Question 1

The FTC is an independent federal agency that has ________ commissioners appointed by the president and confirmed by the Senate.

Accepted Answer

A)   3
B)   5
C)   10
D)   15
E)   21F) None of the above
G) A) and B)

Question 2

The FTC may issue a(n)  ________ if a company refuses to enter into a consent agreement.

Accepted Answer

A)   protective order
B)   demand order
C)   formal administrative complaint
D)   negotiated settlement
E)   Forced consent decreeF) A) and B)
G) C) and D)

Question 3

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Accepted Answer

A)   It forbids telephone solicitation using an automatic telephone dialing system.
B)   It forbids telephone solicitation using a prerecorded voice.
C)   It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission.
D)   Only the Federal Communications Commission can take action to enforce the act.
E)   If a telemarketer willfully violates the act, the court can decide to triple the amount owed to the consumer.F) B) and D)
G) B) and C)

Question 4

Consumer protections against fraud in used car sales is regulated at the federal level.

Accepted Answer

A) True 
 B)False

Question 5

What is required by the Telemarketing Sales Rule of 1995?

Accepted Answer

The Telemarketing Sales Rule of 1995 req...

Question 6

Sending consumers e-mail messages with no option concerning whether they receive messages in the future is prohibited by The Can-Spam Act.

Accepted Answer

A) True 
 B)False

Question 7

Tellez is out one night and loses his wallet. He immediately calls the credit card company to notify them of the lost card. Three days later his card is used to purchase tickets to a concert totaling $500. How much would Tellez owe the credit card company?

Accepted Answer

A)   $500
B)   $300
C)   $250
D)   $50
E)   $0F) A) and E)
G) C) and D)

Question 8

Under which of the following circumstances may a consumer who unknowingly purchased a damaged item with a credit card not be obligated to pay for the good?

Accepted Answer

A)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home.
B)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home, and the item cost more than $50.
C)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; and the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund.
D)   The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund; and the seller had a history of providing defective merchandise.
E)   The credit card company may always charge the consumer, and it is up to the consumer to get a refund from the merchant.F) None of the above
G) A) and B)

Question 9

Canada's cigarette labeling requirements are less strict than those in the U.S.

Accepted Answer

A) True 
 B)False

Question 10

[The Funeral Outlet] Owen operates a funeral home called Owen's Funeral Outlet. Owen likes to keep things simple. He generally has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Owen also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which there has been a recent death because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Owen also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired, but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. Sometimes, Owen varies his sales tactic and tells consumers he talks to on the phone aspects of the total cost in small increments, not mentioning the total price, believing that if they are tired, they are less likely to ask too many questions. After many consumer complaints, the Federal Trade Commission and other federal agencies investigate Owen. He hires a good lawyer with his profits in an attempt to stay out of trouble.
-Regarding Owen's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services, which of the following statements is true?

Accepted Answer

A)   There is no problem with Owen's actions so long as he truly gives specific notice that he will not agree to any cancellations.
B)   Owen must give customers at least 24 hours in which to cancel such a contract, but that is only because funeral services are involved.
C)   There is no problem with Owen's actions even if he does not give specific notice that he will not agree to any cancellations.
D)   Because door-to-door sales are involved, Owen must give consumers 24 hours in which to cancel.
E)   Because door-to-door sales are involved, consumers must have three days in which to cancel purchases.F) B) and C)
G) A) and C)

Exam 45: Consumer Law

Canada's cigarette labeling requirements are less strict than those in the U.S.

Correct Answer
verified

Under which of the following circumstances may a consumer who unknowingly purchased a damaged item with a credit card not be obligated to pay for the good?

Correct Answer
verified

Correct Answer
verified

What is required by the Telemarketing Sales Rule of 1995?

Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Correct Answer
verified

The FTC is an independent federal agency that has ________ commissioners appointed by the president and confirmed by the Senate.

Correct Answer
verified

The FTC may issue a(n) ________ if a company refuses to enter into a consent agreement.

Correct Answer
verified

Consumer protections against fraud in used car sales is regulated at the federal level.

Correct Answer
verified

Sending consumers e-mail messages with no option concerning whether they receive messages in the future is prohibited by The Can-Spam Act.

Correct Answer
verified

Tellez is out one night and loses his wallet. He immediately calls the credit card company to notify them of the lost card. Three days later his card is used to purchase tickets to a concert totaling $500. How much would Tellez owe the credit card company?

Correct Answer
verified

Exam 45: Consumer Law

Canada's cigarette labeling requirements are less strict than those in the U.S.

Correct AnswerverifiedShow Answer

Under which of the following circumstances may a consumer who unknowingly purchased a damaged item with a credit card not be obligated to pay for the good?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is required by the Telemarketing Sales Rule of 1995?

Correct AnswerverifiedThe Telemarketing Sales Rule of 1995 req...View AnswerShow Answer

Which of the following is false regarding the Telephone Consumer Protection Act of 1991?

Correct AnswerverifiedShow Answer

The FTC is an independent federal agency that has ________ commissioners appointed by the president and confirmed by the Senate.

Correct AnswerverifiedShow Answer

The FTC may issue a(n) ________ if a company refuses to enter into a consent agreement.

Correct AnswerverifiedShow Answer

Consumer protections against fraud in used car sales is regulated at the federal level.

Correct AnswerverifiedShow Answer

Sending consumers e-mail messages with no option concerning whether they receive messages in the future is prohibited by The Can-Spam Act.

Correct AnswerverifiedShow Answer

Tellez is out one night and loses his wallet. He immediately calls the credit card company to notify them of the lost card. Three days later his card is used to purchase tickets to a concert totaling $500. How much would Tellez owe the credit card company?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Telemarketing Sales Rule of 1995 req...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified