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