Q&A Hero

Q: The FDCPA requires a collector to give a debtor certain information about the debt: A. within ten days of the collector's first communication with the debtor. B. within ten days of the debtor receiving the credit amount. C. within five days of the collector's first communication with the debtor. D. within five days of the debtor receiving the credit amount.

Q: What is the main federal body concerned with the safety of consumer products? A. Consumer Product Safety Commission (CPSC) B. International Product Council (IPC) C. Federal Consumer Watchdog (FCW) D. Internal Revenue Service (IRS)

Q: The _____ Act aids victims of identity theft by allowing them to file identity theft reports with consumer reporting agencies. A. Fair Credit Billing B. Equal Credit Opportunity C. Fair and Accurate Credit Transactions D. Fair Credit Reporting

Q: The _____ Act is not limited to consumer credit; it also covers business and commercial loans. A. Truth in Lending B. Equal Credit Opportunity C. Fair and Accurate Credit Transactions D. Fair Credit Reporting

Q: The Equal Credit Opportunity Act (ECOA) requires creditors to notify applicants in how many days of a decision on credit request? A. 90 B. 180 C. 30 D. 15

Q: In his April 2011 credit card bill, Shawn noticed an entry for $1,179 paid by him to a resort on the west coast. Shawn lives in Montpelier, VT and claims he last traveled to the west coast almost two years back. In May 2011, he gave a written notice of the alleged error in the billing statement to his credit card issuer. Assume that the credit card issuer has failed to comply with the rules of the Fair Credit Billing Act. Under this Act, how much of the disputed amount can the issuer collect from Shawn? A. $1,179 B. $1,079 C. $1,229 D. $1,129

Q: The Consumer Financial Protection Bureau (CFPB) was created by the: A. Dodd-Frank Wall Street Reform and Consumer Protection Act. B. Equal Credit Opportunity Act. C. Fair Debt Collection Practices Act. D. Fair and Accurate Credit Transactions Act.

Q: Violations of the FCRA are violations of: A. FTC Act Section 5. B. FTC Act Section 10. C. Section 43(a) of the Lanham Act. D. Section 41 of the Lanham Act.

Q: The FCRA establishes _____ for persons who knowingly and willfully obtain consumer information from a credit bureau under false pretenses. A. cease-and-desist orders B. out-of-court settlements C. consent orders D. criminal penalties

Q: Max's credit card was stolen last week. By the time Max reported this theft and got his card canceled, the thief had already withdrawn $10,000 using his card. Under the TILA, what is Max's maximum liability for this unauthorized use of his card? A. $100 B. $50 C. $500 D. $10,000

Q: The Fair Credit Reporting Act imposes disclosure duties on: A. users of credit reports. B. credit receivers. C. users of debit services. D. debit and credit receivers.

Q: Harry has a history of poor credit scores (650 or below). He also filed for bankruptcy five years ago. He needs a consumer reporting agency to provide a credit report on him for a government license he has applied for. Under the TILA, the agency should avoid including in the report obsolete information predating the report by more than: A. ten years. B. fifteen years. C. seven years. D. five years.

Q: Tony Sinister is a candidate for a middle management position at Mobco Inc. Mobco retained Clandestine Investigation & Credit Reporting Agency (CICRA) to interview Sinister's friends, neighbors, and associates and then prepare an investigative consumer report on Sinister. Which of the following would the Fair Credit Reporting Act require in this situation? A. That CICRA not disclose to Mobco any information pertaining to Sinister's personal traits or reputation. B. That Mobco inform Sinister of its request for the report and of his right to obtain further disclosures about the investigation. C. That CICRA conduct interviews of Sinister's neighbors and relatives to gather relevant information. D. That Mobco call off the investigation because a hiring decision does not involve credit-related information.

Q: Which of the following instances of lending is most likely to be covered by the Truth in Lending Act (TILA)? A. A savings and loan association extends a $30,000 credit to a retail consumer. B. An auto retailer extends a $25,000 credit to a buyer payable in five equal installments. C. An accountancy firm extends a $10,000 one-time credit to an employee. D. A bank extends a $20,000 credit to a farmer for use in agricultural purposes.

Q: Nearly Insolvent Savings & Loan (NISL) recently ran a newspaper advertisement that read as follows: "Unsecured open-end credit lines (maximum $15,000) now available to consumers. Borrow against your line as you need money. Your minimum monthly payment to NISL? Only $25." Which of the following is a legally accurate statement about this advertisement? A. The advertisement complies with the Truth in Lending Act in word and in spirit. B. The Truth in Lending Act does not apply, because NISL would be extending consumer credit in an amount that exceeds the ceiling set forth in the statute. C. The Truth in Lending Act does not apply, because NISL would be extending credit for consumer uses rather than for commercial uses. D. The advertisement's failure to state the annual percentage rate (APR) is a reason why the advertisement violates the Truth in Lending Act.

Q: Under the TILA, if a credit plan for a home equity loan involves a variable interest rate, the "index rate" to which changes in the APR are pegged must be: A. based on creditworthiness of the debtor. B. under the creditor's control. C. based on some publicly available rate. D. under the debtor's control.

Q: Under the TILA, a creditor can unilaterally terminate a credit plan for a home equity loan and require immediate repayment of the outstanding balance when a consumer has: A. paid the installment without the added interest. B. lost his only source of income. C. defaulted on one repayment installment. D. made material misrepresentations.

Q: Which of the following would keep the Truth in Lending Act from applying to a transaction? A. The intent of the debtor to make commercial use of funds borrowed in the transaction. B. The transaction being an open-end credit plan. C. The debtor being a natural person rather than a business entity. D. The creditor being a credit card issuer rather than a maker of a conventional loan.

Q: Which of the following is true about the Truth in Lending Act (TILA)? A. Extending credit must be the creditor's primary business. B. A creditor must require payment in more than two installments. C. A debtor must be a natural person, not a business organization. D. Consumer credit includes credit extended for agricultural purposes.

Q: The TILA's detailed disclosure provisions break down into three categories. One of those categories is that of: A. open-end credit. B. debit card applications. C. mixed credit. D. consumer loans.

Q: In response to the Telemarketing Sales Rule (TSR), affected commercial telemarketers initiated litigation brought on lack-of-statutory authority and: A. First Amendment grounds. B. Fourth Amendment grounds. C. Fifth Amendment grounds. D. Seventh Amendment grounds.

Q: The Magnuson-Moss Warranty Act of 1975 mainly applies to: A. presale agreements for products used for commercial purposes. B. written warranties for products used for household purposes. C. presale agreements for products used for household purposes. D. written warranties for products used for commercial purposes.

Q: The Magnuson-Moss Warranty Act applies to sales of goods costing: A. $15 or more to a consumer. B. $15 or more to any purchaser. C. $50 or more to a consumer. D. $50 or more to any purchaser.

Q: Which of the following actions is most likely to adhere to the Magnuson-Moss Warranty Act of 1975? A. A seller does not disclose any limitations on the duration of implied warranties. B. A seller's written warranty does not include information on the duration of the warranty. C. A seller refuses to disclose warranty terms to a buyer before the sale. D. A seller fails to give a written warranty to a consumer for a consumer product.

Q: The _____ case is an example of litigation initiated by commercial telemarketers questioning the legal validity of the do-not-call registry. A. Central Hudson B. Kraft C. Evory D. Mainstream Marketing

Q: Which of the following acts is most likely to violate the Telemarketing Sales Rule (TSR)? A. Calling a consumer's residence at 9:30 P.M. to inform about an exciting prize promotion. B. Soliciting sales through the mailing of a catalog and then receiving customers' orders by telephone. C. Making telephone calls to a customer to get an appointment for a face-to-face sales presentation. D. Making telephone calls of solicitation to a consumer but completing the transaction in a face-to-face meeting.

Q: Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 was enacted to regulate: A. personal unsolicited calls. B. personal e-mail messages. C. commercial e-mail messages. D. commercial unsolicited calls.

Q: Enforcement authority for violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act) was given to: A. the FTC, state attorneys general and users of Internet access services. B. the FTC, state attorneys general and providers of Internet access services. C. district courts, state attorneys general and users of Internet access services. D. the FTC, district courts, and providers of Internet access services.

Q: The FTC focuses on _____ when it attacks unfair acts or practices. A. free and fair trade B. antitrust action C. consumer harm D. anticompetitive behavior

Q: Which of the following will lead to a violation of the FTC Act Section 5's prohibition of unfair acts or practices? A. An advertisement that causes emotional distress. B. A seller's use of high-pressure sales tactics on vulnerable consumers. C. An advertisement that is perceived to be offensive in nature. D. A seller's failure to give a consumer complex technical data about a product.

Q: Which of the following is NOT a possible order resulting from a successful FTC adjudicative proceeding attacking deceptive or unfair behavior? A. Affirmative disclosure B. All-products order C. Corrective advertising D. Imprisonment

Q: Supermart Inc., a manufacturer of lawn furniture, is ordered by the FTC to place a warning on their TV advertisements that the price shown does not include everything that is shown, some items are additional costs. This remedy by the FTC is called what? A. Affirmative disclosure B. Fair Credit Monitoring C. Imprisonment D. Hybrid order

Q: Section 5 of the FTC Act normally is NOT violated when sellers make: A. exaggerated sales talk in their advertisements. B. deceptive omissions from their advertisements. C. false or misleading claims of an implied nature. D. claims regarding taste or smell of their products.

Q: Which of the following is most likely to violate Section 5 of the FTC Act? A. "Puffing" statements B. Statements of opinion C. Deceptive omissions D. Sales talk

Q: The Federal Trade Commission recently instituted an adjudicative proceeding against OK Corp., a manufacturer of inflatable dolls. OK is alleged to have made deceptive statements concerning the quality of its product in nationwide advertisements. Which of the following statements is accurate? A. If the statements in the OK ads were material misrepresentation that could mislead reasonable consumers, the FTC's deception standard would require a conclusion that OK did engage in deceptive advertising. B. OK may be held to have engaged in deceptive advertising even if all company employees and executives involved in advertising decisions believed in good faith that false statements in the ads were true. C. If the FTC proves that the intent in OK advertisements was to offend reasonable consumers, then an administrative law judge could order OK to cease making such an advertising claim. D. OK cannot be held to have engaged in deceptive advertising if no consumers have actually been deceived by the OK ads.

Q: EU countries depend more on litigation instituted by private parties as the chief legal means of dealing with misleading advertising. In this sense, the approach taken by EU nations resembles advertising regulation in the United States under: A. Section 5 of the FTC Act. B. Section 4 of the Clayton Act. C. Section 16(c) of the Sherman Act. D. Section 43(a) of the Lanham Act.

Q: Many alleged violations of statutes or trade regulation rules are never adjudicated by the FTC. Instead, they are settled through a _____. A. cease-and-desist order B. standard $16,000 fine per violation C. consent order D. standard $26,000 fine per violation

Q: An advertisement is in violation of the Federal Trade Commission Act only when it: A. is likely to mislead any consumer. B. is likely to mislead a consumer who acts reasonably. C. actually deceives any consumer. D. does not involve a material misrepresentation.

Q: What is the term for the FTC's interpretation of the laws it administers? A. Industry guides B. Advisory appeal C. Executive order D. Legislative act

Q: When the Federal Trade Commission conducts an administrative hearing, the presiding judge in this hearing is a(n): A. administrative law judge. B. federal district court judge. C. arbitration judge. D. FTC commissioner.

Q: The usual penalty resulting from a final decision against the respondent is a: A. fine of $20,000. B. cease-and-desist order. C. fine of $10,000. D. consent order.

Q: A credit card issuer that fails to comply with the Fair Credit Billing Act forfeits its right to collect the disputed amount from the cardholder.

Q: The Consumer Financial Protection Bureau (CFPB) has authority to take regulatory action to prohibit hidden fees charged by a financial institution.

Q: The Fair Debt Collection Practices Act (FDCPA) does not bar debt collectors from contacting third parties such as the debtor's employer, relatives, or friends.

Q: The main federal body concerned with the safety of consumer products is the Consumer Product Safety Commission (CPSC).

Q: The FTC commissioners serve for: A. five-year terms. B. staggered five-year terms. C. fixed seven-year terms. D. staggered seven-year terms.

Q: The TILA specifies that if a home equity plan involves a variable interest rate, the "index rate" to which changes in the APR are pegged must be based on some publicly available rate and must not be under the creditor's control.

Q: Besides imposing duties on consumer reporting agencies, the Fair Credit Reporting Act (FCRA) imposes duties on users of credit reports generated by such agencies.

Q: An in-depth consumer credit report is a credit report that includes information on a person's character, reputation, personal traits, or mode of living and is based on interviews with neighbors, friends, associates, and the like.

Q: The FACT Act was a 2003 amendment to the Fair Credit Reporting Act that created protections for individuals that were the victims of identity theft.

Q: The Equal Credit Opportunity Act's (ECOA) provisions apply only in the consumer credit setting but not in the commercial credit context.

Q: The do-not-call registry is unconstitutional because it discriminates and does not apply to charitable and political callers.

Q: According to the Magnuson-Moss Warranty Act of 1975, a consumer is a buyer or transferee who either uses the product himself or sells it to another consumer.

Q: If a $100 replacement part for a piece of manufacturing equipment is sold to a manufacturing plant, the Magnuson-Moss Act does not apply to the sale.

Q: Much of the information contained in a typical monthly credit card statement sent to a consumer is compulsorily required by the Truth in Lending Act.

Q: The TILA also deals in consumer credit advertising and thus prevents a creditor from "baiting" customers.

Q: The obligations imposed on telemarketers by the FTC's Telemarketing Sales Rule do not apply to sellers that solicit sales through mailed catalogs and then receive consumers' orders by telephone.

Q: Under the FTC section 5, in proving deception of a consumer it is not important if the consumer was acting reasonably when they were taken advantage of.

Q: Corrective advertising is a requirement from the FTC for a seller to use advertisements to correct false impressions from past advertising. TRUE A remedy from the FTC is corrective advertising which requires the seller's future advertisements to correct false impressions created by past advertising.

Q: Joe has recently learnt about the Privacy Act of 1974 from his friend Shawn. That has reassured him that his personal tax documents available with the Internal Revenue Service are unlikely to be disclosed by IRS to third parties without his written consent. Is Joe right?

Q: The Federal Trade Commission is a state agency.

Q: The Federal Trade Commission's (FTC) principal mission is to ensure that the economy is free and fair.

Q: An order telling the respondent to cease engaging in the deceptive or unfair conduct is the usual penalty resulting, from a successful FTC adjudicative proceeding.

Q: The Securities and Exchange Commission (SEC) is investigating Bob DeSlob for possible violations of federal securities laws. If the violations occurred, DeSlob could be subjected to adverse civil consequences. As part of this investigation, the SEC has issued a subpoena duces tecum calling for DeSlob to produce copies of his federal income tax returns for the years 2000 through 2002. Assume that the investigation is of the sort authorized by law and is being conducted for a proper purpose. Also assume that it is plausible for the SEC to believe that the tax return copies could contain information relevant to the investigation. DeSlob wishes to have the subpoena duces tecum quashed (i.e., invalidated by court order). What would be the strongest argument for DeSlob to make to the court?

Q: Assume that sellers of alcohol for consumption on the premises (i.e., bars, taverns, and the like) are heavily regulated under Montana law. The state's statutes and regulations impose a licensing requirement, mandate the posting of signs (in open-to-the-public portions of the bar) concerning the minimum drinking age and the possible hazards of alcohol consumption, and establish numerous other requirements that bar owners must meet. Montana law also authorizes the Montana Liquor Control Commission (MLCC), a state agency that administers the statutes and regulations on sellers of alcohol, to conduct administrative inspections of bars and taverns in order to determine whether the required signs are posted and the other legal requirements are being met. The statute providing for these inspections states that the MLCC need not obtain any sort of warrant before conducting such an inspection. MLCC investigators recently conducted a warrantless inspection of the Pink Elephant Lounge, a Butte, Montana tavern owned by Edna Sternwallow. The inspection revealed the absence of the required drinking age and warning signs. Following a hearing, the five MLCC commissioners suspended the Pink Elephant's liquor license for a year (a penalty allowed by Montana law for a violation of the sign-posting requirement). Sternwallow appealed to an appropriate Montana court, which is conducting a de novo review according to state law. Sternwallow argues that the evidence obtained through the warrantless inspection should be excluded because the inspection violated the Fourth Amendment. Will Sternwallow succeed with this argument? Explain.

Q: Sleazeco, Inc. was the respondent in an adjudicative proceeding initiated against it by the Federal Trade Commission. Dissatisfied with the decision rendered by the administrative law judge, Sleazeco wishes to appeal. Where does Sleazeco take its appeal? What is the nature of the review in such an appeal?

Q: Investigative reporter Maxine McRaker filed a Freedom of Information Act (FOIA) request that the Food and Drug Administration (FDA) provide her copies of certain documents in its possession. A private citizen, Al Kaseltzer, became concerned when he learned that the FDA was likely to give McRaker the requested copies. Kaseltzer was disturbed because he believed that the documents contained medical information about him that, if disclosed, would constitute an invasion of his privacy. Alleging that the reason just mentioned made the requested documents exempt from disclosure under the FOIA, Kaseltzer sued the FDA in an effort to obtain a court order barring it from giving McRaker access to the documents. Assuming that Kaseltzer proves his allegation about the documents' references to him, should he win the case? Why or why not?

Q: _____ allows individuals to inspect files that agencies maintain on them and to request that erroneous or incomplete records be corrected. A. The Privacy Act of 1974 B. The Disclosure act C. The Government in the Sunshine Act of 1976 D. The Freedom of Information Act

Q: While preparing his tax returns for 2010 year, Harry discovers that his 2008 tax returns has errors. Those errors led him to pay more income tax that year than he would have otherwise paid. Harry wants to inspect his 2008 tax files that IRS has and request them to be corrected. Under which Act can he place this request? A. The Freedom of Information Act B. The Disclosure act C. The Government in the Sunshine Act of 1976 D. The Privacy Act of 1974

Q: Which of the following is an accurate statement about the Privacy Act of 1974? A. It bars administrative agencies from gathering information about private citizens unless the agencies have obtained a court order justifying the information gathering. B. It is frequently used by public interest groups to obtain information useful to the advancement of their public causes. C. It ensures that every portion of every meeting of an agency shall be open to public observation. D. It allows persons to inspect files kept on them by administrative agencies and to request corrections of erroneous or incomplete information.

Q: The Government in the Sunshine Act had what as its purpose? A. That meetings of government agencies are open to public observation B. To enable the government to operate for profit corporations C. To regulate International owned corporations D. To regulate healthcare industry

Q: When an agency is asked to release documents that are exempted from disclosure under the Freedom of Information Act, the agency: A. has a statutory obligation to refuse disclosure of the exempted documents. B. may refuse disclosure but does not have an affirmative duty to do so. C. can be compelled by individuals named in exempted documents to deny a request of disclosure of those documents. D. is liable for punitive damages if it discloses the exempted documents.

Q: Under the Freedom of Information Act (FOIA), administrative agencies must normally respond to public requests for documents within _____ after such a request has been received. A. 30 days B. 20 days C. 10 days D. 40 days

Q: When courts review formal agency adjudications or formal rulemaking, the APA calls for the application of a(n): A. substantial evidence test. B. beyond reasonable doubt review. C. de novo review. D. arbitrary and capricious test.

Q: The judicial standard of review often used in cases involving informal agency adjudications or rulemaking is the: A. substantial evidence test. B. beyond reasonable doubt review. C. de novo review. D. arbitrary and capricious test.

Q: The term ripeness in reference to a lawsuit arising out of administrative decisions means: A. The plaintiff has been victorious in their actions against the agency B. The plaintiff has exhausted all necessary administrative remedies before engaging in judicial remedies C. The plaintiff is pro-se, meaning they have no attorney and represent themselves D. The action is against an international agency

Q: The Equal Employment Opportunity Commission (EEOC) was formed to regulate on a variety of issues pertaining to discrimination in employment-related contexts. If the EEOC were to promulgate a regulation specifying safety standards for chainsaws in workplaces, this action could best be attacked as being: A. obiter dictum. B. inter alia. C. nonobstante veredicto. D. ultra vires.

Q: In order for a party to successfully bring a lawsuit in federal court challenging a federal administrative agency decision, that party must first: A. sue in state court, and only then in federal court. B. exhaust all necessary administrative remedies. C. obtain a writ of certiorari. D. submit the challenge to the Inspector General's office for review.

Q: Which of the following is the most rigorous standard of judicial review of agency factual judgments as provided by the APA? A. Beyond reasonable doubt review B. Substantial evidence test C. De novo review D. Arbitrary and capricious test

Q: _____ legislation ensures periodic congressional review of the initial decision to delegate legislative authority to an administrative agency. A. Conditional B. Sunset C. Class D. Subordinate