543/ACC wk 6
FACTA requires that financial institutions must work with the FTC to:
"red-flag" suspicious transactions that might be a sign of identity theft
How many members are there in the WTO?
164
When the Federal Trade Commission (FTC) receives numerous complaints about a business, this results in an FTC action against the business. From first to last, arrange the steps involved in the FTC action.
1`0114. The FTC starts a nonpublic investigation on the company. 2. If the FTC Believes that the company violated the law, the FTC sends a complaint to the alleged violator. 3. If the alleged violator refuses to enter a consent order, the FTC may decide to issue a formal administrative complaint.4. There is a hearing before an administrative law judge. 05. If the judge finds the company guilty, the FTC issues a cease-and-desist order.
If a telemarketer violates the TCPA, the consumer can recover either monetary losses or $ ___ per violation
500
The WTO provides what benefit for its members?
A forum for future trade negotiations and the settlement of international trade disputes
An administrative rule has the effect of which of the following?
A law
Which of the following are elements of a deceptive advertising claim?
A material misrepresentation, omission, or practice A reasonable consumer Likely to mislead
Which of the following is not an example of a nontariff barrier?
An ad valorem tariff
Which of the following is a method disputing parties can use to resolve an international transaction issue?
Arbitration
Which of the following is true about the arbitration process?
Arbitration is a type of ADR (Alternative Dispute Resolution). Arbitration is officiated by a private nonofficial person.
Which of the following is not a way to calculate tariffs?
Based on a direct vote of the state's population through referendum
The agency that can arrange for recalls of products for safety reasons is the: ____
CPSC
What is the most common legal system in the world?
Civil law system
What serves as the sole official source of law in a civil law system?
Codes
___ law allows individuals to understand the general purposes of law and have a more critical view of their own laws.
Comparative
Which of the following behaviors are prohibited by the Fair Debt Collection Practices Act (FDCPA)?
Contacting a debtor at work if the debtor's employer objects Misrepresenting the collection agency as a lawyer or a police officer Contacting a debtor who has notified the collection agency that he or she wants no contact with the agency Using obscene or threatening language when communicating with the debtor
What are examples of countries that use the Socialist Legal System?
Cuba North Korea
What is the first step in litigation?
Determine whether the selected court has jurisdiction.
If a judge in a common law system cannot find precedent to a legal matter in front of him or her, what can that judge do?
In the absence of precedence, the judge can create his or her own law.
___ law governs the conduct of states and organizations and their relationships with one another and with natural and judicial persons.
International
When consumers file complaints about a business with the FTC, those complaints trigger a chain of events leading to:
an FTC action against the violator
A type of alternative dispute resolution by private, nonofficial persons selected in a manner provided by law or the agreement of parties is known as ___
arbitration
When Sam, a laptop seller, advertises a low price for a specific range of laptops that are generally unavailable to the customer and then pushes the customer to buy a more expensive laptop, Sam is engaging in
bait-and-switch
The Fair Credit Billing Act of 1986 was created to handle
billing errors in credit card statements
The 1984 Used Motor Vehicle Registration Rule requires that a dealer attach a(n):
buyer's guide label to any used car he or she is attempting to sell
The United States Congress passed the Credit Card Fraud Act to:
close existing loopholes in federal laws that allowed credit card fraud to be pervasive
In a(n) law system, the courts develop rules governing areas of law.
common
The purpose of the Truth in Lending Act is to require that sellers disclose the terms of the credit or loan to help consumers
compare a variety of credit lines or loans
The purpose of the Truth in Lending Act is to require that sellers disclose the terms of the credit or loan to help consumers: ___
compare a variety of credit lines or loans
One problem with door-to-door sales is that the consumer does not have a chance to ___
compare products and services to find the best service for his or her money
The FTC educates businesses to help them
comply voluntarily with consumer laws
A statute or administrative rule serving to protect consumer interests in known as a(n)
consumer
A consumer law is a statute or administrative rule serving to protect
consumer interests
The Fair Credit Reporting Act of 1970 was passed to
ensure accurate credit reporting
The Fair Lending Act is a key federal law regulating the credit industry.
false Reason: There are three key federal laws regulating the credit industry to protect consumers: The Truth in Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.
Under the CARD Act, contractual agreements must be made with clients if
fees and interest rates are to be charged at all
The United States Food and Drug Administration (FDA) creates standards to regulate: ___
food, drugs, cosmetics, and medical devices
International law governs the conduct of ___
foreign states and organizations
The term for the entity or person that is granted a license to operate and sell goods in a foreign state by a franchise agreement is a(n): ___
franchisee
Under FACTA, major credit reporting agencies are now required to provide consumers with a(n):
free copy of their credit report every 12 months
The first step in litigation is determining whether the selected court
has jurisdiction
If a credit bureau issues a consumer credit report for a reason not specified by the FCRA, it may be:
held liable for damages and additional fines
Tariffs are taxes that are placed on ___
imported goods
Under the 1984 Used Motor Vehicle Registration Rule, the label that a dealer must attach to a used-car vehicle must say that the vehicle:
is being sold "as is"
The FTC creates campaigns to educate consumers about
laws that protect them
The FTC creates campaigns to educate consumers about:
laws that protect them
A potential source of contract law, the ___ ___ is the body of customs or trade usages merchants developed to facilitate business transactions.
lex mercatoria
GATT is a multilateral trading system that seeks to achieve distortion-free international trade by
minimizing tariffs and removing artificial barriers
The FTC created the 1975 Mail Order Rule and the Mail or Telephone Order Merchandise Rule of 1993 because telephone and mail-order purchases trigger:
more complaints than do traditional retail or door-to-door sales
A(n) ___ order applies not only to the product that was the subject of the action, but also to other products of the same firm.
multiple-product
If the FTC takes action against a company and proves the advertising is deceptive, the FTC may issue a form of cease-and-desist order known as a(n):
multiple-product order
A franchise agreement empowers the franchisee to utilize the
name, trademark and copyright of the company in a foreign state
The second provision of the CARD Act covers
notification and information
The second provision of the CARD Act covers ___
notification and information
The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from ___
offering bribes to foreign individuals or entities in order to obtain or keep business contracts
The FTC decides whether an advertisement is deceptive
on a case-by-case basis
The Fair Debt Collection Practices Act applies to debt collectors who regularly attempt to collect debts:
on behalf of others
The Mail or Telephone Order Merchandise Rule of 1993 extended protections to consumers who purchase goods over:
phone lines, including through computers and fax machines
The TCPA forbids phone solicitation using an automatic telephone dialing system or a(n):
prerecorded voice
The Federal Food, Drug, and Cosmetic Act and the Consumer Product Safety Act are the two main statutes that address ___ safety
product or products
The Nutrition Labeling and Education Act of 1990 requires that standard nutrition information (calories and fat) be:
provided on food labels
The CPSC can arrange for the ___________ of products in the market.
recalls
In a socialist legal system, the rights of ___ outweigh the rights of the individual.
society as a whole
The Smokeless Tobacco Act prohibits ___ tobacco
television and radio advertisements for smokeless
The Smokeless Tobacco Act prohibits ___ tobacco.
television and radio advertisements for smokeless
What does the acronym "FCPA" stand for?
the Foreign Corrupt Practices Act
Lex mercatoria means:
the law of merchants.
A difficulty with door-to-door sales is that the consumer finds it difficult to get away from
the salesperson
The Credit Card Fraud Act states that it is unlawful to: ___
use account numbers of another's credit card to perpetuate fraud counterfeit or alter a credit card possess an unauthorized credit card
A nontariff barrier is any impediment to trade other than tariffs.
True Reason: A nontariff barrier is any impediment to trade other than tariffs
A nontariff barrier is any impediment to trade other than tariffs.
True Reason: A nontariff barrier is any impediment to trade other than tariffs.
What are the benefits of comparative law?
We gain a better understanding of the general purpose of law by studying other legal systems. The laws encountered while studying other countries' laws will likely be different, and thus educational. We better develop a critical viewpoint of our own legal system.
Bait-and-switch advertising occurs when sellers
advertise a low price for an item generally unavailable to the consumer and then push the consumer to buy a more expensive item
The requirements for the second provision of the CARD Act specifies that
all billing statements must conspicuously display if and when the interest rate will increase creditors must notify consumers about payoff timing creditors must inform consumers up front about the dates on which payments are considered to be late
The two main ___ statutes that address product safety are the Federal Food, Drug and Cosmetic Act and the Consumer Product Safety Act.
Federal
The entity that has the power to govern credit provisions related to sales contracts through its Regulation Z is the
Federal Reserve Board of Governors
The TILA is administered, in part, by the ___ through Regulation ---
Federal Reserve Board; Z
The TILA is administered, in part, by the ___ through Regulation ___
Federal Reserve Board; Z
The Fair Credit Billing Act (FCBA) of 1986 is enforced by the
Federal Trade Commission (FTC)
Which of the following was not a change brought about by the United States-Mexico-Canada Agreement?
Free and fair elections in all countries participating in the agreement
The acronym GATT stands for
General Agreement on Tariffs and Trade
In what ways can disputing parties resolve an issue relating to an international transaction?
Negotiation, mediation, or conciliation Litigation or arbitration
The Federal Reserve Board of Governors has the power to govern credit provisions related to sales contracts through its
Regulation Z
If the FTC finds that deception is pervasive in an industry, the FTC can recommend which of the following?
Rule making
What is the process of selection of the individual who presides over an arbitration?
Selection is provided typically through written arbitration agreement of the parties or through standard laws for arbitration process.
The first provision of the CARD Act mandates the adjustment of four credit practices, the first being that creditors are required to notify consumers of changes to
The Fair Credit Reporting Act The Fair Debt Collection Practices Act The Truth in Lending Act
Identify the three key federal laws regulating the credit industry to protect consumers.
The Fair Debt Collection Practices Act The Truth in Lending Act The Fair Credit Reporting Act
Several federal laws regulate product labeling. Identify them
The Flammable Fabrics Act of 1953 The Wool Products Labeling Act of 1939
What was the precursor to the United States-Mexico-Canada Agreement (USMCA)?
The North American Free Trade Agreement
Which of the following prohibits radio and television cigarette advertisements?
The Public Health Cigarette Smoking Act
Which of the following was the first federal legislation regulating food and drugs?
The Pure Food and Drugs Act
