Question 1

In order to violate the FTC rules on advertising, a product would have to be affirmatively mislabeled.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Accepted Answer

A) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B) To help small business by prohibiting lenders from using, as collateral for secured loans, a business's most important assets. 
C) To help debtors for loans for personal, family, household or agricultural purposes to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws. 
A) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B) To help small business by prohibiting lenders from using, as collateral for secured loans, a business's most important assets. 
C) To help debtors for loans for personal, family, household or agricultural purposes to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

Question 7

The FTC policy statement addressing the meaning of unfairness provides that an injury is unfair if it is:

Accepted Answer

A) likely to mislead the consumer. 
B) substantial and not outweighed by any benefits to consumers or competition. 
C) one that the seller could reasonably have avoided. 
D) All of these. 
A) likely to mislead the consumer. 
B) substantial and not outweighed by any benefits to consumers or competition. 
C) one that the seller could reasonably have avoided. 
D) All of these.

Question 8

Hazardous materials are specifically exempted from the jurisdiction of the Consumer Product Safety Commission.

Accepted Answer

A) True 
 B)False

Question 9

The National Highway Traffic Safety Administration:

Accepted Answer

A) seeks recalls on autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct. 
A) seeks recalls on autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct.

Question 10

The Federal Trade Commission enforces antitrust legislation.

Accepted Answer

A) True 
 B)False

Question 11

A business, according to the FTC:

Accepted Answer

A) must disclose a product's country of origin. 
B) may not have a salesperson make statements such as, "This is a great buy." 
C) may use visual aids, such as adding marbles in a bowl of vegetable soup to make it look thick, when televising commercials. 
D) All of these are correct. 
A) must disclose a product's country of origin. 
B) may not have a salesperson make statements such as, "This is a great buy." 
C) may use visual aids, such as adding marbles in a bowl of vegetable soup to make it look thick, when televising commercials. 
D) All of these are correct.

Question 12

Under the Consumer Credit Protection Act, a consumer has three days to withdraw from any credit obligation secured by a mortgage on his home, even if the contract was not the result of a door-to-door sale.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Ronald Beeb, who lives in Cleveland, receives a mailing from Florida from the SwampLand Reclamation Project.It states that the Beebs can purchase one-acre sites as part of a newly planned development of 200 lots located in Leon County, Florida.The Beebs contact the company and are given a purchase agreement but no additional information.They sign the purchase agreement and send it back.Then, a week later they decide they would prefer to winter in either New Zealand or Australia.Can the Beebs get out of the contract?

Accepted Answer

The Interstate Land Sales Full Disclosur

Question 15

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

Accepted Answer

A) The amount of the debt, with interest and penalties clearly delineated 
B) The name of the current creditor and former creditor 
C) A statement informing the consumer that he can request verification of the alleged debt 
D) A copy of the original credit contract with the original creditor 
A) The amount of the debt, with interest and penalties clearly delineated 
B) The name of the current creditor and former creditor 
C) A statement informing the consumer that he can request verification of the alleged debt 
D) A copy of the original credit contract with the original creditor

Question 16

Most states would invalidate prepayment penalties.

Accepted Answer

A) True 
 B)False

Question 17

The Magnuson-Moss Warranty Act provides that:

Accepted Answer

A) a full warranty cannot disclaim any implied warranty. 
B) a limited warranty can disclaim any implied warranty. 
C) a full warranty cannot disclaim, but may modify or limit an implied warranty. 
D) a limited warranty cannot limit the duration of any implied warranty 
A) a full warranty cannot disclaim any implied warranty. 
B) a limited warranty can disclaim any implied warranty. 
C) a full warranty cannot disclaim, but may modify or limit an implied warranty. 
D) a limited warranty cannot limit the duration of any implied warranty

Question 18

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 19

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

Accepted Answer

A) True 
 B)False

Question 20

Most lemon laws define a lemon as a car that:

Accepted Answer

A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers. 
A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers.

Exam 41: Consumer Protection

In order to violate the FTC rules on advertising, a product would have to be affirmatively mislabeled.

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.

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

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

Which of the following best expresses the policy behind the Truth-in-Lending Act?

The FTC policy statement addressing the meaning of unfairness provides that an injury is unfair if it is:

Hazardous materials are specifically exempted from the jurisdiction of the Consumer Product Safety Commission.

The National Highway Traffic Safety Administration:

The Federal Trade Commission enforces antitrust legislation.

A business, according to the FTC:

Under the Consumer Credit Protection Act, a consumer has three days to withdraw from any credit obligation secured by a mortgage on his home, even if the contract was not the result of a door-to-door sale.

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?

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

Most states would invalidate prepayment penalties.

The Magnuson-Moss Warranty Act provides that:

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

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

Most lemon laws define a lemon as a car that:

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.

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