BUSI QUIZ 3

4 Most Common types of Electronic Funds Transfers

1. Automated teller machines (ATMs) 2. Point-of-sale systems 3. Direct deposits and withdrawals 4. Online payment systems

2 Most Important Laws Governing Immigration and Employment Today:

1. Immigration Reform and Control Act (IRCA) of 1986 2. Immigration Act of 1990.

3 Ways for a Debtor to avoid Mortgage Foreclosure:

1. Requiring mortgage insurance. 2. Recording the mortgage. 3. Including contract provisions.

How to create a Security Interest:

1. Unless the creditor has possession of the collateral, there must be a written or authenticated security agreement that clearly describes the collateral subject to the security interest and is signed or authenticated by the debtor. 2. The secured party must give something of value to the debtor. 3. The debtor must have "rights" in the collateral.

When may a bank properly dishonor a customer's check without being liable to the customer?

A bank may dishonor a customer's check without liability to the customer when the customer's account contains insufficient funds to pay the check, providing the bank did not agree to cover overdrafts.

What type of check does a bank agree in advance to accept when the check is presented for payment?

A certified check is a check that has been accepted in writing by the bank on which it is drawn.In effect, the bank is agreeing in advance to accept that check when it is presented for payment

What permits a preference in bankruptcy law? When is a trustee able to avoid preferential transfers?

A debtor is not permitted to make a property transfer or a payment that favors—or gives a preference to—one creditor over others. The trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in preference over another.

What federal law is meant to prevent inaccurate credit reporting?

Fair Credit Reporting Act (FCRA) protects consumers against inaccurate credit reporting and requires that lenders and other creditors report correct, relevant, and up-to-date information.

In a Chapter 7 bankruptcy, what happens if a court finds that there was "substantial abuse"? How is the means test used?

If a court concludes there was substantial abuse, the court can dismiss a petition or convert it from a Chapter 7 to a Chapter 11 or Chapter 13 case. In the means test, the debtor's average monthly income in recent months is compared with the median income in the geographic area in which the person lives.

What does Regulation Z require, and how does it relate to the Truth-in-Lending Act?

Regulation Z is a rule issued by the Federal Reserve Board of Governors to implement the Truth-in-Lending Act (TILA). Regulation Z applies to transactions involving installment sales contracts and certain real estate loans, and contains the TILA's disclosure requirements. Under its provisions, a lender must disclose the annual percentage rate (APR), finance charge, amount financed, and total payments.

What federal act prohibits discrimination based on age?

The Age Discrimination in Employment Act (ADEA) prohibits employment discrimination on the basis of age against individuals forty years of age or older.

Info that should be labeled on food products:

The Fair Packaging and Labeling Act requires that food product labels identify: (1) the product, (2) the net quantity of the contents (and, if the number of servings is stated, the size of a serving), (3) the manufacturer (4) the packager or distributor.

What duties does the Uniform Commercial Code impose on a bank's customers with regard to forged and altered checks?

The court noted that, under the Uniform Commercial Code (UCC), the check was not properly payable because it had two forged indorsements. When a bank pays a check bearing a forged indorsement, the UCC ordinarily requires the bank to recredit the customer's account.

What law protects consumers contaminated and misbranded food and drugs?

The most important legislation regulating food and drugs is the Federal Food, Drug, and Cosmetic Act (FDCA). The act protects consumers against adulterated (contaminated) and misbranded foods and drugs.

What is required to establish a prima facie case of disparate-treatment discrimination?

The plaintiff is a member of a protected class. The plaintiff applied and was qualified for the job in question. The plaintiff was rejected by the employer. The employer continued to seek applicants for the position or filled the position with a person not in a protected class.

Under the Family and Medical Leave Act, in what circumstances may an employee take family or medical leave?

Under the Family and Medical Leave Act, an employee may take family leave to care for a newborn baby, an adopted child, or a foster child, and medical leave when the employee or the employee's spouse, child, or parent has a "serious health condition" requiring care.

What is the employment at will doctorine?

Under this doctrine, either party may terminate the employment relationship at any time and for any reason, unless doing so would violate an employee's statutory or contractual rights.

How does a mechanic's lien assist creditors?

When a creditor follows the individual state's procedure to create a mechanic's lien, the debtor's real estate becomes security for the debt. If the debtor continues not to pay the underlying debt, the creditor can foreclose on the debtor's real property to collect the amount due.

What is electronic check presentment, and how does it differ from the traditional check-clearing process?

With electronic check presentment, items are encoded with information (such as the amount of the check) that is read and processed by other banks' computers. A check may sometimes be retained at its place of deposit, and then only its image or description is presented for payment. This differs from the traditional check-clearing process because employees of each bank in the collection chain no longer have to physically handle each check that passes through the bank for collection or payment.

deceptive advertising

a representation in an advertisement that is likely to mislead consumers acting reasonably under the circumstances.