Exam 44: Consumer Protection

Homemade Soup Co.has advertised their soup in certain magazines using photographs showing bowls of their soup with pebbles at the bottom of the bowl.The pebbles were used to displace the soup in the bowl, forcing the vegetables and meat to the surface.This photographer's trick made the soup appear heartier than it was.An FTC staffer is thumbing through the latest edition of her favorite magazine.She notices the Homemade Soup Co.ad and goes to her kitchen, opens up a bowl of Homemade's soup and decides that her bowl of soup looks nothing like the one in the ad.What are the steps the FTC would take to proceed against Homemade Soup Co.?

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

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

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

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?

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

The FCC's Open Internet rules protect and maintain open, uninhibited access to legal online content by prohibiting broadband internet access providers from blocking or slowing the delivery of internet content.

Discuss ARMs and their regulation.

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

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?

Deception may occur either through false representation or material omission.

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 solely under the Consumer Financial Protection Act of 2010.

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:

The Interstate Land Sales Full Disclosure Act (ILSA) applies to sales or leases of one hundred or more lots of unimproved land as part of a common promotional plan in interstate commerce.The Act:

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

The Fair Debt Collection Practices Act applies directly to creditors.

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

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.

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