Exam 25: Consumer Law

Mabel is a single 40-year-old who has borrowed money on numerous occasions.Her payment record has been good,except she has been delinquent in paying a few bills.Which of the following is true regarding credit information gathered on Mabel?

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race,national origin,religion,or sex,but it is permissible to treat a borrower differently if he or she is on welfare.

Brooke uses her credit card to purchase a lawn mower at the local "big box" hardware store,but when she tries to use the mower for the first time,she finds it is not self-propelled as advertised.Does she have any recourse?

The central issue in the FTC v.Direct Marketing.case involved:

Congress tightened oversight of credit card companies by enforcing the following::

MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children.Because of MoneyMaker's actions:

The FTC can sue and prevent a business from continuing to violate FTC rules or impose a fine for each violation of these rules.

"Bait and switch" tactics are not a violation of FTC rules if the consumer is given a choice of which product to buy.

Under FTC rules,a customer can cancel a door-to-door sales contract within:

If you lease a car rather than buy one on credit,you have no statutory consumer protection.

Commonground Collections has been hired to collect past-due medical bills for Lakeview Physicians.List some activities that Commonground may not do pursuant to the FDCPA.

Prime Products,Inc.was going to be able to ship the comforter Margaret ordered within three weeks instead of the seven days it had originally promised.Prime must cancel Margaret's order and notify her that it can deliver within three weeks if she wants to reorder.

Brett applies for a $30,000 loan to purchase a truck for his family's use.This loan is subject to TILA disclosure requirements.

The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the TILA which requires:

The Consumer Trade Commission focuses mainly on protection of consumers in the area of antitrust law.

The Truth-in-Lending Act applies to private individuals who loan money.

The Magnuson-Moss Warranty Act covers all consumer products regardless of their cost.

If the FTC determines a business has violated the law,it will normally try to get the business to voluntarily stop the activity.

Millie ordered clothes from a mail order catalog.No time was specified as to when the goods would be shipped.In such a case the FTC requires that the company must ship the goods to Millie:

John purchased $600 worth of clothes from Clothing Mart. He paid for the clothes with a credit card. When he received his statement, he sent the credit card company a check for $600. The credit card company mistakenly recorded his payment as $60. When John received his next statement, he noticed the $540 error and contacted the credit card company. A few days later when he attempted to use his card to buy gasoline, he was told by the cashier that the card had been canceled and she was instructed to take his card. John was shocked, embarrassed, and angry. When he contacted the credit card company, it pointed out a provision in his initial contract for the card that stated the company could revoke his card privileges at any time with or without cause. -What federal law applies to this particular situation?