Question 1

What are the transactions that are covered by the Truth-in-Lending Act?

Accepted Answer

The Truth-in-Lending Act covers all tran

Question 2

Which of the following is considered a nondischargeable bankruptcy debt?

Accepted Answer

A)  Credit card debts 
B)  Negligence claims 
C)  Medical expenses 
D)  Personal loans 
E)  Intentional torts 
A)  Credit card debts 
B)  Negligence claims 
C)  Medical expenses 
D)  Personal loans 
E)  Intentional torts

Question 3

The Truth-in-Lending Simplification Act:

Accepted Answer

A)  permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt. 
B)  redefines the necessary items to be included in a finance statement. 
C)  requires the First Bank of the United States to issue model disclosure forms. 
D)  requires the imposition of fines for technical breaches of the Act. 
E)  eliminates statutory penalties for purely technical violations of the Act. 
A)  permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt. 
B)  redefines the necessary items to be included in a finance statement. 
C)  requires the First Bank of the United States to issue model disclosure forms. 
D)  requires the imposition of fines for technical breaches of the Act. 
E)  eliminates statutory penalties for purely technical violations of the Act.

Question 4

Which of the following regulates the consumer credit reporting industry?

Accepted Answer

A)  The Equal Credit Opportunity Act 
B)  The Fair Credit Reporting Act 
C)  The Truth-in-Lending Act 
D)  The Fair Debt Collection Practices Act 
E)  The Uniform Consumer Leases Act 
A)  The Equal Credit Opportunity Act 
B)  The Fair Credit Reporting Act 
C)  The Truth-in-Lending Act 
D)  The Fair Debt Collection Practices Act 
E)  The Uniform Consumer Leases Act

Question 5

The Consumer Financial Protection Bureau applies to:

Accepted Answer

A)  businesses regulated by the Securities and Exchange Commission. 
B)  Internet service providers. 
C)  real estate agents and brokers. 
D)  insurance companies. 
E)  banks. 
A)  businesses regulated by the Securities and Exchange Commission. 
B)  Internet service providers. 
C)  real estate agents and brokers. 
D)  insurance companies. 
E)  banks.

Question 6

What remedies are used by the FTC, apart from penalty fines and corrective advertising, to protect consumers in trade regulation cases?

Accepted Answer

The remedies that the FTC may use in its

Question 7

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

Accepted Answer

A) True 
 B)False

Question 8

Mention the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

Accepted Answer

The Magnuson-Moss Warranty Act applies t

Question 9

The Children's Online Privacy Protection Act (COPPA):

Accepted Answer

A)  prohibits individuals from browsing Web sites related to children. 
B)  permits companies to collect information on children under the age of 10 without the consent of the parents in case of children's products. 
C)  prohibits market research agencies from soliciting children under the age of 10 without the consent of the federal government. 
D)  prohibits online advertisers from creating advertisements considered injurious to children. 
E)  prohibits the online collection of information on children under the age of 13 without a parent's consent. 
A)  prohibits individuals from browsing Web sites related to children. 
B)  permits companies to collect information on children under the age of 10 without the consent of the parents in case of children's products. 
C)  prohibits market research agencies from soliciting children under the age of 10 without the consent of the federal government. 
D)  prohibits online advertisers from creating advertisements considered injurious to children. 
E)  prohibits the online collection of information on children under the age of 13 without a parent's consent.

Question 10

The Fair Debt Collection Practices Act exempts attorneys who collect consumer debts on behalf of their clients.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true about the penalties and remedies under the Truth-in-Lending Act?

Accepted Answer

A)  There are no civil penalties for violation of Truth-in-Lending. 
B)  The criminal liability provisions make creditors liable to debtors for an amount equal to twice the finance charge. 
C)  Creditors may avoid liability in the event they make an error, provided they notify the debtor within 30 days after discovering the error. 
D)  If creditors avoid liability in making an error by notifying the debtor within 60 days after discovering and correcting the error, the law allows for corrections in favor of the debtor only. 
E)  Creditors are, in certain cases, allowed to collect finance charges in excess of those actually disclosed. 
A)  There are no civil penalties for violation of Truth-in-Lending. 
B)  The criminal liability provisions make creditors liable to debtors for an amount equal to twice the finance charge. 
C)  Creditors may avoid liability in the event they make an error, provided they notify the debtor within 30 days after discovering the error. 
D)  If creditors avoid liability in making an error by notifying the debtor within 60 days after discovering and correcting the error, the law allows for corrections in favor of the debtor only. 
E)  Creditors are, in certain cases, allowed to collect finance charges in excess of those actually disclosed.

Question 12

In advising advertisers about how it determines deceptive trade practices, the Federal Trade Commission looks at all of the following EXCEPT:

Accepted Answer

A)  the ad in context rather than focusing on certain words in the ad. 
B)  implied claims-those that are literally made in the ad. 
C)  what the ad does not say. 
D)  whether the claim would be "material." 
E)  whether the advertiser has sufficient evidence to support the claims in the ad. 
A)  the ad in context rather than focusing on certain words in the ad. 
B)  implied claims-those that are literally made in the ad. 
C)  what the ad does not say. 
D)  whether the claim would be "material." 
E)  whether the advertiser has sufficient evidence to support the claims in the ad.

Question 13

Under bankruptcy laws, certain creditors receive priority over others in the distribution of a debtor's assets.

Accepted Answer

A) True 
 B)False

Question 14

Use and transfer of personal property by individuals in the U.S. is unrestricted.

Accepted Answer

A) True 
 B)False

Question 15

The Fair Debt Collection Practices Act applies only to consumer debt collections.

Accepted Answer

A) True 
 B)False

Question 16

What are the five powers granted to a trustee in bankruptcy?

Accepted Answer

The five powers granted to a trustee in

Question 17

Most cases brought by the Bureau of Consumer Protection are settled using:

Accepted Answer

A)  cease and desist orders. 
B)  arbitration. 
C)  mediation. 
D)  injunction. 
E)  consent orders. 
A)  cease and desist orders. 
B)  arbitration. 
C)  mediation. 
D)  injunction. 
E)  consent orders.

Question 18

Name the three major rights given to consumers under the Fair Credit Reporting Act.

Accepted Answer

Rights given to the consumer under the F

Question 19

Robert has lost his ATM card and the thief has emptied his bank account. What law governs this situation and what are Robert's potential liabilities?

Accepted Answer

Liability for money lost due to lost or

Question 20

Under the Electronic Fund Transfer Act, for lost, stolen, or misused automatic teller and check cards (debit cards), the customer is liable for:

Accepted Answer

A)  $600 if reported after two days but before 60 days of consumer's learning of a misuse. 
B)  amounts over $15 within the consumer's home state if reported within seven business days. 
C)  $50 if reported within two business days of consumer's learning of a misuse. 
D)  amounts over $15 within a 100-mile radius of the consumer's home if reported within seven business days. 
E)  nothing. 
A)  $600 if reported after two days but before 60 days of consumer's learning of a misuse. 
B)  amounts over $15 within the consumer's home state if reported within seven business days. 
C)  $50 if reported within two business days of consumer's learning of a misuse. 
D)  amounts over $15 within a 100-mile radius of the consumer's home if reported within seven business days. 
E)  nothing.

Exam 18: Privacy and Consumer Protection

What are the transactions that are covered by the Truth-in-Lending Act?

Which of the following is considered a nondischargeable bankruptcy debt?

The Truth-in-Lending Simplification Act:

Which of the following regulates the consumer credit reporting industry?

The Consumer Financial Protection Bureau applies to:

What remedies are used by the FTC, apart from penalty fines and corrective advertising, to protect consumers in trade regulation cases?

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

Mention the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

The Children's Online Privacy Protection Act (COPPA):

The Fair Debt Collection Practices Act exempts attorneys who collect consumer debts on behalf of their clients.

Which of the following is true about the penalties and remedies under the Truth-in-Lending Act?

In advising advertisers about how it determines deceptive trade practices, the Federal Trade Commission looks at all of the following EXCEPT:

Under bankruptcy laws, certain creditors receive priority over others in the distribution of a debtor's assets.

Use and transfer of personal property by individuals in the U.S. is unrestricted.

The Fair Debt Collection Practices Act applies only to consumer debt collections.

What are the five powers granted to a trustee in bankruptcy?

Most cases brought by the Bureau of Consumer Protection are settled using:

Name the three major rights given to consumers under the Fair Credit Reporting Act.

Robert has lost his ATM card and the thief has emptied his bank account. What law governs this situation and what are Robert's potential liabilities?

Under the Electronic Fund Transfer Act, for lost, stolen, or misused automatic teller and check cards (debit cards), the customer is liable for:

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