Exam 45: B: Consumer Law

On behalf of RiteNow Collection Agency,Sid poses as a police officer in an attempt to collect payment from Tylo for a shipment of scuba equipment that she returned to Undersea Company two months earlier.This violates

Federal laws often provide more sweeping and significant protections for the consumer than state laws.

Labels must use words that are easily understood by the ordinary marketing executive.

Bodie's application to City Bank for a credit card is denied.Bodie can obtain information on her credit history in a credit agency's files under

A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

Bait-and-switch advertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.

Buyers of goods sold door to door can cancel their contracts within three business days.

Merchants must ship orders within the time promised in their ads.

To generate sales,Yakkity-Yak,Inc. ,uses phone solicitation.Under federal law,in soliciting business,Yakkity-Yak's telemarketers must

Labels on fresh meat must indicate where the food originated.

Kristen receives unsolicited merchandise in the mail.Kristen

Darren wants to go into the business of direct merchandise sales.What are the legal problems that Darren might encounter in telemarketing? In sell?ing door-to-door? In marketing over the Internet? In soliciting sales through the mail?

A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.

A sanction known as counteradvertising requires a company to advertise the products of its competitor to counter its own false claims.

Manufacturers are required to report on any products already sold if the products have proved to be hazardous.

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

The key federal statute regulating the credit and credit-card industries is basically a disclosure law.

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

Kip opens an account at a Lotsa Goodies Store,and buys a digital music player and other items,but makes no payments on the account.To collect the debt,Mako,the manager,contacts Kip's parents.This violates

Va-Va-Voom Products,Inc. ,engages in de?ceptive advertising when it markets its product Weight-No-More as able to help consumers lose weight in their sleep.Va-Va-Voom is ordered to include in all future adver?tising of Weight-No-More the statement,"This product will not cause anyone to lose weight while sleeping." This is