Question 1

An ad for Running Shoes Inc. states that its footwear is "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Accepted Answer

A)   a cease-and-desist order.
B)   a counteradvertising order.
C)   a settlement.
D)   none of the choices.E) C) and D)
F) B) and D)

Question 2

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Accepted Answer

A)   the car loan only.
B)   the home repair loan only.
C)   the retail installment sale only.
D)   the car loan, the home repair loan, and the retail installment sale.E) C) and D)
F) A) and B)

Question 3

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of

Accepted Answer

A)   credit terms offered by other lenders.
B)   comparative prices for goods to be bought with the borrowed funds.
C)   Credit Loan's credit terms.
D)   the borrowers' credit scores.E) C) and D)
F) All of the above

Question 4

A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 5

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   prohibited.
B)   required.
C)   unnecessary.
D)   voluntary.E) All of the above
F) A) and C)

Question 7

Sources of consumer and environmental protection, and the public means to implement and enforce those provisions, exist at the level of

Accepted Answer

A)   the federal government only.
B)   the federal and state governments only.
C)   the state and local governments only.
D)   the federal, state, and local governments.E) All of the above
F) B) and D)

Question 8

Smelter 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 equipment to reduce its emissions. Under the Clean Air Act, this is most likely

Accepted Answer

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.E) B) and C)
F) A) and D)

Question 9

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Accepted Answer

A) True 
 B)False

Question 10

Consumer Finance Corporation (CFC)  extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's

Accepted Answer

A)   intelligence.
B)   education.
C)   culture.
D)   race.E) B) and D)
F) All of the above

Question 11

To obtain relief under the nuisance doctrine, a property owner may have to identify a distinct harm separate from that affecting the general public.

Accepted Answer

A) True 
 B)False

Question 12

The quality and safety of food may be important to consumers, but food labels that provide standard nutrition facts are a seller's option, not a requirement.

Accepted Answer

A) True 
 B)False

Exam 39: Consumer and Environmental Law

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Correct Answer
verified

Sources of consumer and environmental protection, and the public means to implement and enforce those provisions, exist at the level of

Correct Answer
verified

A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising.

Correct Answer
verified

Consumer Finance Corporation (CFC) extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's

Correct Answer
verified

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Correct Answer
verified

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

Correct Answer
verified

To obtain relief under the nuisance doctrine, a property owner may have to identify a distinct harm separate from that affecting the general public.

Correct Answer
verified

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of

Correct Answer
verified

An ad for Running Shoes Inc. states that its footwear is "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct Answer
verified

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Correct Answer
verified

The quality and safety of food may be important to consumers, but food labels that provide standard nutrition facts are a seller's option, not a requirement.

Correct Answer
verified

Smelter 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 equipment to reduce its emissions. Under the Clean Air Act, this is most likely

Correct Answer
verified

Exam 39: Consumer and Environmental Law

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Correct AnswerverifiedShow Answer

Sources of consumer and environmental protection, and the public means to implement and enforce those provisions, exist at the level of

Correct AnswerverifiedShow Answer

A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising.

Correct AnswerverifiedShow Answer

Consumer Finance Corporation (CFC) extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's

Correct AnswerverifiedShow Answer

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To obtain relief under the nuisance doctrine, a property owner may have to identify a distinct harm separate from that affecting the general public.

Correct AnswerverifiedShow Answer

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Credit Loan must inform potential borrowers of

Correct AnswerverifiedShow Answer

An ad for Running Shoes Inc. states that its footwear is "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct AnswerverifiedShow Answer

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Correct AnswerverifiedShow Answer

The quality and safety of food may be important to consumers, but food labels that provide standard nutrition facts are a seller's option, not a requirement.

Correct AnswerverifiedShow Answer

Smelter 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 equipment to reduce its emissions. Under the Clean Air Act, this is most likely

Correct AnswerverifiedShow Answer

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