Question 1

Consumers have a right to

Accepted Answer

A) exclude as obsolete information about a bankruptcy discharge 7 years previously. 
B) know the name of anyone to whom credit information has been supplied by a consumer reporting agency within the last 3 years. 
C) have their own version of a disputed credit situation included in their credit file. 
D) have investigative reports become obsolete after 1 year. 
A) exclude as obsolete information about a bankruptcy discharge 7 years previously. 
B) know the name of anyone to whom credit information has been supplied by a consumer reporting agency within the last 3 years. 
C) have their own version of a disputed credit situation included in their credit file. 
D) have investigative reports become obsolete after 1 year. C

Question 2

"Bait-and-switch" is

Accepted Answer

A) advertising a product for sale and then giving the customer a rain check. 
B) placing the store brand and the national brand side-by-side in a store to confuse customers. 
C) selling the store brand at a lower price than the national brand. 
D) advertising certain goods and then pressuring the customer to buy different,more expensive goods. 
A) advertising a product for sale and then giving the customer a rain check. 
B) placing the store brand and the national brand side-by-side in a store to confuse customers. 
C) selling the store brand at a lower price than the national brand. 
D) advertising certain goods and then pressuring the customer to buy different,more expensive goods. D

Question 3

Sandy noticed an unauthorized electronic funds withdrawal on her bank statement.In order for her to not be liable for the withdrawal,she must notify her bank within _______ of the date of the bank statement.

Accepted Answer

A) ​10 days 
B) ​30 days 
C) ​60 days 
D) ​90 days 
A) ​10 days 
B) ​30 days 
C) ​60 days 
D) ​90 days C

Question 4

Under the Fair Debt Collection Practices Act,a collection company is legally permitted to

Accepted Answer

A) call the debtor at any time of the day. 
B) call acquaintances of the debtor to tell them that the consumer is in debt. 
C) call the debtor even if the debtor has requested in writing that he or she wishes no further contact. 
D) visit the debtor at work if the consumer's employer permits such contact. 
A) call the debtor at any time of the day. 
B) call acquaintances of the debtor to tell them that the consumer is in debt. 
C) call the debtor even if the debtor has requested in writing that he or she wishes no further contact. 
D) visit the debtor at work if the consumer's employer permits such contact.

Question 5

MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children.Because of MoneyMaker's actions

Accepted Answer

A) the CPSC can impose civil penalties on the company. 
B) the CPSC can impose criminal penalties on the company. 
C) users can sue for damages,including attorney's fees,if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns. 
D) All of these are correct. 
A) the CPSC can impose civil penalties on the company. 
B) the CPSC can impose criminal penalties on the company. 
C) users can sue for damages,including attorney's fees,if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns. 
D) All of these are correct.

Question 6

The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited.

Accepted Answer

A) True 
 B)False

Question 7

Commonground Collections has been hired to collect past-due medical bills for Lakeview Physicians.List some activities that Commonground may not do pursuant to the FDCPA.

Accepted Answer

Under the FDCPA,Commonground's agents ma

Question 8

What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?

Accepted Answer

The FTC considers an act to be unfair if

Question 9

The Trimbles apply to Community Bank for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community Bank is required to make.

Accepted Answer

The Truth in Lending Act will apply to t

Question 10

Brooke uses her credit card to purchase a lawn mower at the local "big box" hardware store,but when she tries to use the mower for the first time,she finds it is not self-propelled as advertised.Does she have any recourse?

Accepted Answer

Since Brooke used a credit card for the

Question 11

The Consumer Financial Protection Bureau (CFPB)was created to represent consumers by filing suit in federal court asking for damages on behalf of the injured consumer.

Accepted Answer

A) True 
 B)False

Question 12

The Truth in Lending Act applies to private individuals who loan money.

Accepted Answer

A) True 
 B)False

Question 13

The FTC may consider an act unfair if it simply violates public policy.

Accepted Answer

A) True 
 B)False

Question 14

The maximum rate of interest for credit transactions is established by

Accepted Answer

A) state law. 
B) federal law. 
C) the Federal Reserve Board. 
D) the FTC. 
A) state law. 
B) federal law. 
C) the Federal Reserve Board. 
D) the FTC.

Question 15

Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free.Janet had Ron's come to inspect her furnace.The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250.The FTC considers such a practice to be

Accepted Answer

A) an unfair practice. 
B) a deceptive practice. 
C) an act that violates public policy. 
D) All of these are correct. 
A) an unfair practice. 
B) a deceptive practice. 
C) an act that violates public policy. 
D) All of these are correct.

Question 16

The issue in the POM Wonderful,LLC v.FTC case involved

Accepted Answer

A) the type of evidence necessary to support health claims in advertisements. 
B) violation of the Fair Debt Collection Act. 
C) the legality of the Consumer Product Safety Act of 1972. 
D) violation of the Magnuson-Moss Warranty Act. 
A) the type of evidence necessary to support health claims in advertisements. 
B) violation of the Fair Debt Collection Act. 
C) the legality of the Consumer Product Safety Act of 1972. 
D) violation of the Magnuson-Moss Warranty Act.

Question 17

"Bait-and-switch" tactics are not a violation of FTC rules if the merchant does not have enough stock on hand to meet reasonable demand for the advertised product.

Accepted Answer

A) True 
 B)False

Question 18

Mabel is a single 40-year-old who has borrowed money on numerous occasions.Her payment record has been good,except she has been delinquent in paying a few bills.Which of the following is true regarding credit information gathered on Mabel?

Accepted Answer

A) Since Mabel has been delinquent,she waives her right to see the credit files. 
B) If Mabel is rejected for a loan because of the consumer report,the lender must tell her the source of the report. 
C) Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good. 
D) Mabel's only legal remedy,if there is erroneous information in her credit file,is to report the problem to the FTC for enforcement. 
A) Since Mabel has been delinquent,she waives her right to see the credit files. 
B) If Mabel is rejected for a loan because of the consumer report,the lender must tell her the source of the report. 
C) Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good. 
D) Mabel's only legal remedy,if there is erroneous information in her credit file,is to report the problem to the FTC for enforcement.

Question 19

Chase received a magazine in the mail that he did not order.He was surprised,but read and enjoyed the magazine.A month later,another copy arrived,along with a bill for $25 to cover the subscription.Which of the following applies to this situation?

Accepted Answer

A) Chase does not have to pay for the magazine,even if the company continues to send it to him. 
B) Chase needs to return the two copies of the magazine he received to show that he is not interested. 
C) Chase must notify the magazine whether or not he wants to continue receiving the magazine within 30 days. 
D) Chase must pay the bill because the magazine company is entitled to be paid for sending out subscriptions. 
A) Chase does not have to pay for the magazine,even if the company continues to send it to him. 
B) Chase needs to return the two copies of the magazine he received to show that he is not interested. 
C) Chase must notify the magazine whether or not he wants to continue receiving the magazine within 30 days. 
D) Chase must pay the bill because the magazine company is entitled to be paid for sending out subscriptions.

Question 20

Company policy of PushOne,Inc.is to block the company name and telephone number on potential customers' Caller ID systems so they won't know the call is from a telemarketer.This policy violates FTC rules.

Accepted Answer

A) True 
 B)False

Exam 39: Consumer Protection

Consumers have a right to

"Bait-and-switch" is

Sandy noticed an unauthorized electronic funds withdrawal on her bank statement.In order for her to not be liable for the withdrawal,she must notify her bank within _______ of the date of the bank statement.

Under the Fair Debt Collection Practices Act,a collection company is legally permitted to

MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children.Because of MoneyMaker's actions

The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited.

Commonground Collections has been hired to collect past-due medical bills for Lakeview Physicians.List some activities that Commonground may not do pursuant to the FDCPA.

What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?

The Trimbles apply to Community Bank for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community Bank is required to make.

Brooke uses her credit card to purchase a lawn mower at the local "big box" hardware store,but when she tries to use the mower for the first time,she finds it is not self-propelled as advertised.Does she have any recourse?

The Consumer Financial Protection Bureau (CFPB)was created to represent consumers by filing suit in federal court asking for damages on behalf of the injured consumer.

The Truth in Lending Act applies to private individuals who loan money.

The FTC may consider an act unfair if it simply violates public policy.

The maximum rate of interest for credit transactions is established by

Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free.Janet had Ron's come to inspect her furnace.The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250.The FTC considers such a practice to be

The issue in the POM Wonderful,LLC v.FTC case involved

"Bait-and-switch" tactics are not a violation of FTC rules if the merchant does not have enough stock on hand to meet reasonable demand for the advertised product.

Mabel is a single 40-year-old who has borrowed money on numerous occasions.Her payment record has been good,except she has been delinquent in paying a few bills.Which of the following is true regarding credit information gathered on Mabel?

Chase received a magazine in the mail that he did not order.He was surprised,but read and enjoyed the magazine.A month later,another copy arrived,along with a bill for $25 to cover the subscription.Which of the following applies to this situation?

Company policy of PushOne,Inc.is to block the company name and telephone number on potential customers' Caller ID systems so they won't know the call is from a telemarketer.This policy violates FTC rules.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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