Exam 19: Consumer Protection

The Fair Debt Collection Practices Act does NOT apply to:

Fact Pattern 19-2 Jayme's Best produced a new line of pasta sauce (Herbal Health), intending for it to have extra nutritional benefits. Using the freshest ingredients, Jayme's added special herbs to the tomato paste and spices, as the herbs are believed by some Tibetan monks to have the power to prevent cancer. Jayme's marketed the sauce in grocery stores and health food stores. Jayme's advertisements said that Herbal Health may help prevent cancer and taste a lot better than the competition. Based on these facts, answer the following questions. -Refer to Fact Pattern 19-2. If the advertising for the supposed health benefits of Jayme's sauce is believed by the Federal Trade Commission not to be truthful, the FTC may:

In Wyeth v. Levine the Supreme Court held that FDA approval of the warning label on a drug set the federal safety standard that precluded a safety claim brought under state law.

A company advertises that test driving a car from New York to Los Angeles got 35 miles per gallon. That is true, but the mileage was achieved by carefully driving at the speed limit, which resulted in better mileage than the ordinary driver gets. Under the FTC deception policy, this ad is:

Which type of advertisement would be held to a tougher standard than the others:

In Schuchmann v. Air Services Heating and Air Conditioning, where a company refused to provide air conditioning service after five years on a product with a "lifetime warranty," the court held that the warranty was not part of the purchase contract, so was not enforceable.

The Electronic Fund Transfer Act, along with Regulation E, provides the consumer's liability is $50 if the financial institution is notified within 60 days about the loss of a consumer's electronic fund transfer card.

A material deception is one that:

The FTC is required by law to sue all advertisers that publish deceptive ads.

The FDA does not regulate health claims made on food products.

The Department of Agriculture has primary responsibility for sanitation of meats and poultry; the FDA has responsibility for most other foods.

Which of these is most likely to be attacked by the FTC as a deceptive business practice?

Before passage of the 1938 Food, Drug, and Cosmetic Act, drugs were:

The British Office of Fair Trading operates somewhat like the FTC in the U.S.

The Fair Debt Collection Practices Act prohibits a debt collector from calling a debtor at home more than three times regarding any one debt.

The ____ shields drug manufacturers from liability in cases where doctors misuse drugs.

In addition to having the power to decide when foods and drugs will be allowed to be marketed, the FDA can remove products from the market. An example of the FDA's use of its power to remove products from the market is the:

The Food, Drug and Cosmetics Act was passed in 1938 after:

If there is an error in a consumer's file at a consumer reporting agency, the person should:

The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) includes which of the following restrictions for credit card companies: