Exam 21: Consumer Protection

Advertising will be deemed deceptive if it includes a claim that omits a material fact about a product.

Teri borrows $10,000 from USA Bank to remodel a room in her home.This transaction is subject to

QT Collection Agency calls Rob several times a day,and in the middle of the night,about an overdue bill that Standard Credit Company turned over to QT for collection.This is a violation of

Tia takes out a loan from Urban Bank.When she fails to make the scheduled payments,the lender advises her of further action that it will take.This violates

Home Made Inc.advertises a variety of household products online.In this context,the company's ads must be

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances.This transaction is subject to

The manufacture and sale of any product that poses an unreasonable risk to consumers can be banned.

The Federal Trade Commission actively monitors online advertising.

Pro Motor Company makes cars.Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Whole Grains Company wants to make and market new processed bread and cereal products.On each product's label,standard nutrition facts are

ChemCo Inc.makes and sells products containing ingredients potentially hazardous to consumers.The government agency that has the authority to order ChemCo to remove a product from the market is

The Federal Food,Drug,and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

The Federal Commerce Commission is charged with the goal of preventing unfair and deceptive trade practices.

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Owen buys a restored 1969 Dodge Charger from Prime Restorations,Inc. ,on credit but makes no payments on the account.Quentin,the owner of Prime Restorations,calls Owen at home on a Monday morning at three A.M.Quentin represents himself as RiteNow Collection Agency and demands payment "or else." The next day,Quentin sends Owen notice that he has thirty days to request verification of the debt,during which its payment will be suspended,but that if he does not pay the full amount due within five business days,Quentin will arrange for the "destruction of Owen's good credit rating." Which laws has Quentin violated,if any,and in what ways?

The Telemarketing Sales Rule applies to any offer-domestic or foreign-made to consumers in the United States.

Consumer Finance Corporation (CFC)extends credit to consumers.CFC applies several criteria to decide customers' "suitability" for credit.Under the Equal Credit Opportunity Act,CFC cannot base its decision on a customer's

Credit Agency Corporation issues consumer credit reports.The company generally does not delete unverifiable or erroneous information from the reports.Under the Fair Credit Reporting Act,this firm may be subject to

Half-truths-information that is true but incomplete-are not deceptive because such statements are at least half true.