Question 1

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Accepted Answer

A)  ​credibility. 
B)  ​financial awareness. 
C)  ​occupation. 
D)  ​gender. 
A)  ​credibility. 
B)  ​financial awareness. 
C)  ​occupation. 
D)  ​gender. D

Question 2

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Accepted Answer

A) True 
 B)False  False

Question 3

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of​

Accepted Answer

A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act. C

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 deceptive advertising practices. What actions can the FTC take against Chuck's?​

Accepted Answer

The Federal Trade Commission (FTC) can i

Question 5

Ads must disclose qualifying information underlying their claims.

Accepted Answer

A) True 
 B)False

Question 6

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Accepted Answer

A)  ​no federal law. 
B)  ​the Equal Credit Opportunity Act. 
C)  ​the Fair Credit Reporting Act. 
D)  ​the Fair Debt Collection Practices Act. 
A)  ​no federal law. 
B)  ​the Equal Credit Opportunity Act. 
C)  ​the Fair Credit Reporting Act. 
D)  ​the Fair Debt Collection Practices Act.

Question 7

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

Accepted Answer

A)  ​a counteradvertising order. 
B)  ​a multiple product order. 
C)  ​a "cooling-off" law. 
D)  ​a validation notice. 
A)  ​a counteradvertising order. 
B)  ​a multiple product order. 
C)  ​a "cooling-off" law. 
D)  ​a validation notice.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

Spicy Salsa Company complains to the Federal Trade Commission (FTC) about an ad by Tangy Sauces Inc., Spicy'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)  ​send a formal complaint. 
C)  ​issue a cease-and-desist order. 
D)  ​permit Spicy Salsa to distribute a similarly deceptive counter-ad. 
A)  ​conduct negotiations between the competitors. 
B)  ​send a formal complaint. 
C)  ​issue a cease-and-desist order. 
D)  ​permit Spicy Salsa to distribute a similarly deceptive counter-ad.

Question 11

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 12

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

Accepted Answer

A)  ​Corner Market and Deli & Drug. 
B)  ​Deli & Drug only. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration. 
A)  ​Corner Market and Deli & Drug. 
B)  ​Deli & Drug only. 
C)  ​the Federal Trade Commission. 
D)  ​the Food and Drug Administration.

Question 13

Account numbers on credit-card receipts must be truncated (shortened).

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates​

Accepted Answer

A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act. 
A)  ​no federal law. 
B)  ​the Fair and Accurate Credit Transactions Act. 
C)  ​the Fair Debt Collection Practices Act. 
D)  ​the Truth-in-Lending Act.

Question 16

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.

Accepted Answer

A) True 
 B)False

Question 17

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

Accepted Answer

A)  ​a restaurant chain with twenty or more locations. 
B)  ​a food distributor with twenty or more customers. 
C)  ​a food maker with twenty or more products. 
D)  ​a food producer with twenty or more acres. 
A)  ​a restaurant chain with twenty or more locations. 
B)  ​a food distributor with twenty or more customers. 
C)  ​a food maker with twenty or more products. 
D)  ​a food producer with twenty or more acres.

Question 18

Teri borrows $10,000 from USA 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 19

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Accepted Answer

A) True 
 B)False

Question 20

Credit can be denied solely on the basis of marital status.

Accepted Answer

A) True 
 B)False

Exam 24: Consumer Law

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of​

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 deceptive advertising practices. What actions can the FTC take against Chuck's?​

Ads must disclose qualifying information underlying their claims.

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

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

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

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

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

Account numbers on credit-card receipts must be truncated (shortened).

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

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates​

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

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

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Credit can be denied solely on the basis of marital status.

Business Ethics

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Securities Law and Corporate Governance

Tort Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Professional Liability and Accountability

Administrative Agencies

Environmental Protection

Antitrust Law

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Intellectual Property

Insurance

Wills and Trusts

Digital Update:should Employees Have a Right of Disconnecting

Digital Update: Revenge Porn and Invasion of Privacy

Digital Update: Taxing Web Purchases

Ethics Today:what Are an Attorneys Responsibilities for Protecting Data Stored in a Cloud

Digital Update:the Exploding World of Digital Property

Filters

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of

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 deceptive advertising practices. What actions can the FTC take against Chuck's?

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is

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