Question 1

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Accepted Answer

A)  ​denying coverage for preexisting conditions. 
B)  ​enabling more children to obtain health-insurance coverage. 
C)  ​allowing adults under age twenty-six to remain on their parents' health insurance. 
D)  ​ending lifetime and most annual limits on care. 
A)  ​denying coverage for preexisting conditions. 
B)  ​enabling more children to obtain health-insurance coverage. 
C)  ​allowing adults under age twenty-six to remain on their parents' health insurance. 
D)  ​ending lifetime and most annual limits on care.

Question 2

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Accepted Answer

A)  ​no federal law. 
B)  ​the Fair Credit Reporting Act. 
C)  ​the Telecommunications Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Fair Credit Reporting Act. 
C)  ​the Telecommunications Act. 
D)  ​the Truth-in-Lending Act.

Question 3

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Accepted Answer

A)  ​every new car. 
B)  ​no car-compliance with the law is voluntary. 
C)  ​select old and new cars. 
D)  ​whichever vehicles Gear chooses. 
A)  ​every new car. 
B)  ​no car-compliance with the law is voluntary. 
C)  ​select old and new cars. 
D)  ​whichever vehicles Gear chooses.

Question 4

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Accepted Answer

A) True 
 B)False

Question 5

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a potentially hazardous toy from the market is

Accepted Answer

A)  ​the Consumer Product Safety Commission. 
B)  ​the Federal Reserve Board of Governors. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration. 
A)  ​the Consumer Product Safety Commission. 
B)  ​the Federal Reserve Board of Governors. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration.

Question 6

Package labels must use words that the ordinary consumer understands.

Accepted Answer

A) True 
 B)False

Question 7

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

Accepted Answer

A)  ​the car loan only. 
B)  ​the home repair loan only. 
C)  the retail installment sale only. 
D)  ​the car loan, the home repair loan, and the retail installment sale. 
A)  ​the car loan only. 
B)  ​the home repair loan only. 
C)  the retail installment sale only. 
D)  ​the car loan, the home repair loan, and the retail installment sale.

Question 8

Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from

Accepted Answer

A)  ​a distinct harm separate from that affecting the general public. 
B)  ​a lesser harm than an injunction would impose on Plywood. 
C)  ​Plywood's failure to use reasonable care to avert herm to Quinn. 
D)  ​the same harm as that affecting the general public. 
A)  ​a distinct harm separate from that affecting the general public. 
B)  ​a lesser harm than an injunction would impose on Plywood. 
C)  ​Plywood's failure to use reasonable care to avert herm to Quinn. 
D)  ​the same harm as that affecting the general public.

Question 9

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 10

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

Accepted Answer

A)  ​a cease-and-desist order. 
B)  ​a counteradvertising order. 
C)  a multiple product order. 
D)  ​none of the choices. 
A)  ​a cease-and-desist order. 
B)  ​a counteradvertising order. 
C)  a multiple product order. 
D)  ​none of the choices.

Question 11

Puffery constitutes Advertising, Marketing, and Sales.

Accepted Answer

A) True 
 B)False

Question 12

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to​

Accepted Answer

A)  ​draft a formal complaint. 
B)  ​investigate. 
C)  ​issue a cease-and-desist order. 
D)  ​order restitution. 
A)  ​draft a formal complaint. 
B)  ​investigate. 
C)  ​issue a cease-and-desist order. 
D)  ​order restitution.

Question 13

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.

Accepted Answer

A) True 
 B)False

Question 14

Vague generalities and obvious exaggerations are permissible in advertising.

Accepted Answer

A) True 
 B)False

Question 15

The National Pollutant Discharge Elimination System focuses only on industrial wastewater and storm water discharges.

Accepted Answer

A) True 
 B)False

Question 16

Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in an assessment of​

Accepted Answer

A)  ​cleanup costs and damages. 
B)  cleanup costs only. 
C)  ​damages only. 
D)  ​no cleanup costs or damages. 
A)  ​cleanup costs and damages. 
B)  cleanup costs only. 
C)  ​damages only. 
D)  ​no cleanup costs or damages.

Question 17

BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo​

Accepted Answer

A)  ​strict liability. 
B)  ​liability under the nuisance doctrine. 
C)  ​liability on a negligence theory. 
D)  ​no liability. 
A)  ​strict liability. 
B)  ​liability under the nuisance doctrine. 
C)  ​liability on a negligence theory. 
D)  ​no liability.

Question 18

It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label.

Accepted Answer

A) True 
 B)False

Question 19

A public authority, such as a state's attorney general, can sue to stop a "public" nuisance.

Accepted Answer

A) True 
 B)False

Question 20

Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include

Accepted Answer

A)  ​the company owner's identity. 
B)  ​the contents' net quantity. 
C)  ​the restaurants and stores in which the product is sold. 
D)  ​the type of consumer most likely interested in the product. 
A)  ​the company owner's identity. 
B)  ​the contents' net quantity. 
C)  ​the restaurants and stores in which the product is sold. 
D)  ​the type of consumer most likely interested in the product.

Exam 32: Consumer and Environmental Law

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a potentially hazardous toy from the market is

Package labels must use words that the ordinary consumer understands.

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from

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​

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

Puffery constitutes Advertising, Marketing, and Sales.

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to​

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.

Vague generalities and obvious exaggerations are permissible in advertising.

The National Pollutant Discharge Elimination System focuses only on industrial wastewater and storm water discharges.

Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in an assessment of​

BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo​

It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label.

A public authority, such as a state's attorney general, can sue to stop a "public" nuisance.

Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Nature and Classification

Agreement

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Private Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

Filters

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

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

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to

Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in an assessment of

BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo