BLAW Chapter 20 Homeworks
Consumer protection laws regulate all of the following except
Secured transaction
A credit-reporting agency that fails to comply with the Fair Credit Reporting Act is liable for actual damages, plus additional damages not to exceed ______ and attorney's fees.
$1,000
Regulation Z applies to any transaction involving an installment sales contract that calls for payment to be made in more than ___ installments.
4
Acme Products manufacturers and markets Grow Tall, claiming that the product will make users grow a minimum of six inches taller. The FTC will likely find that the ad is:
Deceptive, and the FTC may issue a cease-and-desist order
The Equal Credit Opportunity Act (ECOA) prohibits lenders from denying credit solely on the basis of all of the following EXCEPT:
Disability
After it determines that an advertisement is deceptive or unfair, the Federal Trade Commission's first step is to:
Draft a formal complaint
When a consumer is denied credit or insurance on the basis of his or her credit report, the consumer does not have to be notified of that fact.
False
Highlight the five transactions subject to Regulation Z Installment loans Retail and installment sales Book-of-the-month club sales car loans negotiable instruments home improvement loans realestate loans less that $25,000
Installment loans Retail and installment sales Car loans Home improvement loans Real estate loans for less that $25,000
Vague generalities and obvious exaggerations are permissible and are known as
Puffery
The Consumer Product Safety Commission (CPSC) determines that a Barbie Jeep is unsafe for children to ride in it. The CPSC has the power to
Remove all jeeps from the market
Geraldo receives mechanized telemarketing calls for the of time-share homes even though he registered on the national "Do Not Call" registry. This registry was established by an amendment to the FTC's
Telemarketing sales rule
In an online ad, any disclosures should be placed as close as possible to the claim being qualified or be included within the claim itself. T/F
True
The Fair Debt Collection Practices Act requires a collection agency to include a(n) _____ whenever it initially contacts a debtor for payment of a debt or within five days of that initial contact.
Validation notice
Which act was passed in an effort to combat identity theft? a. The Fair and Accurate Credit Transactions Act. b. The Federal Trade Commission Act. c. The Fair Credit Reporting Act.
a. The Fair and Accurate Credit Transactions Act
Regulation Z governs: a. credit provisions associated with installment sales contracts. b. complaints brought under the Federal Food, Drug, and Cosmetic Act. c. deceptive advertising. d. pyramid schemes and sales.
a. credit provisions associated with installment sales contracts.
Which agency is dedicated to overseeing the practices of banks, mortgage lenders, and credit-card companies? a. The Securities and Exchange Commission. b. The Consumer Financial Protection Bureau. c. The Fair Credit Reporting Bureau. d. The Federal Trade Commission.
b. The Consumer Financial Protection Bureau.
Dom's Grill, Inc., borrows $10,000 to finance a new range and the payments will be made monthly over a two-year period. The bank: + hint a. under the Truth-in-Lending Act must disclose to the president of Dom's Grill all of the credit terms and conditions of the loan. b. need not make any special disclosures. c. under the Fair Credit Reporting Act must disclose all of its credit terms, as well as those of two competing lenders.
b. need not make any special disclosures.
The Federal Trade Commission receives deceptive advertising complaints from many sources EXCEPT:
federal judges
The penalty that will be imposed on a creditor who does not exactly follow the provisions of the Truth-in-Lending Act (TILA) is
rescission of the credit contract
