Question 1

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled within:

Accepted Answer

A) 10 days by either party. 
B) 10 days by the consumer. 
C) three days by the consumer. 
D) 20 days by either party. 
A) 10 days by either party. 
B) 10 days by the consumer. 
C) three days by the consumer. 
D) 20 days by either party.

Question 2

Sue has a Bloomingdale's credit card.On Monday she charged a $47.90 sweater and then lost the card.Myra found it Monday and charged a $100 scarf and $400 purse.Sue missed her card at 8 A.m.Tuesday and called the store.Myra then charged a coat for $4,000.Sue's bill was $4,547.90.Sue owes:

Accepted Answer

A) $47.90. 
B) $547.90. 
C) $97.90. 
D) $4,547.90. 
A) $47.90. 
B) $547.90. 
C) $97.90. 
D) $4,547.90.

Question 3

The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules.

Accepted Answer

A) True 
 B)False

Question 4

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

Accepted Answer

A) True 
 B)False

Question 5

When first established, the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

Accepted Answer

A) True 
 B)False

Question 6

The federal Truth-in-Lending Act:

Accepted Answer

A) requires the lender to show how much profit is made on a particular sale. 
B) regulates the maximum cost of credit. 
C) is a uniform law made available to all states, like the UCC. 
D) is intended to allow comparison of various credit offers or advertisements. 
A) requires the lender to show how much profit is made on a particular sale. 
B) regulates the maximum cost of credit. 
C) is a uniform law made available to all states, like the UCC. 
D) is intended to allow comparison of various credit offers or advertisements.

Question 7

Under the Fair Credit Billing Act, if a consumer reports an error in the amount on his charge account bill, until the creditor responds, the creditor cannot:

Accepted Answer

A) take any action to collect the disputed amount. 
B) restrict the use of an open-ended credit account because the disputed amount is unpaid. 
C) report the disputed amount as delinquent. 
D) All of the above are correct. 
A) take any action to collect the disputed amount. 
B) restrict the use of an open-ended credit account because the disputed amount is unpaid. 
C) report the disputed amount as delinquent. 
D) All of the above are correct.

Question 8

What remedies are available for the Federal Trade Commission?

Accepted Answer

A) Affirmative exemption and fines. 
B) Corrective advertising and multiple product orders. 
C) Impounding inventory and injunctions. 
D) Fines and monetary penalties. 
A) Affirmative exemption and fines. 
B) Corrective advertising and multiple product orders. 
C) Impounding inventory and injunctions. 
D) Fines and monetary penalties.

Question 9

Holly, who is married to Grant, applies for a credit card from Marlin's Department Store.She is turned down because she is a married woman and the store's policy is to only issue cards in the name of the husband in such situations.What are her legal rights in this situation?

Accepted Answer

Under the Equal Credit Opportunity Act,

Question 10

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

Accepted Answer

A) The amount of the debt, with interest and penalties clearly delineated. 
B) The name and phone number of the current creditor and former creditor. 
C) A statement telling the consumer that he can request verification of the alleged debt. 
D) A copy of the original credit contract with the original creditor. 
A) The amount of the debt, with interest and penalties clearly delineated. 
B) The name and phone number of the current creditor and former creditor. 
C) A statement telling the consumer that he can request verification of the alleged debt. 
D) A copy of the original credit contract with the original creditor.

Question 11

Roscoe Braun, who lives in Cleveland, receives a mailing from Florida from the SwampLand and Reclamation Project.It states that the Brauns can purchase one-acre sites as part of a newly planned development located in Leon County, Florida.The Brauns contact the company and are given a purchase agreement but no additional information.They sign the purchase agreement and send it back.Then, a week later they decide they would prefer to winter in either New Zealand or Australia.Can the Brauns get out of the contract?

Accepted Answer

The Interstate Land Sales Full Disclosur

Question 12

The Fair Debt Collection Practices Act applies directly to creditors.

Accepted Answer

A) True 
 B)False

Question 13

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

Accepted Answer

A) True 
 B)False

Question 14

A cease and desist order issued by the FTC directs a party to stop a certain practice or face punishment, such as a fine.

Accepted Answer

A) True 
 B)False

Question 15

Most lemon laws define a lemon as a car that:

Accepted Answer

A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers. 
A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers.

Question 16

A misrepresentation or material omission that is likely to mislead a consumer to the consumer's detriment is grounds for a claim of deception under FTC rules.

Accepted Answer

A) True 
 B)False

Question 17

Discuss ARMs and their regulation.

Accepted Answer

The Federal Reserve Board amended Regula

Question 18

Ad substantiation does not require advertisers to have a reasonable basis for their claims at the time the claims were made.

Accepted Answer

A) True 
 B)False

Question 19

Under 2009 amendments to the Truth in Lending Act, credit card companies cannot increase their interest rate unless they give customers 120 days' notice.

Accepted Answer

A) True 
 B)False

Question 20

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Accepted Answer

A) $100. 
B) $75. 
C) $50. 
D) None of the above; liability is unlimited. 
A) $100. 
B) $75. 
C) $50. 
D) None of the above; liability is unlimited.

Exam 45: Consumer Protection

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled within:

Sue has a Bloomingdale's credit card.On Monday she charged a $47.90 sweater and then lost the card.Myra found it Monday and charged a $100 scarf and $400 purse.Sue missed her card at 8 A.m.Tuesday and called the store.Myra then charged a coat for $4,000.Sue's bill was $4,547.90.Sue owes:

The FTC has the power to seek in a federal district court a preliminary injunction, pending completion of administrative proceedings, whenever the agency has reason to believe that a person has been violating FTC rules.

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

When first established, the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

The federal Truth-in-Lending Act:

Under the Fair Credit Billing Act, if a consumer reports an error in the amount on his charge account bill, until the creditor responds, the creditor cannot:

What remedies are available for the Federal Trade Commission?

Holly, who is married to Grant, applies for a credit card from Marlin's Department Store.She is turned down because she is a married woman and the store's policy is to only issue cards in the name of the husband in such situations.What are her legal rights in this situation?

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

The Fair Debt Collection Practices Act applies directly to creditors.

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

A cease and desist order issued by the FTC directs a party to stop a certain practice or face punishment, such as a fine.

Most lemon laws define a lemon as a car that:

A misrepresentation or material omission that is likely to mislead a consumer to the consumer's detriment is grounds for a claim of deception under FTC rules.

Discuss ARMs and their regulation.

Ad substantiation does not require advertisers to have a reasonable basis for their claims at the time the claims were made.

Under 2009 amendments to the Truth in Lending Act, credit card companies cannot increase their interest rate unless they give customers 120 days' notice.

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

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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