G 24 Consumer protection T/F/M

Credit can be denied solely on the basis of race.

F

Labels on fresh meats are not required to indicate where the food originated.

F

Major credit reporting agencies must provide consumers with free copies of their own credit reports every six months

F

The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items.

F-( 4 protection of health and safety )/protect: adulterated and misbranded foods and drugs FDA: to ensure drugs are safe and effective before marketed to the public

Labels on fresh meats are not required to indicate where the food originated.

F/ Fair packaging and labeling act requires food product labels identify: the product; the net quantity of the contents and , if the number of serving is state, the size of serving ( II- labeling and packing laws )

The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.

F/CPSC : with broad regulatory authority over the safety of consumer products: 1-setting safety standards for consumer products 2-ban the manufacture and sale of any product that the commission believes poses an ''unreasonable risk to consumers' 3-remove : imminently hazardous and issues recalls products 4- Require manufacturer report : hazardous already sold or intended for sale 5- administer product safety: Child production and Toy Safety act ( protection of health and safety )

Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence

F/deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim-definition of deceptive advertising Advertising that appears to be based on factual evident but in fact is not reasonable support will deemed deceptive (I/ deceptive advertising)

State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices

F/very agency and department of the federal government has an office of consumer affairs, and most states have one or more such offices to help consumers. Also, typically the attorney general's office assists consumers at the state level./Introduction

Deceptive advertising does not occur in the online environment.

False

Advertising that contains an endorsement by a celebrity will not be deemed deceptive.

False/Advertising that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product.

Puffery constitutes deceptive advertising.

False/vague generalize and obvious ezag generalize are permissible and not considered deceptive(I - deceptive advertising)

A credit-card company must send monthly bills to cardholders twenty-one days before the due date.

T

A debt-collection agency is someone who regularly attempts to collect debts on behalf of someone else, usually for a percentage of the amount owed.

T

Account numbers on credit-card receipts must be truncated (shortened).

T

Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements.

T

The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated with various products.

T

The Food and Drug Administration must ensure the safety of new medications.

T-4 protection of health and safety

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

T-Sale

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts—Regulation Z.

T/ definition 5 -truth lending act

A sanction known as counter-advertising requires a company to advertise anew to inform the public about earlier misinformation.

True/ definition

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix is a. a restaurant chain with twenty or more locations. b. a food distributor with twenty or more customers. c. a food processor with twenty or more products. d. a food producer with twenty or more acres.

a. a restaurant chain with twenty or more locations

Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under a. federal and state law b. federal law only c. no law, according to the principles of freedom to contract d. state law only

a. federal and state law.

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates a. no federal law b. the Fair and Accurate Credit Transactions Act c.the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

a. no federal law

Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further action that it will take. This violates a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

a. no federal law

Mouth & Gums, Inc. (CSI), engages in deceptive advertising when it markets its product Oral Rinse as able to kill germs over long periods of time. In an action against Mouth & Gums, the firm is ordered to stop its false advertising of Oral Rinse and other products. This is a. counter-advertising b. a multiple product order c. a "cooling-off" law d. a validation notice

b. a multiple product order

In the ordinary course of business, Loan2Buy Corporation offers credit to Mai and other consumers and reports on the loans to credit agencies. To save time and money, Loan2Buy generally does not correct or update its reported information. This is most likely to result in a. a levy of a nominal fine b. an assessment of damages c. an order of rescission of the loan contracts d. no sanctions

b. an assessment of damages

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to a. conduct negotiations between the competitors b. draft a formal complaint c. issue a cease-and-desist d. permit Spicy Salsa to broadcast similarly deceptive counter-advertising

b. draft a formal complaint

Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients' permission. This is subject to a. a cease-and-desist order by the Federal Trade Commission b. no sanctions c. possible fines by the Federal Communications Commission d. rescission on the order of the Federal Reserve Board

c. possible fines by the Federal Communications Commission

Debt & Loan Collection Agency calls Ethel several times a day, and sometimes in the middle of the night, about an overdue bill that a Furniture4U store turned over to Debt & Loan for collection. This is a violation of a. no federal law b. the Fair and Accurate Credit Transactions Act c. the fair Debt Collection Practices Act d. the Truth-in-Lending Act

c. the Fair Debt Collection Practices Act

The credit department of Discount Retail Stores Inc. calls Emmett at work about an overdue bill. Emmett's employer objects. Discount Retail's credit department continues to call Emmett at work. This is a violation of a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

c. the Fair Debt Collection Practices Act

Slow-Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' " The Federal Trade Commission would consider this ad to be a. false and misleading b. impermissibly vague and general c. a deceptive half-truth d. none of the choices

d. none of the choices

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue a. a cease-and-desist order b. a counter-advertising order c. a multiple product order d. none of the choice

d. none of the choices

Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is a. liable for $500 b. liable for $250 c. liable for $50 d. not liable for any amount

d. not liable for any amount

QuikPay Inc. extends credit to consumers. QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on a. intelligence b. education c. income d. race

d. race

Grid Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Grid to a. export the tool and sell it only abroad b. increase the price to cover the cost of any injuries or damage c. reduce the price to indicate the hazard to consumers d. remove the tool from the market

d. remove the tool from the market

Nature's Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is a. nature's Food Market and Metro Snacks & Druge STore b. Metro Snacks & Drug Store only c. the Federal Trade Commission d. The Food and Drug Administration

d. the Food and Drug Administration

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances—stove, refrigerator, dishwasher, microwave, and toasteroven—for $3,999. This transaction is subject to a. no federal law b. the Fair Credit Reporting Act c. the Telecommunications Act d. the Truth-in-Lending Act

d. the Truth-in-Lending Act

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to a. no federal law b. the Consumer Leasing Act c. the Consumer Product Safety Act d. the Truth-in-Lending Act

d. the Truth-in-Lending Act

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to a. the car loan only b. the home repair loan only c. the retail installment sale only d. the car loan, the home repair loan, and the retail installment sale

d. the car loan, the home repair loan, and the retail installment sale

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are a. prohibited b. required c. strictly voluntary d. warranted by the nature of the food

d. warranted by the nature of the food