Exam 24: Consumer Law

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

Food products are required to bear labels detailing the nutritional content.

Drugs can be test-marketed to the public before they are ensured to be safe and effective.

When an advertising claim has the appearance of authenticity, it does not create problems.

ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is​

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

The Federal Trade Commission was created to prevent unfair and deceptive trade practices.

Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!'" The Federal Trade Commission would consider this ad to be​

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about​

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​

Advertising that contains an endorsement by a celebrity is presumed to be deceptive.

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​

Ads must disclose relevant limitations underlying their claims.

To generate sales, Golden Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Golden's telemarketers must disclose​

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue​

Vague generalities are permissible in advertising.

One of the most important federal consumer protection laws is directed at deceptive trade practices.

Mattress Company advertises a special sale-all bedding, half price. The ad does not state that the sale price does not include delivery or shipping costs. To avoid claims of deceptive advertising, Mattress should​

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

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