Question 1

Which of the following governs the issuance of credit reports?

Accepted Answer

A)   The Prohibited Report Act
B)   The Fair Credit Reporting Act
C)   The Unfair Reporting Act
D)   The Loan Reporting Act
E)   The Credit Protection ActF) A) and B)
G) None of the above

Question 2

Which of the following is the agency responsible for enforcing the Federal Food,Drug,and Cosmetic Act?

Accepted Answer

A)   The U.S. Food and Drug Administration
B)   The Federal Consumer Administration
C)   The Federal Consumption Administration
D)   The Federal Safety Commission
E)   The U.S. Uniform Drug CommissionF) A) and D)
G) C) and D)

Question 3

Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?

Accepted Answer

A)   A state circuit court judge
B)   A federal district court judge
C)   An administrative law judge
D)   A panel of commissioners of the Federal Trade Commission
E)   All the commissioners of the Federal Trade CommissionF) C) and D)
G) A) and B)

Question 4

Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

Accepted Answer

A)   There is no problem with Fred's actions so long as he truly gives specific notice that he will not agree to any cancellations.
B)   Fred 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 Fred'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, Fred 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) C) and D)
G) B) and E) E

Question 5

Which of the following is not a federal law regulating product labeling?

Accepted Answer

A)   The Wool Products Labeling Act
B)   The Fur Products Labeling Act
C)   The Flammable Fabrics Act
D)   The Nutrition Labeling and Education Act
E)   The Imported Canine and Feline Fur ActF) All of the above
G) B) and D)

Question 6

What type of agency is the Federal Trade Commission?

Accepted Answer

A)   Executive
B)   Independent
C)   Collateral
D)   Approved
E)   CertifiedF) None of the above
G) C) and E)

Question 7

A consumer law is a statute or administrative rule serving to protect consumer interests.

Accepted Answer

A) True 
 B)False  True

Question 8

Which of the following was the result at the Supreme Court level in Food and Drug Administration v.Brown & Williamson Tobacco Corporation,the case in the text involving whether the Federal Food,Drug,and Cosmetic Act (FFDCA) authorized the Food and Drug Administration (FDA) to regulate tobacco?

Accepted Answer

A)   The Court ruled that the FDA had the authority to regulate tobacco because nicotine, one of its main components, is a drug.
B)   The Court ruled that the FDA had the authority to regulate tobacco because cigarettes and smokeless tobacco are drug delivery devices of the drug nicotine.
C)   The Court ruled that the FDA had the authority to regulate tobacco because the FFDCA implies that the FDA retains the discretion to determine items within its sphere of regulation.
D)   The Court ruled that the FDA had the authority to regulate tobacco because nicotine, one of its main components, is a drug but that the FDA exceeded the scope of its regulatory powers in the issuance of excessively strict regulations regarding the marketing of tobacco.
E)   The Court ruled that the FDA lacked the authority to regulate tobacco because Congress had enacted its own legislation regulating tobacco and had not extended that right to the FDA.F) A) and D)
G) B) and E)

Question 9

Which of the following does the Federal Trade Commission require if a company wishes to claim that its products are "Made in the U.S.A."?

Accepted Answer

A)   That the claim not be used unless all, or virtually all, of the product's components and labor are of U.S. origin.
B)   That the claim not be used unless absolutely all of the components and labor of the product are of U.S. origin.
C)   That the claim not be used unless at least 75% of the product's components and labor are of U.S. origin.
D)   That the claim not be used unless at least 50% of the product's components and labor are of U.S. origin.
E)   That the claim not be used unless at least 55% of the product's labor and components are from Canada, Mexico, or the United States.F) B) and E)
G) C) and E)

Question 10

If a person notifies the credit card company of a stolen card before unauthorized charges are made,for how much can the person be held liable to the credit card company?

Accepted Answer

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

Question 11

Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services?

Accepted Answer

A)   There is no problem with that practice under federal law.
B)   There is no problem with that practice under federal law so long as Fred informs customers of that prior to entering into any sales talk and negotiation.
C)   That practice is prohibited by federal law.
D)   That practice is prohibited by federal law unless Fred gives a 10% discount as compared to the average price of funeral services in his state.
E)   That practice is prohibited by federal law unless cremation services are involved in which case Fred may link the cremation services with the purchase of other goods and services because cremation in and of itself results in little profit.F) A) and B)
G) A) and D)

Question 12

If a credit card company sends a person an unsolicited card in the mail and the card is stolen,for how much can the person be held liable to the credit card company?

Accepted Answer

A)   $500
B)   $300
C)   $250
D)   $200
E)   0F) A) and B)
G) A) and C)

Question 13

To which of the following loans does the Truth-in Lending Act apply?

Accepted Answer

A)   Loans to a natural person
B)   Loans to a natural person and to a limited partnerships
C)   Loans to a natural person, loans to a limited partnership, and loans to a general partnership
D)   Loans to natural person, loans to a limited partnership, loans to a general partnership, and loans to a corporation
E)   All loansF) B) and D)
G) A) and D)

Question 14

State consumer protection laws prohibiting used-car fraud may be known as ______ laws.

Accepted Answer

A)   Orange
B)   Prune
C)   Lemon
D)   Onion
E)   LimeF) A) and B)
G) A) and E)

Question 15

What type of loan was Kathy seeking from ABC Bank?

Accepted Answer

A)   An open-end credit line
B)   A closed-end credit line
C)   An approved line
D)   A line of credit
E)   A direct lineF) None of the above
G) B) and C)

Question 16

For how long does registration on the Federal Trade Commission's "Do Not Call" registry last?

Accepted Answer

A)   Two years
B)   Three years
C)   Four years
D)   Five years
E)   There is no set expiration dateF) A) and E)
G) C) and D)

Question 17

Which of the following conducts investigations into the safety of motor vehicles?

Accepted Answer

A)   The Vehicle Investigation Commission
B)   The Vehicle Safety Administration
C)   The National Highway Safety Administration
D)   The Motorized Safety Administration
E)   The Transportation Safety CommissionF) C) and D)
G) B) and D)

Question 18

Under the Equal Credit Opportunity Act,creditors may require that a spouse cosign a loan application regardless of the credit worthiness of the applicant.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the only authorized site for government-required free credit reports from the three major reporting agencies?

Accepted Answer

A)   AnnualCreditReport.com
B)   FreeReport.com
C)   AnnualCredit.edu
D)   GovCredit.gov
E)   KnowRights.orgF) B) and C)
G) A) and E) A

Question 20

Which of the following is true regarding Fred's tactic of offering one flat price for funeral services with no itemization?

Accepted Answer

A)   Federal law does not prohibit that practice.
B)   That practice is prohibited under federal law in funeral home situations.
C)   That practice is prohibited under federal law in all situations involving a mix of goods and services.
D)   That practice is prohibited under federal law in all situations involving a mix of goods and services costing $5,000 or more.
E)   That practice is prohibited by federal law unless consumers receive a 10% discount as compared to the average price of funeral services in his state.F) A) and B)
G) A) and D)

Exam 45: Consumer Law

Which of the following governs the issuance of credit reports?

Correct AnswerverifiedShow Answer

Which of the following is the agency responsible for enforcing the Federal Food,Drug,and Cosmetic Act?

Correct AnswerverifiedShow Answer

Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

Correct AnswerverifiedE

Which of the following is not a federal law regulating product labeling?

Correct AnswerverifiedShow Answer

What type of agency is the Federal Trade Commission?

Correct AnswerverifiedShow Answer

A consumer law is a statute or administrative rule serving to protect consumer interests.

Correct AnswerverifiedTrue

Which of the following was the result at the Supreme Court level in Food and Drug Administration v.Brown & Williamson Tobacco Corporation,the case in the text involving whether the Federal Food,Drug,and Cosmetic Act (FFDCA) authorized the Food and Drug Administration (FDA) to regulate tobacco?

Correct AnswerverifiedShow Answer

Which of the following does the Federal Trade Commission require if a company wishes to claim that its products are "Made in the U.S.A."?

Correct AnswerverifiedShow Answer

If a person notifies the credit card company of a stolen card before unauthorized charges are made,for how much can the person be held liable to the credit card company?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services?

Correct AnswerverifiedShow Answer

If a credit card company sends a person an unsolicited card in the mail and the card is stolen,for how much can the person be held liable to the credit card company?

Correct AnswerverifiedShow Answer

To which of the following loans does the Truth-in Lending Act apply?

Correct AnswerverifiedShow Answer

State consumer protection laws prohibiting used-car fraud may be known as ______ laws.

Correct AnswerverifiedShow Answer

What type of loan was Kathy seeking from ABC Bank?

Correct AnswerverifiedShow Answer

For how long does registration on the Federal Trade Commission's "Do Not Call" registry last?

Correct AnswerverifiedShow Answer

Which of the following conducts investigations into the safety of motor vehicles?

Correct AnswerverifiedShow Answer

Under the Equal Credit Opportunity Act,creditors may require that a spouse cosign a loan application regardless of the credit worthiness of the applicant.

Correct AnswerverifiedShow Answer

Which of the following is the only authorized site for government-required free credit reports from the three major reporting agencies?

Correct AnswerverifiedA

Which of the following is true regarding Fred's tactic of offering one flat price for funeral services with no itemization?

Correct AnswerverifiedShow Answer

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