Exam 41: Consumer Law

Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

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

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Sugar Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." Tony Fabrics 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 products as they would like? If not, why not?

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

Credit can be denied solely on the basis of national origin.

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Federal and state laws are aimed at protecting consumers from all of the following except

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

An ad for Running Shoes Inc. states that its footwear is "The Winner's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

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

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

Importers of food do not have to verify that the imported food meets U.S. safety standards.

There is a significant distinction between regulating the information dispensed about a product and regulating the product's actual content.

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Tia takes out a loan from Urban Bank. When she fails to make the scheduled payments, the lender advises her of further action that it will take. This violates

The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer. This is a violation of

Creamery Inc. makes and sells dairy products. Creamery's product packages must include

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.