Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Soundbites Corporation makes and markets cellphones. Soundbites’s ad states that on its phones voices and text come through as “clear as the sky on a cloudless day.” The Federal Trade Commission would consider this claim

Accepted Answer

A) false and misleading. 
B) impermissibly vague and general. 
C) a deceptive half-truth. 
D) none of the choices. 
A) false and misleading. 
B) impermissibly vague and general. 
C) a deceptive half-truth. 
D) none of the choices.

Question 3

A credit collection agency may contact a debtor at any time.

Accepted Answer

A) True 
 B)False

Question 4

Hearth & Home Furniture store advertises bedroom suites at a “Special Low Price of $599.” When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. This is

Accepted Answer

A) a cease-and-desist order. 
B) bait-and-switch advertising. 
C) counteradvertising. 
D) puffery. 
A) a cease-and-desist order. 
B) bait-and-switch advertising. 
C) counteradvertising. 
D) puffery.

Question 5

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 6

Fact Pattern 32-1
​Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property.
-Refer to Fact Pattern 32-1. The court is most likely to award Robyn an injunction

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 7

The operations of Commercial Concrete, Inc., are major sources of air pollution. These operations must use​

Accepted Answer

A)  ​the absolutely cleanest air technology. 
B)  ​the best available filter technology. 
C)  ​the maximum achievable control technology. 
D)  ​the most affordable scrubbing technology. 
A)  ​the absolutely cleanest air technology. 
B)  ​the best available filter technology. 
C)  ​the maximum achievable control technology. 
D)  ​the most affordable scrubbing technology.

Question 8

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Accepted Answer

A) True 
 B)False

Question 9

National Pollutant Discharge Elimination System permits can be issued even if a discharge will violate water-quality standards.

Accepted Answer

A) True 
 B)False

Question 10

With regard to air pollution, there is one set of ambient standards-maximum permissible levels of certain pollutants-and the federal government formulates plans to achieve them.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Credit can be denied on the basis of race.

Accepted Answer

A) True 
 B)False

Question 13

The Environmental Protection Agency sets maximum levels for pollutants in public water systems.

Accepted Answer

A) True 
 B)False

Question 14

Phil has a credit-card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards

Accepted Answer

A)  ​must give Phil at least thirty days' notice before changing the terms. 
B)  ​must give Phil at least forty-five days' notice before changing the terms. 
C)  ​need not give Phil any notice before changing the terms. 
D)  ​is not allowed to change the terms. 
A)  ​must give Phil at least thirty days' notice before changing the terms. 
B)  ​must give Phil at least forty-five days' notice before changing the terms. 
C)  ​need not give Phil any notice before changing the terms. 
D)  ​is not allowed to change the terms.

Question 15

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to​

Accepted Answer

A)  ​conduct negotiations between the competitors. 
B)  ​draft a formal complaint. 
C)  ​issue a cease-and-desist order. 
D)  ​permit Spicy Salsa to broadcast similarly deceptive counteradvertising. 
A)  ​conduct negotiations between the competitors. 
B)  ​draft a formal complaint. 
C)  ​issue a cease-and-desist order. 
D)  ​permit Spicy Salsa to broadcast similarly deceptive counteradvertising.

Question 16

Mello's Mattress Company advertises a special sale on mattresses on its Website. The mattresses are normally sold for $1,000, but are advertised on the site for $499. The sale price does not include the shipping cost. Mello's charges $250 for shipping. To avoid claims of Advertising, Marketing, and Sales, Mello's should​

Accepted Answer

A)  ​clearly and conspicuously disclose the shipping cost in its ads. 
B)  ​display the shipping cost in small print on Mello's Web page. 
C)  ​include the shipping cost on the last page of Mello's Web site. 
D)  ​not reveal the shipping cost. 
A)  ​clearly and conspicuously disclose the shipping cost in its ads. 
B)  ​display the shipping cost in small print on Mello's Web page. 
C)  ​include the shipping cost on the last page of Mello's Web site. 
D)  ​not reveal the shipping cost.

Question 17

Wild Things, Inc. (WTI), in its ads, makes claims about its products that are obvious exaggerations and claims that are false but appear to be true. WTI may be subject to sanctions for

Accepted Answer

A) neither the false claims nor the obvious exaggerations. 
B) only the false claims. 
C) only the obvious exaggerations. 
D) the false claims and the obvious exaggerations. 
A) neither the false claims nor the obvious exaggerations. 
B) only the false claims. 
C) only the obvious exaggerations. 
D) the false claims and the obvious exaggerations.

Question 18

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.

Accepted Answer

A) True 
 B)False

Question 19

Fact Pattern 32-1
​Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property.
-Refer to Fact Pattern 32-1. 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 20

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include

Accepted Answer

A)  ​corporate officers who knowingly violate the act. 
B)  ​persons who provide information about violators but otherwise fail to act. 
C)  ​private citizens who fail to sue violators. 
D)  ​none of the choices. 
A)  ​corporate officers who knowingly violate the act. 
B)  ​persons who provide information about violators but otherwise fail to act. 
C)  ​private citizens who fail to sue violators. 
D)  ​none of the choices.

Exam 32: Consumer and Environmental Law

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

Soundbites Corporation makes and markets cellphones. Soundbites’s ad states that on its phones voices and text come through as “clear as the sky on a cloudless day.” The Federal Trade Commission would consider this claim

A credit collection agency may contact a debtor at any time.

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.

The operations of Commercial Concrete, Inc., are major sources of air pollution. These operations must use​

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

National Pollutant Discharge Elimination System permits can be issued even if a discharge will violate water-quality standards.

With regard to air pollution, there is one set of ambient standards-maximum permissible levels of certain pollutants-and the federal government formulates plans to achieve them.

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

Credit can be denied on the basis of race.

The Environmental Protection Agency sets maximum levels for pollutants in public water systems.

Phil has a credit-card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to​

Wild Things, Inc. (WTI), in its ads, makes claims about its products that are obvious exaggerations and claims that are false but appear to be true. WTI may be subject to sanctions for

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act 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

The operations of Commercial Concrete, Inc., are major sources of air pollution. These operations must use

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to