Question 1

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

Accepted Answer

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

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following acts requires disclosure of finance charges in terms of an annual percentage rate and requires that interest rates be calculated in a uniform manner in consumer credit transactions?

Accepted Answer

A)  Equal Credit Opportunity Act 
B)  Fair Credit Billing Act 
C)  Truth-in-Lending Act 
D)  FTC Act 
A)  Equal Credit Opportunity Act 
B)  Fair Credit Billing Act 
C)  Truth-in-Lending Act 
D)  FTC Act

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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:

Accepted Answer

A)  take any action to collect the disputed amount. 
B)  restrict the use of an open-ended credit account because the disputed amount is unpaid. 
C)  report the disputed amount as delinquent. 
D)  All of these are correct. 
A)  take any action to collect the disputed amount. 
B)  restrict the use of an open-ended credit account because the disputed amount is unpaid. 
C)  report the disputed amount as delinquent. 
D)  All of these are correct.

Question 6

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Accepted Answer

A)  To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B)  To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets. 
C)  To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D)  To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws. 
A)  To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B)  To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets. 
C)  To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D)  To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The National Highway Traffic Safety Administration:

Accepted Answer

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

Question 10

The Federal Trade Commission Act allows the FTC to:

Accepted Answer

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

Question 11

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?

Accepted Answer

A)  The amount of the debt, with interest and penalties clearly delineated. 
B)  The name and phone number of the current creditor and former creditor. 
C)  A statement telling the consumer that he can request verification of the alleged debt. 
D)  A copy of the original credit contract with the original creditor. 
A)  The amount of the debt, with interest and penalties clearly delineated. 
B)  The name and phone number of the current creditor and former creditor. 
C)  A statement telling the consumer that he can request verification of the alleged debt. 
D)  A copy of the original credit contract with the original creditor.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

Discuss ARMs and their regulation.

Accepted Answer

The Federal Reserve Board amended Regula

Question 15

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

Accepted Answer

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

Question 16

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?

Accepted Answer

a. The common law rule was caveat emptor

Question 17

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 18

Remedies available to the FTC for violations of unfair and deceptive trade practices include:

Accepted Answer

A)  affirmative disclosure. 
B)  corrective advertising. 
C)  multiple product orders. 
D)  All of these. 
A)  affirmative disclosure. 
B)  corrective advertising. 
C)  multiple product orders. 
D)  All of these.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The Consumer Product Safety Commission:

Accepted Answer

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

Exam 44: Consumer Protection

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

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 acts requires disclosure of finance charges in terms of an annual percentage rate and requires that interest rates be calculated in a uniform manner in consumer credit transactions?

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

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:

Which of the following best expresses the policy behind the Truth-in-Lending Act?

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

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

The National Highway Traffic Safety Administration:

The Federal Trade Commission Act allows the FTC to:

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?

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

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?

Discuss ARMs and their regulation.

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

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?

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Remedies available to the FTC for violations of unfair and deceptive trade practices include:

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

The Consumer Product Safety Commission:

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

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Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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