Question 1

Creditors may require,under the Equal Credit Opportunity Act,that a spouse cosign a loan application regardless of the credit worthiness of the applicant.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following was the result on appeal in Gotlin v.Lederman,the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment,Fractionated Stereotactic Radiosurgery FSR),in violation of New York's consumer protection law?

Accepted Answer

A) The court ruled that plaintiff was unable to recover because there was no evidence of deceptive statements made on the part of the defendants. 
B) The court ruled that the plaintiff was unable to recover because of the absence of expert medical testimony establishing that the treatment was ineffective. 
C) The court ruled that the case was wrongfully dismissed prior to trial because issues of material fact were presented regarding the plaintiff's injuries and whether the marketing of the treatment was deceptive treatment. 
D) The court ruled that the plaintiff was unable to recover because the consumer protection law at issue did not apply to the provision of medical services. 
E) The court ruled that as a matter of law the plaintiff was entitled to recover because evidence indicating the ineffectiveness of the treatment was presented. 
A) The court ruled that plaintiff was unable to recover because there was no evidence of deceptive statements made on the part of the defendants. 
B) The court ruled that the plaintiff was unable to recover because of the absence of expert medical testimony establishing that the treatment was ineffective. 
C) The court ruled that the case was wrongfully dismissed prior to trial because issues of material fact were presented regarding the plaintiff's injuries and whether the marketing of the treatment was deceptive treatment. 
D) The court ruled that the plaintiff was unable to recover because the consumer protection law at issue did not apply to the provision of medical services. 
E) The court ruled that as a matter of law the plaintiff was entitled to recover because evidence indicating the ineffectiveness of the treatment was presented. C

Question 3

Which of the following authorities would have presided over the hearing involving the administrative complaint filed against Julia by the Federal Trade Commission?

Accepted Answer

A) A panel of commissioners of the Federal Trade Commission 
B) All the commissioners of the Federal Trade Commission 
C) A federal district court judge 
D) An administrative law judge 
E) A state circuit court judge 
A) A panel of commissioners of the Federal Trade Commission 
B) All the commissioners of the Federal Trade Commission 
C) A federal district court judge 
D) An administrative law judge 
E) A state circuit court judge D

Question 4

Which of the following was the first federal legislation passed regulating food and drugs?

Accepted Answer

A) The Food and Drug Safety Act 
B) The Congressional Safety Act 
C) The Pure Food and Drugs Act 
D) The Applied Food,Drug,and Cosmetic Act 
E) The Consumer Safety Act 
A) The Food and Drug Safety Act 
B) The Congressional Safety Act 
C) The Pure Food and Drugs Act 
D) The Applied Food,Drug,and Cosmetic Act 
E) The Consumer Safety Act

Question 5

All public signs and advertisements in Quebec must be solely in French.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Accepted Answer

A) Only the Federal Communications Commission can take action to enforce the act. 
B) If a telemarketer willfully violates the act,the court can decide to triple the amount owed to the consumer. 
C) It forbids telephone solicitation using a prerecorded voice. 
D) It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission. 
E) It forbids telephone solicitation using an automatic telephone dialing system. 
A) Only the Federal Communications Commission can take action to enforce the act. 
B) If a telemarketer willfully violates the act,the court can decide to triple the amount owed to the consumer. 
C) It forbids telephone solicitation using a prerecorded voice. 
D) It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission. 
E) It forbids telephone solicitation using an automatic telephone dialing system.

Question 7

The Federal Trade Commission has ________ commissioners each of whom serves a ________-year term.

Accepted Answer

A) 8;5 
B) 9;4 
C) 7;3 
D) 5;7 
E) 3;4 
A) 8;5 
B) 9;4 
C) 7;3 
D) 5;7 
E) 3;4

Question 8

Joe comes to Patty's house to sell her a knife set.He uses an aggressive sales pitch and he tells Patty that all sales are final.Patty signs a contract to buy the set,but later regrets it and asks to rescind the contract 7 days later? Can Patty rescind her contract?

Accepted Answer

A) No,because she was told all sales were final 
B) Likely yes,because Joe failed to inform her,both verbally and in writing,that the transaction may be cancelled. 
C) No,because she waited more than the three days allowed under the Cooling Off Rule 
D) Only if Joe engaged in fraud in the sale 
E) Yes,but only if she can prove the knives cost more than market value 
A) No,because she was told all sales were final 
B) Likely yes,because Joe failed to inform her,both verbally and in writing,that the transaction may be cancelled. 
C) No,because she waited more than the three days allowed under the Cooling Off Rule 
D) Only if Joe engaged in fraud in the sale 
E) Yes,but only if she can prove the knives cost more than market value

Question 9

A telemarketer calls a consumer and fails to identify the call as a sales call.What law or regulation did the telemarketer violate?

Accepted Answer

A) The FTC Telephone Prohibition Act. 
B) The Telephone and Fax Sales Prohibition act of 1991. 
C) The Telemarketing Sales Rules of 1995. 
D) The Anti-Telephone Sales Act. 
E) The Telephone Consumer Protection Act. 
A) The FTC Telephone Prohibition Act. 
B) The Telephone and Fax Sales Prohibition act of 1991. 
C) The Telemarketing Sales Rules of 1995. 
D) The Anti-Telephone Sales Act. 
E) The Telephone Consumer Protection Act.

Question 10

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ________.

Accepted Answer

A) 12 months 
B) 18 months 
C) Two years 
D) 6 months 
E) Three years 
A) 12 months 
B) 18 months 
C) Two years 
D) 6 months 
E) Three years

Question 11

Paul's Puppy toys advertises dog bones for $1.When customers arrive to buy,employees warn the buyers that the $1 bones can sometimes make dogs sick and offer the buyers $5 bones instead.The advertisement offering the $1 bones is an example of:

Accepted Answer

A) Bait-and-switch 
B) Bait-and-click 
C) Click-to-deceit 
D) Deceptive-click 
E) Click-and-install 
A) Bait-and-switch 
B) Bait-and-click 
C) Click-to-deceit 
D) Deceptive-click 
E) Click-and-install

Question 12

If a person notifies the credit card company of a stolen card before unauthorized charges are made,for how much can the person be held liable to the credit card company?

Accepted Answer

A) 0 
B) $50 
C) $500 
D) $250 
E) $300 
A) 0 
B) $50 
C) $500 
D) $250 
E) $300

Question 13

A company uses exaggeration in its ad.This is an example of:

Accepted Answer

A) A half truth 
B) Puffing 
C) Deceptive advertising 
D) An FTC violation 
E) A material misrepresentation 
A) A half truth 
B) Puffing 
C) Deceptive advertising 
D) An FTC violation 
E) A material misrepresentation

Question 14

The Federal Trade Commission is what type of agency?

Accepted Answer

A) Approved 
B) Independent 
C) Certified 
D) Executive 
E) Collateral 
A) Approved 
B) Independent 
C) Certified 
D) Executive 
E) Collateral

Question 15

Which of the following is NOT required for real estate transactions?

Accepted Answer

A) Homes must be sold with a one year warranty unless they expressly state "As Is" 
B) HUD must approve an initial statement of record from anyone planning to sell or lease 100 or more lots of unimproved land 
C) Mortgage lenders are required to provide certain disclosures to buyers. 
D) A lender must give a buyer an estimate of cost before finalizing a real estate purchase 
E) Anyone planning to sell or lease 100 or more lots of unimproved land must file an initial statement of record with HUD 
A) Homes must be sold with a one year warranty unless they expressly state "As Is" 
B) HUD must approve an initial statement of record from anyone planning to sell or lease 100 or more lots of unimproved land 
C) Mortgage lenders are required to provide certain disclosures to buyers. 
D) A lender must give a buyer an estimate of cost before finalizing a real estate purchase 
E) Anyone planning to sell or lease 100 or more lots of unimproved land must file an initial statement of record with HUD

Question 16

Which of the following is the only authorized site for government-required free credit reports from the three major reporting agencies?

Accepted Answer

A) FreeReport.com 
B) AnnualCredit.edu 
C) GovCredit.gov 
D) AnnualCreditReport.com 
E) KnowRights.org 
A) FreeReport.com 
B) AnnualCredit.edu 
C) GovCredit.gov 
D) AnnualCreditReport.com 
E) KnowRights.org

Question 17

Which of the following was the result at the Supreme Court level in Food and Drug Administration v.Brown & Williamson Tobacco Corporation,the case in the text involving whether the Federal Food,Drug,and Cosmetic Act (FFDCA)authorized the Food and Drug Administration (FDA)to regulate tobacco?

Accepted Answer

A) The Court ruled that the FDA had the authority to regulate tobacco because the FFDCA implies that the FDA retains the discretion to determine items within its sphere of regulation. 
B) The Court ruled that the FDA lacked the authority to regulate tobacco because Congress had enacted its own legislation regulating tobacco and had not extended that right to the FDA. 
C) The Court ruled that the FDA had the authority to regulate tobacco because nicotine,one of its main components,is a drug. 
D) The Court ruled that the FDA had the authority to regulate tobacco because cigarettes and smokeless tobacco are drug delivery devices of the drug nicotine. 
E) The Court ruled that the FDA had the authority to regulate tobacco because nicotine,one of its main components,is a drug but that the FDA exceeded the scope of its regulatory powers in the issuance of excessively strict regulations regarding the marketing of tobacco. 
A) The Court ruled that the FDA had the authority to regulate tobacco because the FFDCA implies that the FDA retains the discretion to determine items within its sphere of regulation. 
B) The Court ruled that the FDA lacked the authority to regulate tobacco because Congress had enacted its own legislation regulating tobacco and had not extended that right to the FDA. 
C) The Court ruled that the FDA had the authority to regulate tobacco because nicotine,one of its main components,is a drug. 
D) The Court ruled that the FDA had the authority to regulate tobacco because cigarettes and smokeless tobacco are drug delivery devices of the drug nicotine. 
E) The Court ruled that the FDA had the authority to regulate tobacco because nicotine,one of its main components,is a drug but that the FDA exceeded the scope of its regulatory powers in the issuance of excessively strict regulations regarding the marketing of tobacco.

Question 18

Which of the following is false regarding the regulation of tobacco?

Accepted Answer

A) The Smokeless Tobacco Act prohibits television cigarette advertisements. 
B) The Public Health Cigarette Smoking Act prohibits television cigarette advertisements. 
C) The Public Health Cigarette Smoking Act prohibits radio cigarette advertisements. 
D) Congress has given the FDA authority to regulate tobacco use. 
E) The Smokeless Tobacco Act prohibits radio cigarette advertisements. 
A) The Smokeless Tobacco Act prohibits television cigarette advertisements. 
B) The Public Health Cigarette Smoking Act prohibits television cigarette advertisements. 
C) The Public Health Cigarette Smoking Act prohibits radio cigarette advertisements. 
D) Congress has given the FDA authority to regulate tobacco use. 
E) The Smokeless Tobacco Act prohibits radio cigarette advertisements.

Question 19

Which of the following is false regarding the Consumer Product Safety Act?

Accepted Answer

A) It can ban consumer products from the market. 
B) It enforces mandatory standards regarding product safety. 
C) It conducts research regarding potentially hazardous products. 
D) It educates consumers about product safety. 
E) It usually issues product recalls on its own without the involvement of the companies involved. 
A) It can ban consumer products from the market. 
B) It enforces mandatory standards regarding product safety. 
C) It conducts research regarding potentially hazardous products. 
D) It educates consumers about product safety. 
E) It usually issues product recalls on its own without the involvement of the companies involved.

Question 20

Under the Equal Credit Opportunity Act,creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

Accepted Answer

A) True 
 B)False

Exam 45: Consumer Law

Creditors may require,under the Equal Credit Opportunity Act,that a spouse cosign a loan application regardless of the credit worthiness of the applicant.

Which of the following was the result on appeal in Gotlin v.Lederman,the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment,Fractionated Stereotactic Radiosurgery FSR),in violation of New York's consumer protection law?

Which of the following authorities would have presided over the hearing involving the administrative complaint filed against Julia by the Federal Trade Commission?

Which of the following was the first federal legislation passed regulating food and drugs?

All public signs and advertisements in Quebec must be solely in French.

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

The Federal Trade Commission has ________ commissioners each of whom serves a ________-year term.

Joe comes to Patty's house to sell her a knife set.He uses an aggressive sales pitch and he tells Patty that all sales are final.Patty signs a contract to buy the set,but later regrets it and asks to rescind the contract 7 days later? Can Patty rescind her contract?

A telemarketer calls a consumer and fails to identify the call as a sales call.What law or regulation did the telemarketer violate?

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ________.

Paul's Puppy toys advertises dog bones for $1.When customers arrive to buy,employees warn the buyers that the $1 bones can sometimes make dogs sick and offer the buyers $5 bones instead.The advertisement offering the $1 bones is an example of:

If a person notifies the credit card company of a stolen card before unauthorized charges are made,for how much can the person be held liable to the credit card company?

A company uses exaggeration in its ad.This is an example of:

The Federal Trade Commission is what type of agency?

Which of the following is NOT required for real estate transactions?

Which of the following is the only authorized site for government-required free credit reports from the three major reporting agencies?

Which of the following was the result at the Supreme Court level in Food and Drug Administration v.Brown & Williamson Tobacco Corporation,the case in the text involving whether the Federal Food,Drug,and Cosmetic Act (FFDCA)authorized the Food and Drug Administration (FDA)to regulate tobacco?

Which of the following is false regarding the regulation of tobacco?

Which of the following is false regarding the Consumer Product Safety Act?

Under the Equal Credit Opportunity Act,creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters

The Federal Trade Commission has commissioners each of whom serves a -year term.