Question 1

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

Accepted Answer

A) True 
 B)False

Question 2

A typical automobile financing agreement would be a closed-end credit agreement.

Accepted Answer

A) True 
 B)False

Question 3

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $50,000.

Accepted Answer

A) True 
 B)False

Question 4

Lemon laws are generally understood to be laws that:

Accepted Answer

A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are Interstate Compacts to uniformly deal with lemon cars. 
A) apply to the safety of food additives for fruits and vegetables. 
B) are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers. 
C) are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act. 
D) are Interstate Compacts to uniformly deal with lemon cars.

Question 5

Ad substantiation does not require advertisers to have a reasonable basis for their claims at the time the claims were made.

Accepted Answer

A) True 
 B)False

Question 6

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities,characteristics,or conditions.

Accepted Answer

A) True 
 B)False

Question 7

The FTC remedy of "affirmative disclosure" would require:

Accepted Answer

A) a new ad that admits the first ad was false. 
B) providing certain information in a company's ad. 
C) that the advertiser desist from deception in all products it markets. 
D) All of the above would be required. 
A) a new ad that admits the first ad was false. 
B) providing certain information in a company's ad. 
C) that the advertiser desist from deception in all products it markets. 
D) All of the above would be required.

Question 8

Discuss ARMs and their regulation.

Accepted Answer

The Federal Reserve Board amended Regula

Question 9

A collection agency is prohibited from:

Accepted Answer

A) calling the debtor in the middle of the night. 
B) calling the debtor from 5-6 p.m. when he is likely to be eating dinner. 
C) threatening to sue if it actually intends to do so. 
D) contacting third persons to find out the whereabouts of a debtor. 
A) calling the debtor in the middle of the night. 
B) calling the debtor from 5-6 p.m. when he is likely to be eating dinner. 
C) threatening to sue if it actually intends to do so. 
D) contacting third persons to find out the whereabouts of a debtor.

Question 10

The FTC has the power to seek in a federal district court a preliminary injunction,pending completion of administrative proceedings,whenever the agency has reason to believe that a person has been violating FTC rules.

Accepted Answer

A) True 
 B)False

Question 11

When the creditor has been notified that a credit card was lost,the liability of the credit card holder is limited to:

Accepted Answer

A) $100. 
B) $75. 
C) $50. 
D) None of the above; liability is unlimited. 
A) $100. 
B) $75. 
C) $50. 
D) None of the above; liability is unlimited.

Question 12

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Accepted Answer

A) females. 
B) men over 70 years of age. 
C) people with incomes below $10,000. 
D) people from Italy. 
A) females. 
B) men over 70 years of age. 
C) people with incomes below $10,000. 
D) people from Italy.

Question 13

Which of the following would NOT be considered to be an example of open-ended credit?

Accepted Answer

A) A gasoline credit card. 
B) A VISA card. 
C) A real estate mortgage. 
D) A department store credit card. 
A) A gasoline credit card. 
B) A VISA card. 
C) A real estate mortgage. 
D) A department store credit card.

Question 14

Nathan borrows $1,250 to pay his son's medical bills.This is not a consumer credit transaction subject to the FCCPA since the loan is for a family member's services rather than for Nathan's personal purchase of goods.

Accepted Answer

A) True 
 B)False

Question 15

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Trade Commission Act allows the FTC to:

Accepted Answer

A) determine what constitutes deceptive advertising practices. 
B) prohibit all advertising in certain professions. 
C) require advertisers to contribute to a fund to reimburse injured consumers. 
D) require the independent testing of consumer goods. 
A) determine what constitutes deceptive advertising practices. 
B) prohibit all advertising in certain professions. 
C) require advertisers to contribute to a fund to reimburse injured consumers. 
D) require the independent testing of consumer goods.

Question 17

The Consumer Product Safety Commission cannot issue an order banning a hazardous product from the market.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following acts requires disclosure of finance charges in terms of an annual percentage rate and requires that interest rates be calculated in a uniform manner in consumer credit transactions?

Accepted Answer

A) Equal Credit Opportunity Act 
B) Fair Credit Billing Act 
C) Truth-in-Lending Act 
D) FTC Act 
A) Equal Credit Opportunity Act 
B) Fair Credit Billing Act 
C) Truth-in-Lending Act 
D) FTC Act

Question 19

The Consumer Product Safety Commission:

Accepted Answer

A) only has the authority to educate the public concerning product safety problems. 
B) uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C) can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D) have no enforcement powers since compliance with its regulations is left up to the manufacturer. 
A) only has the authority to educate the public concerning product safety problems. 
B) uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers. 
C) can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards. 
D) have no enforcement powers since compliance with its regulations is left up to the manufacturer.

Question 20

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

A typical automobile financing agreement would be a closed-end credit agreement.

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $50,000.

Lemon laws are generally understood to be laws that:

Ad substantiation does not require advertisers to have a reasonable basis for their claims at the time the claims were made.

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities,characteristics,or conditions.

The FTC remedy of "affirmative disclosure" would require:

Discuss ARMs and their regulation.

A collection agency is prohibited from:

The FTC has the power to seek in a federal district court a preliminary injunction,pending completion of administrative proceedings,whenever the agency has reason to believe that a person has been violating FTC rules.

When the creditor has been notified that a credit card was lost,the liability of the credit card holder is limited to:

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Which of the following would NOT be considered to be an example of open-ended credit?

Nathan borrows $1,250 to pay his son's medical bills.This is not a consumer credit transaction subject to the FCCPA since the loan is for a family member's services rather than for Nathan's personal purchase of goods.

The Interstate Land Sales Full Disclosure Act has been repealed because it was no longer needed.

The Federal Trade Commission Act allows the FTC to:

The Consumer Product Safety Commission cannot issue an order banning a hazardous product from the market.

Which of the following acts requires disclosure of finance charges in terms of an annual percentage rate and requires that interest rates be calculated in a uniform manner in consumer credit transactions?

The Consumer Product Safety Commission:

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

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

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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

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