BUS 204 Ch. 21 Consumer Protection

Puffery includes what kinds of activities?

Ads with exaggerated statements

Which of the following actions are associated with the Consumer Financial Protection Bureau (CFPB)? Choose 2 answers.

1. writing and enforcing rules for financial institutions 2. collecting and tracking consumer complaints

The agency that oversees the credit practices of banks, mortgage lenders, and credit card companies is called the:

Consumer Financial Protection Bureau.

Which of the following behaviors is prohibited under the FDCPA? Choose 2 answer choices.

1. Notifying a consumer's neighbor that they are in debt 2. Calling a consumer at 3 a.m.

What is the difference between deceptive advertising and puffery? Choose 2 answer choices.

1. Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising. 2. Deceptive advertising is prohibited; puffery is allowed.

The role of a state's attorney general in handling complaints about potential violations of consumer protection laws is to:

ensure a safe and fair marketplace for the citizens of the state.

If a credit reporting agency fails to remove known errors in a consumer's credit report after request by the consumer, the agency:

may be required to pay damages to the consumer.

What remedies can consumers get from a debt collection agency for illegal treatment? Choose 3 answer choices.

1. Court Costs 2. Damages 3. Attorney's Fees

Ernie is a supervisor in the maintenance department of Big Chem Company. Ernie is responsible for properly disposing of any hazardous waste that Big Chem produces. Ernie wants to save the company money and save himself what he considers to be unnecessary work, so Ernie decides to dump the hazardous waste in a local stream instead of properly disposing of the waste. Under the Resource Conservation and Recovery Act (RCRA), Ernie's action can result in some pretty severe penalties, including:

civil fines, criminal fines, and/or imprisonment.

Which of the following actions can the Federal Trade Commission (FTC) employ against unfair and deceptive advertising? Choose 2 answers.

1. cease and desist order 2. counteradvertising sanction

Estes is behind on his credit card payments. Veronica works in the collection department of the credit card company that provides Estes with his credit cards. Veronica is working on Estes' file and is trying to come up with a plan to get Estes' accounts paid up to date. Veronica calls Estes every few days but has trouble getting in contact with Estes. Veronica does a little investigating and discovers that Estes leaves for work at 7:30 a.m. Therefore, Veronica decides to start placing her telephone calls to Estes at 7:00 a.m. Veronica calling Estes at 7:00 a.m. to attempt to collect a debt:

would violate the Fair Debt Collection Practices Act.

A consumer product is any article, or its component parts, produced or distributed for sale to a consumer:

for the consumer's own use or enjoyment.

Miran opens a new bar called the Rustic Cowboy. Evelyn lives in an apartment above the bar. Every night, the smell of smoke from the bar permeates Evelyn's apartment, and the loud noises coming from the bar make it impossible for her to sleep. If Evelyn successfully sues Miran over the smoke and noise coming from the bar:

the court will issue an injunction against Miran requiring him to stop the noise and smoke that is interfering with Evelyn's quiet enjoyment of her property.

Which of the following consumer credit acts examines lenders' practices regarding race, religion, national origin, color, gender, marital status, or age?

Equal Credit Opportunity Act (ECOA)

The remedies available to injured consumers under federal and state consumer protection laws may include: (Choose 3 answers.)

1. punitive damages. 2. attorney's fees and costs. 3. damages for actual injury or harm caused.

What are two functions of the Consumer Product Safety Commission (CPSC)? Choose 2 answers.

1. to ban the manufacture and sale of hazardous products 2. to set the safety standards for consumer products

Which consumer protection law specifically provides for punitive damages?

Fair Credit Reporting Act

Marvin places his telephone number on the national do-not-call list. After six months, Marvin is still receiving telemarketing calls. Particularly annoying to Marvin are the robocalls - those autodialed, prerecorded commercial telemarketing messages! Marvin hates telemarketing calls anyway, and if a live person cannot take the time to actually place the call, Marvin sure has no use for them. Marvin files a complaint with the Federal Trade Commission (FTC) about the robocalls. Marvin could also sue the companies that placed the calls. If Marvin chooses to sue the companies that placed the calls:

Marvin could recover from $500 to $1,500 per call.

Which of the following consumer credit acts helps potential borrowers understand the cost of a loan?

Truth-in-Lending Act (TILA)

You are shopping for a new car. You find the perfect vehicle and are now applying for a loan from your local bank. Unfortunately, the bank rejects your application. You are surprised, because you have always paid your bills on time. You decide to examine your credit report. You discover that the credit agency is wrongly reporting that you are delinquent on a credit card bill. You have asked the agency to remove the inaccurate entry, but it has failed to do so. What liability does the credit agency face for its incorrect reporting?

Your actual damages, plus an additional amount not to exceed $1,000, plus attorney's fees.

When a product is advertised for sale at a greatly reduced price, but the salesperson tries to get customers to buy a more expensive item instead, this is called:

bait and switch.

Milo is going over the procedures that her manufacturing plant has for disposing of its wastewater. The plant has two point sources: one discharges into a self-contained large lake and the other is piped into a river near the state border at a point just before the river flows into a neighboring state. Under the Clean Water Act (CWA), Milo must obtain a permit for:

only the point source that discharges into the river.