Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Victoria has a MasterCard with a credit limit of $9,000.This is:

Accepted Answer

A) open-end credit. 
B) closed-end credit. 
C) an installment loan. 
D) a secured debt. 
A) open-end credit. 
B) closed-end credit. 
C) an installment loan. 
D) a secured debt.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community is required to make.

Accepted Answer

The Truth in Lending Act will apply to t

Question 6

John loans George money and they sign a written agreement whereby George will repay John in monthly installments.Is this loan subject to the Truth-in-Lending Act?

Accepted Answer

A) Yes,if the loan is for more than $1,000. 
B) Yes,if John and George live in different states. 
C) No,if John is not in the business of offering credit. 
D) No,if John and George are related. 
A) Yes,if the loan is for more than $1,000. 
B) Yes,if John and George live in different states. 
C) No,if John is not in the business of offering credit. 
D) No,if John and George are related.

Question 7

The Consumer Leasing Act requires a lessor to disclose in writing all EXCEPT:

Accepted Answer

A) number of payments. 
B) penalties for late payments. 
C) lease rates of the competition. 
D) penalties for early termination. 
A) number of payments. 
B) penalties for late payments. 
C) lease rates of the competition. 
D) penalties for early termination.

Question 8

A company advertised a pain relief ointment called "Aspercreme." The package stated "the strong relief of aspirin right where you hurt." The product did not contain any aspirin.The FTC ruled that:

Accepted Answer

A) the advertising was not deceptive since the benefit of the product outweighed any harm caused by potentially misleading claims. 
B) the advertising was misleading,and the company would have to change the name of the product or add aspirin to its formula. 
C) the advertising was deceptive,and the FTC required the company to specifically state in its promotions that the product did not contain aspirin. 
D) None of the above 
A) the advertising was not deceptive since the benefit of the product outweighed any harm caused by potentially misleading claims. 
B) the advertising was misleading,and the company would have to change the name of the product or add aspirin to its formula. 
C) the advertising was deceptive,and the FTC required the company to specifically state in its promotions that the product did not contain aspirin. 
D) None of the above

Question 9

Under the Fair Debt Collection Practices Act,a collection company is legally permitted to:

Accepted Answer

A) call the debtor between 8am and 9am. 
B) call acquaintances of the debtor to locate the debtor. 
C) contact the debtor at work if not prohibited by the employer. 
D) All of the above are permissible. 
A) call the debtor between 8am and 9am. 
B) call acquaintances of the debtor to locate the debtor. 
C) contact the debtor at work if not prohibited by the employer. 
D) All of the above are permissible.

Question 10

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?

Accepted Answer

A) Since Mabel has been delinquent,she waives her right to see the credit files. 
B) If Mabel is rejected for a loan because of the consumer report,the lender must tell her the source of the report. 
C) Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good. 
D) Mabel's only legal remedy,if there is erroneous information in her credit file,is to report the problem to the FTC for enforcement. 
A) Since Mabel has been delinquent,she waives her right to see the credit files. 
B) If Mabel is rejected for a loan because of the consumer report,the lender must tell her the source of the report. 
C) Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good. 
D) Mabel's only legal remedy,if there is erroneous information in her credit file,is to report the problem to the FTC for enforcement.

Question 11

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.

Accepted Answer

Under the FDCPA,Commonground may not:
∙c

Question 12

The FTC can impose a fine for each violation of a voluntary compliance affidavit,a consent order,an FTC rule,or a cease and desist order,even one issued against someone else.

Accepted Answer

A) True 
 B)False

Question 13

What federal law applies to this particular situation?

Accepted Answer

A) Truth in Lending Act. 
B) Fair Credit Billing Act. 
C) Fair Credit Reporting Act. 
D) Equal Credit Opportunity Act. 
A) Truth in Lending Act. 
B) Fair Credit Billing Act. 
C) Fair Credit Reporting Act. 
D) Equal Credit Opportunity Act.

Question 14

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:

Accepted Answer

A) the CPSC can impose civil penalties on the company. 
B) the CPSC can impose criminal penalties on the company. 
C) users can sue for damages,including attorney's fees,if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns. 
D) All of the answers are correct. 
A) the CPSC can impose civil penalties on the company. 
B) the CPSC can impose criminal penalties on the company. 
C) users can sue for damages,including attorney's fees,if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns. 
D) All of the answers are correct.

Question 15

In a closed-end credit transaction:

Accepted Answer

A) the lender makes a series of loans with a maximum amount set before the first loan is made. 
B) if the lender is offering a "teaser rate," this must be clearly disclosed. 
C) the Federal Reserve Board should be consulted before a lender is chosen. 
D) there is only one loan,and the borrower knows the amount and payment schedule in advance. 
A) the lender makes a series of loans with a maximum amount set before the first loan is made. 
B) if the lender is offering a "teaser rate," this must be clearly disclosed. 
C) the Federal Reserve Board should be consulted before a lender is chosen. 
D) there is only one loan,and the borrower knows the amount and payment schedule in advance.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The type of product that prompted passage of the Consumer Product Safety Act was:

Accepted Answer

A) automobiles. 
B) children's toys. 
C) refrigerators. 
D) food products. 
A) automobiles. 
B) children's toys. 
C) refrigerators. 
D) food products.

Question 19

Don received in the mail merchandise he never ordered.The package was addressed to him,and when he opened it he saw a brochure stating he could keep the products for only $19.95.If he chose not to keep the products he was instructed to mail them back within five days.Don:

Accepted Answer

A) can keep and use the merchandise without having to pay for it. 
B) can keep the merchandise only if he pays the $19.95. 
C) must send the merchandise back within five days if he does not want it. 
D) None of the above is correct. 
A) can keep and use the merchandise without having to pay for it. 
B) can keep the merchandise only if he pays the $19.95. 
C) must send the merchandise back within five days if he does not want it. 
D) None of the above is correct.

Question 20

Employers must have permission from job applicants to request a credit report.

Accepted Answer

A) True 
 B)False

Exam 31: Consumer Protection

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

Victoria has a MasterCard with a credit limit of $9,000.This is:

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

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

The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community is required to make.

John loans George money and they sign a written agreement whereby George will repay John in monthly installments.Is this loan subject to the Truth-in-Lending Act?

The Consumer Leasing Act requires a lessor to disclose in writing all EXCEPT:

A company advertised a pain relief ointment called "Aspercreme." The package stated "the strong relief of aspirin right where you hurt." The product did not contain any aspirin.The FTC ruled that:

Under the Fair Debt Collection Practices Act,a collection company is legally permitted to:

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?

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.

The FTC can impose a fine for each violation of a voluntary compliance affidavit,a consent order,an FTC rule,or a cease and desist order,even one issued against someone else.

What federal law applies to this particular situation?

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:

In a closed-end credit transaction:

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

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

The type of product that prompted passage of the Consumer Product Safety Act was:

Don received in the mail merchandise he never ordered.The package was addressed to him,and when he opened it he saw a brochure stating he could keep the products for only $19.95.If he chose not to keep the products he was instructed to mail them back within five days.Don:

Employers must have permission from job applicants to request a credit report.

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Torts and Product Liability

Crime

International Law

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third parties

Performance and Discharge

Remedies

practical Contracts

Introduction to Sales

Ownership and Warranties

Performance and Remedies

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

Employment and Labor Law

Employment and Discrimination

Starting a Business

Corporations

Government Regulations:Securities and Antitrust

Cyberlaw

Intellectual Property

Real and Personal Property

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