Question 1

Which of the following statements is true of the Fair Debt Collection Practices Act?

Accepted Answer

A)  It permits debt collectors to contact a third party, even if an attorney representing a debtor responds to all communications by the collector. 
B)  It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer but may not disclose the nature or amount of the debt. 
C)  It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer and may also disclose the nature or amount of the debt. 
D)  It forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of a consumer's debt. 
E)  It permits debt collectors to contact third parties, but the debt collector may not state that the consumer owes a debt. 
A)  It permits debt collectors to contact a third party, even if an attorney representing a debtor responds to all communications by the collector. 
B)  It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer but may not disclose the nature or amount of the debt. 
C)  It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer and may also disclose the nature or amount of the debt. 
D)  It forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of a consumer's debt. 
E)  It permits debt collectors to contact third parties, but the debt collector may not state that the consumer owes a debt.

Question 2

What are the broad powers granted to a trustee in bankruptcy?

Accepted Answer

A trustee in bankruptcy can a)affirm or

Question 3

The Federal Trade Commission is charged with eliminating competition to protect consumers.

Accepted Answer

A) True 
 B)False

Question 4

What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

Accepted Answer

In 1980,Congress passed the Truth-in-Len

Question 5

What are the provisions of the Right to Financial Privacy Act of 1978?

Accepted Answer

The Right to Financial Privacy Act of 19

Question 6

______ ensures fair competition by preventing those who would deceive consumers from diverting trade from those who compete honestly.

Accepted Answer

A)  trade practice regulation 
B)  redlining procedure 
C)  resale price maintenance 
D)  restraint of trade 
E)  full-line forcing 
A)  trade practice regulation 
B)  redlining procedure 
C)  resale price maintenance 
D)  restraint of trade 
E)  full-line forcing

Question 7

Under the Right to Financial Privacy Act of 1978,an individual depositor has the right to challenge an agency's legal basis for seeking financial records.

Accepted Answer

A) True 
 B)False

Question 8

In the context of false advertising laws,state law

Accepted Answer

A)  may allow for private lawsuits in addition to government enforcement, which is an option not available under the Federal Trade Commission Act. 
B)  ignores material claims in deceptive advertising unlike the Federal Trade Commission Act. 
C)  ignores express claims made in deceptive advertising unlike the Federal Trade Commission Act. 
D)  only prosecutes violators who make implied claims in their advertising unlike the Federal Trade Commission Act. 
E)  uses remedies such as corrective advertising to accompany some of its orders, which is an option not available under the Federal Trade Commission Act. 
A)  may allow for private lawsuits in addition to government enforcement, which is an option not available under the Federal Trade Commission Act. 
B)  ignores material claims in deceptive advertising unlike the Federal Trade Commission Act. 
C)  ignores express claims made in deceptive advertising unlike the Federal Trade Commission Act. 
D)  only prosecutes violators who make implied claims in their advertising unlike the Federal Trade Commission Act. 
E)  uses remedies such as corrective advertising to accompany some of its orders, which is an option not available under the Federal Trade Commission Act.

Question 9

In a bankruptcy proceeding,which of the following classes of bankruptcy creditors will receive the lowest priority?

Accepted Answer

A)  one who is injured from a motor vehicle operated by a debtor while he was intoxicated 
B)  employees who are owed wages earned within 180 days of the bankruptcy petition 
C)  consumers who have paid deposits or prepayments for undelivered goods or services 
D)  creditors with claims that occur in the ordinary course of the debtor's business after a bankruptcy petition has been filed 
E)  creditors with claims that arise from the costs of preserving and administering the debtor's estate 
A)  one who is injured from a motor vehicle operated by a debtor while he was intoxicated 
B)  employees who are owed wages earned within 180 days of the bankruptcy petition 
C)  consumers who have paid deposits or prepayments for undelivered goods or services 
D)  creditors with claims that occur in the ordinary course of the debtor's business after a bankruptcy petition has been filed 
E)  creditors with claims that arise from the costs of preserving and administering the debtor's estate

Question 10

The Electronic Communications Privacy Act and Stored Communications Act protect all personally identifiable information.

Accepted Answer

A) True 
 B)False

Question 11

What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

Accepted Answer

The chief legal tools of the Bureau of C

Question 12

Among the costs frequently paid by debtors to creditors as a condition of the extension of credit,which of the following are included in the finance charge?

Accepted Answer

A)  title insurance fees 
B)  abstract fees 
C)  attorney's fees for preparing deeds 
D)  notary fees 
E)  fees for appraisals 
A)  title insurance fees 
B)  abstract fees 
C)  attorney's fees for preparing deeds 
D)  notary fees 
E)  fees for appraisals

Question 13

To obtain civil fines,either the Federal Trade Commission (FTC)or the Justice Department must ask the federal court to assess them.The exception to this rule is when companies

Accepted Answer

A)  violate a cease and desist order. 
B)  agree to fines as part of a cease and desist order. 
C)  knowingly violate a prior FTC order against others. 
D)  violate a trade regulation rule. 
E)  agree to fines as part of a consent order. 
A)  violate a cease and desist order. 
B)  agree to fines as part of a cease and desist order. 
C)  knowingly violate a prior FTC order against others. 
D)  violate a trade regulation rule. 
E)  agree to fines as part of a consent order.

Question 14

The Consumer Financial Protection Bureau regulates insurance companies.

Accepted Answer

A) True 
 B)False

Question 15

What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

Accepted Answer

The Consumer Financial Protection Bureau

Question 16

The president appoints the commissioners of the Federal Trade Commission for four-year terms.

Accepted Answer

A) True 
 B)False

Question 17

BrightCave is a local retail store that regularly extends credit to its customers.William,an African American,is denied credit by the store.He believes that the store has discriminated against him based on his race.In this scenario,BrightCave violates the ______.

Accepted Answer

A)  Federal Trade Commission Act 
B)  Fair Credit Reporting Act 
C)  Equal Credit Opportunity Act 
D)  Fair Debt Collection Practices Act 
E)  Truth-in-Lending Act 
A)  Federal Trade Commission Act 
B)  Fair Credit Reporting Act 
C)  Equal Credit Opportunity Act 
D)  Fair Debt Collection Practices Act 
E)  Truth-in-Lending Act

Question 18

What remedies are used by the Federal Trade Commission,apart from penalty fines and corrective advertising,to protect consumers in trade regulation cases?

Accepted Answer

The remedies that the Federal Trade Comm

Question 19

What information should a financing statement contain apart from the finance charge and annual percentage rate?

Accepted Answer

A financing statement must contain,in ad

Question 20

What are the two related ways in which the Federal Trade Commission (FTC)prosecutes businesses for committing unfair or deceptive trade practices?

Accepted Answer

In its function of protecting consumers

Exam 18: Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Which of the following statements is true of the Fair Debt Collection Practices Act?

What are the broad powers granted to a trustee in bankruptcy?

The Federal Trade Commission is charged with eliminating competition to protect consumers.

What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

What are the provisions of the Right to Financial Privacy Act of 1978?

______ ensures fair competition by preventing those who would deceive consumers from diverting trade from those who compete honestly.

Under the Right to Financial Privacy Act of 1978,an individual depositor has the right to challenge an agency's legal basis for seeking financial records.

In the context of false advertising laws,state law

In a bankruptcy proceeding,which of the following classes of bankruptcy creditors will receive the lowest priority?

The Electronic Communications Privacy Act and Stored Communications Act protect all personally identifiable information.

What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

Among the costs frequently paid by debtors to creditors as a condition of the extension of credit,which of the following are included in the finance charge?

To obtain civil fines,either the Federal Trade Commission (FTC)or the Justice Department must ask the federal court to assess them.The exception to this rule is when companies

The Consumer Financial Protection Bureau regulates insurance companies.

What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

The president appoints the commissioners of the Federal Trade Commission for four-year terms.

BrightCave is a local retail store that regularly extends credit to its customers.William,an African American,is denied credit by the store.He believes that the store has discriminated against him based on his race.In this scenario,BrightCave violates the ______.

What remedies are used by the Federal Trade Commission,apart from penalty fines and corrective advertising,to protect consumers in trade regulation cases?

What information should a financing statement contain apart from the finance charge and annual percentage rate?

What are the two related ways in which the Federal Trade Commission (FTC)prosecutes businesses for committing unfair or deceptive trade practices?

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