Exam 45: Consumer Law

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

Kristen receives unsolicited merchandise in the mail. Kristen

Vague generalities and obvious exaggerations constitute deceptive advertising.

Ads cannot be unfair.

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

The key federal statute regulating the credit and credit-card industries is basically a disclosure law.

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

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

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

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

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

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

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

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

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

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

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

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

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

Food products are not required to bear labels detailing the nutritional content.