Exam 21: Consumer Protection

Consumer Staples Inc.includes in its advertising obvious exaggerations,vague generalities,and puffery about its products.The firm may be subject to sanctions for

Auto & Life Insurance Company fails to notify its new customers when they are charged higher premium rates as a result of their credit scores.This is a willful violation of

The quality and safety of food may be important to consumers,but food labels that provide standard nutrition facts are a seller's option,not a requirement.

Rollo has a credit card from Shopping Cards,Inc.To change the terms,Shopping

Creamery Inc.makes and sells dairy products.Creamery's product packages must include

The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer.This is a violation of

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites,Jill,the salesperson,tells her that they are all sold and no more are obtainable.Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599.This is

A debt-collection agency can always contact a debtor at his or her place of employment.

Deceptive advertising occurs if a reasonable consumer believes an advertising claim.

The federal agency that oversees the practices of banks,mortgage lenders,and credit-card companies is

EZ Workout Inc.advertises Fit Step,an exercise machine,online.In its ads,EZ claims that the use of Fit Step measurably enhances the attainability of fitness and weight loss goals,and will contribute significantly to the length of its users' lives.In this context,the company's ads and claims must be

Faux Products,Inc. ,in its ads,makes false claims about its own products and about the products of its competitors.The firm may be subject to sanctions for the false claims about

Because consumers may not read an entire web page,an online disclosure should be placed as close as possible to any claim being qualified.

Federal and state laws are aimed at protecting consumers from all of the following except

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

A false statement or unjustified claim about a competitor's products can result in liability for deceptive advertising.

Lawnscape Company and Mowers Inc.make yard tools.Both companies use only steel produced in the United States.Lawnscape's ad claims,"We use only U.S.steel,while our competitor uses inferior foreign steel!" Under the advertising standards of the Federal Trade Commission Act,this statement is most likely

Credit can be denied solely on the basis of national origin.

If an advertisement is proven to be deceptive,it may be subject to a cease-and-desist order.

Mattress Company advertises a special sale-all bedding,half price.The ad does not state that the sale price does not include delivery or shipping costs.To avoid claims of deceptive advertising,Mattress should