Exam 44: Consumer Law

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

In a transaction subject to the Truth-in-Lending Act, all of the terms of a credit instrument must be clearly and conspicuously disclosed.

On request, a consume may obtain the source of any information being given out by a credit agency.

Special Roast Coffee, Inc., processes and sells a variety of coffee products. Special Roast's product packages must include

A loan between two consumers is subject to the Truth-in-Lending Act.

Like other manufacturers and sellers, Useful Products Company packages its products with labels. Under federal law, such labels must be

Brad borrows $20,000 from City Bank to repair his home and to buy a car. Brad buys a stereo from Delta Discount Store in a transaction financed by Delta. If these parties are subject to the Truth-in-Lending Act, Regulation Z ap?plies to

Green Grocer Corporation makes and markets a variety of processed food products. The federal agency responsible for enforcing health regula?tions con?cerning food is

Federal law prohibits vague generalities and obvious exaggerations in advertising.

Every food product label must include a warning of the possible ef?fects of the product on consumer health.

Bodie's application to City Bank for a credit card is denied. Bodie can obtain information on her credit history in a credit agency's files under

Furniture Depot sells Gail a bedroom suite on credit. Gail fails to make the scheduled payments for six months. Furniture Depot sends her a let?ter, asking for immediate payment. This is a violation of

Friendly Loan Company extends credit in the ordinary course of its busi?ness. Under the Truth-in-Lending Act, Friendly must inform potential borrowers of

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?

The test for whether an ad is deceptive is whether a reason?able con?sumer would be misled.

Luscious Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

Miracle Products, Inc., engages in de?ceptive advertising when it markets its product Weight-Off as able to help consumers lose weight in their sleep. Miracle is ordered to include in all future adver?tising of Weight-Off the statement, "Weight-Off will not cause anyone to lose weight in their sleep." This is

Vanna and many other consumers complain to the Federal Trade Commission (FTC) that a Whoopie Wonders Company ad is deceptive. The FTC's first step is to

An individual is not liable for any amount of unauthorized charges on his or her credit card.

A company charged with deceptive advertising must go through a hear?ing to resolve the complaint.