Exam 39: Consumer Protection

In 1969,the federal government estimated that consumer products caused 30,000 deaths,110,000 disabling injuries,and 20 million trips to the doctor.The product category causing the majority of harm was

Which of the following is a provision of the CARD Act?

A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500.Soon after the salesperson leaves,Mary begins to have second thoughts about the transaction.Which statement about the situation is correct?

For the FTC to consider a practice to be unfair,it must meet a three-part test.Which of the following is NOT one of those tests?

The Fun Tyme Toy Company discovers that one of its products can easily break,exposing children to potential injury from the sharp parts.Under the Consumer Product Safety Act of 1972,how long does Fun Tyme have to report this defect to the Consumer Product Safety Commission?

In 30-year mortgages,the finance charge typically exceeds the amount of the principal.

Suppose Bill's credit card is stolen and he notifies his credit card company of this fact.Which of the following is true regarding the amount of unauthorized charges made before Bill notified his credit card company?

Under the Fair and Accurate Credit Transactions Act (FACTA),

With regard to mortgages,the Consumer Finance Protection Bureau (CFPB)requires mortgage servicers

Under the Truth in Lending Act,a lender must disclose all of the following EXCEPT ​

Consumers may keep as a gift any unordered merchandise that they receive in the mail.

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race,national origin,religion,or sex,but it is permissible to treat a borrower differently if he or she is on welfare.

The Fair Debt Collection Practices Act prohibits which of the following practices by a debt collector?

An employer cannot request a consumer report on a potential employee without that person's permission.

Electronic payments via a telephone,computer,or wire transfers are not regulated by the government.

Under the TILA,a qualified mortgage (QM)

Richard received his credit card bill and noticed an error.He wrote to the company the next week,pointing out the error in his bill.Under the law,what is the credit card's obligation once it receives Richard's letter?

What must a seller disclose under the Magnuson-Moss Warranty Act?

The Magnuson-Moss Warranty Act requires manufacturers to provide a warranty on their products regardless of cost.

Prime Products,Inc.found out that it was going to take 3 weeks to ship the comforter Margaret ordered instead of the 7 days it had originally promised her.Prime Products must cancel Margaret's order and notify her that it can deliver within 3 weeks if she wants to reorder.