Question 1

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.​

Accepted Answer

A) True 
 B)False

Question 2

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

Accepted Answer

A)  ​Corner Market and Deli & Drug. 
B)  ​Deli & Drug only. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration. 
A)  ​Corner Market and Deli & Drug. 
B)  ​Deli & Drug only. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration.

Question 3

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.​

Accepted Answer

A) True 
 B)False

Question 4

To generate sales, Golden Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Golden's telemarketers must disclose​

Accepted Answer

A)  ​all material facts related to a sale. 
B)  ​only the seller's name. 
C)  ​only facts directly related to a potential customer's request. 
D)  ​only facts needed to make a sale. 
A)  ​all material facts related to a sale. 
B)  ​only the seller's name. 
C)  ​only facts directly related to a potential customer's request. 
D)  ​only facts needed to make a sale.

Question 5

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

Accepted Answer

A)  ​a counteradvertising order. 
B)  ​a multiple product order. 
C)  ​a "cooling-off" law. 
D)  ​a validation notice. 
A)  ​a counteradvertising order. 
B)  ​a multiple product order. 
C)  ​a "cooling-off" law. 
D)  ​a validation notice.

Question 6

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.​

Accepted Answer

A) True 
 B)False

Question 7

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to​

Accepted Answer

A)  ​no federal law. 
B)  ​the Consumer Leasing Act. 
C)  ​the Consumer Product Safety Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Consumer Leasing Act. 
C)  ​the Consumer Product Safety Act. 
D)  ​the Truth-in-Lending Act.

Question 8

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

Accepted Answer

A)  ​a restaurant chain with twenty or more locations. 
B)  ​a food distributor with twenty or more customers. 
C)  ​a food maker with twenty or more products. 
D)  ​a food producer with twenty or more acres. 
A)  ​a restaurant chain with twenty or more locations. 
B)  ​a food distributor with twenty or more customers. 
C)  ​a food maker with twenty or more products. 
D)  ​a food producer with twenty or more acres.

Question 9

Package labels must use words that the ordinary consumer understands.​

Accepted Answer

A) True 
 B)False

Question 10

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

Accepted Answer

A)  ​no federal law. 
B)  ​the Fair Credit Reporting Act. 
C)  ​the Telecommunications Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Fair Credit Reporting Act. 
C)  ​the Telecommunications Act. 
D)  ​the Truth-in-Lending Act.

Question 11

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.​

Accepted Answer

A) True 
 B)False

Question 12

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

Accepted Answer

A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act.

Question 13

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.​

Accepted Answer

A) True 
 B)False

Question 14

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.​

Accepted Answer

A) True 
 B)False

Question 15

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.​

Accepted Answer

A) True 
 B)False

Question 16

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under​

Accepted Answer

A)  ​federal and state law. 
B)  ​federal law only. 
C)  ​no law, according to the principles of freedom to contract. 
D)  ​state law only. 
A)  ​federal and state law. 
B)  ​federal law only. 
C)  ​no law, according to the principles of freedom to contract. 
D)  ​state law only.

Question 17

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.​

Accepted Answer

A) True 
 B)False

Question 18

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.​

Accepted Answer

A) True 
 B)False

Question 19

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Accepted Answer

A)  ​export the tool and sell it only abroad. 
B)  ​increase the price to cover the cost of any injuries or damage. 
C)  ​reduce the price to indicate the hazard to consumers. 
D)  ​remove the tool from the market. 
A)  ​export the tool and sell it only abroad. 
B)  ​increase the price to cover the cost of any injuries or damage. 
C)  ​reduce the price to indicate the hazard to consumers. 
D)  ​remove the tool from the market.

Question 20

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Accepted Answer

A)  ​intelligence. 
B)  ​education. 
C)  ​income. 
D)  ​race. 
A)  ​intelligence. 
B)  ​education. 
C)  ​income. 
D)  ​race.

Exam 44: Consumer Law

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.​

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.​

To generate sales, Golden Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Golden's telemarketers must disclose​

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.​

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to​

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

Package labels must use words that the ordinary consumer understands.​

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.​

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.​

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.​

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.​

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under​

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.​

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.​

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Mergers and Takeovers

Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.

To generate sales, Golden Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Golden's telemarketers must disclose

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is

Package labels must use words that the ordinary consumer understands.

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on