blaw ch25
According to the Truth in Lending Act, if your credit card is stolen and someone makes unauthorized purchases on your account, your liability for those charges cannot exceed ______ per card if prompt notification of the theft is made to the credit card company.
$50
Which of the following are true about the impact of the repealing of Internet privacy rules established by the Federal Communications Commission in 2016? (Check all that apply.)
- Internet service providers can sell data to online advertising agencies. - Internet service providers may continue to collect data like geolocation, browsing history, and other important personal information.
Pursuant to the Interstate Land Sales Full Disclosure Act, anyone planning to sell or lease ______ or more lots of unimproved land through a common ______ must file an initial statement of record with ______ Office of Interstate Land Sales Registration.
100; promotional plan; Department of Housing and Urban Development's
According to the Fair and Accurate Credit Transactions Act, major credit reporting agencies are required to provide consumers with a free copy of their credit reports every ______.
12 months
Congress created the Federal Trade Commission in _____.
1914
In which year was the Public Health Cigarette Smoking Act passed?
1970
In ______, Congress passed the Equal Credit Opportunity Act as an amendment to the ______.
1974; Truth in Lending Act
In which year was the Smokeless Tobacco Health Education Act passed?
1986
In which year was the Telemarketing and Consumer Fraud and Abuse Prevention Act passed?
1994
In which year was the Can-Spam Act passed?
2003
According to the Mail or Telephone Order Merchandise Rule of 1993, if a seller does not specify a time for shipping an order, the seller is limited to ______ from receipt of the order.
30 days
The Consumer Leasing Act (CLA) applies to those who lease goods as part of their regular business. For CLA to apply, the lease must be for a minimum of ______ and the price must not exceed ______.
4 months; $25,000
Section ______ of the Federal Trade Commission Act prohibits unfair and deceptive acts in commercial settings, including consumer purchases.
5
Once a telephone number is registered on the Do Not Call registry, for how long does the registration last?
5 years
______ is information that is true but is not complete.
A half-truth
The Fair and ______ Credit Transactions Act was passed in response to the growing number of ______ cases.
Accurate; identity-theft
The ______ Act states that spammers may not send e-mail messages containing false information or provide consumers with no option concerning whether they receive messages in the future.
Can-Spam
According to the Truth in Lending Act, if your credit card is stolen and someone makes unauthorized purchases on your account, your liability for those charges cannot exceed ______ per card if prompt notification of the theft is made to the credit card company.
Compared to fraud in traditional consumer purchase transactions, it is relatively easy to prosecute online fraud.
Which of the following is an incorrect statement regarding consumer protection laws and online sales?
Compared to fraud in traditional consumer purchase transactions, it is relatively easy to prosecute online fraud.
A consumer owes $3,000 on his credit card and has not made monthly payments for six months. The case is referred to a collection agency. Next, the agency contacts the consumer's acquaintances, telling them about the consumer's debt in an effort to pressure the consumer into paying the debt. This type of debt-collecting behavior is prohibited by the ______.
Fair Debt Collection Practices Act
In his first 100 days, President Donald Trump signed a bill that repealed Internet privacy rules established by the _____ in 2016.
Federal Communications Commission
A cease-and-desist order is a ______ order requiring that a company stop its illegal behavior.
Federal Trade Commission
If the ______ finds that deception is pervasive in an industry, it can recommend rule-making.
Federal Trade Commission
The U.S. Congress amended the Pure Food and Drugs Act when it created the Federal ______ Act in 1938.
Food, Drug, and Cosmetic Act
Which of the following is an accurate statement regarding the Federal Trade Commission (FTC) and the consumer protection laws related to funeral home services?
Funeral homes may not require customers to buy certain funeral goods and services as a condition for receiving other funeral goods and services.
______ is the use of generalities and clear exaggerations in advertising.
Puffing
According to the Postal ______ Act, any unsolicited merchandise sent by mail is free to be used by a recipient as he or she sees fit with no obligation by the recipient to the sender.
Reorganization
The ______ forbids phone solicitation using an automatic telephone dialing system or a prerecorded voice and also makes it illegal to transmit advertisements by fax unless the recipient agrees to the fax transmission.
Telephone Consumer Protection Act
Which of the following is an inaccurate statement regarding the Fair Credit Billing Act (FCBA)?
The FCBA is enforced by the Interstate Commerce Commission.
Which statement regarding the Federal Trade Commission (FTC) and the consumer protection laws related to funeral home services is inaccurate?
The FTC does not regulate the funeral home industry as it does not perceive this area of commerce as being ripe for consumer manipulation and abuse.
Federal laws regulating the credit industry to protect consumers include all but which of the following?
The Federal Hazardous Substances Act
Federal laws regulating the credit industry to protect consumers include all but which of the following?
The Interstate Land Sales Full Disclosure Act
According to the Truth in Lending Act, if a consumer unknowingly purchases a damaged good using a credit card, the consumer is not obligated to pay for the good if all but which of the following requirements are met?
The item was purchased for commercial purposes.
The Mail or Telephone Order Merchandise Rule of 1993 established all but which of the following key guidelines regarding mail and telephone orders?
The seller must pay the total cost of shipping and handling associated with a mail or telephone order.
The three major credit reporting agencies are Experian, Equifax and ________.
Transunion
In 1988, the Consumer Leasing Act amended the ______ to provide greater protection for people leasing automobiles and other goods.
Truth in Lending Act
The Federal Reserve Board of Governors has the power to govern credit provisions related to sales contracts through its Regulation ______.
Z
The Fair Debt Collection Practices Act applies to ______.
a debt collector who regularly attempts to collect debts on behalf of others
The Fair Credit Reporting Act imposes a duty on credit reporting agencies to ensure ______.
accurate credit reporting
The Credit Card Fraud Act states that it is unlawful to possess ______ credit card.
an unauthorized
Under the 1984 Used Motor Vehicle Registration Rule, a dealer must attach a buyer's guide label to any used car he or she is attempting to sell. The label must state that the car is being sold ______.
as is
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, they are engaging in ______ advertising.
bait-and-switch
According to the Cooling-Off Rule, how must a salesperson notify the consumer that a sales transaction may be canceled?
both verbally and in writing
Which of the following is not a way in which the Consumer Product Safety Commission protects the public from injuries associated with consumer products?
by nationalizing the production processes of potentially dangerous consumer products
A multiple-product order is a form of ______ that applies not only to the product that was the subject of the action, but also to other products produced by the same firm.
cease-and-desist order
If an administrative law judge decides that a company has violated the law, the Federal Trade Commission issues a(n) ______ requiring the company to stop the illegal behavior.
cease-and-desist order
A ______ is a statement in which a company agrees to stop disputed behavior but does not admit that it broke the law.
consent order
A ______ law is a statute or administrative rule serving to protect consumer interests.
consumer
Which method does the Federal Trade Commission use to meet its goal of protecting consumers?
consumer education
Which of the following is not a collection behavior expressly prohibited by the Fair Debt Collection Practices Act?
contacting a debtor between 8 a.m. and 9 p.m.
With ______ advertising, a company explicitly states that formerly advertised claims were untrue.
corrective
Corrective advertising is also known as ______.
counteradvertising
A half-truth ______.
deceives the consumer
A consumer law is ______.
either a statute or an administrative rule
The wool Products Labeling Act of 1939 is a ______ law.
federal
In response to ______ discrimination, Congress passed the Equal Credit Opportunity Act.
gender
According to the Postal Reorganization Act of 1970, anyone who receives unsolicited merchandise may treat the item as a(n) ______.
gift
The Truth in Lending Act includes all but which of the following categories of loans?
gift card rewards points
The Federal Trade Commission's industry ______ are interpretations of consumer laws designed to encourage businesses to stop unlawful behavior.
guides
Which of the following is not required of telemarketers pursuant to the Telemarketing Sales Rule of 1995?
informing a consumer of the total projected profit generated from the potential sale
An administrative rule has the effect of ______.
law
Which of the following is a method the Federal Trade Commission uses to meet its goal of protecting consumers?
legal action
Bait-and-switch advertising is a deceptive practice in which a seller advertises a ______ price for an item, generally ______ to the consumer, and then pushes the consumer to buy a ______ expensive item.
low; unavailable; more
In order to prove a deceptive claim, the evidence must indicate a(n) ______ misrepresentation, omission, or practice.
material
The Real Estate Settlement Procedures Act requires the disclosure of information regarding ______ loans to buyers.
mortgage
If a company violates a consent order, it will usually be forced to ______.
pay a fine
Puffing is ______.
permissible
The Federal Trade Commission is an independent federal agency with five commissioners appointed by the ______ and confirmed by the ______.
president; Senate
What advertisements are restricted by the Smokeless Tobacco Health Education Act?
radio and television advertisements
The Public Health Cigarette Smoking Act prohibits ______ and ______ cigarette advertisements.
radio; television
Deceptive advertising is the practice of advertising with claims that mislead or could mislead a(n) ______ consumer.
reasonable
In order to prove a deceptive claim, the evidence must indicate a material misrepresentation, omission, or practice that is likely to mislead a(n) ______ consumer.
reasonable
Each commissioner on the Federal Trade Commission serves a ______-year term.
seven
Which of the following is not required of telemarketers pursuant to the Telemarketing Sales Rule of 1995?
subjecting a customer to a "bait-and-switch" purchase
Ad ______ is a standard requiring advertisers to have a reasonable basis for the claims made in their advertisements.
substantiation
Which of the following is one of the primary federal statutes that address product safety?
the Consumer Product Safety Act
Which federal administrative agency was created by the Consumer Product Safety Act of 1972?
the Consumer Product Safety Commission
Which law simplifies the Food and Drug Administration's process of approving generic drugs?
the Drug-Price Competition and Patent-Term Restoration Act
Which federal administrative agency enforces the Telephone Consumer Protection Act?
the Federal Communications Commission
Which law amended the Pure Food and Drugs Act?
the Federal Food, Drug, and Cosmetic Act
Which of the following is one of the primary federal statutes that address product safety?
the Federal Food, Drug, and Cosmetic Act
By virtue of the Telemarketing and Consumer Fraud and Abuse Prevention Act, Congress asked which federal administrative agency to define "deceptive and abusive" telemarketing practices and required the agency to create and enforce rules governing telemarketing that would prohibit such practices?
the Federal Trade Commission
In 1994, which federal administrative agency issued a statement saying it would apply the food labeling restrictions of the Nutrition Labeling and Education Act of 1990 to food advertising to prevent deceptive advertising?
the Federal Trade Commission
Which federal administrative agency created the Do Not Call registry?
the Federal Trade Commission
Which federal administrative agency creates industry guides, interpretations of consumer laws, to encourage businesses to stop unlawful behavior?
the Federal Trade Commission
Which federal administrative agency enforces the Fair Credit Billing Act?
the Federal Trade Commission
Which federal administrative agency extended the protection of the Odometer Act of 1973 through the 1984 Used Motor Vehicle Registration Rule?
the Federal Trade Commission
Which federal administrative agency issues a multiple-product order?
the Federal Trade Commission
Which federal administrative agency requires ad substantiation?
the Federal Trade Commission
Which federal law requires standard nutrition information, such as calories and fat, to be provided on food labels?
the Nutrition Labeling and Education Act
Which federal administrative agency is responsible for administering the Federal Food, Drug, and Cosmetic Act?
the U.S. Food and Drug Administration
According to the Truth in Lending Act, credit card applications and solicitations must include all but which of the following?
the credit card company's statement of financial standing
With regard to door-to-door sales, the Federal Trade Commission created the Cooling-Off Rule, giving consumers ______ days to cancel purchases they make from salespeople who come to their homes.
three
The Credit Card Fraud Act states that it is unlawful to use the account number of another's credit card ______.
to perpetrate fraud
The Federal Trade Commission (FTC) has created rules that govern specific types of sales in which the consumer is in a more vulnerable position compared to a consumer who walks into a traditional retail setting. Types of sales with special FTC rules include all but which of the following?
yard