Deck 45: Consumer Law

Question 1

Which of the following was the result in Paula E. Rossman v. Fleet Bank (R.I.) National Association, the case in the text in which the plaintiff sued the defendant after she opened a credit card account based on the promise that no annual fee would be charged; but the policy was changed shortly thereafter, and she was charged an annual fee?

A) That the defendant was liable to the plaintiff because it engaged in a bait-and-switch scheme.
B) That the defendant was liable to the plaintiff because it violated provisions of the Truth in Lending Act.
C) That the defendant committed no violation of the law because it was entitled to change its policies at will.
D) That the defendant committed no violation of the law because its offer disclosed that terms and policies could be changed.
E) That the defendant committed no violation because it was not required to disclose future fees, only current ones.

Answer 1

B

Question 2

All public signs and advertisements in Quebec must be solely in French.

Answer 2

True

Question 3

Paul's Puppy toys advertises dog bones for $1. When customers arrive to buy, employees warn the buyers that the $1 bones can sometimes make dogs sick and offer the buyers $5 bones instead. The advertisement offering the $1 bones is an example of:

A) Click-and-install
B) Bait-and-switch
C) Bait-and-click
D) Deceptive-click
E) Click-to-deceit

Answer 3

B

Question 4

Sending consumers e-mail messages with no option concerning whether they receive messages in the future is prohibited by The Can-Spam Act.

Question 5

Canada's cigarette labeling requirements are less strict than those in the U.S.

Question 6

Which of the following schemes involves websites attracting users by having them click on ads that appear to be, but are actually not, from well-known brands with the sites then installing spyware or viruses on computers?

A) Click-and-install
B) Bait-and-switch
C) Bait-and-click
D) Deceptive-click
E) Click-to-deceit

Question 7

A new draft law in ________ does not specify the type of person that a deceptive advertisement would affect, such as a reasonable consumer, like the US laws require.

A) China
B) Portugal
C) Australia
D) Venezuela
E) Mexico

Question 8

Consumer protections against fraud in used car sales is regulated at the federal level.

Question 9

As soon as a complaint is filed against a company with the FTC, the FTC will issue a copy of the complaint to the company.

Question 10

The Federal Food, Drug, and Cosmetic Act protects against misbranded products.

Question 11

Under the Equal Credit Opportunity Act, creditors may not deny credit on the basis of whether the applicant receives public assistance benefits.

Question 12

Under the FTCA, the existence of deceptive advertisements is enough alone to prove damages for recovery when individual civil suits are filed for deceptive practices.

Question 13

After an FTC complaint, if the judge decides the company has violated the law, the FTC issues a consent order.

Question 14

Which of the following was the result on appeal in Gotlin v. Lederman, the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment, Fractionated Stereotactic Radiosurgery (FSR), in violation of New York's consumer protection law?

A) The court ruled that plaintiff was unable to recover because there was no evidence of deceptive statements made on the part of the defendants.
B) The court ruled that the plaintiff was unable to recover because the consumer protection law at issue did not apply to the provision of medical services.
C) The court ruled that the plaintiff was unable to recover because of the absence of expert medical testimony establishing that the treatment was ineffective.
D) The court ruled that as a matter of law the plaintiff was entitled to recover because evidence indicating the ineffectiveness of the treatment was presented.
E) The court ruled that the case was wrongfully dismissed prior to trial because issues of material fact were presented regarding the plaintiff's injuries and whether the marketing of the treatment was deceptive treatment.

Question 15

Whether an advertisement is considered deceptive is determined on a case-by-case basis.

Question 16

A statute or administrative rule serving to protect consumer interests is a consumer law.

Question 17

The purpose of the Truth in Lending Act is to require sellers disclose loan and/or credit terms to consumers.

Question 18

If a person believes that she is a victim of identity theft, she may contact the FTC and an alert will be placed in her credit files.

Question 19

Creditors may require, under the Equal Credit Opportunity Act, that a spouse cosign a loan application regardless of the credit worthiness of the applicant.

Question 20

If your credit card is stolen and unauthorized purchases are made on your account, you are liable for all losses if it is proved you were careless in losing the credit card.

Question 21

What are the three elements of a deceptive claim?

A) 1) A material representation or fact 2) that does not include a reasonable basis of a claim in an advertisement 3) that may or may not mislead a reasonable consumer
B) 1) A material misrepresentation or fact 2) that contains generalities or exaggerations 3) that is likely to mislead a reasonable consumer
C) 1) Generalities or exaggerations 2) related to a material fact 3) that is likely to mislead a consumer, regardless of reasonableness
D) 1) A material misrepresentation, omission, or practice 2) that is likely to mislead 3) a reasonable consumer
E) 1) A material misrepresentation, omission, or practice 2) that involves generalities or exaggerations 3) that may or may not mislead a reasonable consumer

Question 22

Babelon's Used Car makes the following claim in its ad: "We have the best sales force this side of the Mississippi." This is an example of:

A) an FTC violation
B) a material misrepresentation
C) a half truth
D) deceptive advertising
E) puffing

Question 23

The Federal Trade Commission meets its goals of protecting consumers by:

A) Consumer education only
B) Legal action only
C) Consumer education and legal action
D) Bringing criminal charges for deceptive advertising
E) Informing consumers how they can take legal action

Question 24

To combat deceptive advertisements and half-truths, the Federal Trade Commission mandates ________, which requires advertisers to have a reasonable basis for claims made in advertisements.

A) ad substantiation
B) ad verification
C) proof of ad veracity
D) illustration of ad veracity
E) acknowledgement of ad veracity

Question 25

A judge has determined that Billy's Widgets has engaged in deceptive advertising. What is the FTC's next step?

A) Issuing a command order
B) Filing a formal administrative complaint
C) Initiating a civil lawsuit
D) Pressing criminal charges
E) Issuing a cease and desist order

Question 26

An advertisement in the paper states: "These cars are hybrid cars" which is true, but fails to indicate that the car must be plugged in every night would be an example of which of the following?

A) Inaccurate truth
B) Rule 8(a) violation
C) Rule 3 violation
D) Significant untruth
E) Half-truth

Question 27

The FTC may issue a(n) ________ if a company refuses to enter into a consent agreement.

A) protective order
B) demand order
C) formal administrative complaint
D) negotiated settlement
E) Forced consent decree

Question 28

If a company wishes to claim that its products are "Made in the U.S.A.," which of the following does the Federal Trade Commission require?

A) That the claim not be used unless all, or virtually all, of the product's components and labor are of U.S. origin.
B) That the claim not be used unless absolutely all of the components and labor of the product are of U.S. origin.
C) That the claim not be used unless at least 75% of the product's components and labor are of U.S. origin.
D) That the claim not be used unless at least 50% of the product's components and labor are of U.S. origin.
E) That the claim not be used unless at least 55% of the product's labor and components are from Canada, Mexico, or the United States.

Question 29

XL Sandwich Shop wants to publish an advertisement in the local news and run a similar ad on TV. The company wants to make sure it can follow all rules and regulations set forth by the FTC. What guide could XL Sandwich Shop make use of to get a detailed explanation of the rules?

A) Consumer guides
B) Consumer recommendations
C) Industry interpretations
D) Industry guides
E) Business requirements

Question 30

If a company is found to have deceptively advertised, the FTC may require that the company engage in ________, an advertisement that specifically states that the formerly advertised claims are false.

A) corrective advertising
B) remedial advertising
C) announcement publication
D) notice advertising
E) fixing publication

Question 31

If a judge determines that a business violated the law and the FTC issues a cease and desist order, does the business have any recourse against the cease and desist order?

A) No, a judge making the ruling makes it final.
B) No, the party cannot appeal any decision of the judge because Congress gave all the power to the FTC to uphold findings.
C) Yes, the party can appeal the decision to the five commissioners of the FTC
D) Yes, because a cease and desist order is not permanent and the business can continue the advertising.
E) No, the business only has the right to negotiate a consent order with the FTC.

Question 32

A(n) ________ is a statement that a company agrees to stop disputed behavior but does not admit that it actually broke the law.

A) agreed order of acknowledgment decree
B) cease and desist order
C) consent order
D) acknowledgement decree
E) approval recommendation decree

Question 33

A judge has determined that Billy's Widgets has engaged in deceptive advertising and the FTC has issued a cease and desist. Billy's Widgets disagrees and continues to run the advertisement anyway? What are the FTC's options?

A) Have the CEO of Billy's Widgets arrested
B) File a civil lawsuit against Billy's widgets.
C) Seek an injunction only
D) Fine the company only.
E) Either seek an injunction or fine the company.

Question 34

The Federal Trade Commission creates ________, interpretations of consumer laws, to help encourage business to stop unlawful behavior.

A) consumer guides
B) regulation compliance guidelines
C) industry papers
D) industry guides
E) business requirements

Question 35

The FTC is an independent federal agency that has ________ commissioners appointed by the president and confirmed by the Senate.

A) 3
B) 5
C) 10
D) 15
E) 21

Question 36

Commissioners for the FTC serve ________ year terms.

A) 5
B) 7
C) 10
D) 12
E) commissioners have a life appointment

Question 37

The Federal Trade Commission was created through ________

A) the Presidential Encouragement Act.
B) the Federal Trade Commission Act.
C) Consumers Need Protection Act.
D) Protect Consumers Safety Act.
E) Congressional Oversight of Product Act.

Question 38

Which of the following does not fall under the regulations of the Food and Drug Administration?

A) meat and chicken
B) cosmetics
C) medical devices
D) drugs
E) water quality

Question 39

A drug company has a diabetes drug which is FDA approved only to treat diabetes. The company runs ads implying that the drug is very good for treating seizures. Which of the following is true of the drug company's actions:

A) The company has not violated the law as long as the drug is actually effective at treating seizures
B) The company has not violated the law as long as the statement on treating seizures is not exaggerated
C) The company has not violated the law because the claim the drug could treat seizures is an example of puffing.
D) The company has violated the law because federal drug advertising can promote only federally approved uses of a drug.
E) The company has violated the law but can face penalties only if someone was hurt or killed by using the drug to treat seizures.

Question 40

Billy's Widgets has been accused of deceptive advertising. He disagrees with the accusations but just wants the FTC to leave him alone so he can move on and keep running his business. How might he resolve the pending FTC action against him in a timely manner?

A) Agreed stoppage
B) Command order
C) Consent order
D) Agreed order
E) Approved acknowledgement

Question 41

The ________ gives consumers three days to cancel purchases made from a salesperson who comes to the consumers home.

A) Rule of Three
B) Buyer Protection Act
C) Cooling-off Rule
D) Product Trial Period Rule
E) Buy Back Protection Act

Question 42

Which of the following permits repeated transactions and assesses a finance charge on unpaid balances?

A) Open-end credit line
B) Closed-end credit line
C) Debt-based credit line
D) Uncollateralized credit
E) Collateralized credit

Question 43

Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise through the U.S. mail?

A) The consumer may treat the merchandise as a gift.
B) The consumer may only treat the merchandise as a gift if it has a value of under $25; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
C) The consumer may only treat the merchandise as a gift if it has a value of under $50; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
D) The consumer may only treat the merchandise as a gift if it has a value of under $100; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
E) The consumer must return the merchandise.

Question 44

Which of the following standard information does the Nutrition Labeling and Education Act of 1990 require to be provided on food labels?

A) carbohydrates and fats
B) carbohydrates and sugars
C) vitamins and minerals
D) calories and fat
E) serving size

Question 45

Tupalo's restaurant sent a group of unsolicited faxes to local businesses. This is considered a violation of which of the following?

A) Telephone Fraud Act
B) Telephone Protection of Consumers Act
C) Phone to Phone Protection Act
D) Fraud in Phone Act
E) Telephone Consumer Protection Act of 1991.

Question 46

Pantelone lost her mother in an accident. When she went to the funeral home, she was given a booklet that itemized the price information about the funeral's expense. This information is required under the ________.

A) Federal Funeral Protection Act
B) The Funeral Rule
C) Burial Rights Booklet
D) Funeral Budge Act
E) Proper Burial Rights Act

Question 47

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

A) It forbids telephone solicitation using an automatic telephone dialing system.
B) It forbids telephone solicitation using a prerecorded voice.
C) It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission.
D) Only the Federal Communications Commission can take action to enforce the act.
E) If a telemarketer willfully violates the act, the court can decide to triple the amount owed to the consumer.

Question 48

Unless it is secured by a mortgage on real estate, a loan must be in the amount of ________ in order to come within the scope of the Truth-in-Lending Act.

A) $50,000 or more
B) $50,000 or less
C) $30,000 or more
D) $40,000 or less
E) $25,000 or less

Question 49

________ laws are state consumer protection laws prohibiting used-car fraud.

A) Orange
B) Prune
C) Lemon
D) Onion
E) Lime

Question 50

In order to give consumers a choice regarding telemarking calls, the ________ was implemented by the FTC.

A) Call Me Not Registry
B) Protect Me Act
C) No More Calls Register
D) Do Not Call Registry
E) Telemarketers Beware Act

Question 51

How does NAFTA define "Made in the U.S.A."?

A) As a product for which at least 55 percent of the labor and components are from Canada, Mexico, or the United States.
B) As a product for which "all or virtually all" of the components and labor are of U.S. origin.
C) As a product for which at least 50 percent of the components and labor are of U.S. origin.
D) As a product for which at least 75 percent of the components and labor are of U.S. origin.
E) As a product for which at least 75 percent of the components and labor are of from Canada, Mexico, or the United States.

Question 52

Joe comes to Patty's house to sell her a knife set. He uses an aggressive sales pitch and he tells Patty that all sales are final. Patty signs a contract to buy the set, but later regrets it and asks to rescind the contract 7 days later? Can Patty rescind her contract?

A) No, because she waited more than the three days allowed under the Cooling Off Rule
B) No, because she was told all sales were final
C) Only if Joe engaged in fraud in the sale
D) Likely yes, because Joe failed to inform her, both verbally and in writing, that the transaction may be cancelled.
E) Yes, but only if she can prove the knives cost more than market value

Question 53

Pamela registered her new phone number on the Do Not Call Registry. How long will her number remain on the list?

A) Two years
B) Three years
C) Four years
D) Five years
E) There is no set expiration date

Question 54

Which of the following is not a federal law regulating product labeling?

A) The Wool Products Labeling Act
B) The Fur Products Labeling Act
C) The Flammable Fabrics Act
D) The Nutrition Labeling and Education Act
E) The Imported Canine and Feline Fur Act

Question 55

What does the Flammable Fabrics Act of 1953 prohibit?

A) The use of toxic flame retardants on fabric
B) The production of children's clothing made from flammable material
C) The production of clothing with anything other than 100 percent fire resistant material
D) The production of fabric that is not 100 percent flame resistant
E) The production of clothing that is so highly flammable, it proves dangerous when worn

Question 56

Which of the following is not expressly prohibited by the Fair Debt Collection Practices Act?

A) Using obscene language toward a customer.
B) Contacting a debtor who has notified the collection agency that he or she wants no contact with the agency.
C) Contacting the debtor after 8 p.m.
D) Contacting the debtor before 8 a.m.
E) Misrepresenting the collection agency as a lawyer or a police officer.

Question 57

Tellez is out one night and loses his wallet. He immediately calls the credit card company to notify them of the lost card. Three days later his card is used to purchase tickets to a concert totaling $500. How much would Tellez owe the credit card company?

A) $500
B) $300
C) $250
D) $50
E) $0

Question 58

A telemarketer calls a consumer and fails to identify the call as a sales call. What law or regulation did the telemarketer violate?

A) The Telephone Consumer Protection Act.
B) The Anti-Telephone Sales Act.
C) The Telephone and Fax Sales Prohibition act of 1991.
D) The FTC Telephone Prohibition Act.
E) The Telemarketing Sales Rules of 1995.

Question 59

Which act states that a creditor must make a loan to a natural person and not an entity?

A) The Truth-in-Lending Act
B) Natural Loan's Act
C) People Only Loan Act
D) Non-Commercial Lending Act
E) Loan Guidance Act

Question 60

Which of the following is NOT required for real estate transactions?

A) Homes must be sold with a one-year warranty unless they expressly state "As Is"
B) Anyone planning to sell or lease 100 or more lots of unimproved land must file an initial statement of record with HUD
C) A lender must give a buyer an estimate of cost before finalizing a real estate purchase
D) HUD must approve an initial statement of record from anyone planning to sell or lease 100 or more lots of unimproved land
E) Mortgage lenders are required to provide certain disclosures to buyers.

Question 61

Under which of the following circumstances may a consumer who unknowingly purchased a damaged item with a credit card not be obligated to pay for the good?

A) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home.
B) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home, and the item cost more than $50.
C) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; and the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund.
D) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund; and the seller had a history of providing defective merchandise.
E) The credit card company may always charge the consumer, and it is up to the consumer to get a refund from the merchant.

Question 62

________ is the use of generalities and clear exaggerations.

A) Puffing
B) Phubbing
C) Hedging
D) Qualifying
E) Tipping

Question 63

Which of the following can the Fair Credit Report Act not be used for?

A) insurance eligibility
B) to randomly know someone's income
C) employment
D) loans
E) licensing

Question 64

Which of the following is the only authorized site for government-required free credit reports from the three major reporting agencies?

A) AnnualCreditReport.com
B) FreeReport.com
C) AnnualCredit.edu
D) GovCredit.gov
E) KnowRights.org

Question 65

[Convertibles] Oscar, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Rosa, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from XYZ Bank for the remainder. She wanted the loan for a specific amount of time. XYZ Bank offered her the loan and she agreed. The only information she received from XYZ Bank was confirmation that she borrowed $15,000 at an 8 percent interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Oscar's action in regard to the Wind vehicles. After appropriate proceedings, the Commission proceeded to issue a cease-and-desist order involving Oscar's misleading advertisement in regard to Wind vehicles and also in regard to any other vehicles he offered for sale.
What type of loan was Rosa seeking from XYZ Bank?

A) An open-end credit line
B) A closed-end credit line
C) An approved line
D) A line of credit
E) A direct line

Question 66

[Convertibles] Oscar, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Rosa, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from XYZ Bank for the remainder. She wanted the loan for a specific amount of time. XYZ Bank offered her the loan and she agreed. The only information she received from XYZ Bank was confirmation that she borrowed $15,000 at an 8 percent interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Oscar's action in regard to the Wind vehicles. After appropriate proceedings, the Commission proceeded to issue a cease-and-desist order involving Oscar's misleading advertisement in regard to Wind vehicles and also in regard to any other vehicles he offered for sale.
Oscar was engaged in what kind of objectionable advertising, if any, when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

A) Advertise-and-deny
B) Claim-and-refuse
C) Bait-and-switch
D) Ad trickery
E) He was not engaged in any objectionable advertising so long as he had at least one vehicle in stock at a price of $10,000.

Question 67

Which of the following authorities would have presided over the hearing involving the administrative complaint filed against Julia by the Federal Trade Commission?

A) A state circuit court judge
B) A federal district court judge
C) An administrative law judge
D) A panel of commissioners of the Federal Trade Commission
E) All the commissioners of the Federal Trade Commission

Question 68

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ________.

A) Race, religion, national origin, color, sex, marital status, or age
B) Race, national origin, color, sex, marital status, or age
C) Race, religion, national origin, color, sex, or age
D) Race, religion, national origin, color, or sex
E) Race, religion, color, sex, marital status, or age

Question 69

For what amount can a person be held liable to the credit card company if a credit card company sends an unsolicited card in the mail and the card is stolen?

A) $500
B) $300
C) $250
D) $200
E) $0

Question 70

[Miracle Pill] Julia advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and that for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Julia cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Julia had no reasonable basis for the claims she made in advertisements. Julia claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued requiring that Julia stop advertising and selling the pills. After losing all appeals, Julia continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located.
The order issued by the Federal Trade Commission dictating that Julia stop advertising and selling the pills is known as which of the following?

A) A stop gap order
B) An approved order
C) An agency acknowledged order
D) An agency requirements order
E) A cease-and-desist order

Question 71

[Miracle Pill] Julia advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and that for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Julia cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Julia had no reasonable basis for the claims she made in advertisements. Julia claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued requiring that Julia stop advertising and selling the pills. After losing all appeals, Julia continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located.
Julia's defense that generalities and clear exaggerations are allowable by law is known as ________.

A) Exaltation
B) Puffing
C) Crowing
D) Swelling
E) Boasting

Question 72

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ________.

A) Three years
B) Two years
C) 18 months
D) 12 months
E) 6 months

Question 73

Which of the following is NOT a way in which the Consumer Product Safety Act protects consumers?

A) It issues and enforces mandatory standards regarding product safety.
B) It can ban consumer products from the market.
C) It works with industries to develop voluntary product safety standards.
D) It can administer existing product safety legislation.
E) It can file lawsuits on behalf of a consumer who was injured.

Question 74

Which of the following was passed in response to the growing number of identity theft cases?

A) The Identity Crisis Act
B) The Fair and Accurate Credit Transactions Act
C) The Fair Credit Billing Act
D) The Credit Card Fraud Act
E) The Fair Credit Reporting Act

Question 75

Which of the following is false regarding the Consumer Product Safety Act?

A) It enforces mandatory standards regarding product safety.
B) It usually issues product recalls on its own without the involvement of the companies involved.
C) It conducts research regarding potentially hazardous products.
D) It educates consumers about product safety.
E) It can ban consumer products from the market.

Question 76

Which of the following was the first federal legislation passed regulating food and drugs?

A) The Applied Food, Drug, and Cosmetic Act
B) The Pure Food and Drugs Act
C) The Food and Drug Safety Act
D) The Consumer Safety Act
E) The Congressional Safety Act

Question 77

Which of the following is the fine that the Federal Trade Commission may impose if a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts is violated?

A) $3,000 per violation
B) $5,000 per violation
C) $10,000 per violation
D) $50,000 per violation
E) $100,000 per violation

Question 78

The Federal Food, Drug, and Cosmetic Act is enforced by which agency?

A) The U.S. Food and Drug Administration
B) The Federal Consumer Administration
C) The Federal Consumption Administration
D) The Federal Safety Commission
E) The U.S. Uniform Drug Commission

Question 79

[Convertibles] Oscar, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Rosa, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from XYZ Bank for the remainder. She wanted the loan for a specific amount of time. XYZ Bank offered her the loan and she agreed. The only information she received from XYZ Bank was confirmation that she borrowed $15,000 at an 8 percent interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Oscar's action in regard to the Wind vehicles. After appropriate proceedings, the Commission proceeded to issue a cease-and-desist order involving Oscar's misleading advertisement in regard to Wind vehicles and also in regard to any other vehicles he offered for sale.
Which of the following types of information should Rosa have received from XYZ Bank, according to the Truth-in-Lending Act?

A) The total amount financed; and the number, amount, and due dates of payments.
B) The total amount financed; the number, amount, and due dates of payments; and the bank policy in the event of a delinquency.
C) The total amount financed; the number, amount, and due dates of payments; and the bank's policy regarding selling loans to other financial institutions.
D) The total amount financed; the number, amount, and due dates of payments; the bank policy in the event of a delinquency; and the bank's policy regarding selling loans to other financial institutions.
E) Only the information she received.

Question 80

Which of the following conducts investigations into the safety of motor vehicles?

A) The Vehicle Investigation Commission
B) The Vehicle Safety Administration
C) The National Highway Safety Administration
D) The Motorized Safety Administration
E) The Transportation Safety Commission