Question 1

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000.

Accepted Answer

A) True 
 B)False

Question 2

One difference between a full and a limited warranty under the Magnuson-Moss Warranty Act is that in a limited warranty, the manufacturer may, if reasonable, limit the duration of the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 3

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Accepted Answer

A) True 
 B)False

Question 4

Lemon laws are generally understood to be laws that:

Accepted Answer

A)  apply to the safety of food additives for fruits and vegetables.
B)  are federal legislation designed specifically to protect state consumers from fraudulent car manufacturers.
C)  are state laws that attempt to provide new car purchasers with rights that are similar to full warranties under the Magnuson-Moss Act.
D)  are Interstate Compacts to uniformly deal with lemon cars.E) A) and C)
F) B) and D)

Question 5

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

Accepted Answer

A)  unfair means to collect a debt.
B)  falsely representing that a lawsuit is about to be filed.
C)  telephoning the debtor at 8:00 A.m.
D)  using obscene language.E) All of the above
F) C) and D)

Question 6

The Consumer Product Safety Commission enforces the:

Accepted Answer

A)  Federal Hazardous Substances Act.
B)  Flammable Fabrics Act.
C)  Refrigerator Safety Act.
D)  All of the above.
E)  None of the above.F) A) and B)
G) A) and C)

Question 7

Homemade Soup Co.has advertised their soup in certain magazines using photographs showing bowls of their soup with pebbles at the bottom of the bowl.The pebbles were used to displace the soup in the bowl, forcing the vegetables and meat to the surface.This photographer's trick made the soup appear heartier than it was.An FTC staffer is thumbing through the latest edition of her favorite magazine.She notices the Homemade Soup Co.ad and goes to her kitchen, opens a can of Homemade's soup and decides that her bowl of soup looks nothing like the one in the ad.What are the steps the FTC would take to proceed against Homemade Soup Co.?

Accepted Answer

In a typical situation, the FTC discover...

Question 8

The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations.

Accepted Answer

A) True 
 B)False  True

Question 9

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Accepted Answer

A) True 
 B)False

Question 10

The Consumer Product Safety Commission is made up of three commissioners.

Accepted Answer

A) True 
 B)False

Question 11

Lemon laws provide new car purchasers with rights similar to those under the Magnuson-Moss Warranty Act.

Accepted Answer

A) True 
 B)False  True

Question 12

Which of the following acts protects consumers who have errors in credit card billings?

Accepted Answer

A)  Equal Credit Opportunity Act.
B)  Fair Credit Billing Act.
C)  Fair Debt Collection Practices Act.
D)  Truth-in-Lending Act.E) A) and C)
F) C) and D)

Question 13

Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Accepted Answer

A)  RESPA
B)  CPSC
C)  OSHA
D)  FCCPAE) C) and D)
F) A) and C)

Question 14

The FTC:

Accepted Answer

A)  and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive.
B)  can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising.
C)  can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist."
D)  All of these are correct.E) B) and C)
F) C) and D)

Question 15

The National Highway Traffic Safety Administration:

Accepted Answer

A)  recalls autos for safety reasons.
B)  tests the fuel efficiency of each year's car models.
C)  enforces trademark laws on cars and car parts to ensure buyers get what they think they are buying.
D)  None of these are correct.E) A) and B)
F) B) and C)

Question 16

The Fair Debt Collection Practices Act prohibits:

Accepted Answer

A)  a debt collection agency from communicating directly with a debtor under any circumstances.
B)  calls after 6 p.m.
C)  a debt collection agency from calling a debtor each day, several times a day, demanding payment.
D)  a creditor from calling a debtor regarding payment of a bill.E) A) and C)
F) All of the above

Question 17

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 18

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Accepted Answer

A) True 
 B)False  False

Question 19

The Truth-in-Lending Act requires disclosure of the cost of credit as an annual percentage rate, which may be calculated in one of three different ways.

Accepted Answer

A) True 
 B)False

Question 20

Consumer protection takes place by legislation and agencies at only the federal level.

Accepted Answer

A) True 
 B)False

Exam 45: Consumer Protection

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000.

Correct Answer
verified

One difference between a full and a limited warranty under the Magnuson-Moss Warranty Act is that in a limited warranty, the manufacturer may, if reasonable, limit the duration of the warranty of merchantability.

Correct Answer
verified

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Correct Answer
verified

Lemon laws are generally understood to be laws that:

Correct Answer
verified

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

Correct Answer
verified

The Consumer Product Safety Commission enforces the:

Correct Answer
verified

Correct Answer
verified
In a typical situation, the FTC discover...
View Answer

The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations.

Correct Answer
verified
True

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Correct Answer
verified

The Consumer Product Safety Commission is made up of three commissioners.

Correct Answer
verified

Lemon laws provide new car purchasers with rights similar to those under the Magnuson-Moss Warranty Act.

Correct Answer
verified
True

Which of the following acts protects consumers who have errors in credit card billings?

Correct Answer
verified

Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Correct Answer
verified

The FTC:

Correct Answer
verified

The National Highway Traffic Safety Administration:

Correct Answer
verified

The Fair Debt Collection Practices Act prohibits:

Correct Answer
verified

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Correct Answer
verified

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Correct Answer
verified
False

The Truth-in-Lending Act requires disclosure of the cost of credit as an annual percentage rate, which may be calculated in one of three different ways.

Correct Answer
verified

Consumer protection takes place by legislation and agencies at only the federal level.

Correct Answer
verified

Exam 45: Consumer Protection

The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000.

Correct AnswerverifiedShow Answer

One difference between a full and a limited warranty under the Magnuson-Moss Warranty Act is that in a limited warranty, the manufacturer may, if reasonable, limit the duration of the warranty of merchantability.

Correct AnswerverifiedShow Answer

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Correct AnswerverifiedShow Answer

Lemon laws are generally understood to be laws that:

Correct AnswerverifiedShow Answer

The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:

Correct AnswerverifiedShow Answer

The Consumer Product Safety Commission enforces the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn a typical situation, the FTC discover...View AnswerShow Answer

The United States Postal Service plays an important role in consumer protection as it files many cases to close down mail fraud operations.

Correct AnswerverifiedTrue

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Correct AnswerverifiedShow Answer

The Consumer Product Safety Commission is made up of three commissioners.

Correct AnswerverifiedShow Answer

Lemon laws provide new car purchasers with rights similar to those under the Magnuson-Moss Warranty Act.

Correct AnswerverifiedTrue

Which of the following acts protects consumers who have errors in credit card billings?

Correct AnswerverifiedShow Answer

Congress enacted what law to provide consumers who purchase a home with greater and more timely information on the nature and costs of the settlement process?

Correct AnswerverifiedShow Answer

The FTC:

Correct AnswerverifiedShow Answer

The National Highway Traffic Safety Administration:

Correct AnswerverifiedShow Answer

The Fair Debt Collection Practices Act prohibits:

Correct AnswerverifiedShow Answer

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Correct AnswerverifiedShow Answer

The Federal Trade Commission was created in 1968 in response to the consumer movement of the 1960s.

Correct AnswerverifiedFalse

The Truth-in-Lending Act requires disclosure of the cost of credit as an annual percentage rate, which may be calculated in one of three different ways.

Correct AnswerverifiedShow Answer

Consumer protection takes place by legislation and agencies at only the federal level.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a typical situation, the FTC discover...
View Answer

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified