1. Complete the sentences, using the appropriate words from the box:

Monitors; watch out; shipped; commitment; comply; conve­nient.

1. Mail–order shopping is … .

2. According to federal law, you have a right to know when you can expect merchandise to be … .

3. Sellers must … with the promises in their ads.

4. The Federal Trade Commission … compliance with the mail–order rule.

5. Consumers should … for ads sent through the mail offering “free” items in exchange for subscriptions or memberships.

6. Offers of free items almost always require a … to purchase other items in the future.

2. Are the statements true (+) or false (-)? Correct the false statements.

1. Some consumers shop by mail.

2. Items offered by mail may cost less, and some items may be available that are not available in local stores.

3. Mail–order shopping never causes problems.

4. If no shipping date is stated, the merchandise must be shipped with­in 31 days of the seller’s receipt of your order.

5. The Federal Trade Commission monitors compliance with the mail–order rule, which also applies to purchases made by telephone.

UNIT 15. Contracts

1. Complete the sentences, using the appropriate words from the box:

Infers; elements; cosign; competent; rati­fied; back out of; valid; remedy; affect; terms; enforceable; agreement.

1. A contract is an … between two or more persons to exchange something of value.

2. If one party to a contract does not carry out the promise, the other party is entitled to a … .

3. To protect yourself as a consumer, it is important to understand how contracts are formed and how they … your rights.

4. A legally binding contract must have certain … .

5. The two parties must agree exactly to the … of the con­tract.

6. The law … agreement from certain actions, such as signing a contract or beginning to carry out the terms of the bargain.

7. In every … contract, there must also be an exchange of consideration.

8. People entering into a contract must be legally … to make contracts.

9. Agreements to do something illegal or against public policy are not … in court.

10. Be sure you understand and agree with all the terms before you accept; other­wise, it may be too late to … the deal.

11. Many stores require minors to have a parent or other adult … any major contract.

12. In most states, a minor who continues making payments on a con­tract after reaching the age of majority is considered to have … the contract.

2. Are the statements true (+) or false (-)? Correct the false statements.

1. If one party to a contract carries out the promise, the other party is entitled to a remedy.

2. To have mutual agree­ment, it is enough for the parties to say “we agree.”

3. The values of the items being exchanged do not have to be the same.

4. People entering into a contract can be mentally ill or intoxicated.

5. Agreements to do something illegal or against public policy are also enforceable in court.

6. You should be quick to enter into a contract.

7. Minors may not make contracts.

8. The adult cosigner is responsible for making payments if the minor backs out of the deal.

9. Once the contract has been ratified, it can no longer be canceled.

UNIT 16. Written and Oral Contracts