Exam 33: Consumer and Environmental Law

Prime Equity Company extends credit in the ordinary course of its business to consumers.Under the Truth-in-Lending Act,Prime must inform a prospective borrower of

Missoula,Montana,passes an ordinance to regulate waste disposal.The disposal of waste may also be regulated by

Eminent Properties,Inc.,wants to fill its wetlands to build Fieldview Homes,a residential subdivision.The Clean Water Act prohibits the filling of wetlands unless

An individual is not liable for any amount of unauthorized charges on his or her credit card.

Jack owns land located outside Metro City.Jack sells the land to Quality Disposal,Inc.,which establishes a hazardous waste disposal facility at the site.Quality Disposal accepts only waste transported by Regional Trucking Company exclusively from Consolidated Industries,Inc.Several years later,Quality Disposal closes its facility and sells the land to Price Rite Corporation,which builds a Price Rite Discount Store on the site.Meanwhile,some of Metro's citizens complain to the Environmental Protection Agency (EPA)that Metro's municipal water supply is polluted.The EPA investigates and discovers that the sources of the pollution are leaks of hazardous waste from what is now the Price Rite property.The EPA cleans up the site.Who can be held liable for the cost of cleaning up the site? What standards must Metro meet regarding the water?

Corporate officers may be subject to criminal penalties for violations of the Clean Air Act.

Counteradvertising is advertising that counters a competitor's claims.

In a transaction subject to the Truth-in-Lending Act,all of the terms of a credit instrument must be clearly and conspicuously disclosed.

A person who receives unsolicited merchandise and keeps it without notifying the sender commits mail fraud.

Fun-E Products,Inc.,makes and sells toys.The government agency that has the authority to remove a potentially hazardous toy from the market is

A loan between two consumers is subject to the Truth-in-Lending Act.

In the ordinary course of business,Xtra Charge Company sells goods to Yvon and other consumers on credit under installment sales contracts that typically require at least one year of monthly payments.Xtra does not disclose all of the credit terms to its customers.This practice is most likely to result in

The primary responsibility for implementing air-quality standards for stationary sources rests with state and local governments.

Any oil facility that discharges oil into navigable waters is liable for the clean-up costs plus damages.

An injured party's common-law suit against a polluter may be dismissed for lack of standing.

Miracle Products,Inc.,engages in deceptive advertising when it markets its product Weight-Off as able to help consumers lose weight in their sleep.Miracle is ordered to include in all future advertising of Weight-Off the statement,"Weight-Off will not cause anyone to lose weight in their sleep." This is

Different standards for air quality apply to sources of pollution in clean areas and sources in polluted areas.

Hydraulic Equipment Company makes its products without required pollution control technology,causing a discharge of oily waste into the nearby Idle Lake.This activity can result in

Oil Refining Company's plant emits hazardous air pollutants.Regarding these pollutants,the plant must use

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