Question 1

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. 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 2

Wellness Insurance Company offers health insurance to consumers. Under current federal law, Wellness must not​

Accepted Answer

A)  ​deny coverage for preexisting conditions. 
B)  ​enable more children to obtain health-insurance coverage. 
C)  ​allow adults under twenty-six to remain on their parents' health policies. 
D)  ​end lifetime and most annual limits on care. 
A)  ​deny coverage for preexisting conditions. 
B)  ​enable more children to obtain health-insurance coverage. 
C)  ​allow adults under twenty-six to remain on their parents' health policies. 
D)  ​end lifetime and most annual limits on care.

Question 3

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Accepted Answer

A)  ​export the tool and sell it only abroad. 
B)  ​increase the price to cover the cost of any injuries or damage. 
C)  ​reduce the price to indicate the hazard to consumers. 
D)  ​remove the tool from the market. 
A)  ​export the tool and sell it only abroad. 
B)  ​increase the price to cover the cost of any injuries or damage. 
C)  ​reduce the price to indicate the hazard to consumers. 
D)  ​remove the tool from the market.

Question 4

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Accepted Answer

A)  ​liable for $1,000. 
B)  ​liable for $500. 
C)  ​liable for $50. 
D)  ​not liable for any amount. 
A)  ​liable for $1,000. 
B)  ​liable for $500. 
C)  ​liable for $50. 
D)  ​not liable for any amount.

Question 5

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

Accepted Answer

A)  ​credit terms offered by other lenders. 
B)  ​comparative prices for goods to be bought with the borrowed funds. 
C)  ​Credit Loan's credit terms. 
D)  ​the borrowers' credit scores. 
A)  ​credit terms offered by other lenders. 
B)  ​comparative prices for goods to be bought with the borrowed funds. 
C)  ​Credit Loan's credit terms. 
D)  ​the borrowers' credit scores.

Question 6

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Accepted Answer

A)  ​a levy of a nominal fine. 
B)  ​an assessment of damages. 
C)  ​an order of rescission of the loan contracts. 
D)  ​no sanctions. 
A)  ​a levy of a nominal fine. 
B)  ​an assessment of damages. 
C)  ​an order of rescission of the loan contracts. 
D)  ​no sanctions.

Question 7

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. 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 8

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Accepted Answer

A) True 
 B)False

Question 11

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is​

Accepted Answer

A)  ​an obvious exaggeration. 
B)  ​puffery. 
C)  ​a false claim about a competitor's product. 
D)  ​a half-truth. 
A)  ​an obvious exaggeration. 
B)  ​puffery. 
C)  ​a false claim about a competitor's product. 
D)  ​a half-truth.

Question 12

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Accepted Answer

A) True 
 B)False

Exam 24: Consumer Law

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of​

Wellness Insurance Company offers health insurance to consumers. Under current federal law, Wellness must not​

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

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.

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is​

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

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

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of

Wellness Insurance Company offers health insurance to consumers. Under current federal law, Wellness must not

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is