Question 1

Industry guides issued by the Federal Trade Commission are formal and legally binding.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is most likely to be true when the Federal Trade Commission (FTC)is very laissez-faire?

Accepted Answer

A)  The FTC does not regulate most advertising. 
B)  The FTC tends not to regulate traditional frauds. 
C)  The FTC commissioners tend to be more consumer-oriented. 
D)  The FTC will increase the number of deceptive cases filed. 
E)  The FTC limits the role of markets in regulating advertising. 
A)  The FTC does not regulate most advertising. 
B)  The FTC tends not to regulate traditional frauds. 
C)  The FTC commissioners tend to be more consumer-oriented. 
D)  The FTC will increase the number of deceptive cases filed. 
E)  The FTC limits the role of markets in regulating advertising.

Question 3

The trustee in bankruptcy is elected by a debtor to represent the debtor's estate in taking possession of and liquidating the debtor's property.

Accepted Answer

A) True 
 B)False

Question 4

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

Accepted Answer

A) True 
 B)False

Question 5

What is the purpose of the Health Insurance Portability and Accountability Act of 1996?

Accepted Answer

The Health Insurance Portability and Acc

Question 6

The Truth-in-Lending Act covers transactions in which a debtor is a corporation or a business entity.

Accepted Answer

A) True 
 B)False

Question 7

The main purpose of the Federal Trade Commission is to find violators and punish them.

Accepted Answer

A) True 
 B)False

Question 8

Describe the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

Accepted Answer

The Magnuson-Moss Warranty Act applies t

Question 9

In a bankruptcy proceeding,a voluntary petition is one filed by a creditor.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of the Federal Trade Commission's (FTC's)penalties or remedies?

Accepted Answer

A)  The basic penalty for trade practice violations under the FTC Act is a civil fine of not more than $1,000 per violation. 
B)  The FTC's main purpose is to find violators and punish them. 
C)  Either the FTC or the Justice Department must ask the federal court to assess all civil fines including fines accepted by companies that are imposed as part of a consent order. 
D)  Civil fines may be assessed by courts only under two distinct situations: for a violation of a consent or cease and desist order or for a violation of a trade regulation rule. 
E)  The FTC Act states that in the case of a violation through continuing failure to obey an order, each day the violation continues is a separate offense. 
A)  The basic penalty for trade practice violations under the FTC Act is a civil fine of not more than $1,000 per violation. 
B)  The FTC's main purpose is to find violators and punish them. 
C)  Either the FTC or the Justice Department must ask the federal court to assess all civil fines including fines accepted by companies that are imposed as part of a consent order. 
D)  Civil fines may be assessed by courts only under two distinct situations: for a violation of a consent or cease and desist order or for a violation of a trade regulation rule. 
E)  The FTC Act states that in the case of a violation through continuing failure to obey an order, each day the violation continues is a separate offense.

Question 11

Infro Inc.is a major lender.It plans to include the zip codes of its customers as a major factor when offering loans.This allows Infro to reduce the amount of risk it takes by not providing loans in certain areas where property values are low.In this case,which of the following statements is true?

Accepted Answer

A)  Before Infro implements its decision, it must obtain permission from the Federal Trade Commission to do so. 
B)  If Infro goes through with its decision, it is engaging in redlining. 
C)  The decision of Infro is legal under the provisions of the Equal Credit Opportunity Act. 
D)  Before Infro implements its decision, it must specify the minimum average property value a person must have before applying for a loan. 
E)  If Infro goes through with its decision, it is engaging in inclusionary zoning which is legal. 
A)  Before Infro implements its decision, it must obtain permission from the Federal Trade Commission to do so. 
B)  If Infro goes through with its decision, it is engaging in redlining. 
C)  The decision of Infro is legal under the provisions of the Equal Credit Opportunity Act. 
D)  Before Infro implements its decision, it must specify the minimum average property value a person must have before applying for a loan. 
E)  If Infro goes through with its decision, it is engaging in inclusionary zoning which is legal.

Question 12

Only if private remedies fail for violations of the Equal Credit Opportunity Act (ECOA),can the government bring suit to enjoin violations of the ECOA.

Accepted Answer

A) True 
 B)False

Question 13

In the context of the Magnuson-Moss Warranty Act,under full warranties,a warrantor does not have to replace a defective product,if a buyer of the product does not pay shipping costs.

Accepted Answer

A) True 
 B)False

Question 14

Private remedies for violation of the Equal Credit Opportunity Act include recovery of punitive damages up to ______.

Accepted Answer

A)  $100,000 
B)  $50,000 
C)  $10,000 
D)  $20,000 
E)  $500,000 
A)  $100,000 
B)  $50,000 
C)  $10,000 
D)  $20,000 
E)  $500,000

Question 15

DrakeAuto Corp.is an automobile dealer that offers flexible payment plans for its customers.However,DrakeAuto requires its customers over 60 years of age to make the payment in full.In this case,DrakeAuto violates the ______.

Accepted Answer

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

Question 16

Subprime mortgages refer to mortgages securing loans for consumers

Accepted Answer

A)  at an interest rate lower than the prime interest rate established by the Federal Reserve Bank. 
B)  who own property that cannot pass a reasonable safety inspection. 
C)  with excellent credit worthiness at a lower than ordinary market rate. 
D)  who do not qualify for ordinary market rates due to a lack of credit worthiness. 
E)  with excellent credit worthiness at a zero rate of interest. 
A)  at an interest rate lower than the prime interest rate established by the Federal Reserve Bank. 
B)  who own property that cannot pass a reasonable safety inspection. 
C)  with excellent credit worthiness at a lower than ordinary market rate. 
D)  who do not qualify for ordinary market rates due to a lack of credit worthiness. 
E)  with excellent credit worthiness at a zero rate of interest.

Question 17

The Equal Credit Opportunity Act applies to all businesses that regularly extend credit,including financial institutions,retail stores,and credit-card issuers.

Accepted Answer

A) True 
 B)False

Industry guides issued by the Federal Trade Commission are formal and legally binding.

Which of the following statements is most likely to be true when the Federal Trade Commission (FTC)is very laissez-faire?

The trustee in bankruptcy is elected by a debtor to represent the debtor's estate in taking possession of and liquidating the debtor's property.

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

What is the purpose of the Health Insurance Portability and Accountability Act of 1996?

The Truth-in-Lending Act covers transactions in which a debtor is a corporation or a business entity.

The main purpose of the Federal Trade Commission is to find violators and punish them.

Describe the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

In a bankruptcy proceeding,a voluntary petition is one filed by a creditor.

Which of the following statements is true of the Federal Trade Commission's (FTC's)penalties or remedies?

Infro Inc.is a major lender.It plans to include the zip codes of its customers as a major factor when offering loans.This allows Infro to reduce the amount of risk it takes by not providing loans in certain areas where property values are low.In this case,which of the following statements is true?

Only if private remedies fail for violations of the Equal Credit Opportunity Act (ECOA),can the government bring suit to enjoin violations of the ECOA.

In the context of the Magnuson-Moss Warranty Act,under full warranties,a warrantor does not have to replace a defective product,if a buyer of the product does not pay shipping costs.

Private remedies for violation of the Equal Credit Opportunity Act include recovery of punitive damages up to ______.

DrakeAuto Corp.is an automobile dealer that offers flexible payment plans for its customers.However,DrakeAuto requires its customers over 60 years of age to make the payment in full.In this case,DrakeAuto violates the ______.

Subprime mortgages refer to mortgages securing loans for consumers

The Equal Credit Opportunity Act applies to all businesses that regularly extend credit,including financial institutions,retail stores,and credit-card issuers.

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

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

Industry guides issued by the Federal Trade Commission are formal and legally binding.

Which of the following statements is most likely to be true when the Federal Trade Commission (FTC)is very laissez-faire?

The trustee in bankruptcy is elected by a debtor to represent the debtor's estate in taking possession of and liquidating the debtor's property.

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

What is the purpose of the Health Insurance Portability and Accountability Act of 1996?

The Truth-in-Lending Act covers transactions in which a debtor is a corporation or a business entity.

The main purpose of the Federal Trade Commission is to find violators and punish them.

Describe the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

In a bankruptcy proceeding,a voluntary petition is one filed by a creditor.

Which of the following statements is true of the Federal Trade Commission's (FTC's)penalties or remedies?

Infro Inc.is a major lender.It plans to include the zip codes of its customers as a major factor when offering loans.This allows Infro to reduce the amount of risk it takes by not providing loans in certain areas where property values are low.In this case,which of the following statements is true?

Only if private remedies fail for violations of the Equal Credit Opportunity Act (ECOA),can the government bring suit to enjoin violations of the ECOA.

In the context of the Magnuson-Moss Warranty Act,under full warranties,a warrantor does not have to replace a defective product,if a buyer of the product does not pay shipping costs.

Private remedies for violation of the Equal Credit Opportunity Act include recovery of punitive damages up to ______.

DrakeAuto Corp.is an automobile dealer that offers flexible payment plans for its customers.However,DrakeAuto requires its customers over 60 years of age to make the payment in full.In this case,DrakeAuto violates the ______.

Subprime mortgages refer to mortgages securing loans for consumers

The Equal Credit Opportunity Act applies to all businesses that regularly extend credit,including financial institutions,retail stores,and credit-card issuers.

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