Exam 19: Consumer Protection

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. Jayme's ads, when attacked as deceptive by the FTC, must be shown to do all of the following except:

It costs an average of about a billion dollars to develop one new drug and clear all FDA rules. If a drug is not approved for marketing, the FDA pays the company for the costs of the tests.

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 company violated the state's business practices act.

The FDA was created in 1914.

Under the Truth-in-Lending Act, a creditor who violates disclosure rules may have to pay the consumer double the finance charged owed by the consumer (up to $1,000) plus attorney fees and court costs.

POM advertised that its pomegranate-based products had significant health benefits that were backed by medical studies. The FTC sued, contending that the advertising was misleading. The agency ordered POM to stop making such health benefit claims. POM appealed. The court of appeals held that POM:

In Chuway v. National Action Financial Services, where Chuway received a letter from debt collector National that requested payment of the amount she owed on a debt, the appeals court held that the debt collector:

The Used-Car rule issued by the FTC has increased the price of used cars about five percent.

Under the FTC's Used Car Rule the Buyer's Guide must contain:

The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act was replaced by the Food Quality Protection Act in 1996 because the Delaney Clause:

The ____ required the FDA to issue nutrition labels.

Suppose a debt collector has been calling and sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must:

"Buffo will cure your headache" the ad reads. Buffo, like other pain relievers, helps most people feel better, but it does not cure headaches, it just helps hide the pain, and it does not prevent future headaches. Under the FTC deceptive advertising standard, this ad is:

Which of the following is not a function of the Food and Drug Administration?

Once the FDA has approved a drug for sale there may be no liability imposed on the drug manufacturers for side-effects that were revealed during the testing process.

Katherine loses her ATM card while visiting her boyfriend in Boston. She doesn't realize it until she gets home to New Jersey after a week in Boston. She immediately notifies the bank that she lost her card 7 days ago. How much is Katherine liable for in losses?

The FDA may seize shipments of products that are falsely labeled.

Which of the following was a factor in triggering the passage of the Pure Food and Drug Act:

The Consumer Leasing Act would apply to which of the following leases:

Which of the following is a prohibited basis under the Equal Credit Opportunity Act: