Question 1

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?​

Accepted Answer

The Federal Trade Commission (FTC) can i...

Question 2

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.

Accepted Answer

A) True 
 B)False

Question 3

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Accepted Answer

A)   ​no federal law.
B)   ​the Equal Credit Opportunity Act.
C)   ​the Fair Credit Reporting Act.
D)   ​the Fair Debt Collection Practices Act.E) A) and B)
F) A) and C)

Question 4

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

Accepted Answer

A)   ​a restaurant chain with twenty or more locations.
B)   ​a food distributor with twenty or more customers.
C)   ​a food maker with twenty or more products.
D)   ​a food producer with twenty or more acres.E) B) and C)
F) A) and D)

Question 5

Cleaners & Solvents, Inc. (CSI) , falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

Accepted Answer

A)   ​a counteradvertising order.
B)   ​a multiple product order.
C)   ​a "cooling-off" law.
D)   ​a validation notice.E) C) and D)
F) B) and D)

Question 6

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. 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) A) and D)
F) B) and C) C

Question 7

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to​

Accepted Answer

A)   ​no federal law.
B)   ​the Consumer Leasing Act.
C)   ​the Consumer Product Safety Act.
D)   ​the Truth-in-Lending Act.E) A) and D)
F) C) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   ​Corner Market and Deli & Drug.
B)   ​Deli & Drug only.
C)   ​the Federal Trade Commission.
D)   ​the Food and Drug Administration.E) A) and C)
F) A) and D)

Question 10

A credit collection agency may contact a debtor at any time.

Accepted Answer

A) True 
 B)False

Question 11

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Accepted Answer

A)   ​credibility.
B)   ​financial awareness.
C)   ​occupation.
D)   ​gender.E) B) and C)
F) A) and B) D

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Accepted Answer

A) True 
 B)False  False

Question 14

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 15

Account numbers on credit-card receipts must be truncated (shortened).

Accepted Answer

A) True 
 B)False

Question 16

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Spicy Salsa Company complains to the Federal Trade Commission (FTC)  about an ad by Tangy Sauces Inc., Spicy's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Accepted Answer

A)   ​conduct negotiations between the competitors.
B)   ​send a formal complaint.
C)   ​issue a cease-and-desist order.
D)   ​permit Spicy Salsa to distribute a similarly deceptive counter-ad.E) B) and D)
F) None of the above

Question 19

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

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 D)
F) All of the above

Question 20

Ads must disclose qualifying information underlying their claims.

Accepted Answer

A) True 
 B)False

Exam 24: Consumer Law

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?​

Correct AnswerverifiedThe Federal Trade Commission (FTC) can i...View AnswerShow Answer

A credit-card company may increase the interest rate on a customer's credit-card balance at any time.

Correct AnswerverifiedShow Answer

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Correct AnswerverifiedShow Answer

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is​

Correct AnswerverifiedShow Answer

Cleaners & Solvents, Inc. (CSI) , falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is​

Correct AnswerverifiedShow Answer

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of​

Correct AnswerverifiedC

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A credit collection agency may contact a debtor at any time.

Correct AnswerverifiedShow Answer

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Correct AnswerverifiedFalse

Consumers who are charged more for credit or insurance than others ordinarily would be because of their credit reports must be notified of that fact.

Correct AnswerverifiedShow Answer

Account numbers on credit-card receipts must be truncated (shortened).

Correct AnswerverifiedShow Answer

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed.

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

Spicy Salsa Company complains to the Federal Trade Commission (FTC) about an ad by Tangy Sauces Inc., Spicy's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Ads must disclose qualifying information underlying their claims.

Correct AnswerverifiedShow Answer

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?

Correct Answer
verified
The Federal Trade Commission (FTC) can i...
View Answer

Correct Answer
verified

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Correct Answer
verified

Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is

Correct Answer
verified

Cleaners & Solvents, Inc. (CSI) , falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is

Correct Answer
verified

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of

Correct Answer
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C

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to

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

Correct Answer
verified

Correct Answer
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Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Correct Answer
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D

Correct Answer
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Correct Answer
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False

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

Correct Answer
verified

Correct Answer
verified