Question 1

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

Accepted Answer

A) the Consumer Product Safety Commission. 
B) the Federal Reserve Board of Governors. 
C) the Federal Trade Commission. 
D) the Food and Drug Administration. 
A) the Consumer Product Safety Commission. 
B) the Federal Reserve Board of Governors. 
C) the Federal Trade Commission. 
D) the Food and Drug Administration.

Question 2

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Accepted Answer

A) True 
 B)False

Question 3

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Accepted Answer

A) True 
 B)False

Question 4

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Accepted Answer

A) false and misleading. 
B) impermissibly vague and general. 
C) a deceptive half-truth. 
D) puffery. 
A) false and misleading. 
B) impermissibly vague and general. 
C) a deceptive half-truth. 
D) puffery.

Question 5

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. If done systematically, this is

Accepted Answer

A) a cease-and-desist order. 
B) bait-and-switch advertising. 
C) counteradvertising. 
D) puffery. 
A) a cease-and-desist order. 
B) bait-and-switch advertising. 
C) counteradvertising. 
D) puffery.

Question 6

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to​

Accepted Answer

A) no federal law. 
B) the Fair Credit Reporting Act. 
C) the Telecommunications Act. 
D) the Truth-in-Lending Act. 
A) no federal law. 
B) the Fair Credit Reporting Act. 
C) the Telecommunications Act. 
D) the Truth-in-Lending Act.

Question 7

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Accepted Answer

A) denying coverage for preexisting conditions. 
B) enabling more children to obtain health-insurance coverage. 
C) allowing adults under age twenty-six to remain on their parents' health insurance. 
D) ending lifetime and most annual limits on care. 
A) denying coverage for preexisting conditions. 
B) enabling more children to obtain health-insurance coverage. 
C) allowing adults under age twenty-six to remain on their parents' health insurance. 
D) ending lifetime and most annual limits on care.

Question 8

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Accepted Answer

A) no federal law. 
B) the Equal Credit Opportunity Act. 
C) the Fair Credit Reporting Act. 
D) the Fair Debt Collection Practices Act. 
A) no federal law. 
B) the Equal Credit Opportunity Act. 
C) the Fair Credit Reporting Act. 
D) the Fair Debt Collection Practices Act.

Question 9

Comfy's Bed Company advertises a special sale on mattresses on its website. The mattresses are normally sold for $1,000, but are advertised on the website for $499. The sale price does not, however, include shipping costs. Comfy's charges $250 for shipping any mattress. To avoid any claims of deceptive advertising, Comfy's should​

Accepted Answer

A) clearly and conspicuously disclose the shipping cost in its ads. 
B) display the shipping cost in small print on Mello's Web page. 
C) include the shipping cost on the last page of Mello's Web site. 
D) not reveal the shipping cost. 
A) clearly and conspicuously disclose the shipping cost in its ads. 
B) display the shipping cost in small print on Mello's Web page. 
C) include the shipping cost on the last page of Mello's Web site. 
D) not reveal the shipping cost.

Question 10

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are​

Accepted Answer

A) prohibited. 
B) required. 
C) strictly voluntary. 
D) warranted by the nature of the food. 
A) prohibited. 
B) required. 
C) strictly voluntary. 
D) warranted by the nature of the food.

Question 11

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Accepted Answer

A) liable for $1,000. 
B) liable for $500. 
C) liable for $50. 
D) not liable for any amount. 
A) liable for $1,000. 
B) liable for $500. 
C) liable for $50. 
D) not liable for any amount.

Question 12

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose​

Accepted Answer

A) all material facts related to a sale. 
B) only the seller's name. 
C) only facts directly related to a potential customer's request. 
D) only facts needed to make a sale. 
A) all material facts related to a sale. 
B) only the seller's name. 
C) only facts directly related to a potential customer's request. 
D) only facts needed to make a sale.

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose

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

Exam 13: Consumer Law

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to​

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are​

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose​

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

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose