Question 1

Bee borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies 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 D)
F) B) and D)

Question 2

Spicy Salsa Inc. complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, 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)  draft a formal complaint.
C)  issue a cease-and-desist order.
D)  permit Spicy to broadcast similarly deceptive counteradvertising.E) B) and D)
F) A) and B)

Question 3

Quik Mart sells groceries. Rite Price sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Accepted Answer

A)  Quik Mart and Rite Price.
B)  the Consumer Product Safety Commission.
C)  the Federal Trade Commission.
D)  the Food and Drug Administration.E) All of the above
F) C) and D)

Question 4

QT Collection Agency calls Rob several times a day, and in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT 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) All of the above
F) C) and D)

Question 5

The federal agency that oversees the practices of banks, mortgage lenders, and credit-card companies is

Accepted Answer

A)  Regulation Z.
B)  the Federal Reserve Board.
C)  the Consumer Product Safety Commission.
D)  the Consumer Financial Protection BureauE) A) and C)
F) B) and C)

Question 6

Federal law does not require food product labels to identify the product .

Accepted Answer

A) True 
 B)False

Question 7

A creditor can always require the signature of a cosigner on a credit application.

Accepted Answer

A) True 
 B)False

Question 8

A consumer may recover under a state consumer-fraud statute, even if he or she has not suffered actual damages proximately caused by a deceptive act.

Accepted Answer

A) True 
 B)False

Question 9

EZ Workout Inc. advertises Fit Step, an exercise machine, online. In its ads, EZ claims that the use of Fit Step measurably enhances the attainability of fitness and weight loss goals, and will contribute significantly to the length of its users' lives. In this context, the company's ads and claims must be

Accepted Answer

A)  hyperlinked.
B)  avoidable.
C)  substantiated.
D)  all of the choices.E) A) and C)
F) A) and B)

Question 10

Home Made Inc. advertises a variety of household products online. In this context, the company's ads must be

Accepted Answer

A)  truthful.
B)  forceful.
C)  colorful.
D)  all of the choices.E) B) and D)
F) All of the above

Question 11

The Federal Trade Commission actively monitors online advertising.

Accepted Answer

A) True 
 B)False

Question 12

The Truth-in-Lending Act applies to a loan between two consumers because in that transaction, the lender is a person who in the ordinary course of business is extending credit.

Accepted Answer

A) True 
 B)False

Exam 41: Consumer Law

The federal agency that oversees the practices of banks, mortgage lenders, and credit-card companies is

Correct Answer
verified

Correct Answer
verified

The Truth-in-Lending Act applies to a loan between two consumers because in that transaction, the lender is a person who in the ordinary course of business is extending credit.

Correct Answer
verified

Bee borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Correct Answer
verified

QT Collection Agency calls Rob several times a day, and in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of

Correct Answer
verified

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

Correct Answer
verified

A creditor can always require the signature of a cosigner on a credit application.

Correct Answer
verified

Federal law does not require food product labels to identify the product .

Correct Answer
verified

Quik Mart sells groceries. Rite Price sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Correct Answer
verified

A consumer may recover under a state consumer-fraud statute, even if he or she has not suffered actual damages proximately caused by a deceptive act.

Correct Answer
verified

The Federal Trade Commission actively monitors online advertising.

Correct Answer
verified

Home Made Inc. advertises a variety of household products online. In this context, the company's ads must be

Correct Answer
verified

Exam 41: Consumer Law

The federal agency that oversees the practices of banks, mortgage lenders, and credit-card companies is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Truth-in-Lending Act applies to a loan between two consumers because in that transaction, the lender is a person who in the ordinary course of business is extending credit.

Correct AnswerverifiedShow Answer

Bee borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Correct AnswerverifiedShow Answer

QT Collection Agency calls Rob several times a day, and in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A creditor can always require the signature of a cosigner on a credit application.

Correct AnswerverifiedShow Answer

Federal law does not require food product labels to identify the product .

Correct AnswerverifiedShow Answer

Quik Mart sells groceries. Rite Price 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 consumer may recover under a state consumer-fraud statute, even if he or she has not suffered actual damages proximately caused by a deceptive act.

Correct AnswerverifiedShow Answer

The Federal Trade Commission actively monitors online advertising.

Correct AnswerverifiedShow Answer

Home Made Inc. advertises a variety of household products online. In this context, the company's ads must be

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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