Question 1

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is​

Accepted Answer

A) a restaurant chain with twenty or more locations. 
B) a food distributor with twenty or more customers. 
C) a food maker with twenty or more products. 
D) a food producer with twenty or more acres. 
A) a restaurant chain with twenty or more locations. 
B) a food distributor with twenty or more customers. 
C) a food maker with twenty or more products. 
D) a food producer with twenty or more acres.

Question 2

Puffery constitutes deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 3

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Accepted Answer

A) True 
 B)False

Question 4

A debt-collection agency under the Fair Debt Collections Practices Act is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

Accepted Answer

A) True 
 B)False

Question 5

Phil has a credit card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards​

Accepted Answer

A) must give Phil at least thirty days' notice before changing the terms. 
B) must give Phil at least forty-five days' notice before changing the terms. 
C) need not give Phil any notice before changing the terms. 
D) is not allowed to change the terms. 
A) must give Phil at least thirty days' notice before changing the terms. 
B) must give Phil at least forty-five days' notice before changing the terms. 
C) need not give Phil any notice before changing the terms. 
D) is not allowed to change the terms.

Question 6

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Accepted Answer

A) True 
 B)False

Question 7

Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous. Steel may be required to​

Accepted Answer

A) export the tool and sell it only abroad. 
B) increase the price to cover the cost of any injuries or damage. 
C) reduce the price to indicate the hazard to consumers. 
D) remove the tool from the market. 
A) export the tool and sell it only abroad. 
B) increase the price to cover the cost of any injuries or damage. 
C) reduce the price to indicate the hazard to consumers. 
D) remove the tool from the market.

Question 8

Smart Phone Company's ad states that its product is "The Clear Choice." Because of this ad, the Federal Trade Commission is most likely to issue​

Accepted Answer

A) a cease-and-desist order. 
B) a counteradvertising order. 
C) a restitution order. 
D) none of the choices. 
A) a cease-and-desist order. 
B) a counteradvertising order. 
C) a restitution order. 
D) none of the choices.

Question 9

Creditors attempting to collect debts are generally considered to be debt-collection agencies under the Fair Debt Collections Practices Act.

Accepted Answer

A) True 
 B)False

Question 10

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following

Accepted Answer

A) credibility. 
B) financial awareness. 
C) occupation. 
D) gender. 
A) credibility. 
B) financial awareness. 
C) occupation. 
D) gender.

Question 11

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.

Accepted Answer

A) True 
 B)False

Question 12

Any time a consumer is denied credit or insurance on the basis of his or her credit report, the consumer must be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 13

Credit can be denied solely on the basis of marital status.

Accepted Answer

A) True 
 B)False

Question 14

Manufacturers are required to report to the Consumer Product Safety Commission any products intended for sale if the products have proved to be hazardous.

Accepted Answer

A) True 
 B)False

Question 15

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Accepted Answer

A) every new car. 
B) no car-compliance with the law is voluntary. 
C) select old and new cars. 
D) whichever vehicles Gear chooses. 
A) every new car. 
B) no car-compliance with the law is voluntary. 
C) select old and new cars. 
D) whichever vehicles Gear chooses.

Question 16

Mouth-Waterin' Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." NuFabrics, Inc., wants to advertise its sweaters as having "That Wool Feel," but does not want to specify on labels that the sweaters are 100 percent polyester. Can these firms market their products as they would like? If not, why not?

Accepted Answer

In general, labels must be accurate and

Question 17

Vague generalities and obvious exaggerations are permissible in advertising.

Accepted Answer

A) True 
 B)False

Question 18

Merchants must ship orders within the time promised in their ads and notify consumers when orders cannot be shipped on time.

Accepted Answer

A) True 
 B)False

Question 19

Credit can be denied solely on the basis of race.

Accepted Answer

A) True 
 B)False

Question 20

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to​

Accepted Answer

A) conduct negotiations between the competitors. 
B) send a formal complaint. 
C) issue a cease-and-desist order. 
D) permit Spicy Salsa to broadcast similarly deceptive counteradvertising. 
A) conduct negotiations between the competitors. 
B) send a formal complaint. 
C) issue a cease-and-desist order. 
D) permit Spicy Salsa to broadcast similarly deceptive counteradvertising.

Exam 13: Consumer Law

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is​

Puffery constitutes deceptive advertising.

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

A debt-collection agency under the Fair Debt Collections Practices Act is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

Phil has a credit card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards​

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous. Steel may be required to​

Smart Phone Company's ad states that its product is "The Clear Choice." Because of this ad, the Federal Trade Commission is most likely to issue​

Creditors attempting to collect debts are generally considered to be debt-collection agencies under the Fair Debt Collections Practices Act.

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.

Any time a consumer is denied credit or insurance on the basis of his or her credit report, the consumer must be notified of that fact.

Credit can be denied solely on the basis of marital status.

Manufacturers are required to report to the Consumer Product Safety Commission any products intended for sale if the products have proved to be hazardous.

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Vague generalities and obvious exaggerations are permissible in advertising.

Merchants must ship orders within the time promised in their ads and notify consumers when orders cannot be shipped on time.

Credit can be denied solely on the basis of race.

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to​

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Agency Relationships in Business

Employment Law

The Entrepreneurs Options

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

Phil has a credit card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards

Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous. Steel may be required to

Smart Phone Company's ad states that its product is "The Clear Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to