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Creditworthy Loan Company extends credit in the ordinary course of its busi-ness. Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of
Creditworthy's credit terms.
Corner Market sells groceries. Delta Food & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is
The Food and Drug Administration
Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its product Dirt Remover kills germs "forever." In an action against CSI regarding Dirt Remover, the firm is ordered to stop its false advertising of Dirt Remover and its other products. This is
a multiple product order.
Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is
a restaurant chain with twenty or more locations.
To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose
all material facts related to a sale.
Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from
denying coverage for preexisting conditions.
Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on
gender
In its ads, Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims
mislead a reasonable consumer.
Phil has a credit card from Credible Cards, Inc. Credible Cards decides to make changes to Phil's credit-card terms. Credible Cards
must give Phil at least forty-five days' notice before changing the terms.
Dina takes out a student loan from Equity Bank. When she fails to make the scheduled payments for six months, Equity advises her of further action that it will take. This is a violation of
no federal law
Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim
none of the choices
Smart Phone Company's ad states that its product is "The Clear Choice." Because of this ad, the Federal Trade Commission is most likely to issue
none of these choices
Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is
not liable for any amount
Wild Things, Inc. (WTI), in its ads, makes claims about its products that are obvious exaggerations and claims that are false but appear to be true. WTI may be subject to sanctions for
only the false claims.
Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are
required.
Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to
send a formal complaint.
Kristen buys several pair of designer shoes online from Luxury Footwear, Inc. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, Luxury is required to
ship the order within the time promised in Luxury's ad.
QT Collection Agency calls Pat several times a day, and sometimes in the middle of the night, about an overdue bill that Regal Sporting Goods turned over to QT for collection. This is a violation of
the Fair Debt Collection Practices Act.
Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to
the Truth-in-Lending Act.
Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z ap-plies to
the car loan, the home repair loan, and the retail installment sale.
Comfy's Bed Company advertises a special sale on mattresses on its website. The mattresses are normally sold for $1,000, but are advertised on the website for $499. The sale price does not, however, include shipping costs. Comfy's charges $250 for shipping any mattress. To avoid any claims of deceptive advertising, Comfy's should
clearly and conspicuously disclose the shipping cost in its ads.
Quik Pay Inc. extends credit to consumers. Quik Pay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on
race.
The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of
the Fair Debt Collection Practices Act.
Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances—stove, refrigerator, dishwasher, microwave, and toaster oven—for $3,999. This transaction is subject to
the Truth-in-Lending Act.
Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include
the contents' net quantity.
