Question 1

Kirk receives an unsolicited credit card in the mail and tosses it on his desk.Without Kirk's permission,his roommate Leif uses the card to buy a new per?sonal computer for $1,000.Kirk is

Accepted Answer

A)  liable for $1,000.
B)  liable for $500.
C)  liable for $50.
D)  not liable for any amount.E) B) and C)
F) B) and D)

Question 2

Due to the increasing number of protections afforded debtors,creditors are without means of securing payment on debts.

Accepted Answer

A) True 
 B)False

Question 3

Brad borrows $20,000 from City Bank to repair his home and to buy a car.Brad buys a stereo from Discount Store in a transaction financed by the seller.If these parties are subject to the Truth-in-Lending Act,Regulation Z ap?plies to

Accepted Answer

A)  the car loan only.
B)  the home repair loan only.
C)  the retail installment sale only.
D)  the car loan,the home repair loan,and the retail installment sale.E) A) and C)
F) C) and D)

Question 4

Bait-and-switch advertising occurs when an ad appears to be based on factual evidence but in fact is not reasonably supported by evidence.

Accepted Answer

A) True 
 B)False

Question 5

A sanction known as counteradvertising requires a company to focus its marketing on point-of-sale displays.

Accepted Answer

A) True 
 B)False

Question 6

There is no distinction between regulating the information dispensed about a product and regulating the actual content of the product.

Accepted Answer

A) True 
 B)False

Question 7

Food labels are not required to provide standard nutrition facts.

Accepted Answer

A) True 
 B)False

Question 8

Credit can be denied solely on the basis of national origin.

Accepted Answer

A) True 
 B)False

Question 9

Creditors are required to provide consumers with copies of records that can help the consumer prove that an account or transaction is fraudulent.

Accepted Answer

A) True 
 B)False

Question 10

A consumer who receives unsolicited merchandise must return it within three business days.

Accepted Answer

A) True 
 B)False

Question 11

Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law.

Accepted Answer

A) True 
 B)False

Question 12

Puffery constitutes deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 13

Orange Company makes computers.The company's ad states that "if you aren't eatin' an Orange,you aren't gettin' any 'C.' " The Federal Trade Com?mission would consider this ad

Accepted Answer

A)  false and misleading.
B)  impermissibly vague and general.
C)  a deceptive half-truth.
D)  none of the choices.E) None of the above
F) B) and C)

Question 14

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Accepted Answer

A) True 
 B)False

Question 15

Quik Collection Agency calls Pat several times a day,and some?times in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

Accepted Answer

A)  no federal law.
B)  the Fair and Accurate Credit Transactions Act.
C)  the Fair Debt Collection Practices Act.
D)  the Truth-in-Lending Act.E) B) and C)
F) B) and D)

Question 16

Labels must be accurate.

Accepted Answer

A) True 
 B)False

Question 17

A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.

Accepted Answer

A) True 
 B)False

Question 18

Travel Tours Company faxes ads to Samantha and other individual consumers without the recipients' permission.This is subject to

Accepted Answer

A)  a cease-and-desist order by the Federal Trade Commission.
B)  no sanctions.
C)  possible fines by the Federal Communications Commission.
D)  rescission on the order of the Federal Reserve Board.E) A) and B)
F) B) and C)

Question 19

Owen signs an installment contract with Pixel Video Store to finance the purchase of a new Quotient-brand 3D HD-TV for $4,999.This transaction is sub?ject to

Accepted Answer

A)  no federal law.
B)  the Fair Credit Reporting Act.
C)  the Telecommunications Act.
D)  the Truth-in-Lending Act.E) None of the above
F) All of the above

Question 20

Furniture Depot sells Gail a bedroom suite on credit.Gail fails to make the scheduled payments for six months.Furniture Depot sends her a let?ter,asking for immediate payment.This is a violation of

Accepted Answer

A)  no federal law.
B)  the Fair and Accurate Credit Transactions Act.
C)  the Fair Debt Collection Practices Act.
D)  the Truth-in-Lending Act.E) None of the above
F) A) and B)

Exam 45: A: Consumer Law

A consumer who receives unsolicited merchandise must return it within three business days.

Correct AnswerverifiedShow Answer

Quik Collection Agency calls Pat several times a day,and some?times in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

Correct AnswerverifiedShow Answer

Furniture Depot sells Gail a bedroom suite on credit.Gail fails to make the scheduled payments for six months.Furniture Depot sends her a let?ter,asking for immediate payment.This is a violation of

Correct AnswerverifiedShow Answer

Due to the increasing number of protections afforded debtors,creditors are without means of securing payment on debts.

Correct AnswerverifiedShow Answer

Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law.

Correct AnswerverifiedShow Answer

There is no distinction between regulating the information dispensed about a product and regulating the actual content of the product.

Correct AnswerverifiedShow Answer

Kirk receives an unsolicited credit card in the mail and tosses it on his desk.Without Kirk's permission,his roommate Leif uses the card to buy a new per?sonal computer for $1,000.Kirk is

Correct AnswerverifiedShow Answer

A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.

Correct AnswerverifiedShow Answer

A sanction known as counteradvertising requires a company to focus its marketing on point-of-sale displays.

Correct AnswerverifiedShow Answer

Brad borrows $20,000 from City Bank to repair his home and to buy a car.Brad buys a stereo from Discount Store in a transaction financed by the seller.If these parties are subject to the Truth-in-Lending Act,Regulation Z ap?plies to

Correct AnswerverifiedShow Answer

Food labels are not required to provide standard nutrition facts.

Correct AnswerverifiedShow Answer

Puffery constitutes deceptive advertising.

Correct AnswerverifiedShow Answer

Travel Tours Company faxes ads to Samantha and other individual consumers without the recipients' permission.This is subject to

Correct AnswerverifiedShow Answer

Labels must be accurate.

Correct AnswerverifiedShow Answer

Creditors are required to provide consumers with copies of records that can help the consumer prove that an account or transaction is fraudulent.

Correct AnswerverifiedShow Answer

Orange Company makes computers.The company's ad states that "if you aren't eatin' an Orange,you aren't gettin' any 'C.' " The Federal Trade Com?mission would consider this ad

Correct AnswerverifiedShow Answer

Credit can be denied solely on the basis of national origin.

Correct AnswerverifiedShow Answer

Bait-and-switch advertising occurs when an ad appears to be based on factual evidence but in fact is not reasonably supported by evidence.

Correct AnswerverifiedShow Answer

Owen signs an installment contract with Pixel Video Store to finance the purchase of a new Quotient-brand 3D HD-TV for $4,999.This transaction is sub?ject to

Correct AnswerverifiedShow Answer

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Correct AnswerverifiedShow Answer

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