Chp 25 BLAW
Jose loses his credit card at a crowded city park. He notifies his credit card company immediately. Five days later, $4,507 is charged on the card. How much of those charges is Jose liable for?
$50
Why does the judge rule in favor of Ms. Winston?
Harassment occurred.
Why did the plaintiff bring Mr. Baker to court?
He harasses her for debt.
According to the FDCPA, using obscene or threatening language when communicating with the debtor is prohibited. In the plaintiff's opinion, has the defendant ever threatened her?
His behavior is threatening.
An advertisement for a fast-food burger restaurant that states "World's Best Burgers" is an example of which of the following according to U.S. standards?
Puffery
The Mail or Telephone Order Merchandise Rule of 1993 established all which key guidelines regarding mail and telephone orders?
Sellers must ship items within the time promised. If the seller cannot ship the item within the promised time, the seller must notify the customer in writing and offer an opportunity to cancel. If a customer decides to cancel the order, the seller must refund the customer's money within a specified period of time.
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 of the following statements about consumer protection laws is true?
The purpose of the Do Not Call registry is to give consumers a choice regarding telemarketing calls.
The three major credit reporting agencies are Experian, Equifax and
Transunion
The Credit Card Fraud Act states that it is unlawful to possess ______ credit card.
an unauthorized
Corrective advertising is also known as
counteradvertising
An administrative rule has the effect of
law
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
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
Which of the following is one of the primary federal statutes that address product safety?
the Consumer Product Safety Act///Federal Food, Drug, and Cosmetic Act
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 is responsible for administering the Federal Food, Drug, and Cosmetic Act?
the U.S. Food and Drug Administration
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 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 (Telephone, mail-order, and door-to-door are vulnerable positions)
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
The Fair and ______ Credit Transactions Act was passed in response to the growing number of ______ cases.
Accurate; identity-theft
The judge questions the plaintiff about the calls she's receiving. The answers to these questions are important because the ______________ prohibits some methods of debt collection.
FDCPA
Federal laws regulating the credit industry to protect consumers include all but which of the following?
The Interstate Land Sales Full Disclosure Act
The court agreed with Monica, concluding the two claims were material misrepresentations that would likely deceive a reasonable consumer. Select each set of facts below that could change the outcome of the case.
-The court opined that the two statements Buck had used to advertise the Ford Escape were a misrepresentation of the car's quality and potentially misleading. However, the court concluded that a reasonable consumer would know not to trust, and subsequently be misled, by such statements in making a purchasing decision. -Instead of stating the two quotations that Monica references, Uncle Buck's sign stated only the following: "the best car to have ever existed."
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
How often did Mr. Baker call in the beginning after the plaintiff did not pay the debt?
12 phone calls in 3 months
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
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
Section ______ of the Federal Trade Commission Act prohibits unfair and deceptive acts in commercial settings, including consumer purchases.
5
What problems has the plaintiff experienced as a result of the defendant's actions?
Anxiety and insomnia.
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 are true about the impact of the repealing of Internet privacy rules established by the Federal Communications Commission in 2016?
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.
The FDCPA expressly prohibits contacting third parties about the debt. Why does the defendant claim he called Ms. Winston's boss?
It was his only course of action.
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 are accurate statements regarding the Fair Credit Billing Act (FCBA)?
The FCBA requires creditors to explain to consumers and to the Federal Trade Commission why an error occurred and promptly fix the error. When a complaint is filed pursuant to the FCBA, the creditor may not try to collect on the disputed amount until the complaint is answered. The FCBA creates procedures consumers are to follow in filing complaints when billing errors occur.
Federal laws regulating the credit industry to protect consumers include
The Fair Credit Reporting Act The Truth in Lending Act The Fair Debt Collection Practices Act
Federal laws regulating the credit industry to protect consumers include?
The Fair Credit Reporting Act The Truth in Lending Act The Fair Debt Collection Practices Act
prohibits radio and television cigarette advertisements.
The Public Health Cigarette Smoking Act Correct
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.
A salesman says, "This house has the most efficient floor plan of any home in the world." This statement is a generality or exaggeration that cannot be proven. In this situation, what can we accurately say about this statement?
This statement is allowed, as it is puffing.
The purpose of the _______________ is to require that sellers disclose the terms of the credit or loan to help consumers compare a variety of credit lines or loans.
Truth in Lending Act
Which of the following laws requires that sellers disclose the terms of the credit or loan so that consumers can better compare a variety of credit lines or loans?
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
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
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(n) ______________ is a statement in which the company agrees to stop the disputed behavior but does not admit that it broke the law
consent order
With ______ advertising, a company explicitly states that formerly advertised claims were untrue.
corrective
The wool Products Labeling Act of 1939 is a ______ law.
federal
In response to ______ discrimination, Congress passed the Equal Credit Opportunity Act.
gender
Hilda owes a significant amount of debt to a doctor's office, and they hired a collection agency to take up those claims. The collection agency calls frequently, sometimes as late as 1 a.m. or 2 a.m. on weekdays. In this case, the collection agency
is violating the Fair Debt Collection Practices Act Correct
The Real Estate Settlement Procedures Act requires the disclosure of information regarding ______ loans to buyers.
mortgage
The Federal Trade Commission is an independent federal agency with five commissioners appointed by the ______ and confirmed by the ______.
president; Senate
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 federal administrative agency enforces the Fair Credit Billing Act?
the Federal Trade Commission
Claire purchases a $125 suit on her credit card from a local clothing store in her hometown. When she takes it home, she realizes it is damaged. She tries to take the product back for a full refund or store credit, but the store refuses. In this situation,
the credit card company cannot bill Claire for the damaged item
The Credit Card Fraud Act states that it is unlawful to use the account number of another's credit card
to perpetrate fraud