Question 1

The bankruptcy laws are subject to regulatory interpretation.

Accepted Answer

A) True 
 B)False

Question 2

Most cases brought by the Bureau of Consumer Protection are settled using ______.

Accepted Answer

A)  the cease and desist order 
B)  arbitration 
C)  extradition 
D)  an injunction 
E)  the consent-order procedure 
A)  the cease and desist order 
B)  arbitration 
C)  extradition 
D)  an injunction 
E)  the consent-order procedure

Question 3

______ are reports on a consumer's character,general reputation,mode of living,and so on,obtained by personal interviews in the consumer's community.

Accepted Answer

A)  Credit reports 
B)  Consumer policy reports 
C)  Market research reports on consumers 
D)  Arbitrative consumer relations reports 
E)  Investigative consumer reports 
A)  Credit reports 
B)  Consumer policy reports 
C)  Market research reports on consumers 
D)  Arbitrative consumer relations reports 
E)  Investigative consumer reports

Question 4

In a bankruptcy proceeding,the debts are either liquidated under Chapter 7 or adjusted under Chapter 13 of the bankruptcy law.

Accepted Answer

A) True 
 B)False

Question 5

The regulatory center for federal consumer protection is the ______.

Accepted Answer

A)  United States Consumer Product Safety Commission 
B)  Bureau of Consumer Protection 
C)  Federal Consumer Protection Agency 
D)  Bureau of Consumer Trade 
E)  Department of Consumer Affairs 
A)  United States Consumer Product Safety Commission 
B)  Bureau of Consumer Protection 
C)  Federal Consumer Protection Agency 
D)  Bureau of Consumer Trade 
E)  Department of Consumer Affairs

Question 6

Among the costs frequently paid by debtors that are not included in the finance charge are recording fees and taxes.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of the Truth-in-Lending Simplification Act?

Accepted Answer

A)  It restricts statutory penalties to failures to disclose credit terms that are of material importance in credit comparisons. 
B)  It requires statutory penalties to be based purely on technical violations of the act. 
C)  It eliminates the need for model disclosure forms issued by the government. 
D)  It restricts state laws from allowing private lawsuits against deceptive advertisements. 
E)  It prohibits companies from the practice of redlining. 
A)  It restricts statutory penalties to failures to disclose credit terms that are of material importance in credit comparisons. 
B)  It requires statutory penalties to be based purely on technical violations of the act. 
C)  It eliminates the need for model disclosure forms issued by the government. 
D)  It restricts state laws from allowing private lawsuits against deceptive advertisements. 
E)  It prohibits companies from the practice of redlining.

Question 8

How does the Federal Trade Commission determine deception in an advertisement?

Accepted Answer

To determine deception,the Federal Trade

Question 9

The Truth-in-Lending Act gives debtors the right to rescind certain transactions for a period of ______ business days from the date of the transactions or from the date they are given the notice of their right to rescind,whichever is later.

Accepted Answer

A)  seven 
B)  eight 
C)  three 
D)  nine 
E)  five 
A)  seven 
B)  eight 
C)  three 
D)  nine 
E)  five

Question 10

DN Corp.is a credit reporting agency.DN Corp.furnishes an investigative consumer report about Nicole,a candidate,who is seeking employment at Zenith Corp.,a financial institution.Nicole is given a week's notice that such a report will be generated by DN Corp.as part of Zenith's hiring process.DN Corp.follows reasonable procedure when collecting information about Nicole.However,Nicole realizes that the report contains false information about her.In this scenario,which of the following is most likely to be true?

Accepted Answer

A)  Nicole can sue DN Corp. for furnishing false information as it violates the Fair Credit Reporting Act. 
B)  Nicole can sue Zenith Corp. for requesting an investigative consumer report. 
C)  Nicole cannot file a libel action against DN Corp. for furnishing false information regardless of whether the investigative procedures were reasonable or not. 
D)  DN Corp. is not liable to Nicole as it followed reasonable procedures. 
E)  DN Corp. is protected by the Fair Credit Reporting Act against any liability regardless of whether the investigative procedures were reasonable or not. 
A)  Nicole can sue DN Corp. for furnishing false information as it violates the Fair Credit Reporting Act. 
B)  Nicole can sue Zenith Corp. for requesting an investigative consumer report. 
C)  Nicole cannot file a libel action against DN Corp. for furnishing false information regardless of whether the investigative procedures were reasonable or not. 
D)  DN Corp. is not liable to Nicole as it followed reasonable procedures. 
E)  DN Corp. is protected by the Fair Credit Reporting Act against any liability regardless of whether the investigative procedures were reasonable or not.

Question 11

What are the two types of petitions that are filed to begin bankruptcy proceedings?

Accepted Answer

Bankruptcy proceedings begin upon the fi

Question 12

The creditors who file an involuntary petition to the court to begin a bankruptcy proceeding must be owed at least ______ by the debtor.

Accepted Answer

A)  $1,200 
B)  $1,500 
C)  $2,500 
D)  $2,300 
E)  $1,000 
A)  $1,200 
B)  $1,500 
C)  $2,500 
D)  $2,300 
E)  $1,000

Question 13

Which of the following act's purpose is to prevent discrimination in credit extension?

Accepted Answer

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

Question 14

The Fair Credit Reporting Act provides that a report containing information solely as to transactions or experiences between a consumer and a person making the report is not a consumer report covered by the act.

Accepted Answer

A) True 
 B)False

Question 15

The Electronic Fund Transfer Act,administered by the Consumer Financial Protection Bureau,limits liability on lost,stolen,or misused automatic teller and check cards (debit cards)to

Accepted Answer

A)  $600 if reported after two days but before 60 days of consumer's learning of a misuse. 
B)  amounts over $15 within the consumer's home state if reported within seven business days. 
C)  $50 if reported within two business days of consumer's learning of a misuse. 
D)  $15 within a 100-mile radius of a consumer's home if reported within seven business days. 
E)  $500 after 60 days without reporting. 
A)  $600 if reported after two days but before 60 days of consumer's learning of a misuse. 
B)  amounts over $15 within the consumer's home state if reported within seven business days. 
C)  $50 if reported within two business days of consumer's learning of a misuse. 
D)  $15 within a 100-mile radius of a consumer's home if reported within seven business days. 
E)  $500 after 60 days without reporting.

Question 16

For violations of the Fair Debt Collection Practices Act,in the absence of actual damages,the court may still order a collector to pay a debtor up to ______.

Accepted Answer

A)  $100,000 
B)  $50,000 
C)  $1,000 
D)  $5,000 
E)  $10,000 
A)  $100,000 
B)  $50,000 
C)  $1,000 
D)  $5,000 
E)  $10,000

Question 17

The Federal Trade Commission advises firms that request advice as to whether a proposed practice is unfair or deceptive.

Accepted Answer

A) True 
 B)False

Question 18

The Equal Credit Opportunity Act is aimed especially at preventing ______.

Accepted Answer

A)  race discrimination 
B)  age discrimination 
C)  sex discrimination 
D)  marital status discrimination 
E)  religion discrimination 
A)  race discrimination 
B)  age discrimination 
C)  sex discrimination 
D)  marital status discrimination 
E)  religion discrimination

Question 19

The Fair Debt Collection Practices Act applies only to consumer debt collections.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true of the Children's Online Privacy Protection Act?

Accepted Answer

A)  It prohibits the creation of websites intended to target children. 
B)  It permits companies to collect information on children over the age of 10 without the need for consent of the parents. 
C)  It prohibits market research agencies from soliciting children under the age of 13 without the consent of the federal government. 
D)  It prohibits online advertisers from creating advertisements targeting children under the age of 10. 
E)  It prohibits the online collection of information on children under the age of 13 without a parent's consent. 
A)  It prohibits the creation of websites intended to target children. 
B)  It permits companies to collect information on children over the age of 10 without the need for consent of the parents. 
C)  It prohibits market research agencies from soliciting children under the age of 13 without the consent of the federal government. 
D)  It prohibits online advertisers from creating advertisements targeting children under the age of 10. 
E)  It prohibits the online collection of information on children under the age of 13 without a parent's consent.

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

The bankruptcy laws are subject to regulatory interpretation.

Most cases brought by the Bureau of Consumer Protection are settled using ______.

______ are reports on a consumer's character,general reputation,mode of living,and so on,obtained by personal interviews in the consumer's community.

In a bankruptcy proceeding,the debts are either liquidated under Chapter 7 or adjusted under Chapter 13 of the bankruptcy law.

The regulatory center for federal consumer protection is the ______.

Among the costs frequently paid by debtors that are not included in the finance charge are recording fees and taxes.

Which of the following statements is true of the Truth-in-Lending Simplification Act?

How does the Federal Trade Commission determine deception in an advertisement?

The Truth-in-Lending Act gives debtors the right to rescind certain transactions for a period of ______ business days from the date of the transactions or from the date they are given the notice of their right to rescind,whichever is later.

What are the two types of petitions that are filed to begin bankruptcy proceedings?

The creditors who file an involuntary petition to the court to begin a bankruptcy proceeding must be owed at least ______ by the debtor.

Which of the following act's purpose is to prevent discrimination in credit extension?

The Fair Credit Reporting Act provides that a report containing information solely as to transactions or experiences between a consumer and a person making the report is not a consumer report covered by the act.

The Electronic Fund Transfer Act,administered by the Consumer Financial Protection Bureau,limits liability on lost,stolen,or misused automatic teller and check cards (debit cards)to

For violations of the Fair Debt Collection Practices Act,in the absence of actual damages,the court may still order a collector to pay a debtor up to ______.

The Federal Trade Commission advises firms that request advice as to whether a proposed practice is unfair or deceptive.

The Equal Credit Opportunity Act is aimed especially at preventing ______.

The Fair Debt Collection Practices Act applies only to consumer debt collections.

Which of the following statements is true of the Children's Online Privacy Protection Act?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters