Question 1

The Federal Trade Commission carries out the broadly stated goal of preventing unfair and deceptive trade practices.

Accepted Answer

A) True 
 B)False

Question 2

Industrial Solvents,Inc.,averages $15,000 profit per day before deciding to ignore air pollution standards,after which the average is $50,000. Industrial Solvents is subject to a fine of

Accepted Answer

A) $0. 
B) $15,000 per day. 
C) $50,000 per day. 
D) $65,000 total. 
A) $0. 
B) $15,000 per day. 
C) $50,000 per day. 
D) $65,000 total.

Question 3

In its ads,Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims

Accepted Answer

A) mislead a reasonable consumer. 
B) contain vague generalities. 
C) include obvious exaggerations. 
A) mislead a reasonable consumer. 
B) contain vague generalities. 
C) include obvious exaggerations.

Question 4

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in Advertising,Marketing,and Sales practices. What actions can the FTC take against Chuck's?

Accepted Answer

The Federal Trade Commission (FTC)can in

Question 5

Any time a consumer is denied credit or insurance on the basis of his or her credit report,the consumer must be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 6

Under the doctrine of nuisance,persons may be liable if they use their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property.

Accepted Answer

A) True 
 B)False

Question 7

Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

Accepted Answer

A) no federal law. 
B) the Consumer Leasing Act. 
C) the Consumer Product Safety Act. 
D) the Truth-in-Lending Act. 
A) no federal law. 
B) the Consumer Leasing Act. 
C) the Consumer Product Safety Act. 
D) the Truth-in-Lending Act.

Question 8

The court is most likely to award Robyn damages

Accepted Answer

A) if letting the pollution continue is equally as harmful as stopping it. 
B) if letting the pollution continue is less harmful than stopping it. 
C) if letting the pollution continue is more harmful than stopping it. 
D) under no circumstances. 
A) if letting the pollution continue is equally as harmful as stopping it. 
B) if letting the pollution continue is less harmful than stopping it. 
C) if letting the pollution continue is more harmful than stopping it. 
D) under no circumstances.

Question 9

There are no defenses to liability under the Comprehensive Environmental Response,Compensation,and Liability Act.

Accepted Answer

A) True 
 B)False

Question 10

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.

Accepted Answer

A) True 
 B)False

Question 11

HazMat Waste Corporation operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site,HazMat sells the property to Investment Holdings,Inc. If there is a release,HazMat is most likely

Accepted Answer

A) liable. 
B) not liable because the site was sold before the release. 
C) not liable because HazMat was concerned about the release. 
D) not liable because HazMat no longer operates the facility. 
A) liable. 
B) not liable because the site was sold before the release. 
C) not liable because HazMat was concerned about the release. 
D) not liable because HazMat no longer operates the facility.

Question 12

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

Accepted Answer

A) True 
 B)False

Exam 39: Consumer and Environmental Law

The Federal Trade Commission carries out the broadly stated goal of preventing unfair and deceptive trade practices.

Industrial Solvents,Inc.,averages $15,000 profit per day before deciding to ignore air pollution standards,after which the average is $50,000. Industrial Solvents is subject to a fine of

In its ads,Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in Advertising,Marketing,and Sales practices. What actions can the FTC take against Chuck's?

Any time a consumer is denied credit or insurance on the basis of his or her credit report,the consumer must be notified of that fact.

Under the doctrine of nuisance,persons may be liable if they use their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property.

Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

The court is most likely to award Robyn damages

There are no defenses to liability under the Comprehensive Environmental Response,Compensation,and Liability Act.

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.

HazMat Waste Corporation operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site,HazMat sells the property to Investment Holdings,Inc. If there is a release,HazMat is most likely

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

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