Deck 40: Consumer and Environmental Law

Question 1

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

Answer 1

False

Question 2

Food labels are not required to provide standard nutrition facts.

Answer 2

False

Question 3

Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Answer 3

True

Question 4

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Question 5

Injured individuals can rely on the common law to obtain damages and injunctions against business polluters.

Question 6

Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.

Question 7

The Environmental Protection Agency periodically updates the air pollution standards.

Question 8

A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.

Question 9

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

Question 10

Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law.

Question 11

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

Question 12

Counteradvertising requires a company to advertise the products of its competitor to counter its own false claims.

Question 13

Bait-and-switch advertising occurs when an ad appears to be based on factual evidence but in fact is not reasonably supported by evidence.

Question 14

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

Question 15

An environmental impact statement is required for every major federal action that significantly affects the quality of the environment.

Question 16

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

Question 17

Labels on vegetables and fruits are not required to indicate where the food originated.

Question 18

Vague generalities and obvious exaggerations constitute deceptive advertising.

Question 19

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

Question 20

All ads-both online and offline-must be truthful.

Question 21

Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

A) a cease-and-desist order.
B) a counteradvertising order.
C) a multiple product order.
D) none of the choices.

Question 22

Orange Company makes cellphones. The company's ad states that "if you aren't usin' an Orange, you aren't gettin' any 'C.' " The Federal Trade Com?mission would consider this ad

A) false and misleading.
B) impermissibly vague and general.
C) a deceptive half-truth.
D) none of the choices.

Question 23

There are no plans to develop national standards regulating the fuel economy and emissions for medium- and heavy-duty trucks.

Question 24

Any point source emitting pollutants into water must have a permit.

Question 25

Public water system operators must meet the Environmental Protection Agency's standards regardless of the economic and technological feasibility.

Question 26

The courts have considerably scaled back the Clean Water Act's protection of wetlands.

Question 27

The Environmental Protection lists all hazardous air pollutants (HAPs) on a prioritized schedule.

Question 28

The Environmental Protection Agency can regulate a toxic substance that poses an imminent hazard but cannot prohibit its use altogether.

Question 29

The Environmental Protection Agency sets minimum levels for pollut?ants in public water systems.

Question 30

Special requirements must be met to discharge toxic chemicals into surface waters.

Question 31

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

A) a counteradvertising order.
B) a multiple product order.
C) a "cooling-off" law.
D) a validation notice.

Question 32

When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.

Question 33

It is a violation of federal law to destroy or deface any labeling required on a pesticide or herbicide.

Question 34

Those who knowingly violate the Clean Air Act are exempt from criminal penalties.

Question 35

Performance standards for major sources of air pollution require the use of the any available technology, or AAT.

Question 36

Bright Brew Coffee, Inc., processes and sells a variety of coffee products. Bright Brew's product packages must include

A) the identity of the company owner.
B) the net quantity of the contents.
C) the restaurants and stores in which the product is sold.
D) the type of consumer most likely interested in the product.

Question 37

The Environmental Protection Agency has concluded that greenhouse gases, including carbon dioxide emissions, do not constitute a public danger.

Question 38

The primary responsibility for preventing and controlling air pollution rests with the federal government.

Question 39

Different standards for air quality apply to existing sources of pollution and major new sources.

Question 40

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) a counteradvertising order.
B) a multiple product order.
C) a "cooling-off" law.
D) a validation notice.

Question 41

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

A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

Question 42

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

A) a restaurant chain with twenty or more locations.
B) a food distributor with twenty or more customers.
C) a food processor with twenty or more products.
D) a food producer with twenty or more acres.

Question 43

Metal Smelting, Inc., operates a plant-a "major source"-that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely

A) a violation.
B) not a violation because a "major source" is exempt.
C) not a violation because the plant does not use any equipment.
D) not a violation because the plant is not a mobile source.

Question 44

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

A) no federal law.
B) the Consumer Leasing Act.
C) the Consumer Product Safety Act.
D) the Truth-in-Lending Act.

Question 45

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit dis?crimination based on

A) intelligence.
B) education.
C) income.
D) race.

Question 46

The operations of Metal Refining Industries, Inc., are major sources of air pollu?tion. These operations must use

A) the absolutely cleanest air technology.
B) the best available filter technology.
C) the maximum achievable control technology.
D) the most affordable scrubbing technology.

Question 47

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

A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

Question 48

Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is

A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

Question 49

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) no federal law.
B) the Equal Credit Opportunity Act.
C) the Fair Credit Reporting Act.
D) the Fair Debt Collection Practices Act.

Question 50

Steel Tool Company makes and sells tools. One of the tools is believed to be haz?ardous. The appropriate government agency may require Steel to

A) export the tool and sell it only abroad.
B) increase the price to cover the cost of any injuries or damage.
C) reduce the price to indicate the hazard to consumers.
D) remove the tool from the market.

Question 51

Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without Kirk's permission, his roommate Leif uses the card to buy a new laptop for $1,800. Kirk is

A) liable for $1,000.
B) liable for $500.
C) liable for $50.
D) not liable for any amount.

Question 52

Creditworthy Loan Company extends credit in the ordinary course of its busi?ness. Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of

A) credit terms offered by other lenders.
B) comparative prices for goods to be bought with the borrowed funds.
C) Creditworthy's credit terms.
D) the borrowers' credit scores.

Question 53

Quik Collection Agency calls Pat several times a day, and some?times in the middle of the night, about an overdue bill that Regal Sporting Goods turned over to Quik for collection. This is a violation of

A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

Question 54

Sweet Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

A) prohibited.
B) required.
C) strictly voluntary.
D) warranted by the nature of the food.

Question 55

Rock Mining Company operates a gravel pit next to Siera's residence. Siera files a suit against Rock, alleging that the pit is a nuisance and unreasonably inter?feres with the enjoyment of her property The court is most likely to award Siera an injunction

A) if letting the pollution continue is equally as harmful as stopping it.
B) if letting the pollution continue is less harmful than stopping it.
C) if letting the pollution continue is more harmful than stopping it.
D) under no circumstances.

Question 56

Rural Electric Company submits a bid to build a dam on federal land as part of a federal project. For this action, an environmental impact state?ment is most likely

A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

Question 57

Verna makes a living by commercial fishing in a river allegedly polluted by Wall Paint Company. To bring a suit against Wall Paint on the ground of private nuisance, Verna must allege that she suffers from

A) a distinct harm separate from that affecting the general public.
B) a lesser harm than an injunction would impose on Wall Paint.
C) Wall Paint's failure to use reasonable care to avert herm to Verna.
D) the same harm as that affecting the general public.

Question 58

Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with

A) the Consumer Product Safety Commission.
B) no single federal agency.
C) the Federal Trade Commission.
D) the Food and Drug Administration.

Question 59

New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is

A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

Question 60

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

A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

Question 61

Green River Energy Corporation wants to begin operations that include the discharge of waste into navi?gable waters. Under the Clean Water Act, Green River must install certain equipment

A) after beginning operations.
B) before beginning operations.
C) during operations.
D) only if a regulatory agency challenges the discharge.

Question 62

Without a permit, Timberline Plywood Company discharges its untreated wastewater into Urban City's storm drainage pipes, which empty into Valley Creek. Under the Clean Water Act, this discharge is most likely

A) a violation.
B) not a violation because the company does not have a permit.
C) not a violation because water is not a stationary source.
D) not a violation because a storm drainage pipe is not a point source.

Question 63

Vending Products Company operates a vending machine manufacturing plant on Wandering River. Discharging pollutants from the plant into the river can re?sult in

A) civil penalties and criminal penalties.
B) civil penalties only.
C) criminal penalties only.
D) no penalties.

Question 64

Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine of

A) $0.
B) $15,000 per day.
C) $30,000 per day.
D) $30,000 total.

Question 65

Remote Disposal Company operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site, Remote sells the property to Serene Developers, Inc. If there is a release, Remote is most likely

A) liable.
B) not liable because the site was sold before the release.
C) not liable because Remote was concerned about the release.
D) not liable because Remote no longer operates the facility.

Question 66

A barge owned by Oceanic Shipping Company discharges some of the oil contained in its hold into the sea and onto the shore. Under the Oil Pollution Act, this is most likely

A) a violation.
B) not a violation because an oil discharge is not pollution.
C) not a violation because a floating barge is not a stationary source.
D) not a violation because a ship's hold is not a point source.

Question 67

Milo buys an all-terrain-vehicle (ATV) from No-Limit Toys, Inc., on credit but makes no payments on the account. Odell, the owner of No-Limit Toys, calls Milo at home on a Monday morning at three
a.m. Odell represents himself as PayNow Collection Agency and demands payment "or else." The next day, Odell sends Milo notice that he has thirty days in which to request verification of the debt and that its payment will be suspended during that time, but that if he does not pay the full amount due within five business days, Odell will arrange for the "destruction of Milo's good credit rating." Which laws has Odell violated, if any, and in what ways?

Question 68

Hi-Yield Agriculture, Inc., makes a pesticide with a one-in-a-million risk to people of developing cancer from exposure. This substance must be

A) disposed of before anyone develops cancer.
B) registered before it is sold.
C) taken off the market and placed in temporary storage.
D) used only in a way that avoids exposure to people.

Question 69

Metro City operates its own municipal public drinking water system for which the Environmental Protection Agency has set maximum levels of pollutants. Metro does not use any equipment to meet these standards. With regard to any contamination of the water, under the Safe Drinking Water Act, this is most likely

A) a violation.
B) not a violation because Metro does not set the standards.
C) not a violation because water is not a stationary source.
D) not a violation because Metro does not use any equipment.

Question 70

Odiferous Waste Company is a subsidiary of Precarious Investments, Inc. Odiferous op?erates a hazardous waste disposal site. QuikChem Corporation is one of many parties who generate waste disposed of at the site. Odiferous borrows money from Regal Bank, which takes over the site when Odiferous goes bankrupt. The Environmental Protection Agency discov?ers a leak at the site. Can any of these private parties be forced to pay for the clean up? If so, who?

Question 71

Without a permit from the U.S. Army Corps of Engineers, Holiday Timeshares, Inc., fills a wetlands area that it owns before constructing a residential resort. Under the Clean Water Act, this is most likely

A) a violation.
B) not a violation because a permit is not needed to fill wetlands.
C) not a violation because the area was filled before construction.
D) not a violation because there was no discharge of pollution.

Question 72

Fried Food, Inc., operates a commercial frying plant, discharging pol?lut?ants into the air. Greg reports the violations to the Environmental Protection Agency. Greg

A) is not entitled to a payment.
B) may be paid up to any amount.
C) may be paid up to $1,000.
D) may be paid up to $10,000.