Question 1

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

Accepted Answer

A) True 
 B)False  True

Question 2

The Consumer Product Safety Commission enforces the:

Accepted Answer

A) Federal Hazardous Substances Act. 
B) Flammable Fabrics Act. 
C) Refrigerator Safety Act. 
D) All of the above. 
E) None of the above. 
A) Federal Hazardous Substances Act. 
B) Flammable Fabrics Act. 
C) Refrigerator Safety Act. 
D) All of the above. 
E) None of the above. D

Question 3

Under the Fair Credit Reporting Act,a consumer has the right to have inaccurate information removed from his consumer credit report.

Accepted Answer

A) True 
 B)False  True

Question 4

Under the Fair Credit Billing Act,if a consumer reports an error in the amount on his charge account bill,until the creditor responds,it 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 5

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties,there is a violation of the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

The Fair Credit Reporting Act has to do with:

Accepted Answer

A) bills that are incorrectly added. 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of the above. 
E) Two of the above, (b) and (c), are correct. 
A) bills that are incorrectly added. 
B) credit checks done by potential lenders. 
C) reports made by credit agencies. 
D) All of the above. 
E) Two of the above, (b) and (c), are correct.

Question 9

If a debtor defaults on a credit contract,the creditor may:

Accepted Answer

A) impose a late charge. 
B) garnish wages if there has been a court proceeding to enforce collection of a judgment. 
C) declare the entire balance of the debt immediately due and may sue on the debt. 
D) All of the above. 
E) (a) and (c) are correct. 
A) impose a late charge. 
B) garnish wages if there has been a court proceeding to enforce collection of a judgment. 
C) declare the entire balance of the debt immediately due and may sue on the debt. 
D) All of the above. 
E) (a) and (c) are correct.

Question 10

Which of the following acts protects consumers who have errors in credit card billings?

Accepted Answer

A) Equal Credit Opportunity Act. 
B) Fair Credit Billing Act. 
C) Fair Debt Collection Practices Act. 
D) Truth-in-Lending Act. 
A) Equal Credit Opportunity Act. 
B) Fair Credit Billing Act. 
C) Fair Debt Collection Practices Act. 
D) Truth-in-Lending Act.

Question 11

Homemade Soup Co.has advertised their soup in certain magazines using photographs showing bowls of their soup with pebbles at the bottom of the bowl.The pebbles were used to displace the soup in the bowl,forcing the vegetables and meat to the surface.This photographer's trick made the soup appear heartier than it was.An FTC staffer is thumbing through the latest edition of her favorite magazine.She notices the Homemade Soup Co.ad and goes to her kitchen,opens up a bowl of Homemade's soup and decides that her bowl of soup looks nothing like the one in the ad.What are the steps the FTC would take to proceed against Homemade Soup Co.?

Accepted Answer

In a typical situation,the FTC discovers

Question 12

Deception may occur either through false representation or material omission.

Accepted Answer

A) True 
 B)False

Question 13

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Accepted Answer

A) Consumer Financial Protection Bureau. 
B) Justice Department. 
C) Federal Trade Commission. 
D) Federal Reserve Board. 
A) Consumer Financial Protection Bureau. 
B) Justice Department. 
C) Federal Trade Commission. 
D) Federal Reserve Board.

Question 14

Which of the following is empowered to issue industry-wide safety standards for consumer products?

Accepted Answer

A) UCCC 
B) RESPA 
C) FCCPA 
D) CPSC 
A) UCCC 
B) RESPA 
C) FCCPA 
D) CPSC

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

The NHTSA has the authority to set motor vehicle safety standards that promote crash prevention.

Accepted Answer

A) True 
 B)False

Question 18

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Accepted Answer

A) True 
 B)False

Question 19

The Credit Card Fraud Act contains criminal penalties for violations of its provisions.

Accepted Answer

A) True 
 B)False

Question 20

Regulations for the 2009 Credit Card Accountability,Responsibility,and Disclosure Act (CARD)include that credit card issuers must mail account statements 21 days prior to the payment due date and that credit card issuers are prohibited from giving credit cards to full-time college students under 21 years old unless the student can prove the means to pay or a parent/guardian cosigns for the card.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection

The Magnuson-Moss Warranty Act contains disclosure and labeling requirements for sellers of consumer products containing a written warranty.

The Consumer Product Safety Commission enforces the:

Under the Fair Credit Reporting Act,a consumer has the right to have inaccurate information removed from his consumer credit report.

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

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties,there is a violation of the Magnuson-Moss Act.

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.

The Fair Credit Reporting Act has to do with:

If a debtor defaults on a credit contract,the creditor may:

Which of the following acts protects consumers who have errors in credit card billings?

Deception may occur either through false representation or material omission.

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Which of the following is empowered to issue industry-wide safety standards for consumer products?

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

The NHTSA has the authority to set motor vehicle safety standards that promote crash prevention.

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

The Credit Card Fraud Act contains criminal penalties for violations of its provisions.

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 and 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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