Question 1

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

Accepted Answer

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

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

The National Highway Traffic Safety Administration:

Accepted Answer

A)  tests the fuel efficiency of each year's car models. 
B)  enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
C)  recalls autos for safety reasons. 
D)  None of these are correct. 
A)  tests the fuel efficiency of each year's car models. 
B)  enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
C)  recalls autos for safety reasons. 
D)  None of these are correct.

Question 4

The Consumer Product Safety Commission cannot issue an order banning a hazardous product from the market.

Accepted Answer

A) True 
 B)False

Question 5

In 1974, Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Accepted Answer

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

Question 6

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Accepted Answer

A)  $100. 
B)  $50. 
C)  $75. 
D)  None of these; liability is unlimited. 
A)  $100. 
B)  $50. 
C)  $75. 
D)  None of these; liability is unlimited.

Question 7

Most lemon laws define a lemon as a car that:

Accepted Answer

A)  was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B)  continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C)  a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers. 
D)  has been unpopular and so is sold at a discounted price. 
A)  was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B)  continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C)  a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers. 
D)  has been unpopular and so is sold at a discounted price.

Question 8

What remedies are available for the Federal Trade Commission?

Accepted Answer

A)  Criminal penalties. 
B)  Affirmative exemption. 
C)  Corrective advertising and multiple product orders. 
D)  Impounding inventory. 
A)  Criminal penalties. 
B)  Affirmative exemption. 
C)  Corrective advertising and multiple product orders. 
D)  Impounding inventory.

Question 9

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union Administration, HUD, and the FTC.

Accepted Answer

A) True 
 B)False

Question 10

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 11

According to the FTC, Internet search engines' failure  to distinguish paid advertising from natural search results clearly and prominently could be a deceptive practice.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled within:

Accepted Answer

A)  20 days by either party. 
B)  10 days by the consumer. 
C)  three days by the consumer. 
D)  10 days by either party. 
A)  20 days by either party. 
B)  10 days by the consumer. 
C)  three days by the consumer. 
D)  10 days by either party.

Question 14

Congress outlawed the practice of redlining through what legislation?

Accepted Answer

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

Question 15

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Accepted Answer

A)  men over 70 years of age. 
B)  people with incomes below $10,000. 
C)  females. 
D)  people from Italy. 
A)  men over 70 years of age. 
B)  people with incomes below $10,000. 
C)  females. 
D)  people from Italy.

Question 16

Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate information removed from his consumer credit report.

Accepted Answer

A) True 
 B)False

Question 17

The Equal Credit Opportunity Act prohibits discrimination based on what factors in the extension of credit?

Accepted Answer

A)  Religion, national origin, and age. 
B)  Sex, marital status, or race. 
C)  Income, occupation, or apparent stability. 
D)  Both race and age. 
A)  Religion, national origin, and age. 
B)  Sex, marital status, or race. 
C)  Income, occupation, or apparent stability. 
D)  Both race and age.

Question 18

A collection agency is prohibited from:

Accepted Answer

A)  calling the debtor from 5-6 p.m. when he is likely to be eating dinner. 
B)  threatening to sue if it actually intends to do so. 
C)  calling the debtor in the middle of the night. 
D)  contacting third persons to find out the whereabouts of a debtor. 
A)  calling the debtor from 5-6 p.m. when he is likely to be eating dinner. 
B)  threatening to sue if it actually intends to do so. 
C)  calling the debtor in the middle of the night. 
D)  contacting third persons to find out the whereabouts of a debtor.

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Nathan borrows $1,250 to pay his son's medical bills.This is not a consumer credit transaction subject to the FCCPA since the loan is for a family member's services rather than for Nathan's personal purchase of goods.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection

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

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 National Highway Traffic Safety Administration:

The Consumer Product Safety Commission cannot issue an order banning a hazardous product from the market.

In 1974, Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Most lemon laws define a lemon as a car that:

What remedies are available for the Federal Trade Commission?

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union Administration, HUD, and the FTC.

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.

According to the FTC, Internet search engines' failure to distinguish paid advertising from natural search results clearly and prominently could be a deceptive practice.

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

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled within:

Congress outlawed the practice of redlining through what legislation?

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate information removed from his consumer credit report.

The Equal Credit Opportunity Act prohibits discrimination based on what factors in the extension of credit?

A collection agency is prohibited from:

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.

Nathan borrows $1,250 to pay his son's medical bills.This is not a consumer credit transaction subject to the FCCPA since the loan is for a family member's services rather than for Nathan's personal purchase of goods.

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

Filters