Question 1

The Fair Debt Collection Practices Act applies directly to creditors.

Accepted Answer

A) True 
 B)False

Question 2

The Mortgage Reform and Anti-Predatory Lending Act of 2010 sets minimum underwriting standards for mortgages and prohibits mandatory arbitration clauses and prepayment penalties for ARMs.

Accepted Answer

A) True 
 B)False

Question 3

Some states have broadened their lemon law coverage to include used cars and motorcycles.

Accepted Answer

A) True 
 B)False

Question 4

An employer must notify a job applicant or current employee that a credit report may be used and must obtain the applicant's consent prior to requesting an individual's credit report from a credit bureau.

Accepted Answer

A) True 
 B)False

Question 5

In order for a full warranty to be given for a consumer product,the manufacturer must provide that:

Accepted Answer

A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for replacement if the product is unsatisfactory. 
D) consequential damage cannot be excluded. 
A) the product will be repaired for free. 
B) the warranty lasts for at least 10 days. 
C) the consumer can opt for replacement if the product is unsatisfactory. 
D) consequential damage cannot be excluded.

Question 6

The Federal Consumer Credit Protection Act:

Accepted Answer

A) sets limits on garnishment proceedings. 
B) requires creditors to disclose finance charges. 
C) does not yet require disclosure on credit extension charges. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct. 
A) sets limits on garnishment proceedings. 
B) requires creditors to disclose finance charges. 
C) does not yet require disclosure on credit extension charges. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct.

Question 7

In 1974,Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Accepted Answer

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

Question 8

The Credit Card Fraud Act prohibits which of the following practices?

Accepted Answer

A) Possessing unauthorized cards. 
B) Counterfeiting or altering credit cards. 
C) Using accounts numbers alone. 
D) Using cards obtained from a third party with his consent when the third party conspires to report the cards as stolen. 
E) All of the above. 
A) Possessing unauthorized cards. 
B) Counterfeiting or altering credit cards. 
C) Using accounts numbers alone. 
D) Using cards obtained from a third party with his consent when the third party conspires to report the cards as stolen. 
E) All of the above.

Question 9

What remedies are available for the Federal Trade Commission?

Accepted Answer

A) Affirmative exemption. 
B) Corrective advertising and multiple product orders. 
C) Impounding inventory. 
D) Criminal penalties. 
A) Affirmative exemption. 
B) Corrective advertising and multiple product orders. 
C) Impounding inventory. 
D) Criminal penalties.

Question 10

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

Accepted Answer

A) The amount of the debt, with interest and penalties clearly delineated. 
B) The name and phone number of the current creditor and former creditor. 
C) A statement telling the consumer that he can request verification of the alleged debt. 
D) A copy of the original credit contract with the original creditor. 
A) The amount of the debt, with interest and penalties clearly delineated. 
B) The name and phone number of the current creditor and former creditor. 
C) A statement telling the consumer that he can request verification of the alleged debt. 
D) A copy of the original credit contract with the original creditor.

Question 11

In most states,a consumer is legally obligated once he has signed a contract,unless he rescinds the binding credit obligation within two to three days if the sale was solicited in his house.

Accepted Answer

A) True 
 B)False

Question 12

Since 1976,the Food and Drug Administration has had the increased authority to:

Accepted Answer

A) subject medical devices to premarket approval. 
B) require manufacturers to do corrective advertising. 
C) make manufacturers responsible for seeing that drugs are proven safe and effective before being sold. 
D) make package inserts or labels on drugs list possible side effects. 
A) subject medical devices to premarket approval. 
B) require manufacturers to do corrective advertising. 
C) make manufacturers responsible for seeing that drugs are proven safe and effective before being sold. 
D) make package inserts or labels on drugs list possible side effects.

Question 13

The Fair Debt Collection Practices Act defines all of the following practices as abusive,EXCEPT:

Accepted Answer

A) unfair means to collect a debt. 
B) falsely representing that a lawsuit is about to be filed. 
C) telephoning the debtor at 8:00a.m. 
D) using obscene language. 
A) unfair means to collect a debt. 
B) falsely representing that a lawsuit is about to be filed. 
C) telephoning the debtor at 8:00a.m. 
D) using obscene language.

Question 14

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

Accepted Answer

A) True 
 B)False

Question 15

The Magnuson-Moss Act applies to all sales of goods covered by the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 16

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Accepted Answer

A) True 
 B)False

Question 17

The Home Equity Loan Consumer Protection Act:

Accepted Answer

A) defines a principal dwelling to include second or vacation homes. 
B) amends the Truth-in-Lending Act to require that lenders provide a disclosure statement to potential borrowers at least five days before they receive an application for the loan. 
C) only covers loans with adjustable rate mortgages. 
D) forbids the creditor from accelerating the outstanding balance of the loan if the consumer fails to make payments on time. 
A) defines a principal dwelling to include second or vacation homes. 
B) amends the Truth-in-Lending Act to require that lenders provide a disclosure statement to potential borrowers at least five days before they receive an application for the loan. 
C) only covers loans with adjustable rate mortgages. 
D) forbids the creditor from accelerating the outstanding balance of the loan if the consumer fails to make payments on time.

Question 18

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Accepted Answer

A) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B) To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets. 
C) To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws. 
A) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board. 
B) To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets. 
C) To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. 
D) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

Question 19

Under the Fair Credit Reporting Act:

Accepted Answer

A) credit reports may be used by potential employers and lenders, but not insurers. 
B) consumer reporting agencies must notify consumers, orally or in writing, before making an investigative report. 
C) if a consumer does not agree with information in the file and so notifies the reporting agency, the agency must reinvestigate the matter, even if the agency thinks the complaint is frivolous or irrelevant. 
D) upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months. 
A) credit reports may be used by potential employers and lenders, but not insurers. 
B) consumer reporting agencies must notify consumers, orally or in writing, before making an investigative report. 
C) if a consumer does not agree with information in the file and so notifies the reporting agency, the agency must reinvestigate the matter, even if the agency thinks the complaint is frivolous or irrelevant. 
D) upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months.

Question 20

Remedies available to the FTC for violations of unfair and deceptive trade practices include:

Accepted Answer

A) affirmative disclosure. 
B) corrective advertising. 
C) multiple product orders. 
D) All of the above. 
A) affirmative disclosure. 
B) corrective advertising. 
C) multiple product orders. 
D) All of the above.

Exam 44: Consumer Protection

The Fair Debt Collection Practices Act applies directly to creditors.

The Mortgage Reform and Anti-Predatory Lending Act of 2010 sets minimum underwriting standards for mortgages and prohibits mandatory arbitration clauses and prepayment penalties for ARMs.

Some states have broadened their lemon law coverage to include used cars and motorcycles.

An employer must notify a job applicant or current employee that a credit report may be used and must obtain the applicant's consent prior to requesting an individual's credit report from a credit bureau.

In order for a full warranty to be given for a consumer product,the manufacturer must provide that:

The Federal Consumer Credit Protection Act:

In 1974,Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

The Credit Card Fraud Act prohibits which of the following practices?

What remedies are available for the Federal Trade Commission?

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice.What information must be contained in this notice?

In most states,a consumer is legally obligated once he has signed a contract,unless he rescinds the binding credit obligation within two to three days if the sale was solicited in his house.

Since 1976,the Food and Drug Administration has had the increased authority to:

The Fair Debt Collection Practices Act defines all of the following practices as abusive,EXCEPT:

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

The Magnuson-Moss Act applies to all sales of goods covered by the Uniform Commercial Code.

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

The Home Equity Loan Consumer Protection Act:

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Under the Fair Credit Reporting Act:

Remedies available to the FTC for violations of unfair and deceptive trade practices include:

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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