Question 1

The Truth-in-Lending Act covers transactions in which the debtor is a corporation or a business entity,

Accepted Answer

A) True 
 B)False

Question 2

The Fair Debt Collection Practices Act:

Accepted Answer

A)  forbids class-action suits but permits individual ones against the debt collectors. 
B)  permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer but may not disclose the nature or amount of the debt. 
C)  permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer and may also disclose the nature or amount of the debt. 
D)  forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of the consumer's debt. 
E)  permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt. 
A)  forbids class-action suits but permits individual ones against the debt collectors. 
B)  permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer but may not disclose the nature or amount of the debt. 
C)  permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer and may also disclose the nature or amount of the debt. 
D)  forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of the consumer's debt. 
E)  permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt.

Question 3

What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

Accepted Answer

In 1980, Congress passed the Truth-in-Le

Question 4

Consumer protection laws arise when legislatures define an ambiguous legal boundary between certain types of sellers and buyers in ways that favor buyers.

Accepted Answer

A) True 
 B)False

Question 5

What information should the financing statement contain apart from the finance charge and annual percentage rate?

Accepted Answer

The financing statement must contain, in

Question 6

Which parties relevant to a delinquent debt collection will be regulated, and which will not be regulated, under the Fair Debt Collection Practices Act (FDCPA)?

Accepted Answer

The Fair Debt Collection Practices Act (

Question 7

A report containing information solely as to transactions between the consumer and the person making the report is not a "consumer report" covered by the Fair Credit Reporting Act (FCRA).

Accepted Answer

A) True 
 B)False

Question 8

Explain the concept of corrective advertising.

Accepted Answer

In addition to assessing penalty fines,

Question 9

Upon request by the FTC, the federal courts may assess fines for each of the following EXCEPT:

Accepted Answer

A)  when companies violate the cease and desist order. 
B)  when companies agree to fines as part of a cease and desist order. 
C)  when companies knowingly violate a prior FTC order against others. 
D)  when companies violate a trade regulation rule. 
E)  when companies agree to fines as part of a consent order. 
A)  when companies violate the cease and desist order. 
B)  when companies agree to fines as part of a cease and desist order. 
C)  when companies knowingly violate a prior FTC order against others. 
D)  when companies violate a trade regulation rule. 
E)  when companies agree to fines as part of a consent order.

Question 10

In a bankruptcy proceeding, which of the following debts will have the highest creditor priority?

Accepted Answer

A)  Government tax claims. 
B)  Employees who are owed wages earned within 90 days of filing. 
C)  Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer. 
D)  Creditors with claims in the ordinary course of business incurred after the bankruptcy was filed. 
E)  General creditors. 
A)  Government tax claims. 
B)  Employees who are owed wages earned within 90 days of filing. 
C)  Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer. 
D)  Creditors with claims in the ordinary course of business incurred after the bankruptcy was filed. 
E)  General creditors.

Question 11

Which of the following prevents discrimination in credit extension based on sex, age, race, religion, national origin, marital status, and receipt of welfare payments?

Accepted Answer

A)  The Federal Trade Commission Act 
B)  The Fair Credit Reporting Act 
C)  The Truth-in-Lending Act 
D)  The Fair Debt Collection Practices Act 
E)  The Equal Credit Opportunity Act 
A)  The Federal Trade Commission Act 
B)  The Fair Credit Reporting Act 
C)  The Truth-in-Lending Act 
D)  The Fair Debt Collection Practices Act 
E)  The Equal Credit Opportunity Act

Question 12

The regulatory center for federal consumer protection is the:

Accepted Answer

A)  United States Consumer Product Safety Commission. 
B)  Bureau of Consumer Protection. 
C)  Federal Consumer Protection Agency. 
D)  Bureau of Consumer Trade. 
E)  Department of Consumer Affairs. 
A)  United States Consumer Product Safety Commission. 
B)  Bureau of Consumer Protection. 
C)  Federal Consumer Protection Agency. 
D)  Bureau of Consumer Trade. 
E)  Department of Consumer Affairs.

Question 13

Although the FTC is an independent regulatory agency, the FTC commissioners often reflect the views of:

Accepted Answer

A)  lawmakers of the upper house of Congress. 
B)  the common public who elected them to their positions. 
C)  the consumer products companies. 
D)  the executive head of the Bureau of Consumer Protection. 
E)  the president who appointed them. 
A)  lawmakers of the upper house of Congress. 
B)  the common public who elected them to their positions. 
C)  the consumer products companies. 
D)  the executive head of the Bureau of Consumer Protection. 
E)  the president who appointed them.

Question 14

The trustee in a bankruptcy is elected by the debtor to represent the debtor's estate during the bankruptcy.

Accepted Answer

A) True 
 B)False

Question 15

The "_____" provisions of the FCRA requires that consumers who are seeking credit for personal, family, or household purposes be informed if their application is denied because of an adverse credit report.

Accepted Answer

A)  server 
B)  subscriber 
C)  access 
D)  content 
E)  user 
A)  server 
B)  subscriber 
C)  access 
D)  content 
E)  user

Question 16

Recording fees and taxes are not considered in a loan's finance charge.

Accepted Answer

A) True 
 B)False

Question 17

What guidelines as issued by the Fair Debt Collection Practices Act (FDCPA) does a debt collector have to follow in order to contact a debtor?

Accepted Answer

One of the first actions of a debt colle

Question 18

The Federal Food, Drug and Cosmetic Act is administered by the FTC.

Accepted Answer

A) True 
 B)False

Question 19

Shauna is delinquent on her car loan payment. The debt collector hired by the bank visits Shauna and verbally abuses her using highly offensive language. Shauna is annoyed. However, she has suffered no actual damages. Under the Fair Debt Collection Practices Act, the debt collector:

Accepted Answer

A)  may not be ordered to pay Shauna any money because she suffered no injury. 
B)  may be ordered to pay up to $1,000 for using obscene language. 
C)  may be ordered to pay up to $10,000 for having made a house visit. 
D)  is not liable to Shauna, but the bank that hired the collector is liable to her. 
E)  is allowed to use intimidatory tactics for habitual offenders. 
A)  may not be ordered to pay Shauna any money because she suffered no injury. 
B)  may be ordered to pay up to $1,000 for using obscene language. 
C)  may be ordered to pay up to $10,000 for having made a house visit. 
D)  is not liable to Shauna, but the bank that hired the collector is liable to her. 
E)  is allowed to use intimidatory tactics for habitual offenders.

Question 20

The total cost of money to a consumer is called the:

Accepted Answer

A)  annual percentage rate. 
B)  funding charge rate. 
C)  commercial charge. 
D)  service charge. 
E)  finance charge. 
A)  annual percentage rate. 
B)  funding charge rate. 
C)  commercial charge. 
D)  service charge. 
E)  finance charge.

Exam 18: Privacy and Consumer Protection

The Truth-in-Lending Act covers transactions in which the debtor is a corporation or a business entity,

The Fair Debt Collection Practices Act:

What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

Consumer protection laws arise when legislatures define an ambiguous legal boundary between certain types of sellers and buyers in ways that favor buyers.

What information should the financing statement contain apart from the finance charge and annual percentage rate?

Which parties relevant to a delinquent debt collection will be regulated, and which will not be regulated, under the Fair Debt Collection Practices Act (FDCPA)?

A report containing information solely as to transactions between the consumer and the person making the report is not a "consumer report" covered by the Fair Credit Reporting Act (FCRA).

Explain the concept of corrective advertising.

Upon request by the FTC, the federal courts may assess fines for each of the following EXCEPT:

In a bankruptcy proceeding, which of the following debts will have the highest creditor priority?

Which of the following prevents discrimination in credit extension based on sex, age, race, religion, national origin, marital status, and receipt of welfare payments?

The regulatory center for federal consumer protection is the:

Although the FTC is an independent regulatory agency, the FTC commissioners often reflect the views of:

The trustee in a bankruptcy is elected by the debtor to represent the debtor's estate during the bankruptcy.

The "_____" provisions of the FCRA requires that consumers who are seeking credit for personal, family, or household purposes be informed if their application is denied because of an adverse credit report.

Recording fees and taxes are not considered in a loan's finance charge.

What guidelines as issued by the Fair Debt Collection Practices Act (FDCPA) does a debt collector have to follow in order to contact a debtor?

The Federal Food, Drug and Cosmetic Act is administered by the FTC.

Shauna is delinquent on her car loan payment. The debt collector hired by the bank visits Shauna and verbally abuses her using highly offensive language. Shauna is annoyed. However, she has suffered no actual damages. Under the Fair Debt Collection Practices Act, the debt collector:

The total cost of money to a consumer is called the:

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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