Exam 44: Consumer Protection

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

Deception may occur either through false representation or material omission.

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.

The FTC:

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 Magnuson-Moss Act applies to all sales of goods covered by the Uniform Commercial Code.

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

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

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

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

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

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

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.

Congress outlawed the practice of redlining through what legislation?

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?

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.

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 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.

A collection agency is prohibited from:

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