Exam 19: Consumer Protection

Equal credit opportunity refers to the requirement that creditors:

The Fair Debt Collection Practices Act prohibits debt collectors from using harassing and deceptive debt-collection practices.

The Consumer Leasing Act does not apply to leases for:

FACT Pattern 19-1 In 1999,the Drugs-R-Us began testing its new drug,Reduceo,a medicine to help people lose weight.Tests looked promising and,in 2006,the company applied to the FDA for approval to market Reduceo as a prescription drug.In March 2009,the FDA granted Drug-R-Us approval to market Reduceo.Reduceo was sold with some "diet enhancing" cookies that contained no drugs but were claimed to help dieting with Reduceo. Frank saw an ad for the new drug.The Reduceo ad stated that it was a "wonder drug" and "tests prove it is the safest weight reduction drug on the market today!" Frank was interested and made an appointment to see his doctor. Frank's physician prescribed the new drug for his patient.Frank had no success using other weight-loss drugs,and dieting and exercise seemed ineffective.Frank took Reduceo from June until the end of August and lost 25 lbs.He also ate Reduceo's cookies.He was delighted with his weight loss,but was concerned because dots appeared before his eyes,causing disorientation.One day,the dots appeared before Frank's eyes while he was driving.He became disoriented and hit a tree and was seriously injured.He sued Drugs-R-Us,alleging negligence in manufacturing and inadequate warning of possible effects,as well as for deceptive advertising. -Refer to Fact Pattern 19-2.Jayme's ads,when attacked as deceptive by the FTC,must be shown to do all of the following except:

It costs about $25 million and takes an average of 3 years to develop one new drug and clear all FDA rules before marketing the product.

Telemarketers are subject to which of the following:

The Fair Debt Collection Practices Act prohibits debt collectors from discussing a debtor's debts with their employer.

The Truth-in-Lending Act does NOT apply to which of the following:

Which of the following is not required to be listed on nutrition labels by the FDA because there is no shortage of it in American diets:

If you lose the bank card you use to withdraw cash from your bank by machine,and you report it to the bank within two days,you are liable for how much in losses?

FACT Pattern 19-1 In 1999,the Drugs-R-Us began testing its new drug,Reduceo,a medicine to help people lose weight.Tests looked promising and,in 2006,the company applied to the FDA for approval to market Reduceo as a prescription drug.In March 2009,the FDA granted Drug-R-Us approval to market Reduceo.Reduceo was sold with some "diet enhancing" cookies that contained no drugs but were claimed to help dieting with Reduceo. Frank saw an ad for the new drug.The Reduceo ad stated that it was a "wonder drug" and "tests prove it is the safest weight reduction drug on the market today!" Frank was interested and made an appointment to see his doctor. Frank's physician prescribed the new drug for his patient.Frank had no success using other weight-loss drugs,and dieting and exercise seemed ineffective.Frank took Reduceo from June until the end of August and lost 25 lbs.He also ate Reduceo's cookies.He was delighted with his weight loss,but was concerned because dots appeared before his eyes,causing disorientation.One day,the dots appeared before Frank's eyes while he was driving.He became disoriented and hit a tree and was seriously injured.He sued Drugs-R-Us,alleging negligence in manufacturing and inadequate warning of possible effects,as well as for deceptive advertising. -Refer to Fact Pattern 19-2.If Herbal Health contains food additives it must meet certain safety standards.These standards call for:

Under the FTC's Mail-Order Rule:

The Food,Drug and Cosmetic Act of 1938 expanded the FDA's powers to include the power to allow it to do which of the following:

The Food and Drug Administration:

If a person is injured by a drug because a physician gives an improper dose,the maker may be protected from liability under the "learned intermediary" doctrine.

Katherine loses her ATM card while visiting her boyfriend in Boston.She doesn't realize it until she gets home to New Jersey after a week in Boston.She immediately notifies the bank that she lost her card 7 days ago.How much is Katherine liable for in losses?

The Federal Trade Commission regulates:

The Fair Debt Collection Practices Act applies to:

Medical devices are subject to FDA regulation.

Which type of advertisement would be held to a tougher standard than the others: