Question 1

If the FTC rules that a seller has made a false or deceptive advertising statement,the Commission can:

Accepted Answer

A) as a first course of action fine the seller and, if that is not effective, file suit in federal court. 
B) require the seller to make additional advertisements to correct it. 
C) require the company to go out of business. 
D) report the company to the President of the United States for deregulation. 
A) as a first course of action fine the seller and, if that is not effective, file suit in federal court. 
B) require the seller to make additional advertisements to correct it. 
C) require the company to go out of business. 
D) report the company to the President of the United States for deregulation.

Question 2

The Consumer Financial Protection Bureau is an independent executive agency housed within the Federal Reserve and was established to regulate consumer financial products or services solely under the Consumer Financial Protection Act of 2010.

Accepted Answer

A) True 
 B)False

Question 3

Congress outlawed the practice of redlining through what legislation?

Accepted Answer

A) The Gramm-Leach-Bliley Financial Modernization Act. 
B) The Home Mortgage Disclosure Act. 
C) The Dodd-Frank Act. 
D) The Equal Credit Opportunity Act. 
A) The Gramm-Leach-Bliley Financial Modernization Act. 
B) The Home Mortgage Disclosure Act. 
C) The Dodd-Frank Act. 
D) The Equal Credit Opportunity Act.

Question 4

Most lemon laws define a lemon as a car that:

Accepted Answer

A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers. 
A) was sold by a dealer who refuses to make reasonable attempts to correct the problem. 
B) continues to have a defect that substantially impairs its use, value, or safety, even after the manufacturer has made reasonable attempts to correct the problem. 
C) has been unpopular and so is sold at a discounted price. 
D) a manufacturer must destroy so that it cannot be sold to other unsuspecting consumers.

Question 5

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act,a contract solicited in a consumer's home may be canceled within:

Accepted Answer

A) 10 days by either party. 
B) 10 days by the consumer. 
C) three days by the consumer. 
D) 20 days by either party. 
A) 10 days by either party. 
B) 10 days by the consumer. 
C) three days by the consumer. 
D) 20 days by either party.

Question 6

The Equal Credit Opportunity Act prohibits discrimination based on what factors in the extension of credit?

Accepted Answer

A) Sex, marital status, or race. 
B) Religion, national origin, and age. 
C) Income, occupation, or apparent stability. 
D) Both (a) and (b). 
A) Sex, marital status, or race. 
B) Religion, national origin, and age. 
C) Income, occupation, or apparent stability. 
D) Both (a) and (b).

Question 7

Northstar Sporting Goods sells consumer goods to Lena for $85 and provides a written warranty regarding the quality of the goods.Northstar:

Accepted Answer

A) must designate the warranty as full or limited. 
B) may disclaim any and all implied warranties as long as the disclaimer is conspicuous. 
C) may modify the implied warranties. 
D) All of the above. 
A) must designate the warranty as full or limited. 
B) may disclaim any and all implied warranties as long as the disclaimer is conspicuous. 
C) may modify the implied warranties. 
D) All of the above.

Question 8

The federal Truth-in-Lending law:

Accepted Answer

A) requires the lender to show how much profit is made on a particular sale. 
B) regulates the maximum cost of credit. 
C) is a uniform law, like the UCC, made available to all states. 
D) is intended to allow comparison of various credit offers or advertisements. 
A) requires the lender to show how much profit is made on a particular sale. 
B) regulates the maximum cost of credit. 
C) is a uniform law, like the UCC, made available to all states. 
D) is intended to allow comparison of various credit offers or advertisements.

Question 9

Discuss the role of the state attorneys general in consumer protection.

Accepted Answer

a.The common law rule was caveat emptor

Question 10

Holly,who is married to Grant,applies for a credit card from Marlin's Department Store,but she is turned down because she is a married woman and the store's policy is to only issue cards in the name of the husband in such situations.What are her legal rights in this situation?

Accepted Answer

Under the Equal Credit Opportunity Act,H

Question 11

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

Accepted Answer

A) True 
 B)False

Question 12

On Monday,Bill agreed to buy vinyl siding for his home from Al,a door-to-door salesman.On Wednesday,he can rescind the contract with no liability for breach of contract.

Accepted Answer

A) True 
 B)False

Question 13

The Consumer Financial Protection Bureau has rulemaking,supervisory,and enforcement authority over all but which of the following?

Accepted Answer

A) Persons engaged in extending credit and servicing loans. 
B) Automobile dealers. 
C) Check cashing establishments. 
D) Consumer credit report providers. 
E) Persons engaged in deposit-taking activities. 
A) Persons engaged in extending credit and servicing loans. 
B) Automobile dealers. 
C) Check cashing establishments. 
D) Consumer credit report providers. 
E) Persons engaged in deposit-taking activities.

Question 14

The National Highway Traffic Safety Administration:

Accepted Answer

A) recalls autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct. 
A) recalls autos for safety reasons. 
B) tests the fuel efficiency of each year's car models. 
C) enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying. 
D) None of these are correct.

Question 15

The United States Postal Service plays an important role in consumer protection.

Accepted Answer

A) True 
 B)False

Question 16

When first established,the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

Accepted Answer

A) True 
 B)False

Question 17

A collection agency may not personally contact the debtor if the debtor has engaged a lawyer to represent him.

Accepted Answer

A) True 
 B)False

Question 18

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency,Office of Thrift Supervision,FDIC,Federal Reserve,National Credit Union Administration,HUD,and the FTC.

Accepted Answer

A) True 
 B)False

Question 19

The FTC:

Accepted Answer

A) and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive. 
B) can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising. 
C) can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist." 
D) All of these are correct. 
A) and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive. 
B) can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising. 
C) can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist." 
D) All of these are correct.

Question 20

The Federal Trade Commission has overall enforcement authority for the Equal Credit Opportunity Act.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection

If the FTC rules that a seller has made a false or deceptive advertising statement,the Commission can:

The Consumer Financial Protection Bureau is an independent executive agency housed within the Federal Reserve and was established to regulate consumer financial products or services solely under the Consumer Financial Protection Act of 2010.

Congress outlawed the practice of redlining through what legislation?

Most lemon laws define a lemon as a car that:

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act,a contract solicited in a consumer's home may be canceled within:

The Equal Credit Opportunity Act prohibits discrimination based on what factors in the extension of credit?

Northstar Sporting Goods sells consumer goods to Lena for $85 and provides a written warranty regarding the quality of the goods.Northstar:

The federal Truth-in-Lending law:

Discuss the role of the state attorneys general in consumer protection.

Holly,who is married to Grant,applies for a credit card from Marlin's Department Store,but she is turned down because she is a married woman and the store's policy is to only issue cards in the name of the husband in such situations.What are her legal rights in this situation?

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

On Monday,Bill agreed to buy vinyl siding for his home from Al,a door-to-door salesman.On Wednesday,he can rescind the contract with no liability for breach of contract.

The Consumer Financial Protection Bureau has rulemaking,supervisory,and enforcement authority over all but which of the following?

The National Highway Traffic Safety Administration:

The United States Postal Service plays an important role in consumer protection.

When first established,the Consumer Product Safety Commission promulgated a number of mandatory safety standards.

A collection agency may not personally contact the debtor if the debtor has engaged a lawyer to represent him.

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency,Office of Thrift Supervision,FDIC,Federal Reserve,National Credit Union Administration,HUD,and the FTC.

The FTC:

The Federal Trade Commission has overall enforcement authority for the Equal Credit Opportunity Act.

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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