Consumer law (chp 13) True/False

A credit-card company must send monthly bills to cardholders twenty-one days before the due date

True

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

True

Any time a consumer is denied credit or insurance on the basis of his or her credit report, the consumer must be notified of that fact.

True

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim

True

In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed

True

Package labels must use words that the ordinary consumer understands

True

A credit collection agency may contact a debtor at any time

False

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.

False

Ads can be unfair but not deceptive.

False

Credit can be denied on the basis of marital status.

False

Credit can be denied on the basis of race.

False

Creditors attempting to collect debts are generally considered to be debt-collection agencies

False

The Federal Trade Commission carries out the broadly stated goal of preventing unfair and deceptive trade practices

True

The Food and Drug Administration must ensure the safety of new drugs

True

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

True

Vague generalities and obvious exaggerations are permissible in advertising.

True