Question 1

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Accepted Answer

A) True 
 B)False  False

Question 2

The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations.

Accepted Answer

A) True 
 B)False  True

Question 3

Lemon laws provide new car purchasers with rights similar to those under the Magnuson-Moss Warranty Act.

Accepted Answer

A) True 
 B)False  True

Question 4

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Accepted Answer

A) True 
 B)False

Question 5

Consumer protection takes place by legislation and agencies at only the federal level.

Accepted Answer

A) True 
 B)False

Question 6

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000.

Accepted Answer

A) True 
 B)False

Question 7

Homemade Soup Co.has advertised their soup in certain magazines using photographs showing bowls of their soup with pebbles at the bottom of the bowl.The pebbles were used to displace the soup in the bowl, forcing the vegetables and meat to the surface.This photographer's trick made the soup appear heartier than it was.An FTC staffer is thumbing through the latest edition of her favorite magazine.She notices the Homemade Soup Co.ad and goes to her kitchen, opens a can of Homemade's soup and decides that her bowl of soup looks nothing like the one in the ad.What are the steps the FTC would take to proceed against Homemade Soup Co.?

Accepted Answer

In a typical situation, the FTC discover

Question 8

The FTC:

Accepted Answer

A) and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive. 
B) can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising. 
C) can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist." 
D) All of these are correct. 
A) and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive. 
B) can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising. 
C) can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist." 
D) All of these are correct.

Question 9

Which of the following acts protects consumers who have errors in credit card billings?

Accepted Answer

A) Equal Credit Opportunity Act. 
B) Fair Credit Billing Act. 
C) Fair Debt Collection Practices Act. 
D) Truth-in-Lending Act. 
A) Equal Credit Opportunity Act. 
B) Fair Credit Billing Act. 
C) Fair Debt Collection Practices Act. 
D) Truth-in-Lending Act.

Question 10

The Fair Debt Collection Practices Act prohibits:

Accepted Answer

A) a debt collection agency from communicating directly with a debtor under any circumstances. 
B) calls after 6 p.m. 
C) a debt collection agency from calling a debtor each day, several times a day, demanding payment. 
D) a creditor from calling a debtor regarding payment of a bill. 
A) a debt collection agency from communicating directly with a debtor under any circumstances. 
B) calls after 6 p.m. 
C) a debt collection agency from calling a debtor each day, several times a day, demanding payment. 
D) a creditor from calling a debtor regarding payment of a bill.

Question 11

The Consumer Product Safety Commission enforces the:

Accepted Answer

A) Federal Hazardous Substances Act. 
B) Flammable Fabrics Act. 
C) Refrigerator Safety Act. 
D) All of the above. 
E) None of the above. 
A) Federal Hazardous Substances Act. 
B) Flammable Fabrics Act. 
C) Refrigerator Safety Act. 
D) All of the above. 
E) None of the above.

Question 12

The Consumer Product Safety Commission is made up of three commissioners.

Accepted Answer

A) True 
 B)False

Question 13

The National Highway Traffic Safety Administration:

Accepted Answer

A) recalls autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct. 
A) recalls autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct.

Question 14

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 15

Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Accepted Answer

A) RESPA 
B) CPSC 
C) OSHA 
D) FCCPA 
A) RESPA 
B) CPSC 
C) OSHA 
D) FCCPA

Question 16

The Truth-in-Lending Act requires disclosure of the cost of credit as an annual percentage rate, which may be calculated in one of three different ways.

Accepted Answer

A) True 
 B)False

Question 17

One difference between a full and a limited warranty under the Magnuson-Moss Warranty Act is that in a limited warranty, the manufacturer may, if reasonable, limit the duration of the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 18

Lemon laws are generally understood to be laws that:

Accepted Answer

A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are Interstate Compacts to uniformly deal with lemon cars. 
A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are Interstate Compacts to uniformly deal with lemon cars.

Question 19

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

Accepted Answer

A) unfair means to collect a debt. 
B) falsely representing that a lawsuit is about to be filed. 
C) telephoning the debtor at 8:00 A.m. 
D) using obscene language. 
A) unfair means to collect a debt. 
B) falsely representing that a lawsuit is about to be filed. 
C) telephoning the debtor at 8:00 A.m. 
D) using obscene language.

Question 20

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Accepted Answer

A) True 
 B)False

Exam 45: Consumer Protection

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations.

Lemon laws provide new car purchasers with rights similar to those under the Magnuson-Moss Warranty Act.

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Consumer protection takes place by legislation and agencies at only the federal level.

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000.

The FTC:

Which of the following acts protects consumers who have errors in credit card billings?

The Fair Debt Collection Practices Act prohibits:

The Consumer Product Safety Commission enforces the:

The Consumer Product Safety Commission is made up of three commissioners.

The National Highway Traffic Safety Administration:

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

The Truth-in-Lending Act requires disclosure of the cost of credit as an annual percentage rate, which may be calculated in one of three different ways.

One difference between a full and a limited warranty under the Magnuson-Moss Warranty Act is that in a limited warranty, the manufacturer may, if reasonable, limit the duration of the warranty of merchantability.

Lemon laws are generally understood to be laws that:

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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