Question 1

The Federal Trade Commission has ________commissioners who serve for _______-year terms.

Accepted Answer

A) seven,four 
B) ten,five 
C) six,six 
D) five,seven 
A) seven,four 
B) ten,five 
C) six,six 
D) five,seven

Question 2

A car loan is an example of a closed-end credit transaction.

Accepted Answer

A) True 
 B)False

Question 3

Fact pattern 18-1
Cream X has been approved by the Food and Drug Administration for the treatment of eczema.Dr.Glover discovers,however,that it is also great for a number of other things including the removal of wrinkles and cellulite.The cream is applied to the skin,not ingested.He starts prescribing it for those purposes and has a great increase in patients.Dr.Smith starts to loose a number of patients to Dr.Glover and becomes grumpy when she hears why Dr.Smith is gaining in popularity.Dr.Smith decides to complain about the practice but does not know quite what to do about it.
-Refer to fact pattern 18-1.Which of the following is true regarding the legality of Dr.Glover prescribing Cream X for the elimination of wrinkles and cellulite?

Accepted Answer

A) It is legal,and the Food and Drug Administration would take no action against him. 
B) It is legal only because the cream is not ingested. 
C) It is legal only if Dr.Glover refrains from advertising his use of the drug. 
D) It is illegal. 
A) It is legal,and the Food and Drug Administration would take no action against him. 
B) It is legal only because the cream is not ingested. 
C) It is legal only if Dr.Glover refrains from advertising his use of the drug. 
D) It is illegal.

Question 4

The ________ forbids the use of any false "description or representation" in connection with any goods or services.

Accepted Answer

A) Consumer Protection Act 
B) Lanham Trademark Act 
C) Fair Credit Transaction Act 
D) Electronic Representation Act 
A) Consumer Protection Act 
B) Lanham Trademark Act 
C) Fair Credit Transaction Act 
D) Electronic Representation Act

Question 5

Under the Fair Credit Billing Act,open-end consumer credit plans must make certain disclosures

Accepted Answer

A) annually. 
B) when the account is opened. 
C) in periodic billing statements. 
D) all of the responses are correct 
A) annually. 
B) when the account is opened. 
C) in periodic billing statements. 
D) all of the responses are correct

Question 6

Which of the following Acts is not part of the Consumer Credit Protection Act?

Accepted Answer

A) Truth-in-Lending Act. 
B) Interstate Land Sales Full Disclosure Act. 
C) Fair Credit Billing Act. 
D) Electronic Fund Transfer Act. 
A) Truth-in-Lending Act. 
B) Interstate Land Sales Full Disclosure Act. 
C) Fair Credit Billing Act. 
D) Electronic Fund Transfer Act.

Question 7

The Truth-in-Lending Act (TILA)is intended to assure a truthful loan application by the consumer.

Accepted Answer

A) True 
 B)False

Question 8

State may regulate odometer tampering,but there is no federal law that does so.

Accepted Answer

A) True 
 B)False

Question 9

The labeling of medical devices is under the jurisdiction of the Food and Drug Administration.

Accepted Answer

A) True 
 B)False

Question 10

The Truth-in-Lending Act limits credit card liability to $50 per card for unauthorized charges made before a card issuer is notified of a lost or stolen card.

Accepted Answer

A) True 
 B)False

Question 11

Venditur emptor means,

Accepted Answer

A) "let the buyer beware." 
B) "le the buyer prevail." 
C) "let the market decide." 
D) "let the seller beware." 
A) "let the buyer beware." 
B) "le the buyer prevail." 
C) "let the market decide." 
D) "let the seller beware."

Question 12

Which of the following are roles of the Department of Agriculture?

Accepted Answer

A) Inspecting facilities engaged in the slaughtering or processing of meat,poultry,and egg products. 
B) Preventing the sale of mislabeled meat or poultry products. 
C) Offering producers a voluntary grading program for various agricultural products. 
D) All of the responses are correct. 
A) Inspecting facilities engaged in the slaughtering or processing of meat,poultry,and egg products. 
B) Preventing the sale of mislabeled meat or poultry products. 
C) Offering producers a voluntary grading program for various agricultural products. 
D) All of the responses are correct.

Question 13

If a used car is sold without a warranty,the label must state that the car is being sold "as is."

Accepted Answer

A) True 
 B)False

Question 14

Which of the following are not required under federal law to carry nutrition information?

Accepted Answer

A) Plain coffee 
B) Bulk food 
C) Delicatessen items 
D) All of the responses are correct 
A) Plain coffee 
B) Bulk food 
C) Delicatessen items 
D) All of the responses are correct

Question 15

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage..

Accepted Answer

A) 10%,30 
B) 25%,30 
C) 30%,25 
D) 35%,40 
A) 10%,30 
B) 25%,30 
C) 30%,25 
D) 35%,40

Question 16

Under the Fair Credit Reporting Act (FCRA)as amended by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act),consumers can request information about themselves except

Accepted Answer

A)  the source of the information. 
B)  credit information. 
C)  medical information. 
D)  any recent recipients of a report. 
A)  the source of the information. 
B)  credit information. 
C)  medical information. 
D)  any recent recipients of a report.

Question 17

Before implementing a mandatory safety standard,the Consumer Product Safety Commission must find that ________ are inadequate.

Accepted Answer

A) voluntary standards 
B) safety guidelines 
C) product designs 
D) warnings 
A) voluntary standards 
B) safety guidelines 
C) product designs 
D) warnings

Question 18

The Food and Drug Administration has the authority to require that certain drugs be available only by prescription.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not true regarding the Fair Credit Reporting Act?

Accepted Answer

A) It requires credit bureaus to investigate disputed information in credit reports. 
B) It imposes no duties upon third persons who furnish information to credit reporting agencies. 
C) It contains restrictions on reports that contain information on character and reputation. 
D) It gives consumers a right to have corrected copies of their credit reports sent to creditors. 
A) It requires credit bureaus to investigate disputed information in credit reports. 
B) It imposes no duties upon third persons who furnish information to credit reporting agencies. 
C) It contains restrictions on reports that contain information on character and reputation. 
D) It gives consumers a right to have corrected copies of their credit reports sent to creditors.

Question 20

The FTC has the authority to issue ________ to advertisers who employ deceptive claims or false testimonials in violation of Section 5 of the Federal Trade Commission Act.

Accepted Answer

A) cease and desist orders 
B) consent decrees 
C) caveat emptor 
D) citations 
A) cease and desist orders 
B) consent decrees 
C) caveat emptor 
D) citations

Exam 18: Consumer Protection

The Federal Trade Commission has ________commissioners who serve for _______-year terms.

A car loan is an example of a closed-end credit transaction.

The ________ forbids the use of any false "description or representation" in connection with any goods or services.

Under the Fair Credit Billing Act,open-end consumer credit plans must make certain disclosures

Which of the following Acts is not part of the Consumer Credit Protection Act?

The Truth-in-Lending Act (TILA)is intended to assure a truthful loan application by the consumer.

State may regulate odometer tampering,but there is no federal law that does so.

The labeling of medical devices is under the jurisdiction of the Food and Drug Administration.

The Truth-in-Lending Act limits credit card liability to $50 per card for unauthorized charges made before a card issuer is notified of a lost or stolen card.

Venditur emptor means,

Which of the following are roles of the Department of Agriculture?

If a used car is sold without a warranty,the label must state that the car is being sold "as is."

Which of the following are not required under federal law to carry nutrition information?

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage..

Under the Fair Credit Reporting Act (FCRA)as amended by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act),consumers can request information about themselves except

Before implementing a mandatory safety standard,the Consumer Product Safety Commission must find that ________ are inadequate.

The Food and Drug Administration has the authority to require that certain drugs be available only by prescription.

Which of the following is not true regarding the Fair Credit Reporting Act?

The FTC has the authority to issue ________ to advertisers who employ deceptive claims or false testimonials in violation of Section 5 of the Federal Trade Commission Act.

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Agency

Administrative Law

Contracts

sales, licensing, and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

executive compensation and employee benefits

Criminal law

Environmental law

Antitrust

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

Filters

The Federal Trade Commission has __commissioners who serve for _-year terms.

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _ times the current federal minimum hourly wage..