Chapter 21 law 16/20

The Magnuson-Moss Act applies to warranties given to _____.

consumers

Which of the following is likely to be covered under the Truth in Lending Act (TILA)?

Allan, who borrows money from a commercial bank to buy a house.

Which of the following is true of the Fair Debt Collection Practices Act (FDCPA)?

It does not regulate a creditor collecting her own debt.

Which of the following statements is the best example of puffery in advertising, assuming that the product fails to meet the claims specified?

Our desserts, made of the richest cocoa, will make you want more.

Which of the following statutes was driven primarily by the civil rights movement of the late 1960s and 1970s to prevent what was then a relatively common practice of considering gender or race in credit decisions?

The Equal Credit Opportunity Act.

Which of the following acts establishes a national fraud alert system so that consumers have a timely way to guard themselves once they suspect an identity fraud has occurred?

The Fair and Accurate Credit Transactions Act.

Which of the following is true of implied warranties under the Uniform Commercial Code (UCC)?

They are applicable to sales made by one merchant to another merchant.

Which of the following advertising strategies is likely to be considered legal and not deceptive?

Using the tune of a famous song as the background score for an advertisement.

The Fair Debt Collection Practices Act (FDCPA) prohibits collector contact

before the collector is informed that the debtor is represented by an attorney.

Although the Federal Odometer Act makes it a crime to change vehicle odometers, it does not provide a remedy for damages suffered by victims of odometer tampering.

false

Charitable organizations are included in the Do Not Call list prohibitions established by the Federal Trade Commission (FTC).

false

The Magnuson-Moss Act mandates that sellers offer a warranty to a buyer.

false

Standard Bank gives John a substantial loan to purchase a new home. This credit transaction is governed by the Truth in Lending Act (TILA), which requires that certain written disclosures be made before a credit transaction is consummated. The TILA disclosure statement specifies the amount of $15,000, which represents the sum of interest charges John will be required to pay along with the principal amount of $100,000. This specification best exemplifies the _____.

finance charge

A consumer credit transaction takes place between a creditor and a borrower.

true

A merchant that regularly engages in extending credit terms to its customers is not considered a creditor and the transaction is not a consumer credit transaction.

true

According to the Uniform Commercial Code (UCC), a seller may not disclaim an implied warranty.

true

If a seller makes no specific representation about a product, the buyer may not be protected by an express or implied warranty.

true

Products liability statutes often operate in tandem with laws related to negligence.

true

The Federal Trade Commission (FTC) defines a deceptive practice as one that is likely to mislead a reasonably prudent consumer and result in some sort of detriment to the consumer.

true

The Federal Trade Commission (FTC) is responsible for preventing unfair and deceptive practices in commercial transactions.

true