Exam 45: Consumer Law

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Tonya 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

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

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

Dita takes out a student loan from Everloan Bank. When she fails to make the scheduled payments for six months, Everloan advises her of further action that it will take. This violates

Wheels & Deals Corporation is subject to the Truth-in-Lending Act, which is a key statute regulating the credit and credit-card industries and concerns

Credit can be denied solely on the basis of marital status.

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a potentially hazardous toy from the market is

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

Labels on fresh meat must indicate where the food originated.

Buyers of goods sold door to door can cancel their contracts within three business days.

Green Grocer Corporation makes and markets a variety of processed food products. The federal agency responsible for enforcing health regulations concerning food is

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.

Federal laws often provide more sweeping and significant protections for the consumer than state laws.

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates

Va-Va-Voom Products, Inc., engages in deceptive advertising when it markets its product Weight-No-More as able to help consumers lose weight in their sleep. Va-Va-Voom is ordered to include in all future advertising of Weight-No-More the statement, "This product will not cause anyone to lose weight while sleeping." This is

Manufacturers are required to report on any products already sold if the products have proved to be hazardous.

Quackity Quack Company's ad states that its product is "the best on the market today." Because of this ad, the Federal Trade Commission is most likely to

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