Question 1

The obligations imposed on telemarketers by the FTC's Telemarketing Sales Rule do not apply to sellers that solicit sales through mailed catalogs and then receive consumers' orders by telephone.

Accepted Answer

A) True 
 B)False

Question 2

Much of the information contained in a monthly credit card statement is compulsorily required by the Truth in Lending Act.

Accepted Answer

A) True 
 B)False

Question 3

Under the Truth in Lending Act (TILA),a creditor can unilaterally terminate a credit plan for a home equity loan and require immediate repayment of the outstanding balance when a consumer has:

Accepted Answer

A) paid the installment without the added interest. 
B) lost his only source of income. 
C) defaulted on one repayment installment. 
D) made material misrepresentations.

Question 4

Which of the following is most likely to violate Section 5 of the FTC Act?

Accepted Answer

A) "Puffing" statements 
B) Statements of opinion 
C) Deceptive omissions 
D) Sales talk

Question 5

Section 5 of the FTC Act prohibits unfair acts or practices that cause substantial consumer harm.Which of the following examples would generally not qualify as a substantial harm?

Accepted Answer

A) Emotional distress 
B) Monetary loss 
C) Unwarranted health risks 
D) Unwarranted safety risks

Question 6

Corrective advertising is an order from the FTC that requires the seller's future advertisements to correct false impressions created by its past advertisements.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not required of a consumer harm that is challenged under Section 5 of the FTC Act?

Accepted Answer

A) The harm must be one where a consumer had a significant monetary loss 
B) A substantial harm 
C) The harm must not be outweighed by any offsetting consumer or competitive benefits produced by the challenged products 
D) A harm must be one that consumers could not reasonably have avoided

Question 8

Tony Sinister is a candidate for a middle management position at Mobco Inc.Mobco retained Clandestine Investigation & Credit Reporting Agency (CICRA)to interview Sinister's friends,neighbors,and associates and then prepare an investigative consumer report on Sinister.Which of the following would the Fair Credit Reporting Act require in this situation?

Accepted Answer

A) That CICRA not disclose to Mobco any information pertaining to Sinister's personal traits or reputation. 
B) That Mobco inform Sinister of its request for the report and of his right to obtain further disclosures about the investigation. 
C) That CICRA conduct interviews of Sinister's neighbors and relatives to gather relevant information. 
D) That Mobco call off the investigation because a hiring decision does not involve credit-related information.

Question 9

Describe the similarities between the United States' approach to advertising regulation and that taken by other countries.

Accepted Answer

The answer of Describe the similarities between the United States'...

Question 10

The Truth in Lending Act (TILA)has provisions dealing with consumer credit advertising that prevents a creditor from "baiting" customers.

Accepted Answer

A) True 
 B)False

Exam 48: The Federal Trade Commission Act and Consumer Protection Laws

The obligations imposed on telemarketers by the FTC's Telemarketing Sales Rule do not apply to sellers that solicit sales through mailed catalogs and then receive consumers' orders by telephone.

Much of the information contained in a monthly credit card statement is compulsorily required by the Truth in Lending Act.

Under the Truth in Lending Act (TILA) ,a creditor can unilaterally terminate a credit plan for a home equity loan and require immediate repayment of the outstanding balance when a consumer has:

Which of the following is most likely to violate Section 5 of the FTC Act?

Section 5 of the FTC Act prohibits unfair acts or practices that cause substantial consumer harm.Which of the following examples would generally not qualify as a substantial harm?

Corrective advertising is an order from the FTC that requires the seller's future advertisements to correct false impressions created by its past advertisements.

Which of the following is not required of a consumer harm that is challenged under Section 5 of the FTC Act?

Describe the similarities between the United States' approach to advertising regulation and that taken by other countries.

The Truth in Lending Act (TILA)has provisions dealing with consumer credit advertising that prevents a creditor from "baiting" customers.