Question 1

Which of the following will lead to a violation of the FTC Act Section 5's prohibition of unfair acts or practices?

Accepted Answer

A) An advertisement that causes emotional distress. 
B) A seller's use of high-pressure sales tactics on vulnerable consumers. 
C) An advertisement that is perceived to be offensive in nature. 
D) A seller's failure to give a consumer complex technical data about a product. 
A) An advertisement that causes emotional distress. 
B) A seller's use of high-pressure sales tactics on vulnerable consumers. 
C) An advertisement that is perceived to be offensive in nature. 
D) A seller's failure to give a consumer complex technical data about a product. B

Question 2

The usual penalty resulting from a final decision against the respondent is a:

Accepted Answer

A) fine of $20,000. 
B) cease-and-desist order. 
C) fine of $10,000. 
D) consent order. 
A) fine of $20,000. 
B) cease-and-desist order. 
C) fine of $10,000. 
D) consent order. B

Question 3

The FTC commissioners serve for:

Accepted Answer

A) fixed five-year terms. 
B) staggered five-year terms. 
C) fixed seven-year terms. 
D) staggered seven-year terms. 
A) fixed five-year terms. 
B) staggered five-year terms. 
C) fixed seven-year terms. 
D) staggered seven-year terms. D

Question 4

Violations of the Magnuson-Moss Warranty Act of 1975 are violations of:

Accepted Answer

A) FTC Act Section 5. 
B) FTC Act Section 10. 
C) Section 43(a)of the Lanham Act. 
D) Section 41 of the Lanham Act. 
A) FTC Act Section 5. 
B) FTC Act Section 10. 
C) Section 43(a)of the Lanham Act. 
D) Section 41 of the Lanham Act.

Question 5

Which of the following actions or statements by a debt collector would be least likely to violate the Fair Debt Collection Practices Act?

Accepted Answer

A) Contacting the debtor's adult son to determine whether the debtor has the financial resources to pay the debt. 
B) Telling the debtor that a failure to pay the debt on time will lead to her imprisonment. 
C) Repeatedly telephoning the debtor at home after she arrives home from work. 
D) Telling the debtor the exact legal course of action the creditor intends to take if the debt is not paid on time. 
A) Contacting the debtor's adult son to determine whether the debtor has the financial resources to pay the debt. 
B) Telling the debtor that a failure to pay the debt on time will lead to her imprisonment. 
C) Repeatedly telephoning the debtor at home after she arrives home from work. 
D) Telling the debtor the exact legal course of action the creditor intends to take if the debt is not paid on time.

Question 6

Which of the following statements represents the Federal Trade Commission's authority to seek a civil penalty for noncompliance with a cease-and-desist order?

Accepted Answer

A) The Federal Trade Commission can seek up to $8,000 for all violations. 
B) The Federal Trade Commission can seek up to $10,000 per violation. 
C) The Federal Trade Commission can seek up to $16,000 per violation. 
D) The Federal Trade Commission has no authority to seek civil penalties for noncompliance with a cease-and-desist order. 
A) The Federal Trade Commission can seek up to $8,000 for all violations. 
B) The Federal Trade Commission can seek up to $10,000 per violation. 
C) The Federal Trade Commission can seek up to $16,000 per violation. 
D) The Federal Trade Commission has no authority to seek civil penalties for noncompliance with a cease-and-desist order.

Question 7

Pesky,Inc.employs numerous sales representatives who attempt to sell the company's products door-to-door.All of the products sold in this manner are designed for use in the home.They range in price from $29.95 to $149.95.Each Pesky sales representative has been instructed to provide customers the address from which warranty information about Pesky's products may be obtained.The sales representatives give customers this address before the sale of any product takes place.The FTC has sued Pesky in federal court,requesting appropriate injunctive relief on the theory that Pesky's practices (as just described)do not comply with the Magnuson-Moss Act and its implementing regulations.Is the FTC's position correct? Explain.

Accepted Answer

The FTC's position is correct.The Magnus

Question 8

The Federal Trade Commission is a state agency.

Accepted Answer

A) True 
 B)False

Question 9

The do-not-call registry is unconstitutional because it violates the First Amendment,

Accepted Answer

A) True 
 B)False

Question 10

The text discusses three of the Federal Trade Commission's most important enforcement devices.Which of the following is not one of those?

Accepted Answer

A) Procedures for facilitating voluntary compliance 
B) Its issuance of trade regulation rules 
C) Its adjudicative proceedings 
D) Its legislative function to create and amend statutes 
A) Procedures for facilitating voluntary compliance 
B) Its issuance of trade regulation rules 
C) Its adjudicative proceedings 
D) Its legislative function to create and amend statutes

Question 11

Enforcement authority for violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act)was given to:

Accepted Answer

A) the FTC,state attorneys general,and users of Internet access services. 
B) the FTC,state attorneys general,and providers of Internet access services. 
C) district courts,state attorneys general,and users of Internet access services. 
D) the FTC,district courts,and providers of Internet access services. 
A) the FTC,state attorneys general,and users of Internet access services. 
B) the FTC,state attorneys general,and providers of Internet access services. 
C) district courts,state attorneys general,and users of Internet access services. 
D) the FTC,district courts,and providers of Internet access services.

Question 12

The case in the text,POM Wonderful,LLC,v.Federal Trade Commission,is an example of when the FTC will investigate an advertisers' potentially misleading claims that:

Accepted Answer

A) might cause an unreasonable consumer to rely on it. 
B) arise from sponsored content. 
C) are communicated through Twitter or Facebook. 
D) use of their products leads,or may lead,to certain beneficial health effects. 
A) might cause an unreasonable consumer to rely on it. 
B) arise from sponsored content. 
C) are communicated through Twitter or Facebook. 
D) use of their products leads,or may lead,to certain beneficial health effects.

Question 13

Which of the following is not considered when the FTC determines whether an advertisement is deceptive?

Accepted Answer

A) Whether the advertisement involves a material misrepresentation,omission,or practice 
B) Whether the advertisement is likely to mislead a consumer 
C) Whether the advertisement is often taken seriously by consumers 
D) Whether the consumer acted reasonably under the circumstances 
A) Whether the advertisement involves a material misrepresentation,omission,or practice 
B) Whether the advertisement is likely to mislead a consumer 
C) Whether the advertisement is often taken seriously by consumers 
D) Whether the consumer acted reasonably under the circumstances

Question 14

A(n)________ is an order approving a negotiated agreement in which the respondent promises to cease certain activities.

Accepted Answer

A) advisory opinion 
B) consent order 
C) cease-and-desist order 
D) industry guide 
A) advisory opinion 
B) consent order 
C) cease-and-desist order 
D) industry guide

Question 15

Supermart Inc. ,a manufacturer of lawn furniture,is ordered by the FTC to place a warning on their TV advertisements that the price shown does not include everything that is shown and some items are additional costs.This remedy by the FTC is called what?

Accepted Answer

A) Affirmative disclosure 
B) Fair Credit Monitoring 
C) Imprisonment 
D) Hybrid order 
A) Affirmative disclosure 
B) Fair Credit Monitoring 
C) Imprisonment 
D) Hybrid order

Question 16

Which of the following actions is most likely to adhere to the Magnuson-Moss Warranty Act of 1975?

Accepted Answer

A) A seller does not disclose any limitations on the duration of implied warranties. 
B) A seller's written warranty does not include information on the duration of the warranty. 
C) A seller refuses to disclose warranty terms to a buyer before the sale. 
D) A seller fails to give a written warranty to a consumer for a consumer product. 
A) A seller does not disclose any limitations on the duration of implied warranties. 
B) A seller's written warranty does not include information on the duration of the warranty. 
C) A seller refuses to disclose warranty terms to a buyer before the sale. 
D) A seller fails to give a written warranty to a consumer for a consumer product.

Question 17

The Consumer Financial Protection Bureau (CFPB)was created by the:

Accepted Answer

A) Dodd-Frank Wall Street Reform and Consumer Protection Act. 
B) Equal Credit Opportunity Act. 
C) Fair Debt Collection Practices Act. 
D) Fair and Accurate Credit Transactions Act. 
A) Dodd-Frank Wall Street Reform and Consumer Protection Act. 
B) Equal Credit Opportunity Act. 
C) Fair Debt Collection Practices Act. 
D) Fair and Accurate Credit Transactions Act.

Question 18

The Fair Debt Collection Practices Act (FDCPA)does not bar debt collectors from contacting third parties such as the debtor's employer,relatives,or friends.

Accepted Answer

A) True 
 B)False

Question 19

Harry filed for bankruptcy five years ago.He needs a consumer reporting agency to provide a credit report on him for a government license he has applied for.Under the Truth in Lending Act (TILA),the agency should avoid including in the report obsolete information predating the report by more than:

Accepted Answer

A) ten years. 
B) fifteen years. 
C) seven years. 
D) five years. 
A) ten years. 
B) fifteen years. 
C) seven years. 
D) five years.

Question 20

The case in the text,Federal Trade Commission v.Ross,is in example of:

Accepted Answer

A) an adjudicative proceeding under Section 5 of the FTC Act. 
B) a consent order entered into by the parties. 
C) disobeying an advisory opinion. 
D) the FTC's decision to litigate in court rather than by way of an adjudicative proceeding. 
A) an adjudicative proceeding under Section 5 of the FTC Act. 
B) a consent order entered into by the parties. 
C) disobeying an advisory opinion. 
D) the FTC's decision to litigate in court rather than by way of an adjudicative proceeding.

Exam 48: The Federal Trade Commission Act and Consumer Protection Laws

Which of the following will lead to a violation of the FTC Act Section 5's prohibition of unfair acts or practices?

The usual penalty resulting from a final decision against the respondent is a:

The FTC commissioners serve for:

Violations of the Magnuson-Moss Warranty Act of 1975 are violations of:

Which of the following actions or statements by a debt collector would be least likely to violate the Fair Debt Collection Practices Act?

Which of the following statements represents the Federal Trade Commission's authority to seek a civil penalty for noncompliance with a cease-and-desist order?

The Federal Trade Commission is a state agency.

The do-not-call registry is unconstitutional because it violates the First Amendment,

The text discusses three of the Federal Trade Commission's most important enforcement devices.Which of the following is not one of those?

Enforcement authority for violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act)was given to:

The case in the text,POM Wonderful,LLC,v.Federal Trade Commission,is an example of when the FTC will investigate an advertisers' potentially misleading claims that:

Which of the following is not considered when the FTC determines whether an advertisement is deceptive?

A(n)________ is an order approving a negotiated agreement in which the respondent promises to cease certain activities.

Supermart Inc. ,a manufacturer of lawn furniture,is ordered by the FTC to place a warning on their TV advertisements that the price shown does not include everything that is shown and some items are additional costs.This remedy by the FTC is called what?

Which of the following actions is most likely to adhere to the Magnuson-Moss Warranty Act of 1975?

The Consumer Financial Protection Bureau (CFPB)was created by the:

The Fair Debt Collection Practices Act (FDCPA)does not bar debt collectors from contacting third parties such as the debtor's employer,relatives,or friends.

Harry filed for bankruptcy five years ago.He needs a consumer reporting agency to provide a credit report on him for a government license he has applied for.Under the Truth in Lending Act (TILA),the agency should avoid including in the report obsolete information predating the report by more than:

The case in the text,Federal Trade Commission v.Ross,is in example of:

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters