Business Law: Chapter 18

Generally under the Fair Debt Collection Practices Act, a collector may not call a debtor before _____ or after _____. 1) 7:00 am/9:00 pm 2) 7:00 am/10:00 pm 3) 8:00 am/10:00 pm 4) 8:00 am/9:00 pm 5) 9:00 am/9:00 pm

8:00 am/9:00 pm

Which of the following is imposed by the Fair Debt Collection Practices Act on collectors? 1) A collector must place collect calls to the debtor. 2) A collector can telephone repeatedly. 3) A collector cannot represent himself or herself as an attorney unless it is true. 4) A collector need not disclose his or her identity as a collector. 5) A collector can threaten debtor with arrest or garnishment.

A collector cannot represent himself or herself as an attorney unless it is true.

66. BrightCave is a local retail store that regularly extends credit to its customers. William, an African American, is denied credit by the store. He believes that the store has discriminated against him based on his race. In this scenario, BrightCave violates the ______. 1) Federal Trade Commission Act 2) Fair Credit Reporting Act 3) Truth-in-Lending Act 4) Fair Debt Collection Practices Act 5) Equal Credit Opportunity Act

Equal Credit Opportunity Act

78. The __________ provides the right to dispute information on credit reports and allows consumers to obtain a free credit report each year. 1) Consumer Financial Protection Act 2) Electronic Communications Privacy Act 3) Fair and Accurate Credit Transactions Act 4) Data Protection Directive 5) Fair Debt Collection Practices Act

Fair and Accurate Credit Transactions Act

True or False: 17. The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

False

True or False: 20. Andrea is a married woman with a well-paid job. If she applies for credit solely at a bank in her maiden name, the bank is legally allowed to deny her the right to open the account without her husband because of the fact that she is married.

False

True or False: 23. Full disclosure under the Truth-in-Lending Act requires lenders to provide only the annual percentage rate (APR) to potential borrowers.

False

True or False: When a consumer directs the attention of the Bureau of Consumer Protection to unfair or deceptive acts of a business, the identity of the complainant must be disclosed.

False

46. Section 5 of the ______ prohibits unfair or deceptive acts or business practices. 1) Federal Trade Commission Act 2) Truth-in-Lending Act 3) Fair Debt Collection Practices Act 4) Equal Credit Opportunity Act 5) Fair Credit Reporting Act

Federal Trade Commission Act

59. Which of the following statements is true of the Children's Online Privacy Protection Act? 1) It permits companies to collect information on children over the age of 10 without the need for consent of the parents. 2) It prohibits market research agencies from soliciting children under the age of 13 without the consent of the federal government. 3) It applies to any company knowingly collecting information online from children 13 and under, even is that is not the primary purpose of the website. 4) It prohibits the creation of websites intended to target children, to include social networks and apps. 5) It prohibits online advertisers from creating advertisements targeting children under the age of 10.

It applies to any company knowingly collecting information online from children 13 and under, even is that is not the primary purpose of the website.

Which of the following statements is true of the Consumer Financial Protection Bureau (CFPB)? 1) Its authority overlaps that of the Federal trade commission in administering the Truth-in-Lending Act. 2) It deals with insurance companies regulated by the Securities and Exchange Commission. 3) It was created in the year 1934 by Congress to combat the Great Depression. 4) It exempts banks and other financial institutions from its scope. 5) It has limited authority over federal financial consumer law.

Its authority overlaps that of the Federal trade commission in administering the Truth-in-Lending Act.

Which of the following is true about skip-tracing? 1) When the collector knows that an attorney represents the debtor, he may not contact the attorney. 2) It does not have any restrictions in the way contact to third parties should be carried out. 3) The collector can state that the consumer owes a debt to the contacted third party. 4) The collector can contact any given third party more than once. 5) The collector is permitted to contact third parties, such as neighbors or employers.

The collector is permitted to contact third parties, such as neighbors or employers.

89. Allen defaults on his student loan payment. The debt collector hired by the bank calls Allen repeatedly at 5:00 am to annoy him. In this scenario, which of the following statements is true under the Fair Debt Collection Practices Act (FDPCA)? 1) The court can order the debt collector to pay up to $10,000 for using the telephone. 2) The debt collector is not liable to Allen, but the bank that hired the collector is liable to him. 3) The court cannot order the debt collector to pay Allen any money as he has suffered no physical injury. 4) The debt collector did not violate the FDPCA because the use of intimidation tactics by debt collectors for habitual offenders is legal. 5) The court can order the debt collector to pay up to $1,000 for repeatedly telephoning with intent to annoy and calling before 8:00 am.

The court can order the debt collector to pay up to $1,000 for repeatedly telephoning with intent to annoy and calling before 8:00 am.

True or False: 16. The Fair Debt Collection Practices Act prevents a debt collector from calling a consumer at his or her workplace.

True

True or False: 27. Under the Fair Debt Collection Practices Act, a debt collector may contact third parties such as neighbors and employers as long as the collector does not state the consumer owes a debt or contact the third party more than once, except in limited circumstances.

True

True or False: 33. In a bankruptcy proceeding, the debts are either liquidated under Chapter 7 or adjusted under Chapter 13 of the bankruptcy law.

True

True or False: 40. The Equal Credit Opportunity Act applies to all businesses that regularly extend credit, including financial institutions, retail stores, and credit-card issuers.

True

True or False: The Federal Trade Commission (FTC) advises firms that request it as to whether a proposed practice is unfair or deceptive.

True

True or False: The Federal Trade Commission (FTC) has great discretion in deciding what is deceptive or unfair and whether or not to make new rules and bring new cases.

True

79. The ______ requires that a lender disclose the finance charge, expressing it as an annual percentage rate, and specifies the methods for making this computation. 1) Fair Credit Reporting Act 2) Truth-in-Lending Act 3) Equal Credit Opportunity Act 4) Fair Debt Collection Practices Act 5) Magnuson-Moss Warranty Act

Truth-in-Lending Act

Most cases brought before the Bureau of Consumer Protection: 1) are settled by a consent order. 2) are settled through arbitration. 3) end with prosecution before an administrative law judge. 4) are settled by a cease and desist order. 5) end with prosecution before a federal court.

are settled by a consent order.

The chief legal tools of the Bureau of Consumer Protection are the _____ and the cease and desist order. 1) vacated judgment 2) default judgment 3) stipulation 4) summary judgment 5) consent order

consent order

A(n) _____ is the sum of all charges payable directly or indirectly by the debtor or someone else to the creditor as a condition of the extension of credit. 1) finance charge 2) quota 3) extension fee 4) late fee 5) tariff

finance charge

52. To determine deception in advertising, the Federal Trade Commission (FTC) 1) looks at an ad from the point of view of a reasonable advertiser. 2) ignores what an ad does not say. 3) looks at only express claims. 4) ignores the pictures but focuses on certain words and phrases. 5) looks at an ad from the point of view of a "reasonable consumer".

looks at an ad from the point of view of a "reasonable consumer".

85. Which of the following acts establishes procedures that banks and other financial institutions must follow when consumers dispute amounts billed by a bank? 1) the Federal Trade Commission Act 2) the Equal Credit Opportunity Act 3) the Electronic Fund Transfer Act 4) the Fair Credit Reporting Act 5) the Magnuson-Moss Warranty Act

the Electronic Fund Transfer Act