Exam 25: Consumer Law

Company policy of PushOne,Inc.is for its representatives to block the company name and telephone number on potential customers' Caller ID systems so they won't know the call is from a telemarketer.This policy violates FTC rules.

A consumer report cannot include:

Prime Products,Inc.was going to be able to ship the comforter Margaret ordered within three weeks instead of the seven days it had originally promised.Prime must cancel Margaret's order and notify her that it can deliver within three weeks if she wants to reorder.

"Bait and switch" tactics are a violation of FTC rules.

If the FTC determines a business has violated the law,it will normally try to get the business to voluntarily stop the activity.

A company advertised a pain relief ointment called "Aspercreme." The package stated "the strong relief of aspirin right where you hurt." The product did not contain any aspirin.The FTC ruled that:

If a consumer cancels a door-to-door sale within the required time,how many days does the seller have to return the buyer's money?

The Magnuson-Moss Warranty Act covers all consumer products regardless of their cost.

If you lease a car rather than buy one on credit,you still have statutory consumer protection.

Commonground Collections has been hired to collect past-due medical bills for Lakeview Physicians.List some activities that Commonground may not do pursuant to the FDCPA.

If an offending company refuses to stop its prohibited activity voluntarily,the next step for the FTC is to:

Under the Credit Card Act of 2009,credit card companies are required to do all but which of the following?

The Consumer Leasing Act requires a lessor to disclose in writing all EXCEPT:

Allowing consumers to place fraud alerts in their credit files has been an effective measure in preventing identity theft.

Explain the difference between a debit and a credit card and discuss the potential liability for a lost or stolen card.

John purchased $600 worth of clothes from Clothing Mart. He paid for the clothes with a credit card. When he received his statement, he sent the credit card company a check for $600. The credit card company mistakenly recorded his payment as $60. When John received his next statement, he noticed the $540 error and wrote to the credit card company. A couple of weeks later when he attempted to use his card to buy gasoline, he was told by the cashier that the card had been canceled and she was instructed to take his card. John was shocked, embarrassed, and angry. When he contacted the credit card company, it pointed out a provision in his initial contract for the card that stated the company could revoke his card privileges at any time with or without cause. -What federal law applies to this particular situation?

"Bait and switch" is:

The Truth-in-Lending Act applies to loan transactions made by someone in the business of offering credit.

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race,national origin,religion,or sex,but it is permissible to treat a borrower differently if he or she is on welfare.

Don received in the mail merchandise he never ordered.The package was addressed to him,and when he opened it he saw a brochure stating he could keep the products for only $19.95.If he chose not to keep the products he was instructed to mail them back within five days.Don: