Exam 44: Consumer Law

An ad that contains a "half truth"-information that is true but incom?plete-is not deceptive.

Through careless manufacturing practices, Insta-Market Company makes and sells unsafe products to Jess and other consumers. This may be subject to sanctions under

Orange Company makes computers. The company's ad states that "if you aren't eatin' an Orange, you aren't gettin' any 'C." " The Federal Trade Com?mission would consider this ad

In the ordinary course of business, EZ Funds Corporation offers credit to Fay and other consumers and reports on the loans to credit agencies. To save time and money, EZ generally does not correct or update its reported information. This is most likely to result in

Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

Mouth-Waterin' Eats Company wants to sell its candy in a normal-sized package la?beled "Gigantic Size." NuFabrics, Inc., wants to advertise its sweaters as hav?ing "That Wool Feel," but does not want to specify on labels that the sweat?ers are 100 percent polyester. What stops these firms from market?ing their products as they would like?

Penny Stock Company faxes ads to Quality Personnel Corporation and other businesses without the recipients' permission. This is

In the ordinary course of business, Xtra Charge 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

A credit-reporting agency must stop reporting fraudulent account information once a consumer establishes that identity theft has occurred.

Power Up Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Quantum Automotive Stores, a retail company that sells Power Up's batteries, engages in deceptive advertising practices. What actions can the FTC take against Quantum?

State and federal laws permit a buyer of goods sold door to door to cancel the contract within a specified period of time.

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit dis?crimination based on

Product labels do not need to be accurate if they use easily un?derstood words.

Darren wants to go into the business of direct merchandise sales. What are the legal problems that Darren might encounter in telemarketing? In sell?ing door-to-door? In marketing over the Internet? In soliciting sales through the mail?

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

Quik Collection Agency calls Pat several times a day, and some?times in the middle of the night, about an overdue bill that Regal Sporting Goods turned over to Quik for collection. This is a violation of

The Consumer Product Safety Commission can ban any product that it believes poses an "unreasonable risk" to consumers.

The Fair Debt Collection Practices Act applies to anyone who tries to col?lect a debt.

The Truth-in-Lending Act protects debtors who are natural persons, as well as those who are artificial persons, such as corporations.

Kristen receives unsolicited merchandise in the mail. Kristen