Exam 13: Consumer Law

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.

Wild Things, Inc. (WTI), in its ads, makes claims about its products that are obvious exaggerations and claims that are false but appear to be true. WTI may be subject to sanctions for​

Drugs can be marketed to the public before they are ensured to be safe and effective.

Teri borrows $10,000 from USA National Bank to remodel a room in her home. If USA National Bank lends funds in the ordinary course of its business, this transaction is subject to

A consumer who receives an unsolicited credit card can be charged by the company that issued the card with any unauthorized charges.

Herman's Hammer Company and Melissa's Mallets, Inc. both make hammers. Both companies only use steel produced in the United States to make their hammers. Herman's Hammer Company displays an ad in the local hardware store that says, "Buy from Herman's - we only use American steel, while competitors like Melissa's Mallets use inferior foreign steel!" The statement in the ad is​

Ads must disclose relevant limitations underlying their claims.

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?​

Package labels must use words that the ordinary consumer understands.

When an advertising claim has the appearance of authenticity but is not factually supported, it is legal under the claim of puffery.

In its ads, Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims​

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include​

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z ap-plies to​

Kristen buys several pair of designer shoes online from Luxury Footwear, Inc. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, Luxury is required to​

One of the most important federal consumer protection laws directed at deceptive trade practices is the Federal Trade Commission Act.

Dina takes out a student loan from Equity Bank. When she fails to make the scheduled payments for six months, Equity advises her of further action that it will take. This is likely a violation of

National Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. National may be subject to sanctions for the false claims about​

The Nutrition Labeling and Education Act governs the use of terms such as fresh on food labels.

Corner Market sells groceries. Delta Food & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to monitor and enforce laws designed to protect consumers from unsafe food and drugs being sold is