Question 1

The manufacture and sale of any product that poses an unreasonable risk to consumers can be banned.

Accepted Answer

A) True 
 B)False

Question 2

The Truth-in-Lending Act does not apply to sales or loans between two consumers.

Accepted Answer

A) True 
 B)False

Question 3

Crunchy Inc. makes claims in its advertising about its snack products. Crunchy's claims would most likely be deemed deceptive if the claims

Accepted Answer

A)   mislead a reasonable consumer.
B)   contain vague generalities.
C)   consist of puffery.
D)   include obvious exaggerations.E) None of the above
F) A) and D)

Question 4

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to

Accepted Answer

A)   no federal law.
B)   the Consumer Leasing Act.
C)   the Consumer Product Safety Act.
D)   the Truth-in-Lending Act.E) A) and D)
F) None of the above

Question 5

The Truth-in-Lending Act does not apply to those who lease consumer goods in the ordinary course of their business.

Accepted Answer

A) True 
 B)False

Question 6

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

Accepted Answer

A)   no federal law.
B)   the Fair and Accurate Credit Transactions Act.
C)   the Fair Debt Collection Practices Act.
D)   the Truth-in-Lending Act.E) B) and C)
F) All of the above

Question 7

Once a debt- collection agency receives notice that a consumer refuses to pay a debt, the debt-collection agency may continue to contact them to remind them of the debt's existence.

Accepted Answer

A) True 
 B)False

Question 8

Because federal law requires companies to disclose accurate information about their products, the federal government does not regulate how a product is made or the ingredients/components of a product.

Accepted Answer

A) True 
 B)False

Question 9

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects, but the credit department continues to call her at work. This violates

Accepted Answer

A)   no federal law.
B)   the Fair and Accurate Credit Transactions Act.
C)   the Fair Debt Collection Practices Act.
D)   the Truth-in-Lending Act.E) B) and D)
F) B) and C)

Question 10

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on  which of the following

Accepted Answer

A)   credibility.
B)   financial awareness.
C)   occupation.
D)   gender.E) None of the above
F) B) and C)

Question 11

Federal law establishes food standards, including safe levels of potentially hazardous food additives.

Accepted Answer

A) True 
 B)False

Question 12

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Accepted Answer

A)   no federal law.
B)   the Fair Credit Reporting Act.
C)   the Telecommunications Act.
D)   the Truth-in-Lending Act.E) B) and C)
F) A) and D)

Exam 21: Consumer Protection

Federal law establishes food standards, including safe levels of potentially hazardous food additives.

Correct Answer
verified

Once a debt- collection agency receives notice that a consumer refuses to pay a debt, the debt-collection agency may continue to contact them to remind them of the debt's existence.

Correct Answer
verified

Because federal law requires companies to disclose accurate information about their products, the federal government does not regulate how a product is made or the ingredients/components of a product.

Correct Answer
verified

The Truth-in-Lending Act does not apply to sales or loans between two consumers.

Correct Answer
verified

Crunchy Inc. makes claims in its advertising about its snack products. Crunchy's claims would most likely be deemed deceptive if the claims

Correct Answer
verified

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following

Correct Answer
verified

The manufacture and sale of any product that poses an unreasonable risk to consumers can be banned.

Correct Answer
verified

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects, but the credit department continues to call her at work. This violates

Correct Answer
verified

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Correct Answer
verified

The Truth-in-Lending Act does not apply to those who lease consumer goods in the ordinary course of their business.

Correct Answer
verified

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

Correct Answer
verified

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to

Correct Answer
verified

Exam 21: Consumer Protection

Federal law establishes food standards, including safe levels of potentially hazardous food additives.

Correct AnswerverifiedShow Answer

Once a debt- collection agency receives notice that a consumer refuses to pay a debt, the debt-collection agency may continue to contact them to remind them of the debt's existence.

Correct AnswerverifiedShow Answer

Because federal law requires companies to disclose accurate information about their products, the federal government does not regulate how a product is made or the ingredients/components of a product.

Correct AnswerverifiedShow Answer

The Truth-in-Lending Act does not apply to sales or loans between two consumers.

Correct AnswerverifiedShow Answer

Crunchy Inc. makes claims in its advertising about its snack products. Crunchy's claims would most likely be deemed deceptive if the claims

Correct AnswerverifiedShow Answer

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following

Correct AnswerverifiedShow Answer

The manufacture and sale of any product that poses an unreasonable risk to consumers can be banned.

Correct AnswerverifiedShow Answer

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects, but the credit department continues to call her at work. This violates

Correct AnswerverifiedShow Answer

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Correct AnswerverifiedShow Answer

The Truth-in-Lending Act does not apply to those who lease consumer goods in the ordinary course of their business.

Correct AnswerverifiedShow Answer

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

Correct AnswerverifiedShow Answer

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to

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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Correct Answer
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