Question 1

The Fair Credit Billing Act gives the creditor three days to respond to and rectify claimed errors.

Accepted Answer

A) True 
 B)False  False

Question 2

Under the _____, a creditor may not ask a credit applicant to state sex, race, national origin, or religion.

Accepted Answer

A)  Fair Credit and Charge Card Disclosure Act 
B)  Equal Credit Opportunity Act 
C)  Home Mortgage Disclosure Act 
D)  Community Reinvestment Act 
E)  Fair Credit Reporting Act 
A)  Fair Credit and Charge Card Disclosure Act 
B)  Equal Credit Opportunity Act 
C)  Home Mortgage Disclosure Act 
D)  Community Reinvestment Act 
E)  Fair Credit Reporting Act B

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

The federal wage-garnishment law states that an employee fired for having one debt garnished may sue the employer for damages.

Accepted Answer

A) True 
 B)False

Question 5

What are the three different means of recovering debt?

Accepted Answer

The three different means of recovering

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

The Fair Credit Billing Act applies to unsatisfactory goods or services purchased by credit card.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following acts ensured that every individual who has need for consumer credit is given full disclosure of the finance charge and the annual percentage rate of interest?

Accepted Answer

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

Question 11

Outline some of the provisions of the Truth in Lending Act TILA)?

Accepted Answer

The TILA only applies to consumer credit

Question 12

Title I of the Consumer Credit Protection Act is popularly known as the Truth in Lending Act.

Accepted Answer

A) True 
 B)False

Question 13

Under the Fair Debt Collection Practices, collectors are no longer allowed to file suits in remote places in order to obtain default judgments.

Accepted Answer

A) True 
 B)False

Question 14

In 1970, Congress enacted the _____ to give consumers access to their credit files in order to correct errors.

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Equal Credit Opportunity Act 
D)  Uniform Consumer Credit Act 
E)  Fair Credit and Charge Card Disclosure Act 
A)  Fair Credit Reporting Act 
B)  Fair Credit Billing Act 
C)  Equal Credit Opportunity Act 
D)  Uniform Consumer Credit Act 
E)  Fair Credit and Charge Card Disclosure Act

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

Creditors who violate the Truth in Lending Act are subject to criminal sanctions but not civil sanctions.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Garnishment, wage assignment, and confession of judgment are means of debt recovery.

Accepted Answer

A) True 
 B)False

Question 19

A written agreement in which the defendant in a lawsuit admits liability and accepts the amount of agreed-upon damages that must be paid to the plaintiff is known as an) _____ agreement.

Accepted Answer

A)  interception 
B)  confession of judgment 
C)  garnishment 
D)  wage assignment 
E)  sequestration 
A)  interception 
B)  confession of judgment 
C)  garnishment 
D)  wage assignment 
E)  sequestration

Question 20

The _____ is the total of all money paid for credit.

Accepted Answer

A)  prime rate 
B)  floor limit 
C)  finance charge 
D)  balloon payment 
E)  floating rate 
A)  prime rate 
B)  floor limit 
C)  finance charge 
D)  balloon payment 
E)  floating rate

Exam 32: Consumer Credit Transactions

The Fair Credit Billing Act gives the creditor three days to respond to and rectify claimed errors.

Under the _____, a creditor may not ask a credit applicant to state sex, race, national origin, or religion.

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

The federal wage-garnishment law states that an employee fired for having one debt garnished may sue the employer for damages.

What are the three different means of recovering debt?

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

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

The Fair Credit Billing Act applies to unsatisfactory goods or services purchased by credit card.

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

Which of the following acts ensured that every individual who has need for consumer credit is given full disclosure of the finance charge and the annual percentage rate of interest?

Outline some of the provisions of the Truth in Lending Act TILA)?

Title I of the Consumer Credit Protection Act is popularly known as the Truth in Lending Act.

Under the Fair Debt Collection Practices, collectors are no longer allowed to file suits in remote places in order to obtain default judgments.

In 1970, Congress enacted the _____ to give consumers access to their credit files in order to correct errors.

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?

Creditors who violate the Truth in Lending Act are subject to criminal sanctions but not civil sanctions.

Under the Equal Credit Opportunity Act:

Garnishment, wage assignment, and confession of judgment are means of debt recovery.

A written agreement in which the defendant in a lawsuit admits liability and accepts the amount of agreed-upon damages that must be paid to the plaintiff is known as an) _____ agreement.

The _____ is the total of all money paid for credit.

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

Products Liability

Intellectual Property

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

Employment Law

Labor-Management Relations

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

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