Question 1

When first established, the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

Accepted Answer

A) True 
 B)False

Question 2

The Consumer Review Fairness Act of 2016 (CRFA) protects people's ability to share their honest opinions about a business's products, services, or conduct, in any forum, including social media.

Accepted Answer

A) True 
 B)False

Question 3

A typical automobile financing agreement would be a closed-end credit agreement.

Accepted Answer

A) True 
 B)False

Question 4

In most states, a consumer is legally obligated once he has signed a contract, unless he rescinds the binding credit obligation within two to three days if the sale was solicited in his house.

Accepted Answer

A) True 
 B)False

Question 5

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $50,000.

Accepted Answer

A) True 
 B)False

Question 6

The Federal Consumer Credit Protection Act:

Accepted Answer

A)  Sets limits on garnishment proceedings. 
B)  Requires creditors to disclose finance charges. 
C)  Does not yet require disclosure on credit extension charges. 
D)  Requires creditors to disclose finance charges  but  does not require disclosure on credit extension charges. 
E)  S ets limits on garnishment proceedings. and also  requires creditors to disclose finance charges. 
A)  Sets limits on garnishment proceedings. 
B)  Requires creditors to disclose finance charges. 
C)  Does not yet require disclosure on credit extension charges. 
D)  Requires creditors to disclose finance charges  but  does not require disclosure on credit extension charges. 
E)  S ets limits on garnishment proceedings. and also  requires creditors to disclose finance charges.

Question 7

Congress outlawed the practice of redlining through what legislation?

Accepted Answer

A)  The Gramm-Leach-Bliley Financial Modernization Act. 
B)  The Home Mortgage Disclosure Act. 
C)  The Dodd-Frank Act. 
D)  The Equal Credit Opportunity Act. 
A)  The Gramm-Leach-Bliley Financial Modernization Act. 
B)  The Home Mortgage Disclosure Act. 
C)  The Dodd-Frank Act. 
D)  The Equal Credit Opportunity Act.

Question 8

Sue has a Bloomingdale's credit card. On Monday she charged a $47.90 sweater and then lost the card. Myra found it Monday and charged a $100 scarf and $400 purse. Sue missed her card at 8 a.m. Tuesday and called the store. Myra then charged a coat for $4,000. Sue's bill was $4,547.90. Sue owes:

Accepted Answer

A)  $47.90. 
B)  $547.90. 
C)  $97.90. 
D)  $4,547.90. 
A)  $47.90. 
B)  $547.90. 
C)  $97.90. 
D)  $4,547.90.

Question 9

The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules.

Accepted Answer

A) True 
 B)False

Question 10

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is empowered to issue industry-wide safety standards for consumer products?

Accepted Answer

A)  UCCC 
B)  RESPA 
C)  FCCPA 
D)  CPSC 
A)  UCCC 
B)  RESPA 
C)  FCCPA 
D)  CPSC

Question 12

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Accepted Answer

A)  Consumer Financial Protection Bureau. 
B)  Justice Department. 
C)  Federal Trade Commission. 
D)  Federal Reserve Board. 
A)  Consumer Financial Protection Bureau. 
B)  Justice Department. 
C)  Federal Trade Commission. 
D)  Federal Reserve Board.

Question 13

The Consumer Financial Protection Bureau is an independent executive agency housed within the Federal Reserve and was established to regulate consumer financial products or services.

Accepted Answer

A) True 
 B)False

Question 14

On Monday, Russell agreed to buy replacement windows for his home from Stephanie, a door-to-door salesman. Two days later, on Wednesday, he can rescind the contract with no liability for breach of contract.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the role of the state attorneys general in consumer protection.

Accepted Answer

Most state attorneys general help facili

Question 16

The Consumer Product Safety Commission:

Accepted Answer

A)  only has the authority to educate the public concerning product safety problems. 
B)  uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C)  can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D)  have no enforcement powers since compliance with its regulations is left up to the manufacturer. 
A)  only has the authority to educate the public concerning product safety problems. 
B)  uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C)  can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D)  have no enforcement powers since compliance with its regulations is left up to the manufacturer.

Question 17

Since 1976, the Food and Drug Administration has had the increased authority to:

Accepted Answer

A)  subject medical devices to premarket approval. 
B)  require manufacturers to do corrective advertising. 
C)  make manufacturers responsible for seeing that drugs are proven safe and effective before being sold. 
D)  make package inserts or labels on drugs list possible side effects. 
A)  subject medical devices to premarket approval. 
B)  require manufacturers to do corrective advertising. 
C)  make manufacturers responsible for seeing that drugs are proven safe and effective before being sold. 
D)  make package inserts or labels on drugs list possible side effects.

Question 18

Discuss ARMs and their regulation.

Accepted Answer

The Federal Reserve Board amended Regula

Question 19

The FTC remedy of "affirmative disclosure" would require:

Accepted Answer

A)  a new ad that admits the first ad was false. 
B)  providing certain information in a company's ad. 
C)  that the advertiser desist from deception in all products it markets. 
D)  All of these would be required. 
A)  a new ad that admits the first ad was false. 
B)  providing certain information in a company's ad. 
C)  that the advertiser desist from deception in all products it markets. 
D)  All of these would be required.

Question 20

The Credit Card Fraud Act contains criminal penalties for violations of its provisions.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection

When first established, the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

The Consumer Review Fairness Act of 2016 (CRFA) protects people's ability to share their honest opinions about a business's products, services, or conduct, in any forum, including social media.

A typical automobile financing agreement would be a closed-end credit agreement.

In most states, a consumer is legally obligated once he has signed a contract, unless he rescinds the binding credit obligation within two to three days if the sale was solicited in his house.

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $50,000.

The Federal Consumer Credit Protection Act:

Congress outlawed the practice of redlining through what legislation?

Sue has a Bloomingdale's credit card. On Monday she charged a $47.90 sweater and then lost the card. Myra found it Monday and charged a $100 scarf and $400 purse. Sue missed her card at 8 a.m. Tuesday and called the store. Myra then charged a coat for $4,000. Sue's bill was $4,547.90. Sue owes:

The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules.

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

Which of the following is empowered to issue industry-wide safety standards for consumer products?

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

The Consumer Financial Protection Bureau is an independent executive agency housed within the Federal Reserve and was established to regulate consumer financial products or services.

On Monday, Russell agreed to buy replacement windows for his home from Stephanie, a door-to-door salesman. Two days later, on Wednesday, he can rescind the contract with no liability for breach of contract.

Discuss the role of the state attorneys general in consumer protection.

The Consumer Product Safety Commission:

Since 1976, the Food and Drug Administration has had the increased authority to:

Discuss ARMs and their regulation.

The FTC remedy of "affirmative disclosure" would require:

The Credit Card Fraud Act contains criminal penalties for violations of its provisions.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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