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Exam 39: Consumer and Environmental Law

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Question 1

True/False

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Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

A) True
B) False

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Question 2

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Clean Wash Inc. operates a chain of car washes throughout the United States. The government entity that is most likely to be involved in regulating the chain's environmental impact is

A) Congress.
B) federal and state regulatory agencies.
C) local chambers of commerce.
D) local police departments.

E) None of the above
F) A) and B)

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Question 3

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To minimize potential liability under Superfund, a business can conduct its own regular environmental compliance audits of its operations.

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

A credit cardholder is not liable for any unauthorized charges made before the time the creditor is notified that the card is lost.

Consumer Staples Inc. includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for

Direct Sales Corporation sells products to consumers over the phone, through the mail, and online. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, the firm may be liable for failing to

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

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

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Without a permit from the U.S. Army Corps of Engineers, Condos Corporation fills a wetlands area that it owns in preparation for the construction of a housing complex. Under the Clean Water Act, this is most likely

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs.

Regulation Z was issued by the Federal Reserve Board of Governors to implement the disclosure requirements of the Truth-in-Lending Act.

Metal Foundry Inc.'s complex spews smoke and odors. The site features its own rail system, and trucks enter and exit the complex night and day. Neal and other residents of an adjacent neighborhood can feel the vibrations of the trains and trucks, and suffer other effects from the operations. Neal and others file a suit against Metal Foundry. Why might the court rule in favor of the defendant?

An environmental impact statement includes a formal analysis of the impact of any major federal action that will significantly affect the environment.

Employees might sue an employer whose failure to use pollution controls contaminated the air and caused the employees to suffer respiratory illnesses.

The Truth-in-Lending Act applies to a loan between two consumers because in that transaction, the lender is a person who in the ordinary course of business is extending credit.

A consumer may recover under a state consumer-fraud statute, even if he or she has not suffered actual damages proximately caused by a deceptive act.

Because the government knows CO2 pollution causes climate change, a young generation might succeed in a suit alleging that by failing to address this cause the government is violating their constitutional rights.