bus 380 mindtap final

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

. False

A final rule issued through a notice-and-comment rulemaking procedure has binding legal effect

a. unless a court overturns it.

During an administrative hearing, the parties may

all of the choices

Direct Sales Corporation sells products to consumers over the phone, through the mail, and online. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, the firm may be liable for failing to

b. ship orders within the time promised in its ads

To be assured that a court will defer to an administrative agency's interpretation of the law, the agency must

c. meet the formal legal standards for notice-and-comment rulemaking.

Rollo has a credit card from Shopping Cards Inc. To change the terms, Shopping Cards must

d. give Rollo advance notice.

Manufacturing Inc. hires Neri, an accountant, to maintain the company's financial records. Neri does not act negligently or fail to perform any duty but fails to discover that Ollie, the firm's chief finance officer, is embezzling funds from the firm. With respect to the corporation's losses, the accountant is

d. liable only for the amount that occurred after the accountant was hired.

An insured's interest in a life insurance policy is not generally an asset that can be subject to the rights of a judgment creditor.

false

Customarily, an insurance company offers to insure individuals and businesses by advertising for applicants, who can either accept or reject the offer.

false

The Federal Commerce Commission is charged with the goal of preventing unfair and deceptive trade practices.

false

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove

intent to deceive

Dena, an accountant, contracts to perform services for Equipment Maker Inc. Dena acts in good faith and conforms to generally accepted accounting principles but makes an incorrect judgment. Dena is most likely

liable for negligence

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

no federal law

The Securities and Exchange Commission (SEC) wants to review certain documents of Trade Funds Inc. Whether it is permissible for the SEC to request or review the documents depends on whether the documents are

relevant

The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal

trade secrets

Advertising will be deemed deceptive if it includes a claim that omits a material fact about a product.

true

An insurable interest in property need not exist when a policy insuring against its damage or loss is purchased.

true

An insurance company can raise as a defense against payment on a policy any of the defenses that would be valid in an ordinary action on a contract.

true

Because an insurance contract is governed by the principles of contract law, for the contract to be binding, consideration must be given.

true

For a business, comprehensive general liability insurance can protect against liability for physical injuries and for the loss of financial support suffered by a family due to the injuries.

true

The president can limit the power of an administrative agency through the power to appoint its officers.

true

Without an insurable interest, there can be no enforceable insurance contract.

true