business law chapter 15 hw
The Children's Online Privacy Protection Rule applies to website operators who have children of what age and younger as their target market?
12
If no time period is promised for shipment of goods, how long does a seller have to ship the order or send the consumer an option notice?
30 days
Under the Equal Credit Opportunity Act, applicants for a loan must be notified within how many days if their application was accepted or rejected?
30 days
How long does the Fair Credit Billing Act give a consumer to notify the creditor?
60 days
After acknowledging a notice by a consumer of a potential error on a bill, how long does the creditor have to conduct an investigation according to the Fair Credit Billing Act?
90 days
By Federal Trade Commission rules, the only prefix that can be used as a pay-per-call service is ______
900
Which of the following is incorrect about the rights of a consumer regarding his or her credit file?
A consumer has a right to know all medical information that is in his or her file.
A negative option rule applies to which of these?
A consumer transaction where a seller sends products regularly and future shipments are sent unless the buyer states that they should not be
Which of the following could be the basis of a bait-and-switch scheme?
Both a refusal to sell an advertised product and refusing to have a sufficient quantity of a product
Which of the following would be legal to send through the mail if not ordered by the recipient?
Both free samples of a product and merchandise mailed by a charitable organization soliciting contributions
Which of the following, if any, can lead to a product being considered "dangerous"?
Both manufacturing defects and failure to warn of known misuses of the product
Product liability can be based on which of these theories of liability?
Both strict liability and negligence
A false statement about which of these in connection with the sale of a product could lead to a claim of fraudulent misrepresentation?
Both the durability and the safety of the product
Which of the following must be disclosed to a borrower under the Truth-in-Lending Act?
Both the finance charge and the annual percentage rate
Which of these is not a power given to the Federal trade Commission?
Bringing criminal charges for violations of the Federal Trade Commission Act
The Dodd Frank Act created the _________ agency.
CFPB
State legislative attempts to protect consumers from products so badly flawed that they are near worthless are called
lemon laws
Which of the following is incorrect regarding the federal Odometer Law?
If a seller believes the odometer is correct, a disclosure must be made with the owner's estimate of the mileage.
Which of these is not an exception to the Cooling-Off Rule?
Sales that are for personal, household or family items
An act of Congress to ensure that consumers are treated fairly by credit bureaus and consumer reporting agencies is called the
Fair Credit Reporting Act.
Bait-and-switch schemes are outlawed by the
Federal Trade Commission Act.
Which of these is banned under the Can Spam Act?
Harvesting e-mail addresses from chat rooms, but not short phone-to-phone messages
Which of the following is correct regarding the Consumer Leasing Act?
It covers leases of personal property, but not leases of real property.
Which of these is not required in a negative option consumer sales contract?
That future selections will not be shipped unless the consumer specifically asks for them
The Federal Trade Commission enacted which of of the following rules to allow consumers to change their mind after signing contracts with people who come to their houses?
The Cooling Off Rule
The Revised Online Privacy Protection Rule is enforced by which of these agencies?
The Federal Trade Commission
The Do Not Call Registry was established by which of these Federal Trade Commission Rules?
The Telemarketing Sales Rule
Which of these is not required to prove negligence in a product liability suit against a manufacturer?
The manufacturer sold the goods to the victim.
Under product liability standards, if a person is harmed because of unsafe product, who can the person recover from?
The manufacturer, seller or supplier of the product
If an odometer is repaired and cannot be adjusted to show the true mileage, which of the following is correct?
The odometer must be set to zero, and the owner must put a notice on the doorframe with the correct mileage.
If a person has a dispute over a credit card purchase, which of these is correct?
The person can disregard the bill while the credit card company investigates the claim.
Which of these is correct about causation in a negligence lawsuit based on product liability?
There must be both actual and proximate cause.
Which of the following is generally correct about consumer protection laws?
They apply when things are bought from a business for personal use, but not when bought for business use.
Which of these is correct about balloon payments under a loan covered by the Consumer Leasing Act?
They can only be three times the monthly payment.
Which of these is correct regarding the rights of a debit cardholder if the card is lost or stolen?
They generally have less protection than a credit cardholder.
A proposed uniform law with the goal of streamlining, refining, and updating state laws regulating consumer sales contracts is the
Uniform Consumer Sales Practices Act.
To help consumers resolve complaints involving the sale of previously owned cars, the Federal Trade Commission established the
Used Car Rule.
A ______ occurs when an advertiser makes an insincere offer to sell goods in order to lure customers into the store and then entice them to buy something more advantageous to the store.
bait-and-switch scheme
The Equal Credit Opportunity Act must be followed by
both banks and financing companies.
A goal of the Uniform Consumer Sales Practices Act is to coordinate state consumer laws with
both federal law and other state laws.
If a seller comes to person's house and makes a sale, the seller must provide two copies of a(n) ______ form.
cancellation
A lawsuit that combines the claims of similar plaintiffs into one suit to be fought on behalf of all of the plaintiffs is a
class-action lawsuit.
An order in which a company agrees to stop a disputed practice without admitting that it broke the law is called a
consent order.
Under the law, someone who buys or leases goods for personal, family or household purposes is a(n) ___
consumer
unavoidably
dangerous products require a warning to inform consumers of harm from the use of the product.
A letter sent to request payment for merchandise is a(n) ______ letter.
dunning
The CFPB is a ________ agency.
federal
The Consumer Leasing Act applies only to property lease by an individual for more than
four months
A statement about the life expectancy of a product that is designed to mislead the buyer of the product is called __________
fraudulent misrepresentation.
A manufacturer's duty to warn of risks associated with using a product applies to
non-obvious risks, but not obvious risks.
If the issuer of a credit card does not provide for a method of identification on the card and it is lost or stolen, what amount of unauthorized charges is the cardholder liable for?
nothing
If a credit report does not relate to a job application, a consumer has the right to be told of anyone who received a credit report for which of these previous time periods?
one year
Seeking to implement behavior that promotes public consensus and eliminate behavior that does not is called public __
policy
Which of these refer to the idea that certain activities affect the entire social structure and must, therefore, be regulated by government?
public interest
A new program being explored by the Federal Trade Commission to combat identity theft is
reclaim your name
Which of the following is correct about a person who receives unordered merchandise in the mail?
they may treat it as a gift
A product liability suit, whether brought under strict liability or under negligence, is a(n) ______ action.
tort
