Question 1

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

Accepted Answer

A) True 
 B)False

Question 2

The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items.

Accepted Answer

A) True 
 B)False

Question 3

Nature's Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Accepted Answer

A)  Nature's Food Market and Metro Snacks & Drug Store. 
B)  Metro Snacks & Drug Store only. 
C)  the Federal Trade Commission. 
D)  the Food and Drug Administration. 
A)  Nature's Food Market and Metro Snacks & Drug Store. 
B)  Metro Snacks & Drug Store only. 
C)  the Federal Trade Commission. 
D)  the Food and Drug Administration.

Question 4

Candy & Caramel Company wants to sell its products in normal-sized packages la?beled "Super Size." Darn Yarn, Inc., wants to advertise its sweaters as hav?ing "That Wool Feel," but does not want to specify on labels that the sweat?ers are 100 percent polyester. What stops these firms from market?ing the products as they would like?

Accepted Answer

There are a number of federal and state

Question 5

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Accepted Answer

A) True 
 B)False

Question 6

State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices.

Accepted Answer

A) True 
 B)False

Question 7

Restaurants must post guidelines on the number of calories that an average person requires daily.

Accepted Answer

A) True 
 B)False

Question 8

Account numbers on credit-card receipts must be truncated (shortened).

Accepted Answer

A) True 
 B)False

Question 9

Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under

Accepted Answer

A)  federal and state law. 
B)  federal law only. 
C)  no law, according to the principles of freedom to contract. 
D)  state law only. 
A)  federal and state law. 
B)  federal law only. 
C)  no law, according to the principles of freedom to contract. 
D)  state law only.

Question 10

Slow-Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' " The Federal Trade Com?mission would consider this ad to be

Accepted Answer

A)  false and misleading. 
B)  impermissibly vague and general. 
C)  a deceptive half-truth. 
D)  none of the choices. 
A)  false and misleading. 
B)  impermissibly vague and general. 
C)  a deceptive half-truth. 
D)  none of the choices.

Question 11

Credit can be denied solely on the basis of race.

Accepted Answer

A) True 
 B)False

Question 12

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

Accepted Answer

A) True 
 B)False

Question 13

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

Accepted Answer

A)  a cease-and-desist order. 
B)  a counteradvertising order. 
C)  a multiple product order. 
D)  none of the choices. 
A)  a cease-and-desist order. 
B)  a counteradvertising order. 
C)  a multiple product order. 
D)  none of the choices.

Question 14

Sweet Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

Accepted Answer

A)  prohibited. 
B)  required. 
C)  strictly voluntary. 
D)  warranted by the nature of the food. 
A)  prohibited. 
B)  required. 
C)  strictly voluntary. 
D)  warranted by the nature of the food.

Question 15

Major credit reporting agencies must provide consumers with free copies of their own credit reports every six months.

Accepted Answer

A) True 
 B)False

Question 16

Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is

Accepted Answer

A)  liable for $500. 
B)  liable for $250. 
C)  liable for $50. 
D)  not liable for any amount. 
A)  liable for $500. 
B)  liable for $250. 
C)  liable for $50. 
D)  not liable for any amount.

Question 17

The Food and Drug Administration must ensure the safety of new medications.

Accepted Answer

A) True 
 B)False

Question 18

Grid Tool Company makes and sells tools. One of the tools is believed to be haz?ardous. The appropriate government agency may require Grid to

Accepted Answer

A)  export the tool and sell it only abroad. 
B)  increase the price to cover the cost of any injuries or damage. 
C)  reduce the price to indicate the hazard to consumers. 
D)  remove the tool from the market. 
A)  export the tool and sell it only abroad. 
B)  increase the price to cover the cost of any injuries or damage. 
C)  reduce the price to indicate the hazard to consumers. 
D)  remove the tool from the market.

Question 19

Deceptive advertising does not occur in the online environment.

Accepted Answer

A) True 
 B)False

Question 20

Fastart Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Gas-Up Auto Parts Stores, a retail company that sells Fastart's batteries, engages in deceptive advertising practices. What actions can the FTC take against Quantum?

Accepted Answer

The Federal Trade Commission (FTC) can i

Exam 44: Consumer Law

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items.

Nature's Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices.

Restaurants must post guidelines on the number of calories that an average person requires daily.

Account numbers on credit-card receipts must be truncated (shortened).

Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under

Slow-Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' " The Federal Trade Com?mission would consider this ad to be

Credit can be denied solely on the basis of race.

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

Sweet Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

Major credit reporting agencies must provide consumers with free copies of their own credit reports every six months.

Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is

The Food and Drug Administration must ensure the safety of new medications.

Grid Tool Company makes and sells tools. One of the tools is believed to be haz?ardous. The appropriate government agency may require Grid to

Deceptive advertising does not occur in the online environment.

Fastart Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Gas-Up Auto Parts Stores, a retail company that sells Fastart's batteries, engages in deceptive advertising practices. What actions can the FTC take against Quantum?

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Torts

Strict Liability and Strict Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement and Electronic Records

Third Party Rights

Performance and Discharge in Traditional E-Contracts

Breach of Contract and Remedies

Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination and Diversity

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Other Organizational Forms for Small Businesses

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Mergers and Takeovers

Securities Law Corporate Governance

Administrative Agencies

Environmental Law and Sustainability

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Law

Insurance

Wills and Trusts

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