Question 1

Federal and state laws are aimed at protecting consumers from all of the following except

Accepted Answer

A)  unfair trade practices.
B)  unsafe products.
C)  unreasonable credit requirements.
D)  unwise purchases.E) B) and C)
F) A) and B)

Question 2

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Accepted Answer

A) True 
 B)False

Question 3

Mai receives an unsolicited credit card in the mail and tosses it on her desk. Without Mai's permission, her roommate Nan uses the card to buy a new laptop for $1,800. Mai is liable for

Accepted Answer

A)  $1,800.
B)  $500.
C)  $50.
D)  none of the choices.E) A) and B)
F) B) and C)

Question 4

Tia takes out a loan from Urban Bank. When she fails to make the scheduled payments, the lender advises her of further action that it will take. 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) None of the above
F) A) and B)

Question 5

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

Accepted Answer

A) True 
 B)False

Question 6

Sugar Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." Tony Fabrics Inc. wants to advertise its sweaters as having "That Wool Feel," but does not want to specify on labels that the sweaters are 100 percent polyester. Can these firms market products as they would like? If not, why not?

Accepted Answer

There are a number of federal laws that ...

Question 7

Importers of food do not have to verify that the imported food meets U.S. safety standards.

Accepted Answer

A) True 
 B)False

Question 8

There is a significant distinction between regulating the information dispensed about a product and regulating the product's actual content.

Accepted Answer

A) True 
 B)False

Question 9

Lu's application to Metro Bank for a credit card is denied. Lu 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 D)
F) A) and C)

Question 10

The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer. 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 11

An ad for Running Shoes Inc. states that its footwear is "The Winner's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Accepted Answer

A)  a cease-and-desist order.
B)  a counteradvertising order.
C)  a settlement.
D)  none of the choices.E) A) and B)
F) A) and C)

Question 12

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Accepted Answer

A) True 
 B)False

Question 13

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Accepted Answer

A) True 
 B)False

Question 14

Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

Accepted Answer

A) True 
 B)False

Question 15

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

Accepted Answer

A) True 
 B)False

Question 17

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) A) and D)
F) A) and B)

Question 18

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Accepted Answer

A) True 
 B)False

Question 19

Creamery Inc. makes and sells dairy products. Creamery's product packages must include

Accepted Answer

A)  the company owner's identity.
B)  the contents' net quantity.
C)  the restaurants and stores in which the product is sold.
D)  the type of consumer most likely interested in the product.E) A) and C)
F) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 41: Consumer Law

Federal and state laws are aimed at protecting consumers from all of the following except

Correct Answer
verified

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Correct Answer
verified

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

Correct Answer
verified

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Correct Answer
verified

Mai receives an unsolicited credit card in the mail and tosses it on her desk. Without Mai's permission, her roommate Nan uses the card to buy a new laptop for $1,800. Mai is liable for

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

An ad for Running Shoes Inc. states that its footwear is "The Winner's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct Answer
verified

Correct Answer
verified
There are a number of federal laws that ...
View Answer

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Correct Answer
verified

Tia takes out a loan from Urban Bank. When she fails to make the scheduled payments, the lender advises her of further action that it will take. This violates

Correct Answer
verified

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

Importers of food do not have to verify that the imported food meets U.S. safety standards.

Correct Answer
verified

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Correct Answer
verified

There is a significant distinction between regulating the information dispensed about a product and regulating the product's actual content.

Correct Answer
verified

Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

Correct Answer
verified

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

Correct Answer
verified

Creamery Inc. makes and sells dairy products. Creamery's product packages must include

Correct Answer
verified

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Correct Answer
verified

Exam 41: Consumer Law

Federal and state laws are aimed at protecting consumers from all of the following except

Correct AnswerverifiedShow Answer

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Correct AnswerverifiedShow Answer

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

Correct AnswerverifiedShow Answer

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Correct AnswerverifiedShow Answer

Mai receives an unsolicited credit card in the mail and tosses it on her desk. Without Mai's permission, her roommate Nan uses the card to buy a new laptop for $1,800. Mai is liable for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An ad for Running Shoes Inc. states that its footwear is "The Winner's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere are a number of federal laws that ...View AnswerShow Answer

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Correct AnswerverifiedShow Answer

Tia takes out a loan from Urban Bank. When she fails to make the scheduled payments, the lender advises her of further action that it will take. This violates

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

Importers of food do not have to verify that the imported food meets U.S. safety standards.

Correct AnswerverifiedShow Answer

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Correct AnswerverifiedShow Answer

There is a significant distinction between regulating the information dispensed about a product and regulating the product's actual content.

Correct AnswerverifiedShow Answer

Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

Correct AnswerverifiedShow Answer

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

Correct AnswerverifiedShow Answer

Creamery Inc. makes and sells dairy products. Creamery's product packages must include

Correct AnswerverifiedShow Answer

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Correct AnswerverifiedShow Answer

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verified
There are a number of federal laws that ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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