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

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

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 7

The Fair Debt Collection Practices Act applies directly to creditors.

Accepted Answer

A) True 
 B)False

Question 8

Northstar Sporting Goods sells consumer goods to Lena for $85 and provides a written warranty regarding the quality of the goods. Northstar:

Accepted Answer

A)  must designate the warranty as full or limited. 
B)  may disclaim any and all implied warranties as long as the disclaimer is conspicuous. 
C)  may modify the implied warranties. 
D)  All of these are correct. 
A)  must designate the warranty as full or limited. 
B)  may disclaim any and all implied warranties as long as the disclaimer is conspicuous. 
C)  may modify the implied warranties. 
D)  All of these are correct.

Question 9

The Fair Credit Reporting Act has to do with:

Accepted Answer

A)  bills that are incorrectly added. 
B)  credit checks done by potential lenders. 
C)  reports made by credit agencies. 
D)  All of these. 
E)  reports made by credit agencies and also  credit checks done by potential lenders. 
A)  bills that are incorrectly added. 
B)  credit checks done by potential lenders. 
C)  reports made by credit agencies. 
D)  All of these. 
E)  reports made by credit agencies and also  credit checks done by potential lenders.

Question 10

The FTC remedy of "affirmative disclosure" would require:

Accepted Answer

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

Question 11

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 12

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

Accepted Answer

A)  unfair means to collect a debt. 
B)  falsely representing that a lawsuit is about to be filed. 
C)  telephoning the debtor at 8:00 a.m. 
D)  using obscene language. 
A)  unfair means to collect a debt. 
B)  falsely representing that a lawsuit is about to be filed. 
C)  telephoning the debtor at 8:00 a.m. 
D)  using obscene language.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

The Consumer Financial Protection Bureau has rulemaking, supervisory, and enforcement authority over all but which of the following?

Accepted Answer

A)  Persons engaged in extending credit and servicing loans. 
B)  Automobile dealers. 
C)  Check cashing establishments. 
D)  Consumer credit report providers. 
E)  Persons engaged in deposit-taking activities. 
A)  Persons engaged in extending credit and servicing loans. 
B)  Automobile dealers. 
C)  Check cashing establishments. 
D)  Consumer credit report providers. 
E)  Persons engaged in deposit-taking activities.

Question 16

The Federal Consumer Credit Protection Act:

Accepted Answer

A)  Sets limits on garnishment proceedings. 
B)  Requires creditors to disclose finance charges. 
C)  Does not yet require disclosure on credit extension charges. 
D)  Requires creditors to disclose finance charges  but  does not require disclosure on credit extension charges. 
E)  S ets limits on garnishment proceedings. and also  requires creditors to disclose finance charges. 
A)  Sets limits on garnishment proceedings. 
B)  Requires creditors to disclose finance charges. 
C)  Does not yet require disclosure on credit extension charges. 
D)  Requires creditors to disclose finance charges  but  does not require disclosure on credit extension charges. 
E)  S ets limits on garnishment proceedings. and also  requires creditors to disclose finance charges.

Question 17

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)  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. 
D)  upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months. 
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)  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. 
D)  upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months.

Question 18

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

Question 19

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

Accepted Answer

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

Question 20

If a debtor defaults on a credit contract, the creditor may:

Accepted Answer

A)  impose a late charge. 
B)  garnish wages if there has been a court proceeding to enforce collection of a judgment. 
C)  declare the entire balance of the debt immediately due and may sue on the debt. 
D)  All of these. 
E)  Both  impose a late charge and  declare the entire balance of the debt immediately due and sue on the debt. 
A)  impose a late charge. 
B)  garnish wages if there has been a court proceeding to enforce collection of a judgment. 
C)  declare the entire balance of the debt immediately due and may sue on the debt. 
D)  All of these. 
E)  Both  impose a late charge and  declare the entire balance of the debt immediately due and sue on the debt.

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.

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.

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

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 Fair Debt Collection Practices Act applies directly to creditors.

Northstar Sporting Goods sells consumer goods to Lena for $85 and provides a written warranty regarding the quality of the goods. Northstar:

The Fair Credit Reporting Act has to do with:

The FTC remedy of "affirmative disclosure" would require:

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

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

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

The Consumer Financial Protection Bureau has rulemaking, supervisory, and enforcement authority over all but which of the following?

The Federal Consumer Credit Protection Act:

Under the Fair Credit Reporting Act:

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:

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

If a debtor defaults on a credit contract, the creditor may:

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

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 Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Environmental Law

International Business Law

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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