Exam 44: Consumer Law

The Federal Trade Commission is charged with pre?venting unfair and deceptive trade practices.

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

All consumer protection laws are federal.

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

A consumer who believes that he or she has been or may be victimized by identity theft may place an alert on his or her credit file.

A sale between two consumers is not subject to the Truth-in-Lending Act.

Ron signs a contract with Sam, a door-to-door salesperson for Tutors, Inc., to buy a foreign-language course. To cancel the contract, Ron has up to

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

Wheels & Deals Corporation is subject to the Truth-in-Lending Act, which concerns

An advertisement that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product.

Owen signs an installment contract with Pixel Video Store to finance the purchase of a new Quotient-brand plasma HD-TV for $4,999. This transaction is sub?ject to

GR8 Fashion, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Hott Clothes Company, GR8's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Drugs must be shown to be effective and safe before they can be marketed.

A credit agency may not issue a credit report to any creditor without first obtaining the borrower's permission.

The Equal Credit Opportunity Act prohibits the denial of credit on the ba?sis of an individual's disability.

Frosty's Appliance Store advertises freezers at a "Special Low Price of $299." When Garth tries to buy one of the freezers, Huey, the salesperson, tells him that they are all sold and no more are obtainable. Huey adds that Frosty's has other freezers for $2,299. This is

Puffery is prohibited.

If a debt is unpaid for more than thirty days, a creditor can use any means to collect.

The credit department of Mega-Mart calls Nora at work about an overdue bill. Nora's employer objects. Mega-Mart continues to call Nora at work. This is a viola?tion of

Package labels must use words that the ordinary consumer understands.