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Q:
Henry and Barbara were sharing a Kool-Aid, and they were alarmed to find what seemed to be a plastic object floating inside the drink. Distressed and nauseated, they rushed to the hospital. On a doctor's suggestion, they underwent several tests. In the meantime, in an action for torts, Kool-Aid analysts proved that the object found in the bottle was indeed a sugar mould. Under the given circumstances, will Henry and Barbara get relief for emotional distress in an action for tort, when no damage has occurred?
A. No. Since torts remedy accrues to parties as per the impact rule which states that tort remedy flows from injuries sustained in an impact. There was no injury in this case.
B. No. They should have checked the cold drink before consuming it; the company is hence, not liable.
C. Yes. Damages for emotional distress should be recoverable even in the absence of a physical injury-producing impact.
D. Yes. The company is liable to its consumers because the impact rule does not apply in such a case.
Q:
Which of the following has the law and economics movement influenced in judicial opinion?
A. Antitrust law
B. Homicide statutes
C. Discrimination policies
D. Education
Q:
Which of the following characterizes natural law?
A. It accepts the need for both good and bad laws.
B. It reads constitutional law narrowly.
C. It rejects the separation of law and morality.
D. It opposes the view that law should be guided by a "higher reason."
Q:
Which of the following is a characteristic of legal realists?
A. They define law as that which is codified in the books.
B. They believe in the use of discretionary standards.
C. They believe that the rules in the booksreally affect people's lives.
D. They believe that "law is law, just or not."
Q:
Which of the following statements is true of statutes and statutory interpretation?
A. Statutes are easier to interpret than case law.
B. Courts begin their interpretation statues with legislative history.
C. There is deliberate ambiguity in the language of statutes.
D. Statutes are generally interpreted on the
Q:
One strength of the instrumentalist attitude:
A. is its willingness to adapt the law to further the social good.
B. is that legal validity and moral validity always remain separate.
C. is that the natural law always remains unworkable.
D. is that it views the law as an unchanging rule that deserves obedience.
Q:
John is angry because Harry is now dating John's former girlfriend. One day, as John was driving his car, he saw Harry walking by the side of the road. John deliberately swerved and struck Harry with the car. John may be successfully sued under:
A. criminal law only.
B. civil law only.
C. either criminal law or civil law but not both.
D. both criminal law and civil law.
Q:
Which of the following covers the rules of contract, and property?
A. Procedural law
B. Private law
C. Criminal law
D. Ordinances
Q:
Some legal positivists believe that:
A. an unjust law is not law.
B. the validly of enacted laws should be obeyed, just or not.
C. the law should keep up with changing times.
D. justice is what the judge ate for breakfast.
Q:
Why is sociological jurisprudence seen to resemble natural law?
A. It advocates the separation of law and morality.
B. It stresses on the superiority of lawmakers.
C. It calls for a separation of the judiciary and legislature.
D. Its definition of law includes social values.
Q:
The power of executive order normally derives from a(n):
A. legislative delegation.
B. federal court.
C. injunction.
D. restatement.
Q:
According to the principle of _____, treaties are the supreme law of the land.
A. judicial activism
B. separation of powers
C. federalism
D. federal supremacy
Q:
Which of the following defeats a federal statute in case of a clash between them?
A. A state statute
B. A state constitution
C. An equitable principle
D. The U.S. Constitution
Q:
Which of the following is applied in a lawsuit between two private parties?
A. Criminal law
B. Civil law
C. Procedural law
D. Public law
Q:
What is substantive law?
A. The laws that govern the rights and duties of people as they act in society.
B. The code of conduct of government bodies.
C. The procedures followed by Congress to make statutes.
D. The procedures followed by state legislatures in creating ordinances.
Q:
Why were equitable remedies developed?
A. Common law rules were too flexible to produce fair results.
B. The remedies available in common law courts were too few.
C. Equitable remedies were rigid rules of law and produced fair results.
D. Common law rules were less technical and rigid.
Q:
Which of the following is a characteristic of administrative agencies?
A. They derive their power from the Supreme Court.
B. They make ordinances and pass executive orders.
C. They are generally created by a statute.
D. They are elected bodies.
Q:
Ordinances are created by:
A. Congress.
B. the Supreme Court.
C. counties.
D. equity courts.
Q:
_____ are model statutes drafted by private bodies of lawyers and scholars.
A. Precedents
B. Uniform acts
C. Ordinances
D. Equitable remedies
Q:
Which of the following is also called "judge made law"?
A. Common law
B. Statutes
C. Uniform acts
D. Equity
Q:
Which of the following is true of Restatements?
A. They are promulgated by courts.
B. They can be adopted as common law by the states.
C. They include only statutory laws.
D. They are law and binding on courts.
Q:
A(n) _____ is a cancellation of a contract and a return of the parties to their precontractual position.
A. injunction
B. ordinance
C. rescission
D. restatement
Q:
Which of the following is the most important type of equitable remedy provided by the equity courts?
A. Injunction
B. Specific performance remedy
C. Reformation
D. Rescission
Q:
The doctrine of standing to sue requires that, in order to be able to mount a civil suit, a plaintiff must have some direct and considerable stake in the outcome of the suit.
Q:
State and federal declaratory judgment statutes do not allow parties to determine their rights and duties when their controversy has not advanced to the point where harm has occurred and legal relief may be necessary.
Q:
What is a statute?
A. Laws made and applied by judges
B. Laws made by Congress or a state legislature
C. Laws made by administrative agencies
D. Laws made by the federal judiciary
Q:
In case of a dispute between the common law and a precedent that has been properly distinguished, the common law prevails.
Q:
It is unimportant for the court, whether the interpretation of a statute is consistent with the legislative purpose; it is the actual language (plain or ambiguous) of the statute that needs to be studied.
Q:
Though formal natural law defense is not recognized in court, judges may take natural law oriented views while interpreting statutes.
Q:
American legal realists distinguish between the "law-in-the-books" and the "law in action" and they recognize law as the behavior of public officials (mainly judges) as they deal with matters before the legal system.
Q:
The Critical Legal Studies movement regards the law as the product of political calculation and longstanding bias of lawmakers.
Q:
The doctrine of stare decisis states that like cases should be decided alike.
Q:
Common law is a state law and only state courts can apply it.
Q:
The Restatements are considered binding laws and are promulgated by the American Law Institute.
Q:
According to the U.S. Constitution treaties made by the president with foreign governments and approved by two-thirds of the U.S. Senate validate inconsistent state and federal laws.
Q:
The same behavior will sometimes violate both civil law and the criminal law, and in such a case, both liabilities can be claimed at the same time.
Q:
A State Homicide statute is an example of a substantive law, criminal law, and public law.
Q:
The U.S. Constitution recognizes the states' power to make law in certain areas.
Q:
Uniform acts are model statutes drafted by private bodies of lawyers and/or scholars; they become law only after legislature enacts them.
Q:
The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which there has been a recent death because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired, but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of doing telephone solicitations late at night after people are tired?
A. Under federal law there is no problem with his practice because any consumer who does not want to talk to him can simply hang up.
B. According to a rule of the Federal Trade Commission, if a telemarketer calls a residence after 9 p.m., the telemarketer is engaging in abusive behavior; therefore, Fred is in violation.
C. According to a rule of the Federal Trade Commission, if a telemarketer calls a residence after 8 p.m., the telemarketer is engaging in abusive behavior; therefore, Fred is not in violation.
D. According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation may not be made; therefore, Fred is in violation.
E. According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation may not be made after 7 p.m.; therefore, Fred is in violation.
Q:
Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. Under the Truth in Lending Act what type of information should Kathy have received from ABC Bank?
A. The total amount financed; and the number, amount, and due dates of payments.
B. The total amount financed; the number, amount, and due dates of payments; and the bank policy in the event of a delinquency.
C. The total amount financed; the number, amount, and due dates of payments; and the bank's policy regarding selling loans to other financial institutions.
D. The total amount financed; the number, amount, and due dates of payments; the bank policy in the event of a delinquency; and the bank's policy regarding selling loans to other financial institutions.
E. Only the information she received.
Q:
Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind, but also his sales of all other vehicles?
A. A multiple cease-and-desist order
B. A multiple-product order
C. A combined order
D. A superlative order
E. An exceptional order
Q:
The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which there has been a recent death because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired, but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?
A. There is no problem with Fred's actions so long as he truly gives specific notice that he will not agree to any cancellations.
B. Fred must give customers at least 24 hours in which to cancel such a contract, but that is only because funeral services are involved.
C. There is no problem with Fred's actions even if he does not give specific notice that he will not agree to any cancellations.
D. Because door-to-door sales are involved, Fred must give consumers 24 hours in which to cancel.
E. Because door-to-door sales re involved, consumers must have three days in which to cancel purchases.
Q:
Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. What type of loan was Kathy seeking from ABC Bank?
A. An open-end credit line
B. A closed-end credit line
C. An approved line
D. A line of credit
E. A direct line
Q:
Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued by the Federal Trade Commission requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?
A. A state circuit court judge
B. A federal district court judge
C. An administrative law judge
D. A panel of commissioners of the Federal Trade Commission
E. All the commissioners of the Federal Trade Commission
Q:
Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued by the Federal Trade Commission requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. If a company violates a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts, which of the following is the fine that the Federal Trade Commission may impose?
A. Up to $3,000 per violation
B. Up to $5,000 per violation
C. Up to $10,000 per violation
D. Up to $50,000 per violation
E. Up to $100,000 per violation
Q:
Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. What kind of objectionable advertising, if any, was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?
A. Advertise-and-deny
B. Claim-and-refuse
C. Bait-and-switch
D. Ad trickery
E. He was not engaged in any objectionable advertising so long as he had at least one vehicle in stock at a price of $10,000.
Q:
_______________ conducts investigations into the safety of motor vehicles.
A. The Vehicle Investigation Commission
B. The Vehicle Safety Administration
C. The National Highway Traffic Safety Administration
D. The Motorized Safety Administration
E. The Transportation Safety Commission
Q:
Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued by the Federal Trade Commission requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following are generalities and clear exaggerations that are allowable by the Federal Trade Commission?
A. Huffing
B. Puffing
C. Crowing
D. Swelling
E. None of these because the Federal Trade Commission does not allow generalities and clear exaggerations
Q:
Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued by the Federal Trade Commission requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following is the term for the order issued by the Federal Trade Commission ordering that Katie stop advertising and selling the pills?
A. A stop gap order
B. An approved order
C. An agency acknowledged order
D. An agency requirements order
E. A cease-and-desist order
Q:
_______________ was the first federal legislation regulating food and drugs.
A. The Applied Food, Drug, and Cosmetic Act
B. The Pure Food and Drugs Act
C. The Food and Drug Safety Act
D. The Consumer Safety Act
E. The Congressional Safety Act
Q:
________________ is the agency responsible for enforcing the Federal Food, Drug, and Cosmetic Act.
A. The U.S. Food and Drug Administration
B. The Federal Consumer Administration
C. The Federal Consumption Administration
D. The Federal Safety Commission
E. The U.S. Uniform Drug Commission
Q:
Which of the following is false regarding the Consumer Product Safety Act?
A. It enforces mandatory standards regarding product safety.
B. It has no authority to require a recall of products.
C. It conducts research regarding potentially hazardous products.
D. It educates consumers about product safety.
E. It can ban consumer products from the market.
Q:
_________________ governs the issuance of credit reports.
A. The Prohibited Report Act
B. The Fair Credit Reporting Act
C. The Unfair Reporting Act
D. The Loan Reporting Act
E. The Credit Protection Act
Q:
General credit information is considered obsolete after _____ years.
A. 3
B. 4
C. 5
D. 7
E. 8
Q:
_________________ is (are) prohibited by the Fair Debt Collection Practices Act.
A. Contacting a debtor at work if the debtor's employer objects
B. Misrepresenting the collection agency as a lawyer or police officer
C. Contacting a debtor who has notified the collection agency that he or she wants no contact with the agency
D. Contacting a debtor at work if the debtor's employer objects, misrepresenting the collection agency as a lawyer or police officer, and contacting a debtor who has notified the collection agency that he or she wants no contact with the agency
E. Contacting a debtor at work if the debtor's employer objects, and misrepresenting the collection agency as a lawyer or police officer are prohibited; but contacting a debtor who has notified the collection agency that he or she wants no contact with the agency is not prohibited
Q:
By federal law, major credit reporting agencies are now required to provide consumers with a free copy of their credit report every ______.
A. 36 months
B. 24 months
C. 12 months
D. 6 months
E. None of these because there is no such requirement.
Q:
If a credit card company sends a person an unsolicited card in the mail and the card is stolen, for how much can the person be held liable to the credit card company?
A. $500
B. $300
C. $250
D. $200
E. 0
Q:
A credit card company may not bill a consumer for a damaged item that is unknowingly purchased with the card if ____________.
A. the consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home
B. the consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home, and the item cost more than $50
C. the consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; and the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund
D. the consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund; and the seller had a history of providing defective merchandise
E. the credit card company may always charge the consumer, and it is up to the consumer to get a refund from the merchant
Q:
The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ______.
A. race, religion, national origin, color, sex, marital status, or age
B. race, national origin, color, sex, marital status, or age
C. race, religion, national origin, color, sex, or age
D. race, religion, national origin, color, or sex
E. race, religion, color, sex, marital status, or age
Q:
The Truth in Lending Act includes _________________.
A. open-end credit
B. closed-end credit
C. credit card applications and solicitations
D. open-end credit, closed-end credit, and credit card applications and solicitations
E. open-end credit and closed-end credit, but not credit card applications and solicitations
Q:
________________ permits repeated transactions and assesses a finance charge on unpaid balances.
A. Open-ended credit
B. Closed-ended credit
C. Debt-based credit
D. Uncollateralized credit
E. Collateralized credit
Q:
Credit card applications include ___________ under the Truth in Lending Act.
A. the APR
B. annual fees
C. the grace period for paying without a finance charge
D. the APR, annual fees, and the grace period for paying without a finance charge
E. the APR and the annual fees, but not the grace period for paying without a finance charge
Q:
If a person notifies the credit card company of a stolen card before unauthorized charges are made, for how much can the person be held liable to the credit card company for later unauthorized charges?
A. $500
B. $300
C. $250
D. $200
E. 0
Q:
The Truth in Lending Act applies to _____________.
A. loans to a natural person
B. loans to a natural person and to a limited partnerships
C. loans to a natural person, loans to a limited partnership, and loans to a general partnership
D. loans to a natural person, loans to a limited partnership, loans to a general partnership, and loans to a corporation
E. all loans
Q:
In order to come within the scope of the Truth in Lending Act, a loan must be in the amount of ______ unless it is secured by a mortgage on real estate.
A. $50,000 or more
B. $50,000 or less
C. $30,000 or more
D. $40,000 or less
E. $25,000 or less
Q:
In order for a loan to come within the protection of the Truth in Lending Act, ___________.
A. the credit or loan must be subject to a finance charge
B. the credit or loan must have repayments of more than four installments
C. the credit or loan must have an interest rate of over 5%
D. the credit or loan must be subject to a finance charge, or credit or loan must have repayments of more than four installments, and the credit or loan must have an interest rate of over 5%
E. the credit or loan must be subject to a finance charge or have repayments of more than four installments, but there is no requirement regarding the loan having an interest rate of over 5%
Q:
State consumer protection laws prohibiting used-car fraud are known as ______ laws.
A. orange
B. prune
C. lemon
D. onion
E. garlic
Q:
The federal regulation of used-car sales requires that __________.
A. odometer fraud is prohibited.
B. there are requirements regarding notification that a car is being sold "as is."
C. the dealer may attach a label providing that the dealer needs no further inspection if the car has already gone through a thorough inspection.
D. odometer fraud is prohibited; there are requirements regarding notification that a car is being sold "as is;" and the dealer may attach a label providing that the dealer needs no further inspection if the car has already gone through a thorough inspection.
E. odometer fraud is prohibited and there are requirements regarding notification that a car is being sold "as is," but the dealer is not allowed to indicate that no further inspection is needed.
Q:
________________ is (are) federal law(s) regulating the credit industry.
A. The Truth-in-Lending Act
B. The Fair Credit Reporting Act
C. The Fair Debt Collection Practices Act
D. The Truth-in-Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act
E. The Truth-in-Lending Act and the Fair Credit Reporting Act, but not the Fair Debt Collection Practices Act
Q:
Which of the following is true regarding regulation of tobacco under federal law?
A. Radio advertisement of cigarettes is prohibited.
B. Radio advertisement of smokeless tobacco is prohibited.
C. Television advertisement of smokeless tobacco is prohibited.
D. Radio advertisement of cigarettes is prohibited, radio advertisement of smokeless tobacco is prohibited, and television advertisement of smokeless tobacco is prohibited.
E. Radio advertisement of cigarettes is prohibited and television advertisement of smokeless tobacco is prohibited, but radio advertisement of smokeless tobacco is allowed.
Q:
________________ is not a federal law referenced in the text regulating product labeling.
A. The Wool Products Labeling Act
B. The Fur Products Labeling Act
C. The Flammable Fabrics Act
D. The Nutrition Labeling and Education Act
E. The Imported Canine and Feline Fur Act
Q:
Which of the following is required by the Federal Trade Commission Cooling-Off Rule in regard to door-to-door sales?
A. That consumers have three days in which to cancel purchases made from salespeople who come to their homes.
B. That the salesperson notify the consumer, both verbally and in writing that the sales transaction may be cancelled.
C. That the consumer be notified in writing in the same language in which the oral negotiations were conducted.
D. That consumers have three days in which to cancel purchases made from salespeople who come to their homes; that the salesperson notifies the consumer, both verbally and in writing that the sales transaction may be cancelled; and that the consumer is notified in writing in the same language in which the oral negotiations were conducted.
E. That consumers have three days in which to cancel purchases made from salespeople who come to their homes and that the salesperson notify the consumer in writing in the same language in which oral negotiations were conducted that the transaction may be cancelled, but not that notification also be made verbally.
Q:
Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise?
A. The consumer may treat the merchandise as a gift.
B. The consumer may only treat the merchandise as a gift if it has a value of under $25; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
C. The consumer may only treat the merchandise as a gift if it has a value of under $50; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
D. The consumer may only treat the merchandise as a gift if it has a value of under $100; otherwise, the consumer must call the seller and ask if the seller would like to cover return postage.
E. The consumer must return the merchandise.
Q:
The Federal Trade Commission considers ________________, abusive action by telemarketers.
A. using profane or obscene language toward a customer
B. calling a person who has previously requested to be taken off the particular seller's calling list
C. calling a residence before 8 a.m.
D. using profane or obscene language toward a customer, calling a person who has previously requested to be taken off the particular seller's calling list, and calling a residence before 8 a.m.
E. using profane or obscene language toward a customer and calling a person who has previously requested to be taken off the particular seller's calling list, but not calling a residence before 8 a.m.
Q:
The Federal Trade Commission's "Do Not Call" registry lasts _________.
A. two years
B. three years
C. four years
D. five years
E. six years
Q:
Which of the following is false regarding the Telephone Consumer Protection Act of 1991?
A. It forbids telephone solicitation using an automatic telephone dialing system.
B. It forbids telephone solicitation using a prerecorded voice.
C. It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission.
D. Only the Federal Communications Commission can take action to enforce the act.
E. If a telemarketer willfully violates the act, the court can decide to triple the amount owed to the consumer.
Q:
The Federal Trade Commission requires ________________ if a company wishes to claim that its products are "Made in the U.S.A.".
A. that the claim not be used unless all, or virtually all, of the product's components and labor are of U.S. origin
B. that the claim not be used unless absolutely all of the components and labor of the product are of U.S. origin
C. that the claim not be used unless at least 75% of the product's components and labor are of U.S. origin
D. that the claim not be used unless at least 50% of the product's components and labor are of U.S. origin
E. that the claim not be used unless at least 55% of the product's labor and components are from Canada, Mexico, or the United States
Q:
A(n) ______________ is a form of cease-and-desist order issued by the FTC that applied not only to the product that was the subject of the actions but also to other products produced by the same firm.
A. corrective advertising
B. ad substantiation
C. multiple-product order
D. consent order
E. puffing
Q:
__________ is a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue.
A. Corrective advertising
B. Repeal advertising
C. Notice publication
D. Notice advertising
E. Action publication