Chap 15

Which of the following is true of lemon laws? A. A consumer generally may file a lawsuit if he or she disagrees with the decision of an arbitration panel as to whether a car is a lemon. B. Arbitration panels determine whether the car is a lemon, and this decision may not be appealed to a court. C. Lemon laws are the same for all states except Louisiana. D. The vehicle must have been unavailable to the consumer for a total of at least 60 days in a 6-month period.

A. A consumer generally may file a lawsuit if he or she disagrees with the decision of an arbitration panel as to whether a car is a lemon.

When is a contract unconscionable? A. When a contract is so unfair that it may shock the conscious B. When one party to the agreement is smarter than the other C. When one party is mistaken as to the meaning of the contractual terms D. When a contract may be somewhat unfair such that one party asks the court to intervene

A. When a contract is so unfair that it may shock the conscious

Chapter 13 of the Bankruptcy Act provides the opportunity to seek the protection of the court to arrange a debt adjustment plan for _____. A. individual debtors B. family farm businesses C. general partnerships D. limited partnerships

A. individual debtors

The Electronic Fund Transfer Act (EFTA) provides remedies for all but which of the following? A. store scanning devices B. lost or stolen debit and ATM cards C. point-of-sale machines D. problems involving ATMs

A. store scanning devices

Which of the following credit reporting protections is offered by the federal Fair Credit Reporting Act? A. In all cases, negative information more than seven years old must be reported in a consumer's credit report. B. All inaccurate information must be corrected or removed from a consumer's credit file, usually within 30 days. C. Consumers cannot sue a credit reporting agency or a bank for damages even if their rights under the act have been violated. D. Anyone using information from a credit reporting agency to deny a consumer credit cannot reveal the source of information to the consumer.

B. All inaccurate information must be corrected or removed from a consumer's credit file, usually within 30 days.

Under the _____, liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss. A. Fair Debt Collection Practices Act B. Electronic Fund Transfer Act C. Fair Credit Billing Act D. Equal Credit Opportunity Act

B. Electronic Fund Transfer Act

Which of the following is true of substantive unconscionability? A. It primarily arises from lack of knowledge or lack of choice. B. It occurs when a clause or contract does not provide a remedy for a breach. C. It primarily arises when the parties to a contract have equal bargaining power. D. It occurs when one party in a contract is spectacularly clever and the other is not.

B. It occurs when a clause or contract does not provide a remedy for a breach.

Which of the following best states the purpose of the Federal Trade Commission (FTC)? A. It was created to ensure that the American economy imports more than it exports. B. It was created to prevent "unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce. C. "It provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions. D. It was designed to shield debtors from unfair debt collection tactics by collection agencies and attorneys who routinely operate as debt collectors.

B. It was created to prevent "unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce.

Under the Fair Credit Billing Act (FCBA) where a "reasonable investigation" determines the credit card statement was correct and the consumer continues to contest it, which of the following is false? A. The consumer must be told who received the credit report which contains the delinquency information. B. The wronged consumers do not have the right to sue for damages. C. The creditor must give the consumer 10 days to pay the disputed amount before beginning collection procedures. D. The creditor may report the bill to the credit bureau as being delinquent.

B. The wronged consumers do not have the right to sue for damages.

Which of the following Acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace? A. The Fair Debt Collection Practices Act B. The Social Security Act C. The Equal Credit Opportunity Act D. The Mortgage Finance Act

C. The Equal Credit Opportunity Act

The _____, authorized by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, is charged with writing and enforcing rules covering consumer financial products and services including mortgages, credit cards, payday loans, loan servicing, check cashing, debt collection, and others. A. Consumer Credit Status Agency B. Consumer Monetary Safety Bureau C. Consumer Product Safety Commission D. Consumer Financial Protection Bureau

D. Consumer Financial Protection Bureau

All but which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA)? A. You can sue for damages if your rights under the act have been violated. B. Lenders are required to provide a consumer's credit score as well as any factors that affected that score if the lender took any adverse action based on that score. C. You must provide written consent before a CRA can provide information to your employer or prospective employer. D. Negative information more than three years old must be removed from a consumer's credit file.

D. Negative information more than three years old must be removed from a consumer's credit file.

Which of the following standards determines the Truth in Lending Act's applicability? A. The debtor must be an organization. B. The amount secured as credit must be above $25,000. C. The purpose of the credit must not be personal. D. The credit must be subject to a finance charge.

D. The credit must be subject to a finance charge.

ally uses her credit card to make purchases for her new house. She charges $3500 in one month and repays $2,500 of that amount within one month. She cannot, however, pay the remaining $1000 for about a year. The debt collection partner of her bank calls her repeatedly at all hours. The debt collection agency threatens to seize her property in one week if she fails to repay the outstanding amount along with an unreasonable late fee. In the context of the federal Fair Debt Collection Practices Act (FDCPA), which of the following statements holds true in this scenario? A. The credit card company may use the act to try to recover the money Sally owes it. B. The debt collection agency may contact Sally's employer and ask it to garnish her wages. C. The debt collection agency may call Sally repeatedly during work hours with the intent to harass. D. The debt collection agency may contact Sally's employer to get her contact information.

D. The debt collection agency may contact Sally's employer to get her contact information.

T/F: A contract may be unconscionable merely because one party is spectacularly clever and the other is not.

False

T/F: Based on Sue's credit history, Honest Money Bank denied her a loan. In this case, the bank need not notify Sue and tell her where it secured her credit information.

False

T/F: Chapter 11 of the Bankruptcy Act allows creditors to submit a provisional debt reorganization plan while the debtor, under the supervision of the court, works out a financial reorganization plan and continues to pay creditors.

False

T/F: Lemon laws govern the export and sale of agricultural produce in interstate commerce.

False

T/F: Where a formal complaint is issued, the matter proceeds essentially as a trial conducted before an administrative law judge. The FTC then has authority to impose criminal sanctions. Group starts

False