Question 1

The Consumer Product Safety Commission may do all of the following EXCEPT:

Accepted Answer

A)  issue recalls of products. 
B)  ban harmful consumer products. 
C)  research potential product hazards. 
D)  protect consumers against unsafe food products. 
E)  develop mandatory and voluntary standards. 
A)  issue recalls of products. 
B)  ban harmful consumer products. 
C)  research potential product hazards. 
D)  protect consumers against unsafe food products. 
E)  develop mandatory and voluntary standards. D

Question 2

What are the two types of petitions that are filed to begin bankruptcy proceedings?

Accepted Answer

Bankruptcy proceedings begin upon the filing of either a voluntary or involuntary petition to the court. A voluntary petition is one filed by the debtor; an involuntary petition is filed by one or more creditors of the debtor. The creditors who sign the involuntary petition must be owed at least $2,300. If the court finds in an involuntary proceeding that the debtor is on the table to pay his/her debts as they mature, the court will order relief against the debtor. Relief may be also ordered if someone has been appointed to control the debtor's property for the purpose of satisfying a judgment or other lien.

Question 3

Marie is a married woman with a good job. If she applies for credit solely in her own name, the credit company may not deny her individual credit if she is creditworthy, but the credit company is permitted to ask if she is married to maintain a complete file on her.

Accepted Answer

A) True 
 B)False  False

Question 4

_____ reports refer to reports on a customer's character, general reputation, mode of living, and so on, obtained by personal interviews in the consumer's community.

Accepted Answer

A)  Credit 
B)  Policy 
C)  Market research 
D)  Demographic 
E)  Investigative consumer 
A)  Credit 
B)  Policy 
C)  Market research 
D)  Demographic 
E)  Investigative consumer

Question 5

Infro, Inc., is a major lender licensed to lend only in Delaware. Infro tracks the payment history of its customers and finds that customers in Sussex County perform far below customers in the other counties. Assume that the county which is heavily into farming and low-paying industrial jobs is 25 percent African-American and has a 40 percent population of legal and illegal immigrants. Infro finds that while it is profitable overall, it is losing money on the Sussex County loans. Further research reveals that Sussex County is one of the poorest-performing customer bases nationwide and that most companies doing business in the county are losing money. The board of directors decides not to make any more loans in Sussex County. Which of the following is true?

Accepted Answer

A)  Before Infro implements its decision, it must get permission from the FTC to do so. 
B)  If Infro goes through with its decision, it is engaging in redlining which is illegal. 
C)  If Infro goes through with its decision, it is engaging in reverse redlining which is illegal. 
D)  Infro, as a private company, is free to make business decisions that are advantageous to the company and has done nothing wrong. 
E)  If Infro goes through with its decision, it is engaging in liquorlining which is legal. 
A)  Before Infro implements its decision, it must get permission from the FTC to do so. 
B)  If Infro goes through with its decision, it is engaging in redlining which is illegal. 
C)  If Infro goes through with its decision, it is engaging in reverse redlining which is illegal. 
D)  Infro, as a private company, is free to make business decisions that are advantageous to the company and has done nothing wrong. 
E)  If Infro goes through with its decision, it is engaging in liquorlining which is legal.

Question 6

A debt collector is not required to disclose his/her identity as a debt collector to delinquent customers they call when attempting to collect a legitimate, delinquent debt.

Accepted Answer

A) True 
 B)False

Question 7

Although the Equal Credit Opportunity Act protects each of the following from discrimination, special emphasis is aimed at preventing discrimination regarding:

Accepted Answer

A)  race. 
B)  age. 
C)  sex 
D)  marital status. 
E)  religion. 
A)  race. 
B)  age. 
C)  sex 
D)  marital status. 
E)  religion.

Question 8

The Fair Credit Billing Act limits a customer's liability for a thief's use of a stolen credit card to a maximum of $500.

Accepted Answer

A) True 
 B)False

Question 9

Investigative consumer reports detailing a consumer's character, general reputation, and mode of living are:

Accepted Answer

A)  allowed under the FCRA without restriction should the consumer apply for credit, insurance, or a job. 
B)  allowed under the FCRA with three days' advance notice to the consumer should the consumer apply for credit, insurance, or a job. 
C)  allowed under the FCRA with five days' advance notice to the consumer should the consumer apply for credit, insurance, or a job. 
D)  expressly prohibited under the FCRA because these are not credit-related issues. 
E)  expressly prohibited under the FCRA because it violates the right to privacy of the consumer. 
A)  allowed under the FCRA without restriction should the consumer apply for credit, insurance, or a job. 
B)  allowed under the FCRA with three days' advance notice to the consumer should the consumer apply for credit, insurance, or a job. 
C)  allowed under the FCRA with five days' advance notice to the consumer should the consumer apply for credit, insurance, or a job. 
D)  expressly prohibited under the FCRA because these are not credit-related issues. 
E)  expressly prohibited under the FCRA because it violates the right to privacy of the consumer.

Question 10

With regard to the Magnuson-Moss Warranty Act, under full warranties, a warrantor must replace a defective product within a reasonable time and at no charge, barring the shipping costs.

Accepted Answer

A) True 
 B)False

Question 11

What are the provisions of the Right to Financial Privacy Act of 1978?

Accepted Answer

The Right to Financial Privacy Act of 19

Question 12

Industry guides issued by the FTC are formal and legally binding.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements holds true for the term "redlining"?

Accepted Answer

A)  It refers to the practice in which real estate brokers guide prospective home buyers toward or away from certain neighborhoods based on their race. 
B)  It refers to the perceived business practice of a company providing a product or a service to only the high-value or low-cost customers of that product or service. 
C)  It refers to a way of encouraging white property owners to sell their houses at a loss by implying that racial minorities were moving into their previously racially segregated neighborhood, thus depressing real estate property values. 
D)  It refers to an organization targeting minority consumers by charging them more than would be charged to a similarly situated majority consumer. 
E)  It refers to the refusal of an organization to make loans at all in certain areas where property values are low. 
A)  It refers to the practice in which real estate brokers guide prospective home buyers toward or away from certain neighborhoods based on their race. 
B)  It refers to the perceived business practice of a company providing a product or a service to only the high-value or low-cost customers of that product or service. 
C)  It refers to a way of encouraging white property owners to sell their houses at a loss by implying that racial minorities were moving into their previously racially segregated neighborhood, thus depressing real estate property values. 
D)  It refers to an organization targeting minority consumers by charging them more than would be charged to a similarly situated majority consumer. 
E)  It refers to the refusal of an organization to make loans at all in certain areas where property values are low.

Question 14

The courts may assess fines against those found to have engaged in deceptive advertising upon request from the:

Accepted Answer

A)  Bureau of Consumer Protection only. 
B)  Bureau of Consumer Protection and/or the Home Department. 
C)  Bureau of Consumer Protection, the FTC, and the Justice Department. 
D)  FTC or the Justice Department. 
E)  FTC and the Home Department. 
A)  Bureau of Consumer Protection only. 
B)  Bureau of Consumer Protection and/or the Home Department. 
C)  Bureau of Consumer Protection, the FTC, and the Justice Department. 
D)  FTC or the Justice Department. 
E)  FTC and the Home Department.

Question 15

What is the essential difference between a Chapter 7 and a Chapter 13 bankruptcy?

Accepted Answer

The Chapter 7 bankruptcy results in the

Question 16

What is meant by finance charge? What are the items included in the finance charge?

Accepted Answer

The finance charge is the sum of all cha

Question 17

Explain the concept of "user" provisions as mentioned in the Fair Credit Reporting Act.

Accepted Answer

Many businesses can avoid the pitfalls o

Question 18

What are the two related ways in which the Federal Trade Commission (FTC) prosecutes businesses for committing unfair or deceptive trade practices?

Accepted Answer

The Federal Trade Commission (FTC) prose

Question 19

ECNAL Corp. manufactures bicycle parts and equipment. One of their new products, the Slipstream tire, is advertised to be 5 percent faster than the competition due to a new rubber compound used that reduces road drag and friction significantly. After receiving complaints of fraud, the FTC determines that the tire is made from rubber similar to that found in most bicycle tires and it does not, in fact, reduce road drag and friction any more than other tires on the market. The FTC has ordered ECNAL to include in their advertising the truth about the tire materials and their quality and specifically state that the Slipstream tire does not improve speed or performance. The FTC has ordered ENCAL to engage in:

Accepted Answer

A)  corrective advertising. 
B)  cease and desist advertising. 
C)  comparative advertising. 
D)  parody advertising. 
E)  social advertising. 
A)  corrective advertising. 
B)  cease and desist advertising. 
C)  comparative advertising. 
D)  parody advertising. 
E)  social advertising.

Question 20

What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

Accepted Answer

The Consumer Financial Protection Bureau

The Consumer Product Safety Commission may do all of the following EXCEPT:

What are the two types of petitions that are filed to begin bankruptcy proceedings?

Marie is a married woman with a good job. If she applies for credit solely in her own name, the credit company may not deny her individual credit if she is creditworthy, but the credit company is permitted to ask if she is married to maintain a complete file on her.

_____ reports refer to reports on a customer's character, general reputation, mode of living, and so on, obtained by personal interviews in the consumer's community.

A debt collector is not required to disclose his/her identity as a debt collector to delinquent customers they call when attempting to collect a legitimate, delinquent debt.

Although the Equal Credit Opportunity Act protects each of the following from discrimination, special emphasis is aimed at preventing discrimination regarding:

The Fair Credit Billing Act limits a customer's liability for a thief's use of a stolen credit card to a maximum of $500.

Investigative consumer reports detailing a consumer's character, general reputation, and mode of living are:

With regard to the Magnuson-Moss Warranty Act, under full warranties, a warrantor must replace a defective product within a reasonable time and at no charge, barring the shipping costs.

What are the provisions of the Right to Financial Privacy Act of 1978?

Industry guides issued by the FTC are formal and legally binding.

Which of the following statements holds true for the term "redlining"?

The courts may assess fines against those found to have engaged in deceptive advertising upon request from the:

What is the essential difference between a Chapter 7 and a Chapter 13 bankruptcy?

What is meant by finance charge? What are the items included in the finance charge?

Explain the concept of "user" provisions as mentioned in the Fair Credit Reporting Act.

What are the two related ways in which the Federal Trade Commission (FTC) prosecutes businesses for committing unfair or deceptive trade practices?

What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competition_Antitrust Laws

Financial and Securities Regulations

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

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Exam 18: Privacy and Consumer Protection

The Consumer Product Safety Commission may do all of the following EXCEPT:

What are the two types of petitions that are filed to begin bankruptcy proceedings?

Marie is a married woman with a good job. If she applies for credit solely in her own name, the credit company may not deny her individual credit if she is creditworthy, but the credit company is permitted to ask if she is married to maintain a complete file on her.

_____ reports refer to reports on a customer's character, general reputation, mode of living, and so on, obtained by personal interviews in the consumer's community.

A debt collector is not required to disclose his/her identity as a debt collector to delinquent customers they call when attempting to collect a legitimate, delinquent debt.

Although the Equal Credit Opportunity Act protects each of the following from discrimination, special emphasis is aimed at preventing discrimination regarding:

The Fair Credit Billing Act limits a customer's liability for a thief's use of a stolen credit card to a maximum of $500.

Investigative consumer reports detailing a consumer's character, general reputation, and mode of living are:

With regard to the Magnuson-Moss Warranty Act, under full warranties, a warrantor must replace a defective product within a reasonable time and at no charge, barring the shipping costs.

What are the provisions of the Right to Financial Privacy Act of 1978?

Industry guides issued by the FTC are formal and legally binding.

Which of the following statements holds true for the term "redlining"?

The courts may assess fines against those found to have engaged in deceptive advertising upon request from the:

What is the essential difference between a Chapter 7 and a Chapter 13 bankruptcy?

What is meant by finance charge? What are the items included in the finance charge?

Explain the concept of "user" provisions as mentioned in the Fair Credit Reporting Act.

What are the two related ways in which the Federal Trade Commission (FTC) prosecutes businesses for committing unfair or deceptive trade practices?

What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competition_Antitrust Laws

Financial and Securities Regulations

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

Filters