Question 1

A consumer may be denied credit on the basis of a credit report.

Accepted Answer

A) True 
 B)False

Question 2

Steel Tool Company makes and sells tools.One of the tools is believed to be hazardous.The appropriate government agency may require Steel to

Accepted Answer

A)  export the tool and sell it only abroad.
B)  increase the price to cover the cost of any injuries or damage.
C)  reduce the price to indicate the hazard to consumers.
D)  remove the tool from the market.E) All of the above
F) B) and D)

Question 3

Upson Down Company sells its wares to consumers over the Internet.Upson's site includes an on-screen notice indicating its refund and return policies,where its business is physically located,its legal name,and other details.This is

Accepted Answer

A)  dictated by members of the Good Business Association.
B)  mandated by federal law.
C)  required by California state law.
D)  strictly voluntary.E) None of the above
F) All of the above

Question 4

Quik Collection Agency calls Pat several times a day,and sometimes in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

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) C) and D)
F) B) and D)

Question 5

Vague generalities and obvious exaggerations constitute deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 6

Advertising will not be deemed deceptive so long as it appears to be based on factual evidence,even if it is not.

Accepted Answer

A) True 
 B)False

Question 7

There is no distinction between regulating the information dispensed about a product and regulating the actual content of the product.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  credit terms offered by other lenders and its own credit terms.
B)  no credit terms.
C)  only its own credit terms.
D)  only the credit terms that will convince borrowers to "close the deal."E) None of the above
F) A) and C)

Question 9

Ads cannot be unfair.

Accepted Answer

A) True 
 B)False

Question 10

Bodie's application to City Bank for a credit card is denied.Bodie can obtain information on her credit history in a credit agency's files under

Accepted Answer

A)  no federal law.
B)  the Equal Credit Opportunity Act.
C)  the Fair Credit Reporting Act.
D)  the Fair Debt Collection Practices Act.E) A) and B)
F) B) and C)

Question 11

Labels must use words that are easily understood by the ordinary marketing executive.

Accepted Answer

A) True 
 B)False

Question 12

In the ordinary course of business,Xtra Charge Company sells goods to Yvon and other consumers on credit under installment sales contracts that typically require at least one year of monthly payments.Xtra does not disclose all of the credit terms to its customers.This practice is most likely to result in

Accepted Answer

A)  a cease-and-desist order.
B)  a fine.
C)  no sanctions.
D)  rescission of the contracts.E) A) and B)
F) C) and D)

Exam 20: Consumer Protection

Upson Down Company sells its wares to consumers over the Internet.Upson's site includes an on-screen notice indicating its refund and return policies,where its business is physically located,its legal name,and other details.This is

Correct Answer
verified

Labels must use words that are easily understood by the ordinary marketing executive.

Correct Answer
verified

A consumer may be denied credit on the basis of a credit report.

Correct Answer
verified

Correct Answer
verified

There is no distinction between regulating the information dispensed about a product and regulating the actual content of the product.

Correct Answer
verified

Vague generalities and obvious exaggerations constitute deceptive advertising.

Correct Answer
verified

Bodie's application to City Bank for a credit card is denied.Bodie can obtain information on her credit history in a credit agency's files under

Correct Answer
verified

Advertising will not be deemed deceptive so long as it appears to be based on factual evidence,even if it is not.

Correct Answer
verified

Quik Collection Agency calls Pat several times a day,and sometimes in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

Correct Answer
verified

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

Correct Answer
verified

Ads cannot be unfair.

Correct Answer
verified

Steel Tool Company makes and sells tools.One of the tools is believed to be hazardous.The appropriate government agency may require Steel to

Correct Answer
verified

Exam 20: Consumer Protection

Upson Down Company sells its wares to consumers over the Internet.Upson's site includes an on-screen notice indicating its refund and return policies,where its business is physically located,its legal name,and other details.This is

Correct AnswerverifiedShow Answer

Labels must use words that are easily understood by the ordinary marketing executive.

Correct AnswerverifiedShow Answer

A consumer may be denied credit on the basis of a credit report.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There is no distinction between regulating the information dispensed about a product and regulating the actual content of the product.

Correct AnswerverifiedShow Answer

Vague generalities and obvious exaggerations constitute deceptive advertising.

Correct AnswerverifiedShow Answer

Bodie's application to City Bank for a credit card is denied.Bodie can obtain information on her credit history in a credit agency's files under

Correct AnswerverifiedShow Answer

Advertising will not be deemed deceptive so long as it appears to be based on factual evidence,even if it is not.

Correct AnswerverifiedShow Answer

Quik Collection Agency calls Pat several times a day,and sometimes in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Ads cannot be unfair.

Correct AnswerverifiedShow Answer

Steel Tool Company makes and sells tools.One of the tools is believed to be hazardous.The appropriate government agency may require Steel to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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