Exam 15: Product Liability and Consumer Protection

A credit cardholder is liable for all unauthorized charges if he or she does not report the unauthorized charges within twenty days of receiving a statement on which the unauthorized charges appear.

To which type of transaction does the negative option rule apply?

Robin orders $1,500 of merchandise from Whamazon.com.If no delivery date is promised,Internet must ship the merchandise within thirty (30)days.

Renee applied for credit to open her own beauty salon.The bank denies her the credit after learning she was recently divorced and receives public assistance income.Which of the following federal laws did the bank violate?

"Slamming" is the illegal practice of adding channels to a consumer's cable service without permission.

The Equal Credit Opportunity Act makes it illegal for businesses to discriminate against credit applicants receiving public assistance income.

Under the doctrine of strict liability,when a product is unavoidably dangerous,a manufacturer has a duty to warn consumers of potential injuries.

Greenday Bank hires an agency to collect debt from one of its credit customers,Leon.The agency contacts Leon on his phone regarding the payment of the debt.Leon cites a family emergency and promises to visit the bank the next week.However,the agency sends a debt collector to Leon's house at 8 P.M.The debt collector does not find Leon at home and inquires about his whereabouts with the neighbors,telling them that Leon is indebted to Greenday Bank.The neighbors inform the debt collector that Leon is visiting his ill mother in Virginia.Analyze the case with regards to consumer credit laws.

MacLean went to an appliance store to buy an advertised camcorder.The salesperson discouraged him from buying the advertised product,saying that it was of very poor quality.The salesperson tried to talk MacLean into buying a more expensive camcorder of better quality.Discuss the case.

The prime target of the ________ has been handguns.

A plaintiff in a strict liability case may recover punitive damages.

Persons who receive unordered merchandise in the mail may have a private cause of action and may ask for a consent order from the FTC.

After receiving her credit card bill,Claire feels that the credit card company has made a mistake.Several transactions are not hers.The law that has established procedures for the prompt handling of such billing disputes is known as the:

Jasmine discovered that she had been slammed by her old company,Voicetone,after she had paid her telephone bill to the company,Distant Enterprise.Discuss Jasmine's legal rights.

Alex,a painting contractor,purchased a movable Little Giant basket platform from Builder's Equipment Co.from which he or his employees could paint up to sixty feet off the ground.The platform malfunctioned,and Alex was injured when he fell from thirty feet.Discuss the type of product liability claim that Alex might bring against Builder's and Little Giant.

Which of the following is true of the "Cooling-Off" Rule?

An FTC order,under which a company agrees to stop a disputed practice without necessarily admitting that it violated the law,is called a dunning letter.

Justin,who is on a business trip 500 miles away from home,decides to try a "free" Internet service that requires a credit card number and ends up costing $275.Justin wants to contest this charge.Explain in detail what he should do.

Samantha applied for a personal loan at a local bank in Illinois.The bank asked her to fill in an application form in which she was asked for her employment and marital status,as well as her age and her Social Security number.After reviewing her application,the bank denied her the loan because,it said,she was a 43-year-old divorcee-albeit a successful attorney-who received alimony payments and therefore,constituted a high risk.Analyze the case and Samantha's rights.

Even though Spice gives her four-year-old car to Homeless Helpers Charity,she: