Daily Double Chp.8 (15) Consumer Protection

Which of the following is true of the Federal Trade Commission? A.It has the authority to impose criminal sanctions on those found guilty as soon as a citizen complaint is filed B.It operates as a miniature government with powerful quasi-legislative (rule making) and quasi-judicial ( adjudication) roles. It does not have the authority to enforce privacy provisions in laws addressing the use of consumer credit reports

.It operates as a miniature government with powerful quasi-legislative (rule making) and quasi-judicial ( adjudication) roles.

Under Chapter 11 of the Bankruptcy Act; A. Debtors may voluntarily seek reorganization B. creditors cannot participate in bankruptcy procedures C. creditors cannot petition for an involuntary action D. Debtors have to cease their business operations as soon as a petition is filed.

A. Debtors may voluntarily seek reorganization

Which of the following federal is a primary fear associated with the Consumer Financial Protection Bureau's role in the finance market? A. Increased government regulation is likely to reduce the availability of credit. B. Increased government regulation is likely to reduce the cost of credit C. Increased government interference will increase the money supply in the market. D. Increased government interference will increase consumer spending

A. Increased government regulation is likely to reduce the availability of credit.

Which of the following is the federal agency charged with protecting consumers from "unreasonable risks of injury and death" from products such as toys, lawn mowers, washing machines, bicycles, fireworks, pools, portable heaters, and household chemicals? A.The consumer Products Safety Commission B. The Consumer Goods Forum C. The Consumer Financial Protection Bureau D. The Federal Trade Commission

A.The consumer Products Safety Commission

Which of the following credit reporting protections is offered by the federal Fair Credit Reporting Act? A. In all cases, negative information more than seven years old must be reported in a consumer's credit report. B. All inaccurate information must be corrected or removed from a consumer's credit file, usually within 30 days C. Consumers cannot sue a credit reporting agency or a bank for damages even if their rights under the act have been violated D. Anyone using information from a credit reporting agency to deny a consumer credit cannot reveal the source of information to the consumer.

B. All inaccurate information must be corrected or removed from a consumer's credit file, usually within 30 days

The ______, authorized by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, is charged with writing and enforcing rules covering consumer financial products and services including mortgages, credit cards,payday loans, loan servicing, check cashing, debt collection, and others. A. Consumer Product Safety Commission B. Consumer Financial Protection Bureau C. American Federation of Labor D. Bureau of Public Debt

B. Consumer Financial Protection Bureau

Under the ______, liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss. A. Fair Debt Collection Practices Act B. Electronic Fund Transfer Act C. Fair Credit Billing Act D. Equal Credit Opportunity Act.

B. Electronic Fund Transfer Act

Which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA). A. In case of inaccurate information in a credit file, the concerned credit reporting agency must make the correction usually within 90 days B. If a person makes a request, the concerned credit reporting agency must give the person a list of all those who have recently sought information about him or her. C. Credit reporting agencies do not need a written consent from a person to provide information to the person's employer or prospective employer. D. Negative information more than two ears old must be reported in consumer's credit file.

B. If a person makes a request, the concerned credit reporting agency must give the person a list of all those who have recently sought information about him or her.

which of the following in one of the key provisions of the Credit Card Accountability, Responsibility, and Disclosure Act o 2009? A. Lenders can issues credit cards to those under age 21 without andy objections B. Interest rates, with some exceptions, cannot be raised in the first year C. Credit card issuers can charge interest on bills paid on time D Credit card companies can increase the annual percentage rate on all existing account balances.

B. Interest rates, with some exceptions, cannot be raised in the first year

Which of the following is true of substantive unconscionability? A. it primarily arises from lack of knowledge or lack of choice B. It occurs when a clause or contract doe not provide a remedy for a breach C. t primarily arises when the parties to a contract have equal bargaining power D. It occurs when one party in a contract is spectacularly clever and the other is not.

B. It occurs when a clause or contract doe not provide a remedy for a breach

Identify a true statement about the Food and Drug Administration (FDA). A. The FDA is empowered to impose fines although it does not have the authority to remove dangerous drugs from the market B. The FDA can regulate tobacco ingredients, including nicotine, but the agency is not yet exercising that power. C.The 2011 Food Safety and Modernization Act reduced the food safety powers of the FDA D. The food safety burden foe imported food lies primarily with customers as it does not come under the FDA's jurisdiction

B. The FDA can regulate tobacco ingredients, including nicotine, but the agency is not yet exercising that power.

Which of the following is true of lemon laws? A. Very few states protect consumers through lemon laws B. The determination about whether a car is a lemon law is usually handled by an arbitration panel. C. They typically cover used cars for ten years or up to 10,00 miles after purchases. D. Lemon laws are the same in every state.

B. The determination about whether a car is a lemon law is usually handled by an arbitration panel.

Which of the following consumer protection agencies in the United States is charged with providing financial education, thereby promoting Americans' financial literacy? A. The Consumer Product Safety Commission B.Consumer Financial Protection Bureau C.The Education Resources Information Center D.The Chief Financial Officers Council

B.Consumer Financial Protection Bureau

Which of the following best states the purpose of the Federal Trade Commission (FTC)? A. It was created to ensure that the American economy imports more than it exports B.It was created to prevent :unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce." C.It provides a mechanism to deal with the billing errors that accompany credit card and certain other other "open-end" credit transactions D. it was designed to shield debtors from unfair debt collection tactics by collection agencies and attorneys who routinely operate as debt collectors.

B.It was created to prevent :unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce."

In the context of lemon laws, a new vehicle would be considered a lemon is if it has been: A. damaged due o negligence on the part of the consumer. B.returned to the manufacturer or dealer three or four times to repair the same defect C.sold by a dealer who is not registered in the state where the vehicle was purchased D. stolen or resold to a new buyer.

B.returned to the manufacturer or dealer three or four times to repair the same defect

Which of the following federal agencies is primarily responsible for enforcing the finance laws such as the Electronic Fund Transfer Act and the Fair Credit Billing Act? A. The Chief Financial Officers Council B. American Federation of Labor C. Consumer Financial Protection Bureau D. Consumer Product Safety Commission

C. Consumer Financial Protection Bureau

Lucy uses her credit card to make purchases for her new house. She bills a sum of $2,000 and repays $1,200 within a month. However, she is not able to repay the remaining $800 for about a year. The debt collection partner of her bank repeatedly calls her during odd hours and threatens to seize her property if she fails to repay the outstanding amount along with an unreasonable late fee in a week's time. In the context of the federal Fair Debt Collection Practices Act (FDCPA), which of the following statements holds true in this scenario? A. The act extends only to creditors who are themselves trying to recover money owed to them B. Lucy is not protected under the act unless the debt collection agency uses physical force on her C. Lucy is protected under the act as it prohibits creditors from making contact with a debtor during inconvenient hours D. The act allows debts collection agencies to employ any tactic to recover the outstanding debt from a consumer

C. Lucy is protected under the act as it prohibits creditors from making contact with a debtor during inconvenient hours

Which of the following acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace? A. The Fair Debt Collection Practices Act B. The Social Security Act C. The Equal Credit Opportunity Act D. The Mortgage Finance Act

C. The Equal Credit Opportunity Act

HealthPro Pharma Inc. released a new medicine that promised to cure heart disease. A few months later, it was found that patients who regularly took the medicine faced a high risk of obesity and other related side effects. In this scenario, which of the following federal agencies is empowered to remove the medicine from the market? A.The Consumer Product Safety Commission B. The Consumer Goods forum C. The Food and Drug Administration D. The Federal Trade Commission

C. The Food and Drug Administration

When is a contract unconscionable? A. When foolishness exists on the part of one of the parties to the contract B.When one party is spectacularly clever and the other is not C. When some contracts are so unfair or oppressive as to demand court intervention D. When a want of knowledge exists on the part of one of the parties to the contract

C. When some contracts are so unfair or oppressive as to demand court intervention

Chapter 13 of the Bankruptcy Act provides the opportunity to seek the protection of the court to arrange a debt plan for ______ . A. general partnerships B. creditors C. individual debtors D. corporations

C. individual debtors

In the context of the Bankruptcy Act, a ______ can be voluntarily filed in federal court by a debtor, or creditors can seek an involuntary bankruptcy judgement. A. Chapter 11 reorganization lawsuit B. Chapter 15 class action lawsuit C. Chapter 13 adjustment of debts petition D. Chapter 7 liquidation petition

D. Chapter 7 liquidation petition

Which of the following debt collection practices would be legal under the federal Fair Debt Collection Practices Act? A. Using physical force on a debtor to recover debt B. Making repeated phone calls to a debtor with teh intent to harass C. Contacting a debtor in an unfair, abusive, or deceptive manner D. Contacting third parties for the purpose of locating a debtor

D. Contacting third parties for the purpose of locating a debtor

Catalina buys a car on loan from Elko Automobiles. She pays the car loan over four years in monthly installments. Yet, her bank send inaccurate information to Citizen Safe, a local credit reporting agency (CRA), claiming that the bank. In the context of the Fair Credit Reporting Act, which of the following can be concluded from this scenario? A. Catalina has no right to find out the information in her credit report B. If Catalina files a complaint against Citizen Safe, the agency will have up to 90 days to correct and remove the inaccurate information from Catalina's report C. Citizen Safe must change Catalina's credit report immediately upon her request D. If Catalina informs Citizen Safe about the inaccurate information, the agency must investigate her complaint and give her a written report.

D. If Catalina informs Citizen Safe about the inaccurate information, the agency must investigate her complaint and give her a written report.

Which of the following standards determines the Truth in Lending Act's applicability? A. The debtor must be an organization B. The amount secured as credit must be above $25,000 C. The purpose of the credit must not be personal D. The credit must be subject to a finance charge

D. The credit must be subject to a finance charge