Question 1

The Magnuson-Moss Act requires a label with warranty conditions regarding all products that cost $10 or more.

Accepted Answer

A) True 
 B)False  True

Question 2

The implied warranty of merchantability applies to sales by any seller to any buyer.

Accepted Answer

A) True 
 B)False  False

Question 3

Describe how the federal government is protecting consumers online regarding spam.

Accepted Answer

In an effort to protect consumers online, the government passed an antispam act known as the CAN-SPAM Act. Spam is unsolicited e-mail that advertises a product or service and many times attempts to deceive the consumer through False advertising. Part of the antispam act includes provisions that prohibit online marketers from falsifying the "from" field and information in the subject line to trick consumers into opening an unsolicited e-mail.

Question 4

In Hauter v. Zogarts, Hauter received, as a present, a "Golfing Gizmo" that was made by Zogarts. The device consisted of a golf ball attached to string that returned the ball to the user after it had been hit with a club. The box that it came in stated, "completely safe, ball will not hit player." Hauter had read the safety manual and used the product a dozen times, but then he hit the ball too low and it struck him in the head, causing serious injury. Hauter sued for:

Accepted Answer

A)  breach of implied warranty only. 
B)  breach of express warranty only. 
C)  breach of express and implied warranty. 
D)  false advertising. 
A)  breach of implied warranty only. 
B)  breach of express warranty only. 
C)  breach of express and implied warranty. 
D)  false advertising.

Question 5

Name and discuss the two categories of warranties.

Accepted Answer

The first type of warranty is an express

Question 6

The Equal Credit Opportunity Act is limited to regulating applications for credit and does not apply to the charging of higher interest rates based on the race of the consumer.

Accepted Answer

A) True 
 B)False

Question 7

The purpose of the FTC in relation to consumers is:

Accepted Answer

A)  nonexistent, since the FTC does not apply to consumers. 
B)  to prevent unfair or deceptive acts in commercial transactions. 
C)  to ensure that the UCC is followed. 
D)  to promote interstate commerce. 
A)  nonexistent, since the FTC does not apply to consumers. 
B)  to prevent unfair or deceptive acts in commercial transactions. 
C)  to ensure that the UCC is followed. 
D)  to promote interstate commerce.

Question 8

The FDA has authority to bring criminal prosecutions.

Accepted Answer

A) True 
 B)False

Question 9

The ________ Act establishes a national fraud alert system so that consumers have a timely way to guard their credit.

Accepted Answer

The answer of The ________ Act establishes a national fraud...

Question 10

Which of the following is not exempt from the Do Not Call Registry?

Accepted Answer

A)  charitable organizations 
B)  certain political organizations 
C)  businesses seeking commercial contracts 
D)  businesses with which the consumer has past commercial contacts 
A)  charitable organizations 
B)  certain political organizations 
C)  businesses seeking commercial contracts 
D)  businesses with which the consumer has past commercial contacts

Question 11

FDA regulations do not apply to the labeling of food packages.

Accepted Answer

A) True 
 B)False

Question 12

Regarding business owners and managers, what is generally considered the most important part of the Truth in Lending Act? Why?

Accepted Answer

The most important part of the act is ge

Question 13

The FDA jurisdiction includes administering the Flammable Fabrics Act.

Accepted Answer

A) True 
 B)False

Question 14

Who is typically empowered by the states to protect consumers from deceptive trade practices?

Accepted Answer

A)  the governor 
B)  the state bureau of investigation 
C)  the local police 
D)  the state attorney general 
A)  the governor 
B)  the state bureau of investigation 
C)  the local police 
D)  the state attorney general

Question 15

If they do it properly, sellers may limit a buyer's remedies in all situations.

Accepted Answer

A) True 
 B)False

Question 16

The implied warranty of merchantability applies to every sale from a _______ to a buyer.

Accepted Answer

The answer of The implied warranty of merchantability applies to...

Question 17

Under the Truth in Lending Act, creditors have a week to notify consumers of their right to cancel the transaction.

Accepted Answer

A) True 
 B)False

Question 18

The UCC permits disclaimers of warranties:

Accepted Answer

A)  under no circumstances. 
B)  when the seller disclaims properly. 
C)  if the buyer was unaware of the warranties. 
D)  when allowed by common law. 
A)  under no circumstances. 
B)  when the seller disclaims properly. 
C)  if the buyer was unaware of the warranties. 
D)  when allowed by common law.

Question 19

A car manufacturer advertises that the windshield in its cars is shatterproof and will not break even when hit with a strong impact. While an owner of one of the cars was driving home one day, a small rock hit the windshield and the windshield broke, cutting the driver. What type of warranty was breached?

Accepted Answer

A)  an implied warranty 
B)  an express warranty 
C)  the Magnuson-Moss warranty 
D)  the warranty of fitness for a particular purpose 
A)  an implied warranty 
B)  an express warranty 
C)  the Magnuson-Moss warranty 
D)  the warranty of fitness for a particular purpose

Question 20

Agents involved in debt collection are the only parties that are regulated by the Fair Debt Collection Practices Act.

Accepted Answer

A) True 
 B)False

Exam 22: Consumer Protection Law

The Magnuson-Moss Act requires a label with warranty conditions regarding all products that cost $10 or more.

The implied warranty of merchantability applies to sales by any seller to any buyer.

Describe how the federal government is protecting consumers online regarding spam.

Name and discuss the two categories of warranties.

The Equal Credit Opportunity Act is limited to regulating applications for credit and does not apply to the charging of higher interest rates based on the race of the consumer.

The purpose of the FTC in relation to consumers is:

The FDA has authority to bring criminal prosecutions.

The ________ Act establishes a national fraud alert system so that consumers have a timely way to guard their credit.

Which of the following is not exempt from the Do Not Call Registry?

FDA regulations do not apply to the labeling of food packages.

Regarding business owners and managers, what is generally considered the most important part of the Truth in Lending Act? Why?

The FDA jurisdiction includes administering the Flammable Fabrics Act.

Who is typically empowered by the states to protect consumers from deceptive trade practices?

If they do it properly, sellers may limit a buyer's remedies in all situations.

The implied warranty of merchantability applies to every sale from a _______ to a buyer.

Under the Truth in Lending Act, creditors have a week to notify consumers of their right to cancel the transaction.

The UCC permits disclaimers of warranties:

Agents involved in debt collection are the only parties that are regulated by the Fair Debt Collection Practices Act.

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The American Judicial System, Jurisdiction, and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution Options

Business, Societal, and Ethical Contexts of Law

Overview and Language of Contracts

Contract Formation

Contract Performance: Conditions, Breach, and Remedies

Contracts for the Sale of Goods

Torts and Products Liability

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Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Companies and Limited Liability Partnerships

Corporations

Regulation of Securities, Corporate Governance, and Financial Markets

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Creditors Rights and Bankruptcy

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

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