Question 1

The Consumer Product Safety Commission:

Accepted Answer

A)  can file suit in federal court against manufacturers of imminently hazardous consumer products in an effort to eliminate the danger posed by such products. 
B)  was established by the Consumer Leasing Act. 
C)  provides the consumer with important credit information involving leases of consumer goods for more than four months. 
D)  is not entitled to issue product safety standards when the product in question presents an unreasonable risk of injury. 
A)  can file suit in federal court against manufacturers of imminently hazardous consumer products in an effort to eliminate the danger posed by such products. 
B)  was established by the Consumer Leasing Act. 
C)  provides the consumer with important credit information involving leases of consumer goods for more than four months. 
D)  is not entitled to issue product safety standards when the product in question presents an unreasonable risk of injury.

Question 2

_____ were passed to provide some relief to customers having complaints against auto dealers.

Accepted Answer

A)  Credit laws 
B)  Equal opportunity laws 
C)  Fair credit laws 
D)  Lemon laws 
A)  Credit laws 
B)  Equal opportunity laws 
C)  Fair credit laws 
D)  Lemon laws

Question 3

A debtor may rescind a contract under the Truth in Lending Act:

Accepted Answer

A)  only if the debtor's home is used as collateral. 
B)  only in the instance of a first mortgage on a home. 
C)  by way of oral notification to the creditor. 
D)  within 30 days after the purchase on credit. 
A)  only if the debtor's home is used as collateral. 
B)  only in the instance of a first mortgage on a home. 
C)  by way of oral notification to the creditor. 
D)  within 30 days after the purchase on credit.

Question 4

The Consumer Product Safety Commission (CPSC)'s authority is limited to cosmetics and food products.

Accepted Answer

A) True 
 B)False

Question 5

Under the Fair Credit Billing Act,if the credit card holder thinks that the card issuer has made an error on the statement,he or she has 45 days to report the error.

Accepted Answer

A) True 
 B)False

Question 6

Under the Fair Credit Reporting Act,a consumer who has been denied credit:

Accepted Answer

A)  cannot compel the credit reporting agency to delete any inaccurate or obsolete information from the file. 
B)  is entitled to disclosure of the name and address of the credit reporting agency that made the report. 
C)  can compel the credit reporting agency to delete disputed information without an investigation. 
D)  is not entitled to a reinvestigation of the disputed information in the report made by the credit reporting agency. 
A)  cannot compel the credit reporting agency to delete any inaccurate or obsolete information from the file. 
B)  is entitled to disclosure of the name and address of the credit reporting agency that made the report. 
C)  can compel the credit reporting agency to delete disputed information without an investigation. 
D)  is not entitled to a reinvestigation of the disputed information in the report made by the credit reporting agency.

Question 7

Shawn is a car dealer in Austin,Texas.His financial dealings with customers come directly under the jurisdiction of the Consumer Financial Protection Bureau.

Accepted Answer

A) True 
 B)False

Question 8

The Consumer Product Safety Commission's authority is applicable for _____.

Accepted Answer

A)  firearms 
B)  drugs 
C)  cosmetics 
D)  lawn mowers 
A)  firearms 
B)  drugs 
C)  cosmetics 
D)  lawn mowers

Question 9

The Credit Card Accountability and Disclosure Act (CARD)regulates credit card billing cycles by:

Accepted Answer

A)  allowing a maximum of $30 penalty fee for late payment of credit card debts. 
B)  allowing penalties to exceed the minimum balance due. 
C)  prohibiting double-cycle billing. 
D)  issuing cards to applicants under 21 years without a cosigner. 
A)  allowing a maximum of $30 penalty fee for late payment of credit card debts. 
B)  allowing penalties to exceed the minimum balance due. 
C)  prohibiting double-cycle billing. 
D)  issuing cards to applicants under 21 years without a cosigner.

Question 10

_____ is defined as use by a person who lacks express,implied,or apparent authority to use a credit or debit card.

Accepted Answer

A)  Authorized use 
B)  Rescissionary use 
C)  Undisclosed use 
D)  Unauthorized use 
A)  Authorized use 
B)  Rescissionary use 
C)  Undisclosed use 
D)  Unauthorized use

Question 11

What is the main idea behind the Holder in Due Course rule?

Accepted Answer

The Holder in Due Course rule is designe

Question 12

What are the main goals of the Fair Credit Reporting Act (FCRA)? Under what conditions is this act not applicable?

Accepted Answer

The principal purpose of the Fair Credit

Question 13

Discuss the product safety standards issued by the Consumer Product Safety Act (CPSA).Also,list at least three products which,although consumer goods,do not come under the authority of CPSA.

Accepted Answer

The large number of injuries caused by d

Question 14

The Federal Trade Commission does not prohibit prerecorded telemarketing sales calls.

Accepted Answer

A) True 
 B)False

Question 15

The Equal Credit Opportunity Act prohibits discrimination in credit transactions based on wealth.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true for the Consumer Product Safety Act (CPSA)of 1972?

Accepted Answer

A)  It can regulate consumer products but does not have the power to ban any products. 
B)  It established the Consumer Product Safety Commission (CPS
C) , an independent regulatory agency which is the main federal agency concerned with product safety. 
C)  Its authority covers products such as motor vehicles and equipment, firearms, aircraft, boats, drugs, cosmetics, and food products. 
D)  It cannot be used by the CPSC to bring suit in federal district court to eliminate the dangers presented by imminently hazardous consumer products. 
A)  It can regulate consumer products but does not have the power to ban any products. 
B)  It established the Consumer Product Safety Commission (CPS
C) , an independent regulatory agency which is the main federal agency concerned with product safety. 
C)  Its authority covers products such as motor vehicles and equipment, firearms, aircraft, boats, drugs, cosmetics, and food products. 
D)  It cannot be used by the CPSC to bring suit in federal district court to eliminate the dangers presented by imminently hazardous consumer products.

Question 17

Under the Truth in Lending Act,the term "finance charge":

Accepted Answer

A)  includes all costs related to the extension of credit. 
B)  includes all costs related to the extension of credit except for fees for credit reports. 
C)  includes only interest rates but not any other credit charges. 
D)  does not include loan fees and fees for credit reports. 
A)  includes all costs related to the extension of credit. 
B)  includes all costs related to the extension of credit except for fees for credit reports. 
C)  includes only interest rates but not any other credit charges. 
D)  does not include loan fees and fees for credit reports.

Question 18

The Federal Trade Commission has legal authority to assist overseas investigations to track down Internet scammers using devices such as spam and spyware.

Accepted Answer

A) True 
 B)False

Question 19

The Truth in Lending Act (TILA)fixes interest rates.

Accepted Answer

A) True 
 B)False

Question 20

Under the Fair Credit Billing Act (FCBA),_____.

Accepted Answer

A)  a card issuer may report a cardholder's delinquency to a credit reporting agency at any time deemed reasonable by it 
B)  a card issuer must inform the cardholder of the reporting agency to which the issuer sends its reports 
C)  the seller cannot offer discounts if the buyer pays cash for a purchase rather than using a credit card 
D)  the consumer has the right to have a credit report withheld from anyone not having a legitimate business need for the information 
A)  a card issuer may report a cardholder's delinquency to a credit reporting agency at any time deemed reasonable by it 
B)  a card issuer must inform the cardholder of the reporting agency to which the issuer sends its reports 
C)  the seller cannot offer discounts if the buyer pays cash for a purchase rather than using a credit card 
D)  the consumer has the right to have a credit report withheld from anyone not having a legitimate business need for the information

Exam 46: Consumer Protection Laws

The Consumer Product Safety Commission:

_____ were passed to provide some relief to customers having complaints against auto dealers.

A debtor may rescind a contract under the Truth in Lending Act:

The Consumer Product Safety Commission (CPSC)'s authority is limited to cosmetics and food products.

Under the Fair Credit Billing Act,if the credit card holder thinks that the card issuer has made an error on the statement,he or she has 45 days to report the error.

Under the Fair Credit Reporting Act,a consumer who has been denied credit:

Shawn is a car dealer in Austin,Texas.His financial dealings with customers come directly under the jurisdiction of the Consumer Financial Protection Bureau.

The Consumer Product Safety Commission's authority is applicable for _____.

The Credit Card Accountability and Disclosure Act (CARD)regulates credit card billing cycles by:

_____ is defined as use by a person who lacks express,implied,or apparent authority to use a credit or debit card.

What is the main idea behind the Holder in Due Course rule?

What are the main goals of the Fair Credit Reporting Act (FCRA)? Under what conditions is this act not applicable?

Discuss the product safety standards issued by the Consumer Product Safety Act (CPSA).Also,list at least three products which,although consumer goods,do not come under the authority of CPSA.

The Federal Trade Commission does not prohibit prerecorded telemarketing sales calls.

The Equal Credit Opportunity Act prohibits discrimination in credit transactions based on wealth.

Which of the following statements is true for the Consumer Product Safety Act (CPSA)of 1972?

Under the Truth in Lending Act,the term "finance charge":

The Federal Trade Commission has legal authority to assist overseas investigations to track down Internet scammers using devices such as spam and spyware.

The Truth in Lending Act (TILA)fixes interest rates.

Under the Fair Credit Billing Act (FCBA),_____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Environmental Regulation

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