Question 1

Federal Trade Commission regulations outlaw ads that exert a moral pressure to purchase a product or service.

Accepted Answer

A) True 
 B)False

Question 2

How does NAFTA define "Made in the U.S.A."?

Accepted Answer

A)   As a product for which at least 55 percent of the labor and components are from Canada, Mexico, or the United States.
B)   As a product for which "all or virtually all" of the components and labor are of U.S. origin.
C)   As a product for which at least 50 percent of the components and labor are of U.S. origin.
D)   As a product for which at least 75 percent of the components and labor are of U.S. origin.
E)   As a product for which at least 75 percent of the components and labor are of from Canada, Mexico, or the United States.F) B) and E)
G) None of the above

Question 3

In order to come within the scope of the Truth-in-Lending Act,a loan must be in the amount of ______ unless it is secured by a mortgage on real estate.

Accepted Answer

A)   $50,000 or more
B)   $50,000 or less
C)   $30,000 or more
D)   $40,000 or less
E)   $25,000 or lessF) None of the above
G) B) and D)

Question 4

The Federal Trade Commission has _____ commissioners each of whom serves a ______-year term.

Accepted Answer

A)   5; 7
B)   7; 3
C)   9; 4
D)   8; 5
E)   3; 4F) B) and E)
G) A) and C)

Question 5

Which of the following are interpretations of consumer laws created by the Federal Trade Commission to encourage businesses to stop unlawful behavior?

Accepted Answer

A)   Consumer guides
B)   Consumer recommendations
C)   Industry interpretations
D)   Industry guides
E)   Business requirementsF) A) and B)
G) B) and E)

Question 6

Which of the following is true regarding the obligation,if any,of a consumer who discovers that a company has sent the consumer unsolicited merchandise through the U.S.mail?

Accepted Answer

A)   The consumer may treat the merchandise as a gift.
B)   The consumer may only treat the merchandise as a gift if it has a value of under $25; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
C)   The consumer may only treat the merchandise as a gift if it has a value of under $50; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
D)   The consumer may only treat the merchandise as a gift if it has a value of under $100; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
E)   The consumer must return the merchandise.F) B) and C)
G) None of the above

Question 7

Which of the following is the term for the order issued by the Federal Trade Commission ordering that Katie stop advertising and selling the pills?

Accepted Answer

A)   A stop gap order
B)   An approved order
C)   An agency acknowledged order
D)   An agency requirements order
E)   A cease-and-desist orderF) All of the above
G) C) and E)

Question 8

Mona markets a bell that she claims will automatically quiet a crying baby.Mona advertises on television that the bell has a certain tone that babies love and shows a baby suddenly stop crying when the bell is rung.She charges $50 for each bell for which she incurs $1 in manufacturing charges.The bell was very popular for a few months,but she has started to get complaints; and the Federal Trade Commission has investigated her advertisement regarding the bell.Mona claims that her advertisement is not deceptive.The Federal Trade Commission,however,claims that her advertisement satisfies the three elements necessary for a deceptive claim.What are those three elements?

Accepted Answer

The three elements of deceptiv...

Question 9

Which of the following is not expressly prohibited by the Fair Debt Collection Practices Act?

Accepted Answer

A)   Using obscene language toward a customer.
B)   Contacting a debtor who has notified the collection agency that he or she wants no contact with the agency.
C)   Contacting the debtor after 8 p.m.
D)   Contacting the debtor before 8 a.m.
E)   Misrepresenting the collection agency as a lawyer or a police officer.F) A) and D)
G) A) and E)

Question 10

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Accepted Answer

There are three guidelines.First,sellers...

Question 11

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ____.

Accepted Answer

A)   Three years
B)   Two years
C)   18 months
D)   12 months
E)   6 monthsF) B) and D)
G) A) and E)

Question 12

Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind,but also his sales of all other vehicles?

Accepted Answer

A)   A multiple cease-and-desist order
B)   A multiple-product order
C)   A combined order
D)   A superlative order
E)   An exceptional orderF) D) and E)
G) A) and E)

Question 13

Which of the following is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law?

Accepted Answer

A)   Agreed stoppage
B)   Command order
C)   Consent order
D)   Agreed order
E)   Approved acknowledgementF) A) and C)
G) A) and D)

Question 14

What kind of objectionable advertising,if any,was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

Accepted Answer

A)   Advertise-and-deny
B)   Claim-and-refuse
C)   Bait-and-switch
D)   Ad trickery
E)   He was not engaged in any objectionable advertising so long as he had at least one vehicle in stock at a price of $10,000.F) C) and D)
G) C) and E)

Question 15

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ____.

Accepted Answer

A)   Race, religion, national origin, color, sex, marital status, or age
B)   Race, national origin, color, sex, marital status, or age
C)   Race, religion, national origin, color, sex, or age
D)   Race, religion, national origin, color, or sex
E)   Race, religion, color, sex, marital status, or ageF) C) and E)
G) A) and D)

Question 16

Which of the following is false regarding the Consumer Product Safety Act?

Accepted Answer

A)   It enforces mandatory standards regarding product safety.
B)   It usually issues product recalls on its own without the involvement of the companies involved.
C)   It conducts research regarding potentially hazardous products.
D)   It educates consumers about product safety.
E)   It can ban consumer products from the market.F) B) and D)
G) D) and E)

Question 17

How can the Federal Trade Commission protect consumers if most companies within one industry are using the same unfair or deceptive practices?

Accepted Answer

When most companies within one industry ...

Question 18

The Can-Spam Act prohibits sending consumers e-mail messages with no option concerning whether they receive messages in the future.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following was the result on appeal in Gotlin v.Lederman,the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment,Fractionated Stereotactic Radiosurgery (FSR) ,in violation of New York's consumer protection law?

Accepted Answer

A)   The court ruled that plaintiff was unable to recover because there was no evidence of deceptive statements made on the part of the defendants.
B)   The court ruled that the plaintiff was unable to recover because the consumer protection law at issue did not apply to the provision of medical services.
C)   The court ruled that the plaintiff was unable to recover because of the absence of expert medical testimony establishing that the treatment was ineffective.
D)   The court ruled that as a matter of law the plaintiff was entitled to recover because evidence indicating the ineffectiveness of the treatment was presented.
E)   The court ruled that the case was wrongfully dismissed prior to trial because issues of material fact were presented regarding the plaintiff's injuries and whether the marketing of the treatment was deceptive treatment.F) A) and C)
G) C) and D)

Question 20

Which of the following is false regarding the regulation of tobacco?

Accepted Answer

A)   Congress has given the FDA authority to regulate tobacco use.
B)   The Public Health Cigarette Smoking Act prohibits radio cigarette advertisements.
C)   The Public Health Cigarette Smoking Act prohibits television cigarette advertisements.
D)   The Smokeless Tobacco Act prohibits radio cigarette advertisements.
E)   The Smokeless Tobacco Act prohibits television cigarette advertisements.F) None of the above
G) A) and C)

Exam 45: Consumer Law

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ____.

Correct Answer
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How can the Federal Trade Commission protect consumers if most companies within one industry are using the same unfair or deceptive practices?

Correct Answer
verified
When most companies within one industry ...
View Answer

Correct Answer
verified
The three elements of deceptiv...
View Answer

Which of the following is false regarding the regulation of tobacco?

Correct Answer
verified

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Correct Answer
verified
There are three guidelines.First,sellers...
View Answer

What kind of objectionable advertising,if any,was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

Correct Answer
verified

The Federal Trade Commission has _ commissioners each of whom serves a __-year term.

Correct Answer
verified

Which of the following is false regarding the Consumer Product Safety Act?

Correct Answer
verified

Which of the following was the result on appeal in Gotlin v.Lederman,the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment,Fractionated Stereotactic Radiosurgery (FSR) ,in violation of New York's consumer protection law?

Correct Answer
verified

Which of the following is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law?

Correct Answer
verified

Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind,but also his sales of all other vehicles?

Correct Answer
verified

Which of the following is not expressly prohibited by the Fair Debt Collection Practices Act?

Correct Answer
verified

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ____.

Correct Answer
verified

Federal Trade Commission regulations outlaw ads that exert a moral pressure to purchase a product or service.

Correct Answer
verified

How does NAFTA define "Made in the U.S.A."?

Correct Answer
verified

In order to come within the scope of the Truth-in-Lending Act,a loan must be in the amount of ______ unless it is secured by a mortgage on real estate.

Correct Answer
verified

The Can-Spam Act prohibits sending consumers e-mail messages with no option concerning whether they receive messages in the future.

Correct Answer
verified

Which of the following is true regarding the obligation,if any,of a consumer who discovers that a company has sent the consumer unsolicited merchandise through the U.S.mail?

Correct Answer
verified

Which of the following is the term for the order issued by the Federal Trade Commission ordering that Katie stop advertising and selling the pills?

Correct Answer
verified

Which of the following are interpretations of consumer laws created by the Federal Trade Commission to encourage businesses to stop unlawful behavior?

Correct Answer
verified

Exam 45: Consumer Law

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ____.

Correct AnswerverifiedShow Answer

How can the Federal Trade Commission protect consumers if most companies within one industry are using the same unfair or deceptive practices?

Correct AnswerverifiedWhen most companies within one industry ...View AnswerShow Answer

Correct AnswerverifiedThe three elements of deceptiv...View AnswerShow Answer

Which of the following is false regarding the regulation of tobacco?

Correct AnswerverifiedShow Answer

What is required by federal law in regard to mail-order sales by the 1975 Mail-Order rule as amended by the Mail or Telephone Order Merchandise rule of 1993?

Correct AnswerverifiedThere are three guidelines.First,sellers...View AnswerShow Answer

What kind of objectionable advertising,if any,was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

Correct AnswerverifiedShow Answer

The Federal Trade Commission has _____ commissioners each of whom serves a ______-year term.

Correct AnswerverifiedShow Answer

Which of the following is false regarding the Consumer Product Safety Act?

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in Gotlin v.Lederman,the case in the text involving whether the defendants misrepresented the effectiveness of a particular form of cancer treatment,Fractionated Stereotactic Radiosurgery (FSR) ,in violation of New York's consumer protection law?

Correct AnswerverifiedShow Answer

Which of the following is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law?

Correct AnswerverifiedShow Answer

Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind,but also his sales of all other vehicles?

Correct AnswerverifiedShow Answer

Which of the following is not expressly prohibited by the Fair Debt Collection Practices Act?

Correct AnswerverifiedShow Answer

Major credit reporting agencies are now required to provide consumers with a free copy of their credit reports every ____.

Correct AnswerverifiedShow Answer

Federal Trade Commission regulations outlaw ads that exert a moral pressure to purchase a product or service.

Correct AnswerverifiedShow Answer

How does NAFTA define "Made in the U.S.A."?

Correct AnswerverifiedShow Answer

In order to come within the scope of the Truth-in-Lending Act,a loan must be in the amount of ______ unless it is secured by a mortgage on real estate.

Correct AnswerverifiedShow Answer

The Can-Spam Act prohibits sending consumers e-mail messages with no option concerning whether they receive messages in the future.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the obligation,if any,of a consumer who discovers that a company has sent the consumer unsolicited merchandise through the U.S.mail?

Correct AnswerverifiedShow Answer

Which of the following is the term for the order issued by the Federal Trade Commission ordering that Katie stop advertising and selling the pills?

Correct AnswerverifiedShow Answer

Which of the following are interpretations of consumer laws created by the Federal Trade Commission to encourage businesses to stop unlawful behavior?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
When most companies within one industry ...
View Answer

Correct Answer
verified
The three elements of deceptiv...
View Answer

Correct Answer
verified

Correct Answer
verified
There are three guidelines.First,sellers...
View Answer

Correct Answer
verified

The Federal Trade Commission has _ commissioners each of whom serves a __-year term.

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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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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Correct Answer
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