Question 1

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 2

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Accepted Answer

A) True 
 B)False

Question 3

Credit can be denied if a person receives a certain form of income.

Accepted Answer

A) True 
 B)False

Question 4

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. 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.

Question 5

Mouth-Waterin' Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." NuFabrics, Inc., wants to advertise its sweaters as having "That Wool Feel," but does not want to specify on labels that the sweaters are 100 percent polyester. Can these firms market their products as they would like? If not, why not?

Accepted Answer

There are a number of federal laws that

Question 6

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue 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 7

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under​

Accepted Answer

A)  ​federal and state law. 
B)  ​federal law only. 
C)  ​no law, according to the principles of freedom to contract. 
D)  ​state law only. 
A)  ​federal and state law. 
B)  ​federal law only. 
C)  ​no law, according to the principles of freedom to contract. 
D)  ​state law only.

Question 8

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm​

Accepted Answer

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

Question 9

Package labels must use words that the ordinary consumer understands.

Accepted Answer

A) True 
 B)False

Question 10

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.

Accepted Answer

A) True 
 B)False

Question 11

Federal law governs the use of terms such as fresh on food labels.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Accepted Answer

A)  ​intelligence. 
B)  ​education. 
C)  ​income. 
D)  ​race. 
A)  ​intelligence. 
B)  ​education. 
C)  ​income. 
D)  ​race.

Question 14

Puffery constitutes deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 15

Imported foods do not have to meet U.S. safety standards.

Accepted Answer

A) True 
 B)False

Question 16

Breadboard, Inc., makes and sells a variety of grain products. Breadboard'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.

Question 17

Ads can be unfair but not deceptive.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Obvious exaggerations are not permissible in advertising.

Accepted Answer

A) True 
 B)False

Question 20

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are​

Accepted Answer

A)  ​prohibited. 
B)  ​required. 
C)  ​voluntary. 
D)  ​arbitrary. 
A)  ​prohibited. 
B)  ​required. 
C)  ​voluntary. 
D)  ​arbitrary.

Exam 24: Consumer Law

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

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Credit can be denied if a person receives a certain form of income.

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim​

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under​

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm​

Package labels must use words that the ordinary consumer understands.

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.

Federal law governs the use of terms such as fresh on food labels.

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

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Puffery constitutes deceptive advertising.

Imported foods do not have to meet U.S. safety standards.

Breadboard, Inc., makes and sells a variety of grain products. Breadboard's product packages must include​

Ads can be unfair but not deceptive.

Obvious exaggerations are not permissible in advertising.

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are​

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

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim

Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Breadboard, Inc., makes and sells a variety of grain products. Breadboard's product packages must include

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are