Question 1

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

Accepted Answer

A)   ​credit terms offered by other lenders.
B)   ​comparative prices for goods to be bought with the borrowed funds.
C)   ​Credit Loan's credit terms.
D)   ​the borrowers' credit scores.E) None of the above
F) C) and D)

Question 2

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Accepted Answer

A)   ​a levy of a nominal fine.
B)   ​an assessment of damages.
C)   ​an order of rescission of the loan contracts.
D)   ​no sanctions.E) C) and D)
F) All of the above

Question 3

ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is​

Accepted Answer

A)   ​the Consumer Product Safety Commission.
B)   ​none of the choices.
C)   ​the Federal Trade Commission.
D)   ​the Food and Drug Administration.E) B) and D)
F) B) and C)

Question 4

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim​

Accepted Answer

A)   ​false and misleading.
B)   ​impermissibly vague and general.
C)   ​a deceptive half-truth.
D)   ​none of the choices.E) A) and B)
F) A) and C)

Question 5

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.​

Accepted Answer

A) True 
 B)False

Question 6

Merchants must issue a refund within a specified period of time when a consumer cancels an order.​

Accepted Answer

A) True 
 B)False

Question 7

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) None of the above
F) A) and C)

Question 8

Credit can be denied if a person receives a certain form of income.​

Accepted Answer

A) True 
 B)False

Question 9

Federal law governs the use of terms such as fresh on food labels.​

Accepted Answer

A) True 
 B)False

Question 10

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.​

Accepted Answer

A) True 
 B)False

Question 11

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are​

Accepted Answer

A)   ​prohibited.
B)   ​required.
C)   ​voluntary.
D)   ​arbitrary.E) B) and C)
F) A) and B)

Question 12

Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Accepted Answer

A)   ​every new car.
B)   ​no car-compliance with the law is voluntary.
C)   ​select old and new cars.
D)   ​whichever vehicles the car maker chooses.E) A) and B)
F) A) and C)

Exam 44: Consumer Law

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are

Correct Answer
verified

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Correct Answer
verified

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

Correct Answer
verified

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Correct Answer
verified

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Correct Answer
verified

ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is

Correct Answer
verified

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim

Correct Answer
verified

Federal law governs the use of terms such as fresh on food labels.

Correct Answer
verified

Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Correct Answer
verified

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of

Correct Answer
verified

Credit can be denied if a person receives a certain form of income.

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

Exam 44: Consumer Law

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are​

Correct AnswerverifiedShow Answer

Merchants must issue a refund within a specified period of time when a consumer cancels an order.​

Correct AnswerverifiedShow Answer

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.​

Correct AnswerverifiedShow Answer

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Correct AnswerverifiedShow Answer

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.​

Correct AnswerverifiedShow Answer

ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is​

Correct AnswerverifiedShow Answer

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim​

Correct AnswerverifiedShow Answer

Federal law governs the use of terms such as fresh on food labels.​

Correct AnswerverifiedShow Answer

Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Correct AnswerverifiedShow Answer

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

Correct AnswerverifiedShow Answer

Credit can be denied if a person receives a certain form of income.​

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

Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are

Correct Answer
verified

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Correct Answer
verified

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

Correct Answer
verified

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Correct Answer
verified

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Correct Answer
verified

ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is

Correct Answer
verified

Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim

Correct Answer
verified

Federal law governs the use of terms such as fresh on food labels.

Correct Answer
verified

Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Correct Answer
verified

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of

Correct Answer
verified

Credit can be denied if a person receives a certain form of income.

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