Under most consumer protection laws, a consumer is a natural person who acquires goods, services, or credit for a personal, family, or household purpose. A major source of protection to consumers in transactions is the law of fraud. Fraud is a broad category of wrongdoing. The varieties of fraud are difficult to classify because fraud takes many forms. Under the common law, fraud is a false statement of material fact relied upon by a person to his or her detriment.
Warranties are a significant source of consumer protection.
Warranties are also important to the law of product liability, which concerns the liability of manufacturers and merchants for injuries caused by defective products. As a result, the Federal Government, as well as many states governments, have specific laws governing certain aspects of these transactions. Consumer Credit Credit is the extension of money for a period of time in exchange for the repayment of the sum lent plus interest. Credit enables consumers to buy goods and services that they could not afford to buy if they had to pay for them right away. Therefore, the extension of credit stimulates sales and economic growth.