Question 1

According to the Fair Credit Billing Act (FCBA), if the credit card holder thinks that the card issuer has made an error on the statement, he has _____.

Accepted Answer

A)  90 days from the time the card was issued to report, in writing, the error 
B)  30 days from the time the statement was mailed to report the error 
C)  120 days from the time the statement was mailed to report, in writing or orally, the error 
D)  60 days from the time the statement was mailed to report, in writing, the error 
A)  90 days from the time the card was issued to report, in writing, the error 
B)  30 days from the time the statement was mailed to report the error 
C)  120 days from the time the statement was mailed to report, in writing or orally, the error 
D)  60 days from the time the statement was mailed to report, in writing, the error D

Question 2

The Equal Credit Opportunity Act:

Accepted Answer

A)  is designed to protect consumers from inaccurate credit reporting. 
B)  requires online ads for free credit reports to disclose whether the consumer must buy credit monitoring or other products or services to get the report. 
C)  prohibits discrimination in credit transactions on grounds of sex, marital status, race, color, religion, national origin, and age. 
D)  sets forth basic privacy protections that must be provided by financial institutions and requires them to respect the privacy of their customers' nonpublic personal information. 
A)  is designed to protect consumers from inaccurate credit reporting. 
B)  requires online ads for free credit reports to disclose whether the consumer must buy credit monitoring or other products or services to get the report. 
C)  prohibits discrimination in credit transactions on grounds of sex, marital status, race, color, religion, national origin, and age. 
D)  sets forth basic privacy protections that must be provided by financial institutions and requires them to respect the privacy of their customers' nonpublic personal information. C

Question 3

Under the Truth in Lending Act, the term "finance charge":

Accepted Answer

A)  includes all costs related to the extension of credit. 
B)  includes all costs related to the extension of credit except for fees for credit reports. 
C)  includes only interest rates but not any other credit charges. 
D)  does not include loan fees and fees for credit reports. 
A)  includes all costs related to the extension of credit. 
B)  includes all costs related to the extension of credit except for fees for credit reports. 
C)  includes only interest rates but not any other credit charges. 
D)  does not include loan fees and fees for credit reports. A

Question 4

The Fair Debt Collection Practices Act (FDCPA) applies to retail stores, banks and businesses that collect their own debts in their own names.

Accepted Answer

A) True 
 B)False

Question 5

The Telemarketing and Consumer Fraud and Abuse Prevention Act:

Accepted Answer

A)  prohibits calling between 8:00 p.m. and 8:00 a.m. 
B)  requires that all disclosures must be made before the customer pays for the goods or services. 
C)  prohibits customers from demanding disclosure if the solicitation pertains to a prize promotion. 
D)  allows telemarketers and sellers to deny a person the right to be placed on the do-not-call registry. 
A)  prohibits calling between 8:00 p.m. and 8:00 a.m. 
B)  requires that all disclosures must be made before the customer pays for the goods or services. 
C)  prohibits customers from demanding disclosure if the solicitation pertains to a prize promotion. 
D)  allows telemarketers and sellers to deny a person the right to be placed on the do-not-call registry.

Question 6

A debtor may rescind a contract under the Truth in Lending Act:

Accepted Answer

A)  only if the debtor's home is used as collateral. 
B)  only in the instance of a first mortgage on a home. 
C)  by way of oral notification to the creditor. 
D)  within 30 days after the purchase on credit. 
A)  only if the debtor's home is used as collateral. 
B)  only in the instance of a first mortgage on a home. 
C)  by way of oral notification to the creditor. 
D)  within 30 days after the purchase on credit.

Question 7

In 2002, the United States Congress created the Consumer Financial Protection Bureau (CFPB) as part of the Sarbanes-Oxley Act.

Accepted Answer

A) True 
 B)False

Question 8

According to the Fair Credit Billing Act (FCBA), if the credit card holder thinks that the card issuer has made an error on a statement, such as not crediting a payment or showing a charge that was not made by the customer, he has six (6) months from the time the statement was mailed to report, in writing, the error.

Accepted Answer

A) True 
 B)False

Question 9

The Truth in Lending Act (TILA) is intended to furnish the consumer with a better opportunity to shop for credit among merchants, finance companies, credit unions, and banks.

Accepted Answer

A) True 
 B)False

Question 10

_____ laws were passed to provide some relief to customers having complaints against auto dealers.

Accepted Answer

A)  Credit 
B)  Equal opportunity 
C)  Fair credit 
D)  Lemon 
A)  Credit 
B)  Equal opportunity 
C)  Fair credit 
D)  Lemon

Question 11

The Fair and Accurate Credit Transactions Act (FACTA) of 2003 entitles every consumer to a copy of his or her credit report free of charge each year.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following best describes the "right of rescission"?

Accepted Answer

A)  Correction of outdated or wrong information and its notification to credit information recipients 
B)  Cancellation right of a buyer for three business days after the purchase on credit or after the creditor makes the required disclosure 
C)  Right to the creditor to accept or reject consumer applications within 30 days 
D)  A cardholder's right to limited liability for unauthorized use of a credit card 
A)  Correction of outdated or wrong information and its notification to credit information recipients 
B)  Cancellation right of a buyer for three business days after the purchase on credit or after the creditor makes the required disclosure 
C)  Right to the creditor to accept or reject consumer applications within 30 days 
D)  A cardholder's right to limited liability for unauthorized use of a credit card

Question 13

Which of the following statements is true for the Consumer Product Safety Act (CPSA) of 1972?

Accepted Answer

A)  It can regulate consumer products but does not have the power to ban any products. 
B)  It established the Consumer Product Safety Commission (CPS
C) , an independent regulatory agency which is the main federal agency concerned with product safety. 
C)  Its authority covers products such as motor vehicles and equipment, firearms, aircraft, boats, drugs, cosmetics, and food products. 
D)  It cannot be used by the CPSC to bring suit in federal district court to eliminate the dangers presented by imminently hazardous consumer products. 
A)  It can regulate consumer products but does not have the power to ban any products. 
B)  It established the Consumer Product Safety Commission (CPS
C) , an independent regulatory agency which is the main federal agency concerned with product safety. 
C)  Its authority covers products such as motor vehicles and equipment, firearms, aircraft, boats, drugs, cosmetics, and food products. 
D)  It cannot be used by the CPSC to bring suit in federal district court to eliminate the dangers presented by imminently hazardous consumer products.

Question 14

Which of the following statements is true for gift cards?

Accepted Answer

A)  The cards are subject to Truth in Lending Act (TIL
A)  regulations. 
B)  Recipients have two years to use the cards. 
C)  A fee can only be assessed if the card has not been used within six months. 
D)  A fee can only be assessed on the card if a customer is first notified of the fees. 
A)  The cards are subject to Truth in Lending Act (TIL
A)  regulations. 
B)  Recipients have two years to use the cards. 
C)  A fee can only be assessed if the card has not been used within six months. 
D)  A fee can only be assessed on the card if a customer is first notified of the fees.

Question 15

Arbitration of disputes under the purview of "lemon laws" under state statute is:

Accepted Answer

A)  not required by most statutes. 
B)  usually binding on the consumer, not the manufacturer. 
C)  usually binding on the manufacturer, not the consumer. 
D)  not binding on either the manufacturer or the consumer. 
A)  not required by most statutes. 
B)  usually binding on the consumer, not the manufacturer. 
C)  usually binding on the manufacturer, not the consumer. 
D)  not binding on either the manufacturer or the consumer.

Question 16

The Fair Debt Collection Practices Act:

Accepted Answer

A)  covers all retail stores, banks, or businesses that collect their own debts in their own name. 
B)  prohibits harassment by debt collectors, including late-night phone calls and threats of violence. 
C)  protects applicants from being discriminated on grounds of sex, marital status, race, color, religion, national origin, and age. 
D)  ensures that information concerning a person's credit background supplied to his or her creditors is both up-to-date and accurate. 
A)  covers all retail stores, banks, or businesses that collect their own debts in their own name. 
B)  prohibits harassment by debt collectors, including late-night phone calls and threats of violence. 
C)  protects applicants from being discriminated on grounds of sex, marital status, race, color, religion, national origin, and age. 
D)  ensures that information concerning a person's credit background supplied to his or her creditors is both up-to-date and accurate.

Question 17

Which of the following acts has provisions for combating identity theft?

Accepted Answer

A)  The Fair Credit Billing Act 
B)  The Fair Credit and Charge Card Disclosure Act 
C)  The Fair and Accurate Credit Transactions Act 
D)  The Gramm-Leach-Bliley Act 
A)  The Fair Credit Billing Act 
B)  The Fair Credit and Charge Card Disclosure Act 
C)  The Fair and Accurate Credit Transactions Act 
D)  The Gramm-Leach-Bliley Act

Question 18

The Federal Trade Commission (FTC):

Accepted Answer

A)  has authority to decide whether specific marketing and sales practices are unfair or deceptive. 
B)  does not have power to regulate unfair and deceptive practices in cyberspace. 
C)  can find that a seller engaged in unfair trade practices only if the seller violated one of the federal laws the FTC is empowered to enforce. 
D)  cannot order federal courts to award redress. 
A)  has authority to decide whether specific marketing and sales practices are unfair or deceptive. 
B)  does not have power to regulate unfair and deceptive practices in cyberspace. 
C)  can find that a seller engaged in unfair trade practices only if the seller violated one of the federal laws the FTC is empowered to enforce. 
D)  cannot order federal courts to award redress.

Question 19

The Credit Card Accountability and Disclosure Act (CARD) regulates credit card billing cycles by:

Accepted Answer

A)  allowing a maximum of $30 penalty fee for late payment of credit card debts. 
B)  allowing penalties to exceed the minimum balance due. 
C)  prohibiting double-cycle billing. 
D)  issuing cards to applicants under 21 years without a cosigner. 
A)  allowing a maximum of $30 penalty fee for late payment of credit card debts. 
B)  allowing penalties to exceed the minimum balance due. 
C)  prohibiting double-cycle billing. 
D)  issuing cards to applicants under 21 years without a cosigner.

Question 20

Describe the "right of rescission" established by the Truth in Lending Act (TILA).

Accepted Answer

One of the most significant protections

Exam 46: Consumer Protection Laws

According to the Fair Credit Billing Act (FCBA), if the credit card holder thinks that the card issuer has made an error on the statement, he has _____.

The Equal Credit Opportunity Act:

Under the Truth in Lending Act, the term "finance charge":

The Fair Debt Collection Practices Act (FDCPA) applies to retail stores, banks and businesses that collect their own debts in their own names.

The Telemarketing and Consumer Fraud and Abuse Prevention Act:

A debtor may rescind a contract under the Truth in Lending Act:

In 2002, the United States Congress created the Consumer Financial Protection Bureau (CFPB) as part of the Sarbanes-Oxley Act.

The Truth in Lending Act (TILA) is intended to furnish the consumer with a better opportunity to shop for credit among merchants, finance companies, credit unions, and banks.

_____ laws were passed to provide some relief to customers having complaints against auto dealers.

The Fair and Accurate Credit Transactions Act (FACTA) of 2003 entitles every consumer to a copy of his or her credit report free of charge each year.

Which of the following best describes the "right of rescission"?

Which of the following statements is true for the Consumer Product Safety Act (CPSA) of 1972?

Which of the following statements is true for gift cards?

Arbitration of disputes under the purview of "lemon laws" under state statute is:

The Fair Debt Collection Practices Act:

Which of the following acts has provisions for combating identity theft?

The Federal Trade Commission (FTC):

The Credit Card Accountability and Disclosure Act (CARD) regulates credit card billing cycles by:

Describe the "right of rescission" established by the Truth in Lending Act (TILA).

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Environmental Regulation

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