Consumer law (chp 13) True/False
A credit-card company must send monthly bills to cardholders twenty-one days before the due date
True
An information label must be attached to every new car to include the fuel economy estimate for the vehicle.
True
Any time a consumer is denied credit or insurance on the basis of his or her credit report, the consumer must be notified of that fact.
True
Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim
True
In a transaction subject to the Truth-in-Lending Act, the terms of a credit instrument must be fully disclosed
True
Package labels must use words that the ordinary consumer understands
True
A credit collection agency may contact a debtor at any time
False
A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.
False
Ads can be unfair but not deceptive.
False
Credit can be denied on the basis of marital status.
False
Credit can be denied on the basis of race.
False
Creditors attempting to collect debts are generally considered to be debt-collection agencies
False
The Federal Trade Commission carries out the broadly stated goal of preventing unfair and deceptive trade practices
True
The Food and Drug Administration must ensure the safety of new drugs
True
The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.
True
Vague generalities and obvious exaggerations are permissible in advertising.
True