Question 1

The Fair Credit Reporting Act has to do with:

Accepted Answer

A) bills that are incorrectly added. 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of the above. 
E) Two of the above, (b) and (c), are correct. 
A) bills that are incorrectly added. 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of the above. 
E) Two of the above, (b) and (c), are correct.

Question 2

The Consumer Product Safety Commission:

Accepted Answer

A) only has the authority to educate the public concerning product safety problems. 
B) uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C) can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D) have no enforcement powers since compliance with its regulations is left up to the manufacturer. 
A) only has the authority to educate the public concerning product safety problems. 
B) uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C) can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D) have no enforcement powers since compliance with its regulations is left up to the manufacturer.

Question 3

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

Accepted Answer

A) True 
 B)False

Question 4

The Federal Trade Commission Act allows the FTC to:

Accepted Answer

A) determine what constitutes deceptive advertising practices. 
B) prohibit all advertising in certain professions. 
C) require advertisers to contribute to a fund to reimburse injured consumers. 
D) require the independent testing of consumer goods. 
A) determine what constitutes deceptive advertising practices. 
B) prohibit all advertising in certain professions. 
C) require advertisers to contribute to a fund to reimburse injured consumers. 
D) require the independent testing of consumer goods.

Question 5

Discuss the role of the state attorneys general in consumer protection.

Accepted Answer

a.The common law rule was caveat emptor

Question 6

A typical automobile financing agreement would be a closed-end credit agreement.

Accepted Answer

A) True 
 B)False

Question 7

An employer must notify a job applicant or current employee that a credit report may be used and must obtain the applicant's consent prior to requesting an individual's credit report from a credit bureau.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is empowered to issue industry-wide safety standards for consumer products?

Accepted Answer

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

Question 9

Under the Credit Card Accountability, Responsibility, and Disclosure Act:

Accepted Answer

A) a customer must be more than ninety days overdue on payment before the credit card company may impose a penalty rate increase on an existing debt. 
B) if a credit card company lawfully increases its interest rate on a customer because of overdue payments, the rate must be restored to the prior rate if the customer makes at least the minimum payment on time for the next six months. 
C) credit card companies must mail account statements 24 days prior to the payment due date. 
D) if the credit card company receives payment after 3 p.m., the payment may be credited the following business day. 
A) a customer must be more than ninety days overdue on payment before the credit card company may impose a penalty rate increase on an existing debt. 
B) if a credit card company lawfully increases its interest rate on a customer because of overdue payments, the rate must be restored to the prior rate if the customer makes at least the minimum payment on time for the next six months. 
C) credit card companies must mail account statements 24 days prior to the payment due date. 
D) if the credit card company receives payment after 3 p.m., the payment may be credited the following business day.

Question 10

Ad substantiation, as required by an FTC policy statement, requires a company to survey consumers to test their perception of a product.

Accepted Answer

A) True 
 B)False

Question 11

The Magnuson-Moss Act applies to all sales of goods covered by the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 12

The Equal Credit Opportunity Act would not prohibit which of the following?

Accepted Answer

A) First Bank refuses to extend credit to females. 
B) First Bank refuses to extend credit to men over 70 years of age. 
C) First Bank refuses to extend credit to people with incomes below $10,000. 
D) First Bank refuses to extend credit to people from Italy. 
A) First Bank refuses to extend credit to females. 
B) First Bank refuses to extend credit to men over 70 years of age. 
C) First Bank refuses to extend credit to people with incomes below $10,000. 
D) First Bank refuses to extend credit to people from Italy.

Question 13

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Accepted Answer

A) True 
 B)False

Question 14

Some states have broadened their lemon law coverage to include used cars and motorcycles.

Accepted Answer

A) True 
 B)False

Question 15

The Federal Consumer Credit Protection Act:

Accepted Answer

A) sets limits on garnishment proceedings. 
B) requires creditors to disclose finance charges. 
C) does not yet require disclosure on credit extension charges. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct. 
A) sets limits on garnishment proceedings. 
B) requires creditors to disclose finance charges. 
C) does not yet require disclosure on credit extension charges. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct.

Question 16

In order for a full warranty to be given for a consumer product, the manufacturer must provide that:

Accepted Answer

A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for replacement if the product is unsatisfactory. 
D) consequential damage cannot be excluded. 
A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for replacement if the product is unsatisfactory. 
D) consequential damage cannot be excluded.

Question 17

On Monday, Bill agreed to buy aluminum siding for his home from Al, a door-to-door salesman.On Wednesday, he can rescind the contract with no liability for breach of contract.

Accepted Answer

A) True 
 B)False

Question 18

Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate information removed from his consumer credit report.

Accepted Answer

A) True 
 B)False

Question 19

There is a federal uniform lemon law that applies across the states to protect consumers in their purchase of new cars.

Accepted Answer

A) True 
 B)False

Question 20

Under Truth-in-Lending Act, the cost of consumer credit must be expressed in an:

Accepted Answer

A) appreciated payment rate. 
B) annual percentage rate. 
C) appraisal payment ratio. 
D) allocated procedures remedy. 
A) appreciated payment rate. 
B) annual percentage rate. 
C) appraisal payment ratio. 
D) allocated procedures remedy.

Exam 45: Consumer Protection

The Fair Credit Reporting Act has to do with:

The Consumer Product Safety Commission:

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

The Federal Trade Commission Act allows the FTC to:

Discuss the role of the state attorneys general in consumer protection.

A typical automobile financing agreement would be a closed-end credit agreement.

An employer must notify a job applicant or current employee that a credit report may be used and must obtain the applicant's consent prior to requesting an individual's credit report from a credit bureau.

Which of the following is empowered to issue industry-wide safety standards for consumer products?

Under the Credit Card Accountability, Responsibility, and Disclosure Act:

Ad substantiation, as required by an FTC policy statement, requires a company to survey consumers to test their perception of a product.

The Magnuson-Moss Act applies to all sales of goods covered by the Uniform Commercial Code.

The Equal Credit Opportunity Act would not prohibit which of the following?

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Some states have broadened their lemon law coverage to include used cars and motorcycles.

The Federal Consumer Credit Protection Act:

In order for a full warranty to be given for a consumer product, the manufacturer must provide that:

On Monday, Bill agreed to buy aluminum siding for his home from Al, a door-to-door salesman.On Wednesday, he can rescind the contract with no liability for breach of contract.

Under the Fair Credit Reporting Act, a consumer has the right to have inaccurate information removed from his consumer credit report.

There is a federal uniform lemon law that applies across the states to protect consumers in their purchase of new cars.

Under Truth-in-Lending Act, the cost of consumer credit must be expressed in an:

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

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Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

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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

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International Business Law

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

Interests in Real Property

Transfer and Control of Real Property

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