Exam 45: Consumer Law

Labels on fresh meat must indicate where the food originated.

Home Brand Products,Inc.,in its ads,makes claims about its prod?ucts that are obvious exaggerations and claims that are false but appear to be true.Home Brand may be subject to sanctions for

Through unfair trade practices,Super Sales Company induces Trey and other consumers to enter into one-sided deals.This may be subject to sanctions under

A creditor has the right to garnish a debtor's wages unless the debt has gone unpaid for a prolonged period.

To generate sales,Yakkity-Yak,Inc.,uses phone solicitation.Under federal law,in soliciting business,Yakkity-Yak's telemarketers must

Milo buys an all-terrain-vehicle (ATV)from No-Limit Toys,Inc.,on credit but makes no payments on the account.Odell,the owner of No-Limit Toys,calls Milo at home on a Monday morning at three a.m.Odell represents himself as PayNow Collection Agency and demands payment "or else." The next day,Odell sends Milo notice that he has thirty days to request verification of the debt,during which its payment will be suspended,but that if he does not pay the full amount due within five business days,Odell will arrange for the "destruction of Milo's good credit rating." Which laws has Odell violated,if any,and in what ways?

Frosty's Appliance Store advertises freezers at a "Special Low Price of $299." When Garth tries to buy one of the freezers,Huey,the salesperson,tells him that they are all sold and no more are obtainable.Huey adds that Frosty's has other freezers for $2,299.This is

A sanction known as counteradvertising requires a company to advertise the products of its competitor to counter its own false claims.

All statutes that serve to protect the interests of consumers are classified as consumer law.

Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.

Kristen receives unsolicited merchandise in the mail.Kristen

Ads cannot be unfair.

In the ordinary course of business,Xtra Credit Company sells goods to Yvon and other consumers on credit under installment sales contracts that typically require at least one year of monthly payments.Xtra does not disclose all of the credit terms to its customers.This is most likely to result in

Drugs can be marketed to the public before they are ensured to be safe and effective.

A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.

Labels must use words that are easily understood by the ordinary marketing executive.

Bait-and-switch advertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.

On behalf of RiteNow Collection Agency,Sid poses as a police officer in an attempt to collect payment from Tylo for a shipment of scuba equipment that she returned to Undersea Company two months earlier.This violates

Shep buys a car from his neighbor,Tyrone,for $8,000 and agrees to make monthly payments of $800 until the price is paid.This transaction is not sub?ject to federal credit regulations because

Merchants must ship orders within the time promised in their ads.