Exam 44: Consumer Protection

Holly, who is married to Grant, applies for a credit card from Marlin's Department Store, but she is turned down because she is a married woman and the store's policy is to only issue cards in the name of the husband in such situations. What are her legal rights in this situation?

Under the Fair Credit Reporting Act:

a. What was the common law rule with respect to consumer transactions? How has this rule been changed by recent statutory enactments? b. Why do you think there were so many consumer protection statutes passed in the last fifty years?

A misrepresentation or material omission that is likely to mislead a consumer to the consumer's detriment is grounds for a claim of deception under FTC rules.

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

The NHTSA has the authority to set motor vehicle safety standards that promote crash prevention.

The Federal Trade Commission has overall enforcement authority for the Equal Credit Opportunity Act.

Ad substantiation does not require advertisers to have a reasonable basis for their claims at the time the claims were made.

In order for a full warranty to be given for a consumer product, the manufacturer must provide that:

Roscoe Braun, who lives in Cleveland, receives a mailing from Florida from the SwampLand and Reclamation Project. It states that the Brauns can purchase one-acre sites as part of a newly planned development located in Leon County, Florida. The Brauns contact the company and are given a purchase agreement but no additional information. They sign the purchase agreement and send it back. Then, a week later they decide they would prefer to winter in either New Zealand or Australia. Can the Brauns get out of the contract?

The Consumer Financial Protection Bureau imposes monetary civil penalties, calculated by whether the violation is reckless or knowing.

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Which of the following would NOT be considered to be an example of open-ended credit?

Under the Fair Credit Billing Act, if a consumer reports an error in the amount on his charge account bill, until the creditor responds, it cannot:

Regulations for the 2009 Credit Card Accountability, Responsibility, and Disclosure Act (CARD) include that credit card issuers must mail account statements 21 days prior to the payment due date and that credit card issuers are prohibited from giving credit cards to full-time college students under 21 years old unless the student can prove the means to pay or a parent/guardian cosigns for the card.

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice. What information must be contained in this notice?

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

The Mortgage Reform and Anti-Predatory Lending Act of 2010 sets minimum underwriting standards for mortgages and prohibits mandatory arbitration clauses and prepayment penalties for ARMs.

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

If the FTC rules that a seller has made a false or deceptive advertising statement, the Commission can: