Terms of Trade
What does FOB stand for?
Free on Board
What is giving money or gifts to influence a sale called?
Bribery
What is giving false information about a product called?
False description
What does FAS stand for?
Free alongside ship
Which term means the seller is responsible for delivering the goods to the buyer?
Free delivered
What is misleading a customer called?
Deception
What do we call products that do not work properly or meet the standard of quality?
Faulty goods
What is an agreement between a buyer and seller that creates responsibilities for both sides?
Contract
This term includes the cost of the goods, insurance and freight to the destination.
Cost Insurance Freight
An offer made for a short period of time to encourage customers to buy quickly
limited offer
What is sending unwanted products to consumers called?
Inertia Selling
What is it called when a seller advertises one product at an attractive price to get customers interested, but then tries to sell them a different, usually more expensive product.
Bait and Switch
This term means the buyer takes responsibility for the goods from the seller’s premises, including arranging transportation.
Ex works
What is it called when sellers agree to fix prices?
Price fixing
What is a clause used to limit a seller’s responsibility called?
Exclusion clause
What is the term for laws and measures designed to protect buyers from unfair business practices?
Consumer protection
This term means the seller is responsible for placing the goods alongside the ship, but not loading them onto it.
Free Alongside Ship
What type of scheme involves recruiting people to make money?
Pyramid Selling
What type of selling uses EXCESSIVE and UNWANTED pressure or intimidation?
Aggressive selling
What are the rules or requirements that explain the responsibilities of the buyer and seller in a sale?
Terms and conditions