Exam 45: A: Consumer Law

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

Dog 'n Cat Company makes and sells pet supplies,including toys and chew items.One of the chew items is believed to be haz?ardous.The appropriate government agency may require Dog 'n Cat to

All ads-both online and offline-must be truthful.

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

Ron signs a contract with Sam,a door-to-door salesperson for Tutors,Inc. ,to buy a foreign-language course.To cancel the contract,Ron has up to

Corner Market sells groceries.Delite Food & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else,usually for a percentage of the amount owed.

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?

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

Labels on vegetables and fruits are not required to indicate where the food originated.

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

Like other manufacturers and sellers,Real-Built Tools Company packages its products with labels.Under federal law,such labels must be

The credit department of Mega-Mart calls Nora at work about an overdue bill.Nora's employer objects.Mega-Mart continues to call Nora at work.This is a viola?tion of

State laws often provide more sweeping and significant protections for the consumer than federal laws.

Cleaners & Solvents,Inc.(CSI),engages in de?ceptive advertising when it markets its product Dirt Remover as able to kill germs over long periods of time.In an action against CSI regarding Dirt Remover,the firm is ordered to stop its false advertis?ing of Dirt Remover and other products.This is

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Debt collectors who use a prohibited debt-collection tactic are exempt from liability if they can show that the debtor used misrepresentation in assuming the debt.

Credit provisions associated with sales contracts are not regulated by any federal agency.

Creditworthy Loan Company extends credit in the ordinary course of its busi?ness.Under the Truth-in-Lending Act,which is the key federal statute regulating the credit and credit-card industries,Creditworthy must inform potential borrowers of

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?