Ch. 24 book examples LGS

Puffery includes what kinds of activities? a. Ads appearing to be based on facts, but without factual evidence b. Ads with exaggerated statements c. Bait-and-switch advertising d. Ads including half-truths

b. Ads with exaggerated statements

Which consumer protection law specifically provides for punitive damages? a. Federal Trade Commission Act b. Consumer Protection Safety Act of 1972 c. Fair Credit Reporting Act d. Fair Debt Collection Practices Act

c. Fair Credit Reporting Act

When a product is advertised for sale at a greatly reduced price, but the salesperson tries to get customers to buy a more expensive item instead, this is called: a. rain check. b. bait and switch. c. sleight of hand. d. substitution deception.

b. bait and switch.

Which of the following consumer credit acts examines lenders' practices regarding race, religion, national origin, color, gender, marital status, or age? a. Truth-in-Lending Act (TILA) b. Fair Debt Collection Practices Act (FDCPA) c. Fair Credit Reporting Act (FCRA) d. Equal Credit Opportunity Act (ECOA)

d. Equal Credit Opportunity Act (ECOA)

The distributor of a consumer product must notify the CPSC immediately if: a. they receive a consumer complaint about the product. b. any defect at all. c. they sell any consumer product to the public. d. they receive information that a product contains a defect that is a substantial risk to the public.

d. they receive information that a product contains a defect that is a substantial risk to the public.

Which of the following behaviors is prohibited under the FDCPA? Choose 2 answer choices. a. Notifying a consumer's neighbor that they are in debt b. Calling a consumer's mother to determine the consumer's address c. Telling the consumer if they do not pay their debt that legal action will be initiated d. Calling a consumer at 3 a.m.

a. Notifying a consumer's neighbor that they are in debt and d. Calling a consumer at 3 a.m.

Which of the following actions can the Federal Trade Commission (FTC) employ against unfair and deceptive advertising? Choose 2 answers. a. counter advertising sanction b. cease and desist order c. bait and switch order d. native ad integration

a. counter advertising sanction b. cease and desist order

What remedies can consumers get from a debt collection agency for illegal treatment? Choose 3 answer choices. a. $1,000 per violation b. Damages c. Attorney's Fees d. Court Costs

b. Damages c. Attorney's Fees d. Court Costs

What are two functions of the Consumer Product Safety Commission (CPSC)? Choose 2 answers. a. to set the safety standards for consumer products b. to ban the manufacture and sale of hazardous products c. to sue a manufacturer regarding a state claim d. to enforce violations of false advertising

a. to set the safety standards for consumer products b. to ban the manufacture and sale of hazardous products

The agency that oversees the credit practices of banks, mortgage lenders, and credit card companies is called the: a. Consumer Financial Protection Bureau. b. Consumer Investigation Agency. c. Federal Banking Investigation. d. Financial Regulation Bureau.

a. Consumer Financial Protection Bureau.

The role of a state's attorney general in handling complaints about potential violations of consumer protection laws is to: a. ensure a safe and fair marketplace for the citizens of the state. b. implement recalls of defective products. c. set the standards for consumer protection. d. create laws regulating consumer remedies.

a. ensure a safe and fair marketplace for the citizens of the state.

If a credit reporting agency fails to remove known errors in a consumer's credit report after request by the consumer, the agency: a. may be required to pay damages to the consumer. b. must pay $1,000,000 in damages to the consumer. c. must delete the consumer's credit report entirely. d. may be required to shut down its operation.

a. may be required to pay damages to the consumer.

Which of the following actions are associated with the Consumer Financial Protection Bureau (CFPB)? Choose 2 answers. a. writing and enforcing rules for financial institutions b. determining labeling requirements for new drugs. c. preventing and providing remedies for dangerous consumer products. d. collecting and tracking consumer complaints

a. writing and enforcing rules for financial institutions and d. collecting and tracking consumer complaints

What is the difference between deceptive advertising and puffery? Choose 2 answer choices. a. Puffery is heavily regulated, while deceptive advertising is prohibited. b. Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising. c. Puffery can include half-truths, but deceptive advertising does not. d. Deceptive advertising is prohibited; puffery is allowed.

b. Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising. and d. Deceptive advertising is prohibited; puffery is allowed.

Which of the following consumer credit acts helps potential borrowers understand the cost of a loan? a. Equal Credit Opportunity Act (ECOA) b. Truth-in-Lending Act (TILA) c. Fair Debt Collection Practices Act (FDCPA) d. Fair Credit Reporting Act (FCRA)

b. Truth-in-Lending Act (TILA)

The remedies available to injured consumers under federal and state consumer protection laws may include: (Choose 3 answers.) a. recall of dangerous products. b. damages for actual injury or harm caused. c. attorney's fees and costs. d. punitive damages.

b. damages for actual injury or harm caused. c. attorney's fees and costs. d. punitive damages.