Question 1

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 2

The Food and Drug Administration:

Accepted Answer

A) uses three basic methods of enforcement. 
B) is a relatively recent agency, having been formed in 1976. 
C) is the oldest federal consumer protection agency. 
D) has no authority to require premarket approval of medical devices. 
A) uses three basic methods of enforcement. 
B) is a relatively recent agency, having been formed in 1976. 
C) is the oldest federal consumer protection agency. 
D) has no authority to require premarket approval of medical devices.

Question 3

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 4

The Fair Credit Reporting Act has to do with:

Accepted Answer

A) allowing consumers to get their own credit report at no cost once a year 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of these. 
A) allowing consumers to get their own credit report at no cost once a year 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of these.

Question 5

A consumer transaction would include one in which the purchaser uses the item at a hotel while on vacation.

Accepted Answer

A) True 
 B)False

Question 6

Under Truth-in-Lending, the cost of consumer credit must be expressed in an:

Accepted Answer

A) appreciated payment rate. 
B) annual percentage rate. 
C) appraisal payment ratio. 
D) allocated procedures remedy. 
A) appreciated payment rate. 
B) annual percentage rate. 
C) appraisal payment ratio. 
D) allocated procedures remedy.

Question 7

Under state law in many states and under the FTC rules and the federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled:

Accepted Answer

A) within 10 days by either party. 
B) within 10 days by the consumer. 
C) within three days by the consumer. 
D) within 20 days by either party. 
A) within 10 days by either party. 
B) within 10 days by the consumer. 
C) within three days by the consumer. 
D) within 20 days by either party.

Question 8

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The Food and Drug Administration is the oldest federal consumer protection agency.

Accepted Answer

A) True 
 B)False

Question 11

If a debtor defaults on the minimum payment of a credit contract, all states would allow the creditor to:

Accepted Answer

A) impose a late charge. 
B) garnish wages if there is a court proceeding to enforce the collection of a judgment. 
C) Both of these. 
D) None of these. 
A) impose a late charge. 
B) garnish wages if there is a court proceeding to enforce the collection of a judgment. 
C) Both of these. 
D) None of these.

Question 12

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.

Question 13

Which of the following is not true about the Home Mortgage Disclosure Act?

Accepted Answer

A) It was enacted to emphasize to financial institutions the importance of their reinvesting funds in the communities they serve. 
B) It was enacted to put redlining into effect. 
C) It outlawed geographic discrimination. 
D) It requires public disclosure of the financial institution's geographic pattern of mortgage lending. 
A) It was enacted to emphasize to financial institutions the importance of their reinvesting funds in the communities they serve. 
B) It was enacted to put redlining into effect. 
C) It outlawed geographic discrimination. 
D) It requires public disclosure of the financial institution's geographic pattern of mortgage lending.

Question 14

In order for a full warranty to be given for a consumer product, the manufacturer must provide that:

Accepted Answer

A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for refund rather than repair. 
D) consequential damage cannot be excluded. 
A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for refund rather than repair. 
D) consequential damage cannot be excluded.

Question 15

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would NOT be considered to be an example of open-ended credit?

Accepted Answer

A) A gasoline credit card account 
B) A VISA account 
C) A real estate mortgage account 
D) A department store credit card account 
A) A gasoline credit card account 
B) A VISA account 
C) A real estate mortgage account 
D) A department store credit card account

Question 17

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 18

What reported warranty problems caused Congress to enact the Magnuson-Moss Warranty Act?

Accepted Answer

A) Most warranties were not understandable. 
B) Most warrantors disclaimed implied warranties. 
C) The warrantors did not live up to their warranties. 
D) All of these. 
A) Most warranties were not understandable. 
B) Most warrantors disclaimed implied warranties. 
C) The warrantors did not live up to their warranties. 
D) All of these.

Question 19

The Troubled Asset Relief Program enacted in 2008 was designed to strengthen the U.S.financial sector by governmental purchase of assets and equity from financial institutions.

Accepted Answer

A) True 
 B)False

Question 20

The Fair Debt Collection Practices Act applies directly to creditors.

Accepted Answer

A) True 
 B)False

Exam 41: Consumer Protection

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

The Food and Drug Administration:

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 Fair Credit Reporting Act has to do with:

A consumer transaction would include one in which the purchaser uses the item at a hotel while on vacation.

Under Truth-in-Lending, the cost of consumer credit must be expressed in an:

Under state law in many states and under the FTC rules and the federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled:

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

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.

The Food and Drug Administration is the oldest federal consumer protection agency.

If a debtor defaults on the minimum payment of a credit contract, all states would allow the creditor to:

The Truth-in-Lending Act:

Which of the following is not true about the Home Mortgage Disclosure Act?

In order for a full warranty to be given for a consumer product, the manufacturer must provide that:

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

Which of the following would NOT be considered to be an example of open-ended credit?

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

What reported warranty problems caused Congress to enact the Magnuson-Moss Warranty Act?

The Troubled Asset Relief Program enacted in 2008 was designed to strengthen the U.S.financial sector by governmental purchase of assets and equity from financial institutions.

The Fair Debt Collection Practices Act applies directly to creditors.

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.