FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Consumer Protection

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about

A) its products only.
B) its competitors' products only.
C) its products and its competitors' products.
D) neither its products nor its competitors' products .

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

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

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

A) false and misleading.
B) impermissibly vague and general.
C) a deceptive half-truth.
D) a fair ad using puffery.

E) B) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The Federal Trade Commission actively monitors online advertising.

Bait-and-switch advertising occurs if the seller fails to have reasonably adequate quantities of the advertised item available.

Federal and state laws are aimed at protecting consumers from

A creditor can always require the signature of a cosigner on a credit application.

The Fair Debt Collection Practices Act allows debt collectors to do thorough investigations, including interviewing parents, spouses, co-workers, employers, and landlords about a consumer who owes a debt.

Marketmaster Inc. includes in its advertising accurate pictures of the product, statements about the product that are technically true but leave out some important information, vague generalities, and puffery about its products. The firm may be subject to sanctions for

Deceptive advertising occurs if a reasonable consumer would be misled by an advertising claim.

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

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

Credit cannot be denied solely on whether a person receives certain forms of income, such as public-assistance.

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?

Consumer protection law is exclusively governed by the federal government.

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

The government cannot remove a product from the market simply because it is considered imminently hazardous.

The federal agency that oversees the practices of banks, mortgage lenders, and credit-card companies is

Federal law does not require food product labels to identify the product .

A toothpaste ad that states, "Nine out of ten dentists support our product," would not be deceptive if the company asked ten dentists.