Question 1

The Federal Trade Commission regulation gives consumers three days to cancel contracts made with door-to-door salespersons.

Accepted Answer

A) True 
 B)False

Question 2

A wage assignment is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

Accepted Answer

A) True 
 B)False

Question 3

The Truth in Lending Act protects business-entity debtors as well as consumers.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

Accepted Answer

A)  During the time the creditor is replying, the customer is required to pay back the questioned item. 
B)  The act allows a customer 90 days to notify the creditor of the nature of the error and the amount. 
C)  In case of an error, the creditor has 120 days to respond and 150 days to correct the customer's account. 
D)  The act applies only to open-end credit and not to installment sales. 
E)  The Congress enacted this act as an amendment to the Fair Credit Reporting Act. 
A)  During the time the creditor is replying, the customer is required to pay back the questioned item. 
B)  The act allows a customer 90 days to notify the creditor of the nature of the error and the amount. 
C)  In case of an error, the creditor has 120 days to respond and 150 days to correct the customer's account. 
D)  The act applies only to open-end credit and not to installment sales. 
E)  The Congress enacted this act as an amendment to the Fair Credit Reporting Act.

Question 5

The Fair Credit and Charge Card Disclosure Act requires that credit card issuers disclose the annual percentage rate, annual fees, grace period, and other information on credit card applications.

Accepted Answer

A) True 
 B)False

Question 6

An investigative report, as part of a dossier collected to determine if a person should get credit, cannot include such items as that the applicant drinks heavily, or is engaged in dangerous sports (like paragliding).

Accepted Answer

A) True 
 B)False

Question 7

What are the three different means of recovering debt?

Accepted Answer

The three different means of recovering

Question 8

_____ is the practice by a financial institution of refusing to grant home loans or home-improvement loans to people living in low-income neighborhoods.

Accepted Answer

A)  Blockbusting 
B)  Inclusionary zoning 
C)  Cream skimming 
D)  Redlining 
E)  Constructive eviction 
A)  Blockbusting 
B)  Inclusionary zoning 
C)  Cream skimming 
D)  Redlining 
E)  Constructive eviction

Question 9

Under the Equal Credit Opportunity Act:

Accepted Answer

A)  alimony received and child support payments are not considered sources of income. 
B)  questions concerning plans for children should be asked before sanctioning credit. 
C)  if the credit is refused, the creditor, on demand, must disclose the reasons for rejection. 
D)  the creditor must ask all credit applicants for a statement of marital status. 
E)  a spouse is required to cosign irrespective of the other spouse's creditworthiness. 
A)  alimony received and child support payments are not considered sources of income. 
B)  questions concerning plans for children should be asked before sanctioning credit. 
C)  if the credit is refused, the creditor, on demand, must disclose the reasons for rejection. 
D)  the creditor must ask all credit applicants for a statement of marital status. 
E)  a spouse is required to cosign irrespective of the other spouse's creditworthiness.

Question 10

The _____ amended the Truth in Lending Act by requiring credit card issuers to disclose in a uniform manner the annual percentage rate, annual fees, grace period, and other information on credit card applications.

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Consumer Leasing Act 
C)  Truth in Lending Act 
D)  Fair Credit and Charge Card Disclosure Act 
E)  Credit Card Accountability, Responsibility, and Disclosure Act 
A)  Fair Credit Reporting Act 
B)  Consumer Leasing Act 
C)  Truth in Lending Act 
D)  Fair Credit and Charge Card Disclosure Act 
E)  Credit Card Accountability, Responsibility, and Disclosure Act

Question 11

Entry of a confession of judgment entitles the creditor to attach the debtor's assets to satisfy the debt.

Accepted Answer

A) True 
 B)False

Question 12

Under the Fair Credit Reporting Act, an applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based.

Accepted Answer

A) True 
 B)False

Question 13

"Redlining" is the process of deleting incorrect credit charges on a consumer's account.

Accepted Answer

A) True 
 B)False

Question 14

The penalties for violating usury laws are the same in all the states of the U.S.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following acts restricts card issuers from providing tangible gifts to students on college campuses in exchange for filling out a credit card application?

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Consumer Leasing Act 
D)  Fair Credit and Charge Card Disclosure Act 
E)  Credit Card Accountability, Responsibility, and Disclosure Act 
A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Consumer Leasing Act 
D)  Fair Credit and Charge Card Disclosure Act 
E)  Credit Card Accountability, Responsibility, and Disclosure Act

Question 16

Which of the following is true of the Fair Credit Reporting Act?

Accepted Answer

A)  Adverse information from the person's credit report must be removed after three years. 
B)  A person is entitled to a free copy of his or her credit report from each of the three main credit bureaus every six months. 
C)  An applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based. 
D)  The agency must furnish the consumer the information free if requested within a year of the rejection. 
E)  Any person who obtains information from a credit agency under false pretenses is subject only to civil penalties. 
A)  Adverse information from the person's credit report must be removed after three years. 
B)  A person is entitled to a free copy of his or her credit report from each of the three main credit bureaus every six months. 
C)  An applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based. 
D)  The agency must furnish the consumer the information free if requested within a year of the rejection. 
E)  Any person who obtains information from a credit agency under false pretenses is subject only to civil penalties.

Question 17

When the government-state or federal-allows inexpensive credit the move is usually politically unpopular.

Accepted Answer

A) True 
 B)False

Question 18

_____ is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

Accepted Answer

A)  Garishment 
B)  Wage assignment 
C)  Confession of judgment 
D)  Sequestration 
E)  Interception 
A)  Garishment 
B)  Wage assignment 
C)  Confession of judgment 
D)  Sequestration 
E)  Interception

Question 19

The Fair Credit Billing Act applies to open-end credits and installment sales.

Accepted Answer

A) True 
 B)False

Question 20

The Annual Percentage Rate (APR) is another way to state a loan's interest.

Accepted Answer

A) True 
 B)False

Exam 27: Consumer Credit Transactions

The Federal Trade Commission regulation gives consumers three days to cancel contracts made with door-to-door salespersons.

A wage assignment is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

The Truth in Lending Act protects business-entity debtors as well as consumers.

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

The Fair Credit and Charge Card Disclosure Act requires that credit card issuers disclose the annual percentage rate, annual fees, grace period, and other information on credit card applications.

An investigative report, as part of a dossier collected to determine if a person should get credit, cannot include such items as that the applicant drinks heavily, or is engaged in dangerous sports (like paragliding).

What are the three different means of recovering debt?

_____ is the practice by a financial institution of refusing to grant home loans or home-improvement loans to people living in low-income neighborhoods.

Under the Equal Credit Opportunity Act:

The _____ amended the Truth in Lending Act by requiring credit card issuers to disclose in a uniform manner the annual percentage rate, annual fees, grace period, and other information on credit card applications.

Entry of a confession of judgment entitles the creditor to attach the debtor's assets to satisfy the debt.

Under the Fair Credit Reporting Act, an applicant denied credit has the right to be told the name and address of the credit bureau that prepared the report on which the denial was based.

"Redlining" is the process of deleting incorrect credit charges on a consumer's account.

The penalties for violating usury laws are the same in all the states of the U.S.

Which of the following acts restricts card issuers from providing tangible gifts to students on college campuses in exchange for filling out a credit card application?

Which of the following is true of the Fair Credit Reporting Act?

When the government-state or federal-allows inexpensive credit the move is usually politically unpopular.

_____ is an agreement by an employee that a creditor may take future wages as security for a loan or to pay an existing debt.

The Fair Credit Billing Act applies to open-end credits and installment sales.

The Annual Percentage Rate (APR) is another way to state a loan's interest.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Real Assent

Consideration

Legality

Form and Meaning

Third-Party Rights

Discharge of Obligations

Remedies

Introduction to Sales and Leases

Title and Risk of Loss

Performance and Remedies

Products Liability

Bailments and the Storage, Shipment, and Leasing of Goods

Nature and Form of Commercial Paper

Negotiation of Commercial Paper

Holder in Due Course and Defenses

Liability and Discharge

Legal Aspects of Banking

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Nature and Regulation of Real Estate and the Environment

The Transfer of Real Estate by Sale

Landlord and Tenant Law

Estate Planning: Wills, Estates, and Trusts

Insurance

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Antitrust Law

Unfair Trade Practices and the Federal Trade Commission

Employment Law

International Law

Liability and Regulation of Accountants

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