Exam 31: Consumer Protection

Such a provision within the credit card contract is: Fact Pattern 40-1 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.

"Bait and switch" is:

If a consumer cancels a door-to-door sale within the required time,how many days does the seller have to return the buyer's money?

Marla applies for and receives a three-year loan through Sharkey Lenders for $5,000 at 27% APR.If the loan agreement violates the applicable usury statute,Marla may be able to keep:

The FTC may consider an act unfair if it simply violates public policy.

Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free.Janet had Ron's come to inspect her furnace.The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250.The FTC considers such a practice to be:

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