Question 1

In a typical situation in which the FTC discovers a potentially deceptive practice, the FTC:

Accepted Answer

A)  obtains a cease and desist order immediately, before any more damage is done. 
B)  investigates, files a complaint, and has a hearing in front of an ALJ. 
C)  requests a court hearing in the local federal trial court. 
D)  investigates and, if warranted, brings the matter before the five-member commission for issuance of a mandatory safety standard. 
A)  obtains a cease and desist order immediately, before any more damage is done. 
B)  investigates, files a complaint, and has a hearing in front of an ALJ. 
C)  requests a court hearing in the local federal trial court. 
D)  investigates and, if warranted, brings the matter before the five-member commission for issuance of a mandatory safety standard.

Question 2

Since 1981, the Consumer Product Safety Commission has relied primarily on mandatory safety standards.

Accepted Answer

A) True 
 B)False

Question 3

The Credit Card Fraud Act prohibits which of the following practices?

Accepted Answer

A)  Possessing unauthorized cards 
B)  Counterfeiting or altering credit cards 
C)  Using a card obtained from a third party with his consent when the third party conspires to report the cards as stolen 
D)  All of these. 
A)  Possessing unauthorized cards 
B)  Counterfeiting or altering credit cards 
C)  Using a card obtained from a third party with his consent when the third party conspires to report the cards as stolen 
D)  All of these.

Question 4

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Warranty Act.

Accepted Answer

A) True 
 B)False

Question 5

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Accepted Answer

A) True 
 B)False

Question 6

A description of the finance charges that said "1.8% per month compounded daily" would comply with the rules of the Truth-in-Lending Act.

Accepted Answer

A) True 
 B)False

Question 7

The CFPA excludes from the Bureau of Consumer Financial Protection's authority the activities of all but which of the following?

Accepted Answer

A)  Auto dealers 
B)  Check cashing businesses 
C)  Real estate brokers 
D)  Employee benefit plans 
A)  Auto dealers 
B)  Check cashing businesses 
C)  Real estate brokers 
D)  Employee benefit plans

Question 8

There is a federal uniform lemon law that applies across the states to protect consumers in their purchase of new cars.

Accepted Answer

A) True 
 B)False

Question 9

Stores may simply make warranties available to consumers upon request rather than including them on or in the packaged goods.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a purpose of the Consumer Product Safety Commission?

Accepted Answer

A)  To create legislation imposing mandatory safety standards 
B)  To protect the public against unreasonable risks of injury associated with consumer products 
C)  To assist consumers in evaluating the comparative safety of consumer products 
D)  To develop uniform safety standards for consumer products 
A)  To create legislation imposing mandatory safety standards 
B)  To protect the public against unreasonable risks of injury associated with consumer products 
C)  To assist consumers in evaluating the comparative safety of consumer products 
D)  To develop uniform safety standards for consumer products

Question 11

Patricia, who is married to Dustin, applies for a credit card from Vankirk's Department Store, but she is turned down because she is a married woman and the store's policy is to issue cards only in the name of the husband in such situations. What are her legal rights in this situation?

Accepted Answer

Under the Equal Credit Opportunity Act,

Question 12

If a written limited warranty is given for a consumer product, it may state that there is no warranty of merchantability as long as this disclaimer is conspicuous.

Accepted Answer

A) True 
 B)False

Question 13

38. Congress enacted the to provide consumers who purchase a home with greater and more timely information
On the nature and costs of the settlement process.

Accepted Answer

A)  RESPA 
B)  CPSC 
C)  OSHA 
D)  FCCPA 
A)  RESPA 
B)  CPSC 
C)  OSHA 
D)  FCCPA

Question 14

Under the Fair Credit Billing Act, if a consumer makes a complaint about the amount on his charge account bill, the store can:

Accepted Answer

A)  immediately bar the customer from any further credit purchases. 
B)  report the unpaid amount to a credit-reporting agency as delinquent. 
C)  refer the matter to a collection agency for immediate collection. 
D)  None of these. 
A)  immediately bar the customer from any further credit purchases. 
B)  report the unpaid amount to a credit-reporting agency as delinquent. 
C)  refer the matter to a collection agency for immediate collection. 
D)  None of these.

Question 15

Ad substantiation, as required by an FTC policy statement, requires a company to have a reasonable basis for its claims at the time it makes the claims.

Accepted Answer

A) True 
 B)False

Question 16

When a debt is secured by property as collateral and the debtor defaults, the creditor may:

Accepted Answer

A)  take possession of the property and retain it in full satisfaction of the debt or sell it. 
B)  take possession of the property and use it until the debtor pays the debt. 
C)  not take possession of the property, but must sue the debtor for the balance due. 
D)  None of these. 
A)  take possession of the property and retain it in full satisfaction of the debt or sell it. 
B)  take possession of the property and use it until the debtor pays the debt. 
C)  not take possession of the property, but must sue the debtor for the balance due. 
D)  None of these.

Question 17

A collection agency may personally contact the debtor even if the debtor has engaged a lawyer to represent him.

Accepted Answer

A) True 
 B)False

Question 18

On Monday, Bill agreed to buy aluminum siding for his home from Al, a door-to-door salesman. On Friday, he can rescind the contract with no liability for breach of contract.

Accepted Answer

A) True 
 B)False

Question 19

A typical automobile financing agreement would be a closed-end credit agreement.

Accepted Answer

A) True 
 B)False

Question 20

The Truth-in-Lending Act:

Accepted Answer

A)  applies only to such lenders as banks and savings and loans. 
B)  protects individuals who receive loans for more than $25,000, except for home mortgage loans. 
C)  is regulated by the FTC and the Federal Reserve Board under Regulation Z. 
D)  allows a buyer who is financing his home with a first mortgage to rescind that transaction within three days. 
A)  applies only to such lenders as banks and savings and loans. 
B)  protects individuals who receive loans for more than $25,000, except for home mortgage loans. 
C)  is regulated by the FTC and the Federal Reserve Board under Regulation Z. 
D)  allows a buyer who is financing his home with a first mortgage to rescind that transaction within three days.

Exam 41: Consumer Protection

In a typical situation in which the FTC discovers a potentially deceptive practice, the FTC:

Since 1981, the Consumer Product Safety Commission has relied primarily on mandatory safety standards.

The Credit Card Fraud Act prohibits which of the following practices?

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Warranty Act.

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

A description of the finance charges that said "1.8% per month compounded daily" would comply with the rules of the Truth-in-Lending Act.

The CFPA excludes from the Bureau of Consumer Financial Protection's authority the activities of all but which of the following?

There is a federal uniform lemon law that applies across the states to protect consumers in their purchase of new cars.

Stores may simply make warranties available to consumers upon request rather than including them on or in the packaged goods.

Which of the following is not a purpose of the Consumer Product Safety Commission?

Patricia, who is married to Dustin, applies for a credit card from Vankirk's Department Store, but she is turned down because she is a married woman and the store's policy is to issue cards only in the name of the husband in such situations. What are her legal rights in this situation?

If a written limited warranty is given for a consumer product, it may state that there is no warranty of merchantability as long as this disclaimer is conspicuous.

38. Congress enacted the to provide consumers who purchase a home with greater and more timely information On the nature and costs of the settlement process.

Under the Fair Credit Billing Act, if a consumer makes a complaint about the amount on his charge account bill, the store can:

Ad substantiation, as required by an FTC policy statement, requires a company to have a reasonable basis for its claims at the time it makes the claims.

When a debt is secured by property as collateral and the debtor defaults, the creditor may:

A collection agency may personally contact the debtor even if the debtor has engaged a lawyer to represent him.

On Monday, Bill agreed to buy aluminum siding for his home from Al, a door-to-door salesman. On Friday, he can rescind the contract with no liability for breach of contract.

A typical automobile financing agreement would be a closed-end credit agreement.

The Truth-in-Lending Act:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

₃₈_._Congres_s_enacte_d_the _t_o_provid_e_consumer_s_wh_o_purchas_e_a_hom_e_wit_h_greate_r_an_d_mor_e_timel_y_information On the nature and costs of the settlement process.