Question 1

A consumer has a right to cancel a home loan seven days after entering the contract.

Accepted Answer

A) True 
 B)False  False

Question 2

With reference to the United States Bankruptcy Code, which of the following is a disadvantage of bankruptcy to creditors?

Accepted Answer

A)  Continued operation results in less funds to distribute at liquidation. 
B)  The going-concern value of an insolvent business is not preserved. 
C)  Creditor-in-possession is held accountable due to bankruptcy reporting and notice requirements. 
D)  A creditor cannot file an involuntary petition for relief under Chapter 7. 
A)  Continued operation results in less funds to distribute at liquidation. 
B)  The going-concern value of an insolvent business is not preserved. 
C)  Creditor-in-possession is held accountable due to bankruptcy reporting and notice requirements. 
D)  A creditor cannot file an involuntary petition for relief under Chapter 7. A

Question 3

The freedom-to-contract doctrine has been limited by the implied warranty doctrine, as well as by the courts' relaxation of strict privity relationships between manufacturers and consumers.

Accepted Answer

A) True 
 B)False  True

Question 4

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was intended to overhaul, in large part, certain provisions of the Bankruptcy Code.

Accepted Answer

A) True 
 B)False

Question 5

The Magnuson-Moss Warranty Act gives an individual consumer, or a class of consumers, the right to bring a private action for a breach of an oral warranty.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a purpose of the Fair Packaging and Labeling Act?

Accepted Answer

A)  It forces manufacturers to package goods in the most efficient manner. 
B)  It gives competitors of manufacturers a private right of action in cases of deceptive advertising. 
C)  It allows consumers to compare prices on the basis of uniform measures of content. 
D)  It expands the Federal Trade Commission's jurisdiction over manufactured goods in interstate commerce. 
A)  It forces manufacturers to package goods in the most efficient manner. 
B)  It gives competitors of manufacturers a private right of action in cases of deceptive advertising. 
C)  It allows consumers to compare prices on the basis of uniform measures of content. 
D)  It expands the Federal Trade Commission's jurisdiction over manufactured goods in interstate commerce.

Question 7

Bob's debit card was stolen on Wednesday. He notifies his bank of the theft the following morning. Meanwhile, the thief has used his card to purchase $800 worth of goods and services. Based on this scenario, which of the following is true of the Electronic Fund Transfer Act?

Accepted Answer

A)  Bob is liable for $50 of the $800. 
B)  Bob is liable for $300 of the $800. 
C)  Bob is liable for $500 of the $800. 
D)  Bob is liable for the whole amount. 
A)  Bob is liable for $50 of the $800. 
B)  Bob is liable for $300 of the $800. 
C)  Bob is liable for $500 of the $800. 
D)  Bob is liable for the whole amount.

Question 8

So far, states have adopted the UCCC, and each of them has .

Accepted Answer

A)  10; somewhat altered the original uniform statute 
B)  15; adopted the original uniform statute in its entirety 
C)  20; somewhat altered the original uniform statute 
D)  25; adopted the original uniform statute in its entirety 
A)  10; somewhat altered the original uniform statute 
B)  15; adopted the original uniform statute in its entirety 
C)  20; somewhat altered the original uniform statute 
D)  25; adopted the original uniform statute in its entirety

Question 9

The UCCC takes a _ approach to consumer credit.

Accepted Answer

A)  free market 
B)  disclosure 
C)  clandestine 
D)  caveat emptor 
A)  free market 
B)  disclosure 
C)  clandestine 
D)  caveat emptor

Question 10

Describe Mexico's Federal Consumer Protection Act of 1975.

Accepted Answer

In Mexico, the Federal Consumer Protecti

Question 11

A contractor installed a new furnace in a house that was under construction. If he were not paid for the job, he would most likely place a(n) _ lien on the property.

Accepted Answer

A)  contractor's 
B)  mechanic's 
C)  artisan's 
D)  installer's 
A)  contractor's 
B)  mechanic's 
C)  artisan's 
D)  installer's

Question 12

The UCCC does all but which of the following?

Accepted Answer

A)  regulates interest rates 
B)  establishes creditors' remedies 
C)  regulates finance rates 
D)  promotes fine-print clauses 
A)  regulates interest rates 
B)  establishes creditors' remedies 
C)  regulates finance rates 
D)  promotes fine-print clauses

Question 13

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a debtor can be granted Chapter 7 relief only after years following Chapter 7 or Chapter 11 bankruptcy.

Accepted Answer

A)  two 
B)  four 
C)  six 
D)  eight 
A)  two 
B)  four 
C)  six 
D)  eight

Question 14

Which of the following is an example of puffery?

Accepted Answer

A)  an advertisement stating that a car can run 50,000 miles without an oil change 
B)  an advertisement stating that 13 out of 15 dentists use a particular toothpaste 
C)  an advertisement stating that an anti-aging cream reduces wrinkles in exactly a week 
D)  an advertisement stating that a fast food chain sells the world's finest chicken 
A)  an advertisement stating that a car can run 50,000 miles without an oil change 
B)  an advertisement stating that 13 out of 15 dentists use a particular toothpaste 
C)  an advertisement stating that an anti-aging cream reduces wrinkles in exactly a week 
D)  an advertisement stating that a fast food chain sells the world's finest chicken

Question 15

Which of the following is a term used for specialists who hear only bankruptcy proceedings?

Accepted Answer

A)  bankruptcy specialists 
B)  bankruptcy judges 
C)  bankruptcy juries 
D)  bankruptcy rulers 
A)  bankruptcy specialists 
B)  bankruptcy judges 
C)  bankruptcy juries 
D)  bankruptcy rulers

Question 16

The Federal Trade Commission can have no more than three commissioners from the same political party.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of a voluntary petition?

Accepted Answer

A)  It is filed by a debtor under Chapter 15. 
B)  It involves a creditor placing a debtor in bankruptcy. 
C)  Those who sign the voluntary petition must have unsecured claims of at least $12,300 in the aggregate. 
D)  The petition must clearly state the debts of a debtor. 
A)  It is filed by a debtor under Chapter 15. 
B)  It involves a creditor placing a debtor in bankruptcy. 
C)  Those who sign the voluntary petition must have unsecured claims of at least $12,300 in the aggregate. 
D)  The petition must clearly state the debts of a debtor.

Question 18

Interchange fees usually run about five percent of a given transaction.

Accepted Answer

A) True 
 B)False

Question 19

Discuss the impact of the Dodd-Frank Act on credit and debit cards, consumer loans, credit scores, and residential mortgages.

Accepted Answer

The new Consumer Financial Protection Bu

Question 20

Family are defined as corporations or partnerships owned by a family or relatives with more than 80 percent of its assets related to farming operation and a total business debt not exceeding $3,273,000.

Accepted Answer

A)  farmers 
B)  partners 
C)  debtors 
D)  creditors 
A)  farmers 
B)  partners 
C)  debtors 
D)  creditors

Exam 25: Laws of Debtor-Creditor Relations and Consumer Protection

A consumer has a right to cancel a home loan seven days after entering the contract.

With reference to the United States Bankruptcy Code, which of the following is a disadvantage of bankruptcy to creditors?

The freedom-to-contract doctrine has been limited by the implied warranty doctrine, as well as by the courts' relaxation of strict privity relationships between manufacturers and consumers.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was intended to overhaul, in large part, certain provisions of the Bankruptcy Code.

The Magnuson-Moss Warranty Act gives an individual consumer, or a class of consumers, the right to bring a private action for a breach of an oral warranty.

Which of the following is a purpose of the Fair Packaging and Labeling Act?

Bob's debit card was stolen on Wednesday. He notifies his bank of the theft the following morning. Meanwhile, the thief has used his card to purchase $800 worth of goods and services. Based on this scenario, which of the following is true of the Electronic Fund Transfer Act?

So far, states have adopted the UCCC, and each of them has .

The UCCC takes a _ approach to consumer credit.

Describe Mexico's Federal Consumer Protection Act of 1975.

A contractor installed a new furnace in a house that was under construction. If he were not paid for the job, he would most likely place a(n) _ lien on the property.

The UCCC does all but which of the following?

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a debtor can be granted Chapter 7 relief only after years following Chapter 7 or Chapter 11 bankruptcy.

Which of the following is an example of puffery?

Which of the following is a term used for specialists who hear only bankruptcy proceedings?

The Federal Trade Commission can have no more than three commissioners from the same political party.

Which of the following is true of a voluntary petition?

Interchange fees usually run about five percent of a given transaction.

Discuss the impact of the Dodd-Frank Act on credit and debit cards, consumer loans, credit scores, and residential mortgages.

Family are defined as corporations or partnerships owned by a family or relatives with more than 80 percent of its assets related to farming operation and a total business debt not exceeding $3,273,000.

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Alternative Tools of Dispute Resolution

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales I

The Law of Contracts and Sales Ii

The Law of Torts

Product and Service Liability Law

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations I

Law and Business Associations II

The Law of Administrative Agencies

The Employment Relationship and Immigration Laws

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Antitrust Laws

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