L&S Exam 3

True

The Fair Credit Reporting Act gives consumers the right to request the source of any information that is being given out by a credit agency, as well as the identity of anyone who has received the agency's report.

False

The Fair Credit Reporting Act requires that any negative information in a consumer's credit report be deleted, if the consumer requests it.

False

The Fair Credit Reporting Act was enacted in order to give consumers who have been victimized by identify theft some assistance in rebuilding their credit reputation.

False

The Fair Debt Collection Practices Act applies to anyone who attempts to collect a debt.

True

The Fair Debt Collection Practices Act makes it illegal for covered debt collectors to contact the debtor at inconvenient or unusual times.

False

The Fair Debt Collection Practices Act makes it illegal for covered debt collectors to contact the debtor at the debtor's place of employment if other employees at the place of employment object.

False

The Fair Debt Collection Practices Act regulates the conduct of anyone who is attempting to collect a debt.

True

The Fair Packaging and Labeling Act contains legal requirements that labels be accurate and understandable.

False

The Fair Packaging and Labeling Act requires that labels specify where the food in the package originates.

True

The Fair Packaging and Labeling Act sets standards for the partial filling of packages containing food products.

True

The Fair and Accurate Credit Transactions Act helps consumers victimized by identity theft.

True

The Fair and Accurate Credit Transactions Act helps consumers who are victims of identify theft.

True

The Freedom of Information Act requires the federal government to disclose certain records to any person or entity on written request, even if no reason is given for the request.

True

The Government-in-the-Sunshine Act is known as the "open meetings law."

False

The Lanham Act outlaws products that pose an unreasonable risk to consumers.

False

The Lanham Act requires that credit reporting agencies provide a consumer with a free copy of his/her credit report once every 12 months.

True

The Nutrition Labeling and Education Act regulates the use of such terms as "fresh" and "low fat."

False

The Postal Reorganization Act requires that goods which are ordered by mail be shipped on time (during the time period stated), and also that the seller make any refunds that are due to buyers within a certain time period.

False

The President has the legal right to remove members of a federal independent administrative agency at just about any time, for just about any reason.

False

The President has the legal right to remove members of independent regulatory agencies at just about any time, for just about any reason.

False

The President has the power to freeze the enforcement of most federal regulations before the regulations take effect.

False

The Regulatory Flexibility Act provides that Congress may review new federal regulations for at least sixty days before they take effect.

True

The Small Business Regulatory Enforcement Fairness Act allows Congress to review new federal agency regulations for at least 60 days before they take effect.

False

The Small Business Regulatory Enforcement Fairness Act requires federal agencies to sometimes consider a less burdensome alternative to a rule the agency is considering adopting.

True

The Truth in Lending Act does not apply to all lenders.

False

The delegation doctrine, as studied and discussed in Chapter 23, deals with the fact that the U.S. Congress sometimes delegates some of its duties to the state legislatures.

True

The enabling legislation of the Federal Trade Commission says it the agency is to prevent unfair and deceptive trade practices.

True

The enabling legislation of the Federal Trade Commission says the agency is to prevent unfair and deceptive trade practices.

True

The exhaustion doctrine means that a court will not review an agency's action until the party challenging the action first goes through the agency's chain of review.

False

The portion of a debtor's wages that can be garnished is called the exempt portion.

True

There is a requirement that, when a consumer cancels an order, a mail-order merchant issue a refund within a specific period of time.

True

The Consumer Product Safety Commission has power to ban the manufacture and sale of products in the United States.

True

The Consumer Product Safety Commission has the power to prohibit the sale of products that pose an unreasonable risk to consumers.

True

The Equal Credit Opportunity Act does not make it illegal to deny someone credit if the reason for the denial is because the applicant's annual income is too low.

True

The Equal Credit Opportunity Act prohibits denial of credit on the basis of age.

False

The Equal Credit Opportunity Act prohibits denial of credit on the basis of credit history.

True

A sale between two consumers is not subject to the Truth in Lending Act.

True

A multiple product order is when the FTC orders the advertiser to stop false advertising regarding not only with regard to one product/service, but to stop that false advertising for a variety of the advertiser's products/services.

True

A multiple product order requires a firm to cease and desist from false advertising in regard to more than one of its products.

True

A nonmerchant seller does not make a warranty of no infringements.

False

A person who receives unsolicited merchandise in the mail and keeps it without notifying the sender commits mail fraud.

True

A person who receives unsolicited merchandise in the mail is legally allowed to keep it without paying the sender.

True

A consumer is not liable for any unauthorized charges made on a credit card that was improperly issued to the consumer by the credit card company (meaning that the consumer never asked for it) and that the consumer never used.

True

A consumer is not liable for any unauthorized charges made on a credit card that was improperly issued to the consumer by the credit card company and that was never used by the consumer.

True

A counteradvertising order is one that requires a company correct its prior unfair or deceptive advertisement.

False

A creditor of Seller Sally legally repossesses goods from Ben Buyer (who had purchased those goods from Sally). When Ben purchased the goods from Sally, he did not know (nor have reason to know) of the Sally's creditor's lien. Under these circumstances Ben cannot recover from Sally for breach of warranty.

True

A federal agency filed a complaint against Jane Q. Public. She answers the complaint, then a hearing is held before an Administrative Law Judge, who (after the agency hearing) issues an order going against Jane. Her next step would be to appeal to the governing board of the agency.

False

A subpoena ad testificandum is an order to an individual or organization to hand over certain records, papers, or books.

False

A warranty against infringement is a promise by the seller that the product was constructed in a workmanlike manner.

False

A warranty of no infringements is a promise by the seller that s/he owns the goods being sold.

False

A warranty of title cannot be disclaimed.

False

A written disclaimer can negate (exclude) warranties that are express, but not those that are implied.

True

Administrative agencies have adjudicatory powers.

False

Administrative agencies' rules cannot be as binding as statutes passed by Congress.

False

All sellers warrant that the goods they sell are fit for the ordinary purpose for which such goods are sold.

False

An ad that contains a "half truth" - information that is true but incomplete - cannot be held deceptive.

True

An expression of the seller's opinion usually does not create a warranty.

False

An implied warranty of merchantability arises only in sales or leases between two merchants.

False

Ben Buyer orders a pair of shoes from Ace Shoe Store. If it is customary in the shoe store industry that shoe stores polish shoes before they are sold, that custom does not create a warranty.

False

Ben Buyer purchased a new car at a new car dealership. While Ben was driving down the road, the sunroof began opening and closing on its own. After repeated attempts by the dealer to fix the sunroof, it was still doing the same thing. Under these circumstances the seller has violated the warranty of no infringements.

True

Buyer Ben is interested in ordering cookies from Chef Charliss, so Charliss gives Ben a free sample of her chocolate chip cookies. Ben really liked the cookie so he orders a dozen, to be picked up on Friday. Under these circumstances Charliss has made an express warranty.

False

Consumers have a three-day cooling off period in which they can rescind any consumer contract they make

True

Consumers have the legal right to request the source of information that a credit agency is giving out about their credit history, as well as the identity of anyone who has received the agency's report.

False

Counteradvertising is an advertisement that the Federal Trade Commission makes, in order to correct a seller's prior unfair or deceptive advertisement.

True

Course of dealing or trade usage can exclude an implied warranty.

True

Courts generally defer to an agency's findings on facts within the agency's area of expertise.

False

Deceptive advertising occurs if any consumer would be misled by the advertising claim.

False

Each time that a merchant seller sells an item, s/he makes an implied warranty of merchantability and an implied warranty of fitness for a particular purpose.

True

Enabling legislation is the law that creates an administrative agency, and that spells out the agency's powers.

True

Federal law makes it illegal to transmit ads via fax without first obtaining the recipient's permission.

False

Federal law prohibits vague generalities and obvious exaggerations in advertising.

True

Federal law requires merchants to ship items that were ordered by consumers within the time promised, or to notify consumers when orders cannot be shipped on time.

True

Federal law requires that telemarketers identify the seller's name, describe and product being sold, and disclose all material facts.

True

Goods can be merchantable but unfit for a particular purpose.

True

If buyer inspects a good s/he is interested in buying, but does that inspection in a hurried, non-reasonable way, that results in seller not being liable for defects in the goods that the buyer should have discovered on his/her own.

True

If during negotiations a seller makes a statement of fact about the goods offered for sale, that the buyer reasonably relies on, that can create an express warranty

False

If the ruling of the governing board of the agency goes against a party that is opposing an agency action/decision, the next step for the party to take would be have a hearing before the administrative law judge.

True

In bait-and-switch advertising, retailers systematically advertise merchandise at low prices to get customers into their stores. The low price is the bait to lure the consumer into the store, and the salesperson is instructed to switch the consumer to a different, more expensive item.

True

In general, it is a legal requirement that labels be accurate, and that they use words that are easily understood by the ordinary consumer.

True

In general, it is illegal for an advertiser to fax ads to a consumer without the consumer's permission.

False

In order to help assure that debtors do not default on their debts, federal law usually allows a creditor who has a judgment against a debtor to garnish 100% of the debtor's wages.

True

In the absence of any directive from Congress concerning a particular federal agency's procedure, the Administrative Procedure Act applies when the agency is making legislative rules.

True

In the absence of any directive from Congress concerning a particular federal agency's procedure, the Administrative Procedure Act does not apply when the agency is making interpretive rules.

True

In the process of formal administrative adjudication, if a party is dissatisfied with the order of the administrative law judge, the next step would be to appeal to the governing board of the agency.

False

It is illegal for covered creditors to deny a consumer credit based on that consumer's credit report.

False

It is illegal for creditors covered by the Equal Credit Opportunity Act to deny a consumer credit if the reason for the denial is that consumer's credit report.

True

It is possible for a descriptive label or wording in promotional material to create an express warranty.

True

It is possible for a non-merchant to make a warranty of fitness for a particular purpose.

False

It is possible for a seller to effectively disclaim implied warranties by stating (at the time of sale), "There are no implied warranties."

True

It is possible for a seller to transfer to the buyer goods that are subject to a lien held by one of the seller's creditors—and, in certain circumstances, for the seller to not be liable to the buyer when the seller's creditor (legally) repossess those goods from the buyer.

False

Merchant Mike's statement that "This is the best watch on the market today" creates a warranty.

True

Merchants warrant that the goods they sell are fit for the ordinary purpose for which such goods are sold.

True

Notice-and-comment rulemaking is the most common rulemaking process used by administrative agencies.

True

One of the consumer rights for which President Kennedy advocated is the right to be informed.

False

One of the requirements under the ripeness doctrine is that the public be provided an opportunity to comment on a proposed agency rule.

True

Over the years since it was formed, the Federal Trade Commission has sometimes changed the way in which wording is interpreted.

False

Puffery is a type of deceptive advertising.

True

Real Estate Agent Randy says to a potential buyer: "This is the best house on the market today." His statement does not create an express warranty.

False

Sue needs a gallon of paint to match the color of her living room walls—which is a light blue color. She takes a sample to Ace Paint and requests a gallon of paint that color. The salesperson goes to the back and returns with a gallon of paint, which he hands her and she takes home. Upon opening the paint, Sue discovers that the paint she was given is red. Under these circumstances the salesperson has violated the implied warranty of merchantability.

True

Suzie Seller sells Bob Buyer an item. In some instances it is possible that Suzie can sell the item to Bob without including a warranty of no infringements.

False

The "delegation doctrine" deals with the fact that federal agencies delegate some of their powers to state agencies.

True

The Administrative Procedures Act provides for judicial review of most agency actions.

False

The CAN-SPAM Act created the Do-Not-Call registry.

True

The CAN-SPAM Act makes it illegal for sellers to use a false return address when sending unsolicited commercial emails.

True

The Chevron Deference rule sometimes applies if an agency is interpreting the meaning of a statute. For a court to defer to the agency's interpretation of the statute in this situation, it is a requirement that Congress not have directly addressed the issue that the agency is interpreting.

True

The Chevron Deference rule sometimes applies if an agency is interpreting the meaning of a statute. For a court to defer to the agency's interpretation of the statute in this situation, it is a requirement that the agency followed notice and comment rulemaking.

True

The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains information about the risks associated with various products.

True

To create an agency, Congress passes enabling legislation.

True

Today a variety of laws protect consumers with regard to the various contracts they enter into.

True

Trade usage can exclude an implied warranty.

True

Under the APA, a final agency rule is published in both the Federal Register and the Code of Federal Regulations.

False

Under the Regulatory Flexibility Act, an administrative agency must consider less burdensome alternatives for any regulation it is considering that will have "an impact."

True

Usually it is legal for a federal administrative agency to conduct a search without a warrant.

True

Warranties of good title are typically not given in a sheriff's sale.

False

Warranties of title do not arise in most sales contracts.

False

When the seller shows the buyer a sample good, that creates an implied warranty.

True

With regard to online advertising and existing laws that prohibit deceptive advertising, guidelines call for clear and conspicuous disclosure of any qualifying or limiting information—and advertisers should place the disclosure as close as possible to the claim being qualified.