Question 1

Which of the following is a term for Katie's defense involving generalities and clear exaggerations allowable by law?

Accepted Answer

A)   Exaltation
B)   Puffing
C)   Crowing
D)   Swelling
E)   BoastingF) B) and D)
G) All of the above

Question 2

Which of the following is the term used for the requirement of the Federal Trade Commission that advertisers have a reasonable basis for claims made in advertisements?

Accepted Answer

A)   Ad substantiation
B)   Ad verification
C)   Proof of ad veracity
D)   Illustration of ad veracity
E)   Acknowledgement of ad veracityF) C) and D)
G) B) and C)

Question 3

If a person believes that she is a victim of identity theft,she may contact the FTC and an alert will be placed in her credit files.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following permits repeated transactions and assesses a finance charge on unpaid balances?

Accepted Answer

A)   Open-end credit line
B)   Closed-end credit line
C)   Debt-based credit line
D)   Uncollateralized credit
E)   Collateralized creditF) None of the above
G) A) and B)

Question 5

Which of the following is the appropriate term for a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue?

Accepted Answer

A)   Corrective advertising
B)   Repeal advertising
C)   Notice publication
D)   Notice advertising
E)   Action publicationF) B) and C)
G) A) and C)

Question 6

In Quebec all public signs and advertisements must be solely in French.

Accepted Answer

A) True 
 B)False

Question 7

Under the FTA,the existence of deceptive advertisements is enough alone to prove damages for recovery when individual civil suits are filed for deceptive practices.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following was the first federal legislation passed regulating food and drugs?

Accepted Answer

A)   The Applied Food, Drug, and Cosmetic Act
B)   The Pure Food and Drugs Act
C)   The Food and Drug Safety Act
D)   The Consumer Safety Act
E)   The Congressional Safety ActF) All of the above
G) A) and E)

Question 9

Under the Equal Credit Opportunity Act,creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

Accepted Answer

A) True 
 B)False

Question 10

Under which of the following circumstances may a credit card company not bill a consumer for a damaged item that is unknowingly purchased with the card?

Accepted Answer

A)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home.
B)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home, and the item cost more than $50.
C)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; and the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund.
D)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund; and the seller had a history of providing defective merchandise.
E)   The credit card company may always charge the consumer, and it is up to the consumer to get a refund from the merchant.F) B) and C)
G) A) and D)

Question 11

Canada's cigarette labeling requirements are less strict than those in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following was the result in Federal Trade Commission v.Check Investors Inc.,the case in the text involving whether,in an effort to collect bad check charges,the defendant violated the Fair Debt Collections Act through tactics such as telling check writers that they would be arrested and prosecuted?

Accepted Answer

A)   That the defendant did not violate the act because only truthful statements were made in that the check writers were subject to arrest and prosecution.
B)   That the defendant did not violate the act because the check writers committed theft and were not, therefore, classified as consumers protected by the act.
C)   That the defendant did not violate the act because the act specifically exempts collection of bad checks.
D)   That the defendant violated the act because it could only legally collect payments on checks, not determine whether check writers were criminals and then employ law enforcement tactics to collect.
E)   That the defendant violated the act because it failed to inform the check writers that they were constitutionally entitled to a jury trial before incarceration.F) A) and B)
G) A) and C)

Question 13

What is required by the Telemarketing Sales Rule of 1995?

Accepted Answer

The Telemarketing Sales Rule of 1995 req...

Question 14

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Accepted Answer

A)   It forbids telephone solicitation using an automatic telephone dialing system.
B)   It forbids telephone solicitation using a prerecorded voice.
C)   It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission.
D)   Only the Federal Communications Commission can take action to enforce the act.
E)   If a telemarketer willfully violates the act, the court can decide to triple the amount owed to the consumer.F) A) and B)
G) A) and C)

Question 15

Which of the following was the result in Paula E.Rossman v.Fleet Bank (R.I.) National Association,the case in the text in which the plaintiff sued the defendant after she opened a credit card account based on the promise that no annual fee would be charged; but the policy was changed shortly thereafter,and she was charged an annual fee?

Accepted Answer

A)  That the defendant was liable to the plaintiff because it engaged in a bait-and-switch scheme.
B)  That the defendant was liable to the plaintiff because it violated provisions of the Truth in Lending Act.
C)  That the defendant committed no violation of the law because it was entitled to change its policies at will.
D)  That the defendant committed no violation of the law because its offer disclosed that terms and policies could be changed.
E)  That the defendant committed no violation because it was not required to disclose future fees,only current ones.F) A) and E)
G) B) and E)

Question 16

Which of the following was passed in response to the growing number of identity theft cases?

Accepted Answer

A)   The Identity Crisis Act
B)   The Fair and Accurate Credit Transactions Act
C)   The Fair Credit Billing Act
D)   The Credit Card Fraud Act
E)   The Fair Credit Reporting ActF) C) and D)
G) A) and C)

Question 17

If a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts is violated,which of the following is the fine that the Federal Trade Commission may impose?

Accepted Answer

A)   $3,000 per violation
B)   $5,000 per violation
C)   $10,000 per violation
D)   $50,000 per violation
E)   $100,000 per violationF) A) and B)
G) C) and E)

Question 18

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Accepted Answer

A) True 
 B)False

Question 19

Set forth the rights of appeal a company has if issued a cease-and-desist order by the Federal Trade Commission.

Accepted Answer

The company may appeal the decision to t...

Question 20

When was the Federal Trade Commission created by Congress?

Accepted Answer

A)   1900
B)   1914
C)   1929
D)   1934
E)   1976F) C) and E)
G) A) and B)

Exam 45: Consumer Law

Which of the following is the term used for the requirement of the Federal Trade Commission that advertisers have a reasonable basis for claims made in advertisements?

Correct Answer
verified

When was the Federal Trade Commission created by Congress?

Correct Answer
verified

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Correct Answer
verified

What is required by the Telemarketing Sales Rule of 1995?

Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

Which of the following is a term for Katie's defense involving generalities and clear exaggerations allowable by law?

Correct Answer
verified

Correct Answer
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In Quebec all public signs and advertisements must be solely in French.

Correct Answer
verified

Correct Answer
verified

Which of the following is the appropriate term for a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue?

Correct Answer
verified

Which of the following was passed in response to the growing number of identity theft cases?

Correct Answer
verified

Which of the following was the first federal legislation passed regulating food and drugs?

Correct Answer
verified

Under which of the following circumstances may a credit card company not bill a consumer for a damaged item that is unknowingly purchased with the card?

Correct Answer
verified

If a person believes that she is a victim of identity theft,she may contact the FTC and an alert will be placed in her credit files.

Correct Answer
verified

Canada's cigarette labeling requirements are less strict than those in the U.S.

Correct Answer
verified

If a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts is violated,which of the following is the fine that the Federal Trade Commission may impose?

Correct Answer
verified

Under the Equal Credit Opportunity Act,creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

Correct Answer
verified

Set forth the rights of appeal a company has if issued a cease-and-desist order by the Federal Trade Commission.

Correct Answer
verified
The company may appeal the decision to t...
View Answer

Under the FTA,the existence of deceptive advertisements is enough alone to prove damages for recovery when individual civil suits are filed for deceptive practices.

Correct Answer
verified

Which of the following permits repeated transactions and assesses a finance charge on unpaid balances?

Correct Answer
verified

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Correct Answer
verified

Exam 45: Consumer Law

Which of the following is the term used for the requirement of the Federal Trade Commission that advertisers have a reasonable basis for claims made in advertisements?

Correct AnswerverifiedShow Answer

When was the Federal Trade Commission created by Congress?

Correct AnswerverifiedShow Answer

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Correct AnswerverifiedShow Answer

What is required by the Telemarketing Sales Rule of 1995?

Correct AnswerverifiedThe Telemarketing Sales Rule of 1995 req...View AnswerShow Answer

Which of the following is a term for Katie's defense involving generalities and clear exaggerations allowable by law?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In Quebec all public signs and advertisements must be solely in French.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the appropriate term for a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue?

Correct AnswerverifiedShow Answer

Which of the following was passed in response to the growing number of identity theft cases?

Correct AnswerverifiedShow Answer

Which of the following was the first federal legislation passed regulating food and drugs?

Correct AnswerverifiedShow Answer

Under which of the following circumstances may a credit card company not bill a consumer for a damaged item that is unknowingly purchased with the card?

Correct AnswerverifiedShow Answer

If a person believes that she is a victim of identity theft,she may contact the FTC and an alert will be placed in her credit files.

Correct AnswerverifiedShow Answer

Canada's cigarette labeling requirements are less strict than those in the U.S.

Correct AnswerverifiedShow Answer

If a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts is violated,which of the following is the fine that the Federal Trade Commission may impose?

Correct AnswerverifiedShow Answer

Under the Equal Credit Opportunity Act,creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

Correct AnswerverifiedShow Answer

Set forth the rights of appeal a company has if issued a cease-and-desist order by the Federal Trade Commission.

Correct AnswerverifiedThe company may appeal the decision to t...View AnswerShow Answer

Under the FTA,the existence of deceptive advertisements is enough alone to prove damages for recovery when individual civil suits are filed for deceptive practices.

Correct AnswerverifiedShow Answer

Which of the following permits repeated transactions and assesses a finance charge on unpaid balances?

Correct AnswerverifiedShow Answer

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

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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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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The company may appeal the decision to t...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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