Business Law Ch 45
FACTA requires that financial institutions must work with the FTC to: _____
"red-flag" suspicious transactions that might be a sign of identity theft
To prevent funeral homes from taking advantage of these customers, the FTC created the: _______.
1984 Funeral Rule
Select all that apply: Deceptive claims have three elements. Identify them.
A practice that is likely to mislead A material misrepresentation, omission, or practice A reasonable consumer
Select all that apply: How does the FTC protect consumers?
Consumer education Provides consumers legal action
Select all that apply: Which of the following behaviors are prohibited by the Fair Debt Collection Practices Act (FDCPA)?
Contacting a debtor at work if the debtor's employer objects. Contacting a debtor who has notified the collection agency that he or she wants no contact with the agency. Using obscene or threatening language when communicating with the debtor. Misrepresenting the collection agency as a lawyer or a police officer
When consumers file complaints with the FTC, they trigger a chain of events leading to a(n):
FTC action against the violator
True or false: The Fair Lending Act is a key federal law regulating the credit industry.
False
The entity that has the power to govern credit provisions related to sales contracts through its Regulation Z is the: ______.
Federal Reserve Board of Governors
The Fair Credit Billing Act (FCBA) of 1986 is enforced by the ______
Federal Trade Commission
Select all that apply: The Truth in Lending Act (TILA) includes three categories of loans. Identify them
Open-end credit Closed-end credit Credit card applications and solicitations
The law that prohibits radio and television cigarette advertisements is the: __
Public Health Cigarette Smoking Act
The Federal Reserve Board of Governors has the power to govern credit provisions related to sales contracts through its ____
Regulation Z
The section of the Federal Trade Commission Act that prohibits deceptive and unfair acts in commercial settings, including consumer purchases is: ______
Section 5
______ includes three categories of loans.
TILA
Select all that apply; Identify the three key federal laws regulating the credit industry to protect consumer
The Fair Debt Collection Practices Act The Truth in Lending Act The Fair Credit Reporting Act
Select all that apply: Several federal laws regulate product labeling. Identify them.
The Wool Products Labeling Act of 1939 The Flammable Fabrics Act of 1953
Select all that apply: Identify the conditions under which a credit or loan is subject to the Truth in Lending Act (TILA).
The credit or loan must be subject to a finance charge or must have repayments of more than four installments. The creditor must be making the loan to a natural person, not a legal entity. TILA applies to those who lend money or arrange for credit through the ordinary course of business.
FACTA requires that receipts from credit card purchasers are now to list a(n): _______.
abbreviated version of the card number to protect consumer accounts
Bait-and-switch advertising occurs 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
When Sam, a laptop seller, advertises a low price for a specific range of laptops that are generally unavailable to the customer and then pushes the customer to buy a more expensive laptop, Sam is engaging in ______ advertising.
bait-and-switch
The Fair Credit Billing Act of 1986 was created to handle: _____
billing errors in credit card statements
The 1984 Used Motor Vehicle Registration Rule requires that a dealer must attach a(n): ______.
buyer's guide label to any used car he or she is attempting to sell
Under the TILA, if you notify your credit card company before unauthorized charges are made against your card, you: _______.
cannot be held liable for any of the charges
Congress passed the Credit Card Fraud Act to: _______
close existing loopholes in federal laws that allowed credit card fraud to be pervasive
The purpose of the Truth in Lending Act is to require that sellers disclose the terms of the credit or loan to help consumers: ______
compare a variety of credit lines or loans
One problem with door-to-door sales is that the consumer does not have a chance to: _______.
compare products and services to find the best service for his or her money
The FTC educates businesses to help them: __
comply voluntarily with consumer laws
TILA applies to ______ loans only.
consumer
The TILA establishes certain consumer protection rules regarding unauthorized charges to a(n): ______
credit card
The Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994 was created to require the FTC to: ___
define deceptive and abusive telemarketing practices and enforce rules governing telemarketing that would prohibit such practices
The Fair Credit Reporting Act of 1970 was passed to: _______.
ensure accurate credit reporting
The third provision of the CARD Act prohibits credit card companies from: _______.
extending credit offers to anyone under 21
The two main ___________________ statutes that address product safety are the Federal Food, Drug and Cosmetic Act and the Consumer Product Safety Act.
federal
The Real Estate Settlement Procedures Act of 1974 requires that the lender must give the buyer an estimate of costs for: ________.
finalizing the real estate purchase
The U.S. Food and Drug Administration creates standards to regulate: ______.
food, drugs, medical devices, and cosmetics
Under FACTA, major credit reporting agencies are now required to provide consumers with a(n): _______.
free copy of their credit report every 12 months
Select all that apply: Consumers who must purchase goods and services for a funeral and burial are often vulnerable for several reasons, including that:_______
grieving consumers can be more readily persuaded to purchase unnecessary expensive items for this last tribute to their loved one. the consumer is usually preoccupied with his or her loss of a relative or friend and is unlikely to comparison shop
If a credit bureau issues a consumer credit report for a reason not specified by the FCRA, it may be: _____
held liable for damages and additional fines
Under the Interstate Land Sales Full Disclosure Act, anyone planning to sell or lease 100 or more lots of unimproved land through a common promotional plan must file a(n): ___
initial statement with HUD's Office of Interstate Land Sales Registration
Under the 1984 Used Motor Vehicle Registration Rule, the label that a dealer must attach to a used-car vehicle must say that the vehicle: _______.
is being sold "as is"
The FTC creates campaigns to educate consumers about: _____
laws that protects them
The Interstate Land Sales Full Disclosure Act requires disclosure of information to consumers so that they can: _______.
make informed choices about real estate purchases
The FTC created the 1975 Mail Order Rule and the Mail or Telephone Order Merchandise Rule of 1993 because telephone and mail-order purchases trigger: ____
more complaints than do traditional retail or door-to-door sales
The Real Estate Settlement Procedures Act of 1974 and its 1976 amendments require the disclosure of information regarding: ______.
mortgage loans to the buyers
A(n) ______-______ order applies not only to the product that was the subject of the action, but also to other products of the same firm.
multiple-product
If the FTC takes action against a company and proves the advertising is deceptive, the FTC may issue a form of cease-and-desist order known as a(n) ______.
multiple-product order
The second provision of the CARD Act covers: _____
notification and information
To protect used-car buyers, Congress passed the Odometer Act of 1973 which protects against: _______.
odometer fraud in used-car sales
The FTC decides whether an advertisement is deceptive: _
on a case-by-case basis
The Fair Debt Collection Practices Act applies to debt collectors who regularly attempt to collect debts: _____
on behalf of others
The Consumer Product Safety Commission conducts research: _______.
on potentially hazardous products
The Mail or Telephone Order Merchandise Rule of 1993 extended protections to consumers who purchase goods over: ___
phone lines, including through computers and fax machines
Select all that apply: The Credit Card Fraud Act states that it is unlawful to _____
possess an unauthorized credit card. counterfeit or alter a credit card. use account numbers of another's credit card to perpetuate fraud
The TCPA which the FCC enforces, forbids phone solicitation using an automatic telephone dialing system or a(n): ____
prerecorded voice
The TCPA which the FCC enforces, forbids phone solicitation using an automatic telephone dialing system or a(n): _______
prerecorded voice
The Federal Food, Drug, and Cosmetic Act and the Consumer Product Safety Act are the two main statutes that address __________ safety.
product or products
The CPSC educates consumers about: _______
product safety
The Nutrition Labeling and Education Act of 1990 requires that standard nutrition information (calories and fat) be: _______
provided on food labels
TCPA makes it illegal to transmit advertisements via fax unless the
recipient agrees to the transmission
The Food and Drug Administration Modernization Act amended the FFDCA to help improve the: ______.
regulation process
Select all that apply: The Telemarketing Sales Rule of 1995 requires telemarketers to ______.
remove the consumer's name from the potential contact list if the consumer so requests tell the total cost of goods being sold notify the listener or reader as to whether the sale is nonrefundable
The Smokeless Tobacco Act prohibits:
television and radio advertisements for smokeless tobacco ads
Select all that apply: The Telemarketing Sales Rule of 1995 requires telemarketers to _____
tell the total cost of goods being sold notify the listener or reader as to whether the sale is nonrefundable remove the consumer's name from the potential contact list if the consumer so requests
A difficulty with door-to-door sales is that the consumer finds it difficult to get away from: _______.
the salesperson
The Truth in Lending Act requires that sellers disclose the terms of the credit or loan and, more importantly, consumers must: ______.
understand the disclosure of terms
Congress passed the Odometer Act of 1973 to protect _____
used-car buyers