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

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?

Accepted Answer

Under the Equal Credit Opportunity Act,

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  A gasoline credit card. 
B)  A department store credit card. 
C)  A real estate mortgage. 
D)  A VISA card. 
A)  A gasoline credit card. 
B)  A department store credit card. 
C)  A real estate mortgage. 
D)  A VISA card.

Question 5

Which of the following acts protects consumers who have errors in credit card billings?

Accepted Answer

A)  Equal Credit Opportunity Act. 
B)  Truth-in-Lending Act. 
C)  Fair Credit Billing Act. 
D)  Fair Debt Collection Practices Act. 
A)  Equal Credit Opportunity Act. 
B)  Truth-in-Lending Act. 
C)  Fair Credit Billing Act. 
D)  Fair Debt Collection Practices Act.

Question 6

The United States Postal Service plays an important role in consumer protection.

Accepted Answer

A) True 
 B)False

Question 7

The Federal Trade Commission Act allows the FTC to:

Accepted Answer

A)  prohibit all advertising in certain professions. 
B)  require advertisers to contribute to a fund to reimburse injured consumers. 
C)  determine what constitutes deceptive advertising practices. 
D)  require the independent testing of consumer goods. 
A)  prohibit all advertising in certain professions. 
B)  require advertisers to contribute to a fund to reimburse injured consumers. 
C)  determine what constitutes deceptive advertising practices. 
D)  require the independent testing of consumer goods.

Question 8

The Consumer Product Safety Commission:

Accepted Answer

A)  have no enforcement powers since compliance with its regulations is left up to the manufacturer. 
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)  only has the authority to educate the public concerning product safety problems. 
A)  have no enforcement powers since compliance with its regulations is left up to the manufacturer. 
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)  only has the authority to educate the public concerning product safety problems.

Question 9

The Credit Card Fraud Act prohibits which of the following practices?

Accepted Answer

A)  Possessing unauthorized cards. 
B)  Using cards obtained from a third party with his consent when the third party conspires to report the cards as stolen. 
C)  Counterfeiting or altering credit cards. 
D)  Using accounts numbers alone. 
E)  All of these are prohibited. 
A)  Possessing unauthorized cards. 
B)  Using cards obtained from a third party with his consent when the third party conspires to report the cards as stolen. 
C)  Counterfeiting or altering credit cards. 
D)  Using accounts numbers alone. 
E)  All of these are prohibited.

Question 10

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?

Accepted Answer

The Interstate Land Sales Full Disclosur

Question 11

Lemon laws are generally understood to be laws that:

Accepted Answer

A)  are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
B)  are Interstate Compacts to uniformly deal with lemon cars. 
C)  are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D)  apply to the safety of food additives for fruits and vegetables. 
A)  are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
B)  are Interstate Compacts to uniformly deal with lemon cars. 
C)  are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D)  apply to the safety of food additives for fruits and vegetables.

Question 12

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

Accepted Answer

A)  consequential damage cannot be excluded. 
B)  the consumer can opt for replacement if the product is unsatisfactory. 
C)  the warranty lasts for at least 10 days. 
D)  the product will be repaired for free. 
A)  consequential damage cannot be excluded. 
B)  the consumer can opt for replacement if the product is unsatisfactory. 
C)  the warranty lasts for at least 10 days. 
D)  the product will be repaired for free.

Question 13

A collection agency may not personally contact the debtor if the debtor has engaged a lawyer to represent him.

Accepted Answer

A) True 
 B)False

Question 14

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

The FTC remedy of "affirmative disclosure" would require:

Accepted Answer

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

Question 17

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

Accepted Answer

Most state attorneys general help facili

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Under the Fair Credit Reporting Act:

Accepted Answer

A)  credit reports may be used by potential employers and lenders, but not insurers. 
B)  consumer reporting agencies must notify consumers, orally or in writing, before making an investigative report. 
C)  upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months. 
D)  if a consumer does not agree with information in the file and so notifies the reporting agency, the agency must reinvestigate the matter, even if the agency thinks the complaint is frivolous or irrelevant. 
A)  credit reports may be used by potential employers and lenders, but not insurers. 
B)  consumer reporting agencies must notify consumers, orally or in writing, before making an investigative report. 
C)  upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months. 
D)  if a consumer does not agree with information in the file and so notifies the reporting agency, the agency must reinvestigate the matter, even if the agency thinks the complaint is frivolous or irrelevant.

Question 20

On Monday, Bill agreed to buy vinyl siding for his home from Al, a door-to-door salesman.On Wednesday, he can rescind the contract with no liability for breach of contract.

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.

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?

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?

Which of the following acts protects consumers who have errors in credit card billings?

The United States Postal Service plays an important role in consumer protection.

The Federal Trade Commission Act allows the FTC to:

The Consumer Product Safety Commission:

The Credit Card Fraud Act prohibits which of the following practices?

Lemon laws are generally understood to be laws that:

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

A collection agency may not personally contact the debtor if the debtor has engaged a lawyer to represent him.

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

The FTC remedy of "affirmative disclosure" would require:

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

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

Under the Fair Credit Reporting Act:

On Monday, Bill agreed to buy vinyl siding for his home from Al, a door-to-door salesman.On Wednesday, he can rescind the contract with no liability for breach of contract.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

International Business Lawpart X: Property

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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