Question 1

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.

Accepted Answer

A)  $40,000 or less
B)  $50,000 or less
C)  $50,000 or more
D)  $30,000 or more
E)  $25,000 or lessF) A) and B)
G) All of the above

Question 2

The FTC determines if an ad is deceptive by comparing it to ads by other companies to see which ad is more or less misleading.

Accepted Answer

A) True 
 B)False

Question 3

If most companies within one industry are using the same unfair or deceptive practices,how can the Federal Trade Commission protect consumers?

Accepted Answer

When most companies within one industry ...

Question 4

[The Funeral Outlet] Owen operates a funeral home called Owen's Funeral Outlet.Owen likes to keep things simple.He generally has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever.Owen also goes door-to-door selling funeral packages.He tries to visit neighborhoods in which there has been a recent death because residents in the neighborhood will have final arrangements on their minds.He believes and informs customers that once customers sign a contract for burial services,there is no backing out.Owen also obtains a good deal of business from phone solicitation.He enjoys calling late at night,between 10 p.m.and 11 p.m. ,when people are tired,but before they go to bed.He believes that if people do not feel well,they are more likely to consider funeral arrangements.Sometimes,Owen varies his sales tactic and tells consumers he talks to on the phone aspects of the total cost in small increments,not mentioning the total price,believing that if they are tired,they are less likely to ask too many questions.After many consumer complaints,the Federal Trade Commission and other federal agencies investigate Owen.He hires a good lawyer with his profits in an attempt to stay out of trouble.
-Regarding Owen's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services,which of the following statements is true?

Accepted Answer

A)  Because door-to-door sales are involved,consumers must have three days in which to cancel purchases.
B)  Because door-to-door sales are involved,Owen must give consumers 24 hours in which to cancel.
C)  There is no problem with Owen's actions even if he does not give specific notice that he will not agree to any cancellations.
D)  Owen must give customers at least 24 hours in which to cancel such a contract,but that is only because funeral services are involved.
E)  There is no problem with Owen's actions so long as he truly gives specific notice that he will not agree to any cancellations.F) A) and B)
G) A) and E)

Question 5

The cease-and-desist order entered by the Federal Trade Commission,involving Oscar's sales of Wind and his sales of all other vehicles,is known by which of the following terms?

Accepted Answer

A)  A superlative order
B)  A multiple cease-and-desist order
C)  A multiple-product order
D)  An exceptional order
E)  A combined orderF) A) and E)
G) C) and D)

Question 6

What does the Flammable Fabrics Act of 1953 prohibit?

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

Regarding Owen's practice of requiring a complete package purchase from him if the consumer desires any funeral services,which of the following statements is true?

Accepted Answer

A)  There is no problem with that practice under federal law.
B)  That practice is prohibited by federal law unless cremation services are involved in which case Owen may link the cremation services with the purchase of other goods and services because cremation in and of itself results in little profit.
C)  There is no problem with that practice under federal law so long as Owen informs customers of that prior to entering into any sales talk and negotiation.
D)  That practice is prohibited by federal law unless Owen gives a 10% discount as compared to the average price of funeral services in his state.
E)  That practice is prohibited by federal law.F) A) and B)
G) A) and C)

Question 9

Regarding Owen's tactic of offering one flat price for funeral services with no itemization,which of the following statements is true?

Accepted Answer

A)  That practice is prohibited under federal law in funeral home situations.
B)  That practice is prohibited under federal law in all situations involving a mix of goods and services costing $5,000 or more.
C)  That practice is prohibited under federal law in all situations involving a mix of goods and services.
D)  That practice is prohibited by federal law unless consumers receive a 10% discount as compared to the average price of funeral services in his state.
E)  Federal law does not prohibit that practice.F) B) and E)
G) None of the above

Question 10

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Accepted Answer

There are three guidelines.First,sellers...

Question 11

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

Accepted Answer

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

Question 12

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?

Accepted Answer

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 its offer disclosed that terms and policies could be changed.
D)  That the defendant committed no violation because it was not required to disclose future fees,only current ones.
E)  That the defendant committed no violation of the law because it was entitled to change its policies at will.F) A) and B)
G) A) and C)

Question 13

Alayna markets a bell that she claims will automatically quiet a crying baby.Alayna advertises on television that the bell has a certain tone that babies love and shows a baby suddenly stop crying when the bell is rung.She charges $50 for each bell for which she incurs $1 in manufacturing charges.The bell was very popular for a few months,but she has started to get complaints;and the Federal Trade Commission has investigated her advertisement regarding the bell.Alayna claims that her advertisement is not deceptive.The Federal Trade Commission,however,claims that her advertisement satisfies the three elements necessary for a deceptive claim.What are those three elements?

Accepted Answer

The three elements of deceptiv...

Question 14

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

Accepted Answer

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

Question 15

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?

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

What is required by the Telemarketing Sales Rule of 1995?

Accepted Answer

The Telemarketing Sales Rule of 1995 req...

Question 18

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?

Accepted Answer

A)  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.
B)  The consumer must return the merchandise.
C)  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.
D)  The consumer may treat the merchandise as a gift.
E)  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.F) D) and E)
G) B) and C)

Question 19

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Accepted Answer

A) True 
 B)False

Question 20

A statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law is known as which of the following?

Accepted Answer

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

Exam 45: Consumer Law

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Correct Answer
verified

The FTC determines if an ad is deceptive by comparing it to ads by other companies to see which ad is more or less misleading.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

If most companies within one industry are using the same unfair or deceptive practices,how can the Federal Trade Commission protect consumers?

Correct Answer
verified
When most companies within one industry ...
View Answer

The cease-and-desist order entered by the Federal Trade Commission,involving Oscar's sales of Wind and his sales of all other vehicles,is known by which of the following terms?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

What is required by the Telemarketing Sales Rule of 1995?

Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Correct Answer
verified
There are three guidelines.First,sellers...
View Answer

A statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law is known as which of the following?

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

Regarding Owen's practice of requiring a complete package purchase from him if the consumer desires any funeral services,which of the following statements is true?

Correct Answer
verified

What does the Flammable Fabrics Act of 1953 prohibit?

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
The three elements of deceptiv...
View Answer

Regarding Owen's tactic of offering one flat price for funeral services with no itemization,which of the following statements is true?

Correct Answer
verified

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.

Correct Answer
verified

Exam 45: Consumer Law

State laws in regard to protection of purchasers of used cars are preempted by federal law.

Correct AnswerverifiedShow Answer

The FTC determines if an ad is deceptive by comparing it to ads by other companies to see which ad is more or less misleading.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If most companies within one industry are using the same unfair or deceptive practices,how can the Federal Trade Commission protect consumers?

Correct AnswerverifiedWhen most companies within one industry ...View AnswerShow Answer

The cease-and-desist order entered by the Federal Trade Commission,involving Oscar's sales of Wind and his sales of all other vehicles,is known by which of the following terms?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is required by the Telemarketing Sales Rule of 1995?

Correct AnswerverifiedThe Telemarketing Sales Rule of 1995 req...View AnswerShow Answer

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Correct AnswerverifiedThere are three guidelines.First,sellers...View AnswerShow Answer

A statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law is known as which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Regarding Owen's practice of requiring a complete package purchase from him if the consumer desires any funeral services,which of the following statements is true?

Correct AnswerverifiedShow Answer

What does the Flammable Fabrics Act of 1953 prohibit?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe three elements of deceptiv...View AnswerShow Answer

Regarding Owen's tactic of offering one flat price for funeral services with no itemization,which of the following statements is true?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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When most companies within one industry ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

Correct Answer
verified
There are three guidelines.First,sellers...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The three elements of deceptiv...
View Answer

Correct Answer
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Correct Answer
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