying information for the purpose of fraud or other criminal activity.

Indirect Tax

The passing on of a tax or duty by the person who first pays it, through subsequent transactions.

Innominate Terms

An implied term of a contract which is neither classed as a condition or a warranty but somewhere in between; an intermediary or innominate term.

Lottery

An offer in which prizes and high value items are awarded by random chance to participants who buy lottery tickets.

Merchantable Quality

A product which is undamaged and usable and of sufficient quality to merit purchase at the requested price by a reasonable buyer.

Misleading Advertising

Materially false or misleading representations concerning a product or service.

Monopoly

A commercial advantage enjoyed by only one or a select few companies in which only those companies can trade in a certain area.

Multi-level Marketing

A system for selling products in which participants get paid for selling products to other participants who, in turn, are paid for selling the same products to yet more participants.

Oligopoly

A market condition that results when there are but a few sellers

Ponzi Scheme

A form of investment fraud whereby initial investors are promised a return of their investment by the enlistment of subsequent investors.

Price Fixing

A conspiracy formed for the purpose and with the effect of raising, depressing, fixing, pegging or stabilizing the price of a commodity.

Puffery

Advertising which states in general terms that one product or service is superior and which does not otherwise imply any specific representation in regards to the product or service.

Substantial Abuse

A term of American bankruptcy law which precludes a debtor from availing him or herself of bankruptcy protection.

Sweepstakes

A contest where prizes are awarded in a random draw.

Vendor

The seller; the person selling.

Warranty

A guarantee given on the performance of a product or the doing of a certain thing.