Question 1

Under the Magnuson-Moss Warranty Act, if a store wishes to market a mini-camera for a retail cost of $5, it must give a written warranty.

Accepted Answer

A) True 
 B)False

Question 2

The Fair Credit Reporting Act applies to consumer reporting agencies.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Accepted Answer

A) True 
 B)False

Question 5

The is empowered to issue industry-wide safety standards for consumer products.

Accepted Answer

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

Question 6

The Magnuson-Moss Warranty Act applies to all sales of goods covered by the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Ellen, age 25, was recently divorced and has applied to Mayberry Bank for a loan.The bank, as regulated by the Equal Credit Opportunity Act:

Accepted Answer

A) can ask her if she is married. 
B) can ask her if she plans to have children soon. 
C) can discount her loan rating because she is 25 and likely to have children within the next five years. 
D) must notify Ellen within 30 days after receiving her credit application of the action taken, and if she is denied credit, the bank must give her specific reasons for the denial. 
A) can ask her if she is married. 
B) can ask her if she plans to have children soon. 
C) can discount her loan rating because she is 25 and likely to have children within the next five years. 
D) must notify Ellen within 30 days after receiving her credit application of the action taken, and if she is denied credit, the bank must give her specific reasons for the denial.

Question 9

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 10

Lemon laws are generally understood to be laws that:

Accepted Answer

A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are interstate compacts to uniformly deal with lemon cars. 
A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are interstate compacts to uniformly deal with lemon cars.

Question 11

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 12

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

Accepted Answer

A) True 
 B)False

Question 13

Discrimination based on in the extension of credit is prohibited under the Equal Credit Opportunity Act.

Accepted Answer

A) sex or marital status 
B) religion or national origin 
C) race or age 
D) All of these. 
A) sex or marital status 
B) religion or national origin 
C) race or age 
D) All of these.

Question 14

The Credit Card Fraud Act does not contain criminal penalties for violations of its provisions.

Accepted Answer

A) True 
 B)False

Exam 41: Consumer Protection

Under the Magnuson-Moss Warranty Act, if a store wishes to market a mini-camera for a retail cost of $5, it must give a written warranty.

The Fair Credit Reporting Act applies to consumer reporting agencies.

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

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

The is empowered to issue industry-wide safety standards for consumer products.

The Magnuson-Moss Warranty Act applies to all sales of goods covered by the Uniform Commercial Code.

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

Ellen, age 25, was recently divorced and has applied to Mayberry Bank for a loan.The bank, as regulated by the Equal Credit Opportunity Act:

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.

Lemon laws are generally understood to be laws that:

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

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

Discrimination based on in the extension of credit is prohibited under the Equal Credit Opportunity Act.

The Credit Card Fraud Act does not contain criminal penalties for violations of its provisions.

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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