Exam 44: Consumer Law

A sanction known as counteradvertising requires a company to advertise anew to inform the public about earlier misinformation.

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

Puffery constitutes deceptive advertising.

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toasteroven-for $3,999. This transaction is sub?ject to

QuikPay Inc. extends credit to consumers. QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit dis?crimination based on

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z ap?plies to

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts-Regulation Z.

Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements.

Advertising that contains an endorsement by a celebrity will not be deemed deceptive.

Debt & Loan Collection Agency calls Ethel several times a day, and some?times in the middle of the night, about an overdue bill that a Furniture4U store turned over to Debt & Loan for collection. This is a violation of

Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence.

The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated with various products.

Mouth & Gums, Inc. (CSI), engages in de?ceptive advertising when it markets its product Oral Rinse as able to kill germs over long periods of time. In an action against Mouth & Gums, the firm is ordered to stop its false advertis?ing of Oral Rinse and other products. This is

Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further ac?tion that it will take. This violates

The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.

In the ordinary course of business, Loan2Buy Corporation offers credit to Mai and other consumers and reports on the loans to credit agencies. To save time and money, Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients' permission. This is subject to

Labels on fresh meats are not required to indicate where the food originated.