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Exam 39: Consumer and Environmental Law

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Question 31

True/False

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Advertising will be deemed deceptive if it includes a claim that omits a material fact about a product.

A) True
B) False

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Question 32

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A business that believes a federal agency's action threatens the environment can use an environmental impact statement as a means to challenge it.

A) True
B) False

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Question 33

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

Under the Fair Credit Reporting Act, a consumer can request the identity of anyone who has received a credit agency's report on the consumer.

A debt-collection agency can always contact a debtor at his or her place of employment.

Fried Food, Inc., operates a commercial frying plant, discharging pollutants into the air. Greta reports the violations to the Environmental Protection Agency. Greta

Centre City operates its own municipal public drinking water system for which the Environmental Protection Agency has set maximum levels of pollutants. The city 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

The Telemarketing Sales Rule applies to any offer-domestic or foreign-made to consumers in the United States.

A cruise ship owned by Bay Cruises Inc. discharges some of the oil contained in its hold into Chesapeake Bay and onto the shore. Under the Oil Pollution Act, this is most likely

Equity Lending Company extends credit to consumers. Equity applies a variety of requirements to determine applicants' qualifications for credit, the amount, the interest rate, and other terms. Under the Equal Credit Opportunity Act, the lender cannot base its credit decisions on an applicant's

Auto & Life Insurance Company fails to notify its new customers when they are charged higher premium rates as a result of their credit scores. This is a willful violation of

Labels on fresh and frozen fruits and vegetables must indicate where the food originated so that consumers can know if the food was imported.

Mouth-Waterin' Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." NuFabrics, Inc., wants to advertise its sweaters as having "That Wool Feel," but does not want to specify on labels that the sweaters are 100 percent polyester. Can these firms market their products as they would like? If not, why not?

With respect to tainted foods, the focus of federal regulators has shifted from responding to incidents of contamination to preventing them.

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Half-truths-information that is true but incomplete-are not deceptive because such statements are at least half true.

Credit can be denied solely on the basis of national origin.

EZ Workout Inc. advertises Fit Step, an exercise machine, online. In its ads, EZ claims that the use of Fit Step measurably enhances the attainability of fitness and weight loss goals, and will contribute significantly to the length of its users' lives. In this context, the company's ads and claims must be

Brew House Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the Corporate World!" The Federal Trade Commission would consider this ad

Regional Disposal Center operates a recycling plant. Stan and other citizens file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on