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Q:
The Consumer Product Safety Commission may:
A.Issue recalls of products.
B.Ban certain foods from the market after testing to determine their purity.
C.Enforce product warranties regarding consumer products that create an unreasonable risk to consumers.
D.All of the above.
Q:
In Anderson v. Foothill Industrial Bank, the plaintiff sued claiming that the defendant misrepresented the annual percentage rate of a loan for the purchase of rights to a mail delivery route.
A.Plaintiff won because their loan was a consumer loan covered under Wyoming and federal law.
B.Plaintiff won because their loan was a commercial loan covered under Wyoming and federal law.
C.Plaintiff lost because their loan was a consumer loan not covered under Wyoming and federal law.
D.Plaintiff lost because their loan was a commercial loan not covered under Wyoming and federal law.
Q:
The courts may assess fines against those found to have engaged in deceptive advertising upon request from:
I. " The Bureau of Consumer Protection
II. " The FTC
III. " The Justice Department
A.I only.
B.I and/or II.
C.I, II and III.
D.II and/or III.
Q:
Which of the following regulates the consumer credit reporting industry?
A.Equal Credit Opportunity Act.
B.Fair Credit Reporting Act.
C.Truth in Lending Act.
D.Fair Debt Collection Practices Act.
Q:
The national "Do Not Call" list was created by a/an:
A.Congressional statute.
B.FTC trade regulation.
C.Executive order.
D.Uniform statute established on the state's level.
Q:
In a bankruptcy proceeding, which of the following debts will have the lowest priority?
A.Government tax claims.
B.Employees owed wages earned within 90 days of filing.
C.Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer.
D.Creditors with claims in the normal course of business incurred after the bankruptcy was filed.
Q:
Which of the following is not considered a non-dischargeable bankruptcy debt?
A.A tax debt owed to the federal or any state or local government.
B.A mortgage on the family home.
C.Child support.
D.Alimony.
Q:
The Fair Debt Collection Practices Act:
A.Permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt.
B.Permits debt collectors to contact third parties and the debt collector must disclose that they are pursuing a debt against the consumer but may not disclose the nature or amount of the debt.
C.Permits debt collectors to contact third parties and the debt collector must disclose that they are pursuing a debt against the consumer and the debt collector may disclose the nature or amount of the debt.
D.Forbids debt collectors from contacting third parties whether the existence of the consumer's debt is disclosed or not.
Q:
On Tuesday, February 14th, Paula's ATM card was stolen and the thief empties $1,100 out of her account. She calls to notify the bank on Friday, February 17th. If the bank follows the law without changes in the customer's favor, how much must they return to her account?
A.$1,100.00.
B.$1,050.00.
C.$600.00.
D.Nothing.
Q:
Assume the same fact situation as question #36 above. Big Prime is violating provisions of the:
A.Equal Credit Opportunity Act.
B.Truth in Lending Act.
C.Fair Debt Collection Practices Act.
D.Big Prime is not violating any laws if their decision is a business decision for the good of the company.
Q:
Big Prime Mortgage Co., Inc. is a major lender licensed to lend only in Delaware. Delaware being very small and with only three counties is easy to monitor with regard to customer performance. They track every facet of the payment history of their customers and have noticed that the customers in Sussex County perform far below the customers in the other two counties. Assume that the County which is heavily into farming and low paying industrial jobs, is 25% black and has a 40% population of legal and illegal aliens. Big Prime finds that while they are profitable overall, they are losing money on their Sussex County loans. They do further research and find that Sussex County is one of the poorest performing customer bases nationwide and that almost all companies doing business in the county are losing money there. The Board of Directors has a meeting and decides not to make any more loans in Sussex County.
A.Before Big Prime implements their decision, they must get permission from the FTC to do so.
B.If Big Prime goes through with their decision they are engaging in redlining which is illegal.
C.If Big Prime goes through with their decision they are engaging in creditlining which is illegal.
D.Big Prime, as a private company is free to make business decisions that are advantageous to the company and have done nothing wrong.
Q:
A Subprime mortgage refers to a mortgage securing a loan:
A.That is issued to consumers at an interest rate lower than the prime interest rate established by the treasury.
B.That is issued on property that cannot pass a reasonable safety inspection.
C.That is issued to customers with excellent credit at a lower than ordinary market rate.
D.That is issued to a consumer that cannot qualify for ordinary market rates due to a lack of credit worthiness.
Q:
Which of the following prevents discrimination in credit extension based on sex, age, race, religion, national origin, marital status and receipt of welfare payments?
A.Equal Credit Opportunity Act.
B.Fair Credit Reporting Act.
C.Truth in Lending Act.
D.Fair Debt Collection Practices Act.
Q:
The Truth-in-Lending Act gives consumers the right to rescind or cancel certain transactions for a period of:
A.Three days from the date of the transaction.
B.Three days from the date of the transaction or from the date that notice of the right to rescind or cancel is given, whichever comes first.
C.Three days from the date of the transaction or from the date that notice of the right to rescind or cancel is given, whichever comes last.
D.The Truth-in-Lending Act does not address the right to rescind or cancel. This is a right conferred through state statute and varies from state to state.
Q:
The Fair Credit Reporting Act applies to anyone who prepares or uses a credit report in connection with each of the following except:
A.Extending credit.
B.Hiring or firing an employee.
C.Selling insurance.
D.Granting a business license.
Q:
Although the Equal Credit Opportunity Act protects each of the following from discrimination, special emphasis is aimed at preventing discrimination regarding:
A.Race.
B.Age.
C.Sex
D.Marital status.
Q:
Private remedies under the Equal Credit Opportunity Act may include:
A.Actual and punitive damages up to $10,000.
B.Actual and punitive damages up to $10,000 and attorney fees.
C.Actual and punitive damages up to $10,000, attorney fees and legal costs.
D.None of the above. There is no private cause of action permitted under the ECOA. Only the FTC is authorized to sue violators.
Q:
Which of the following is not included in the finance charge?
A.Fees for appraisals.
B.Attorney fees.
C.Life and health insurance required as a condition of the loan.
D.Fees for credit reports.
Q:
The regulatory center for federal consumer protection is the:
A.Federal Trade Commission.
B.Bureau of Consumer Protection.
C.Federal Consumer Protection Agency.
D.Bureau of Consumer Trade.
Q:
The FTC is an:
A.Independent agency.
B.Executive agency.
C.Part of the President's cabinet.
D.An ad hoc Congressional agency
Q:
Your aunt Eva is a very successful actress and is very wealthy. For which of the following transactions is a financing statement required under the Truth-in-Lending Act?
A.She lends you money for tuition and charges you interest.
B.She lends you money to finance the purchase of a home, has you sign a mortgage and charges you interest.
C.Both a and b.
D.None of the above.
Q:
Who among the following meets the definition of "consumer" according to Anderson v. Foothill Industrial Bank?
A.Natural persons.
B.Corporations and other business entities.
C.U.S. citizens, corporations and other business entities.
D.All natural persons, corporations and other business entities regardless of location.
Q:
In Safeco Insurance Co. v. Burr, the court determined that:
A.Because insurance companies are in such an obviously advantageous bargaining position with regard to their customers, any erroneous reading of the Fair Credit Reporting Act by an insurance company constitutes a reckless violation of the Act.
B.The Fair Credit Reporting Act does not recognize willful or reckless conduct as an action that authorizes private actions.
C.Notice of an adverse decision by an insurance company is not required during the initial application stage as long as the company issues the customer insurance, even at a higher rate.
D.An erroneous reading of the statute is not automatically willful or reckless if the reading was not objectively unreasonable.
Q:
Investigative consumer reports detailing a consumer's character, general reputation and mode of living:
A.Are allowed under the Fair Credit Reporting Act without restriction should the consumer apply for credit, insurance or a job.
B.Are allowed under the Fair Credit Reporting Act with three days advance notice to the consumer should the consumer apply for credit, insurance or a job.
C.Are allowed under the Fair Credit Reporting Act with five days advance notice to the consumer should the consumer apply for credit, insurance or a job.
D.Are expressly prohibited under the Fair Credit Reporting Act because these are not credit related issues.
Q:
The Magnuson-Moss Warranty Act applies to all consumer product warranties regarding products priced at ________ or more.
A.$10.00.
B.$15.00.
C.$20.00.
D.$25.00.
Q:
Courts have:
A.In the past, have mainly used statutory law to resolve consumer disputes.
B.In the past, have mainly used constitutional law to resolve consumer disputes.
C.In the past, have mainly used administrative regulations to resolve consumer disputes.
D.In the past, have mainly used principles of common law to resolve consumer disputes.
Q:
Congress has specified that the Fair Debt Collection Procedures Act preempts any state laws regulating debt collection in an effort to standardize enforcement in the industry.
Q:
Mary is a married woman with a good job. If she applies for credit solely in her own name, the credit company may not deny her individual credit if she is credit worthy but the credit company is permitted to ask if she is married to maintain a complete file on her.
Q:
Using zip codes as a factor in denying credit has been determined to be illegal by the FTC due to possible discrimination that could result.
Q:
Industry guides issued by the FTC are legally binding on the industry being regulated.
Q:
The major duty of the Magnuson-Moss Warranty Act is to require the FTC to issue rules regarding consumer product warranties.
Q:
The Fair Credit Billing Act limits a customer's liability for a thief's use of a stolen credit card to a maximum of $500.00.
Q:
The Federal Food, Drug and Cosmetic Act is administered by the FTC.
Q:
The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.
Q:
The trustee in a Chapter 7 bankruptcy is elected by the debtor to represent the debtor's estate during the bankruptcy.
Q:
A Chapter 7 bankruptcy is a liquidation bankruptcy.
Q:
There is readjustment of debts in a Chapter 7 bankruptcy.
Q:
A debt collector is not required to disclose his or her identity as a debt collector to delinquent customers they call when attempting to collect a legitimate and delinquent debt.
Q:
Jon gets a personal loan in the amount of $10,000 from his grandfather. He uses the money to pay for college tuition. If Jon files bankruptcy, the debt owed to his grandfather is dischargeable.
Q:
The Fair Debt Collection Practices Act applies only to consumer debt collections.
Q:
Whenever two consumers enter into a loan with each other, the Truth-in-Lending Act applies.
Q:
The FTC commissioners are appointed by the president.
Q:
Voluntary bankruptcy proceedings are commenced by the creditor.
Q:
Mandatory document recording fees are not considered in a loan's finance charge.
Q:
Consumer protection laws arise when legislatures define an ambiguous legal boundary between certain types of sellers and buyers in ways that favor buyers.
Q:
Use and transfer of personal property by individuals in the U.S. is unrestricted.
Q:
Name some of the businesses and activities that are exempt from the Sherman Act.
Q:
What is required to prove a conspiracy to monopolize?
Q:
Name and discuss the four different forms of merger?
Q:
What are concerted activities and joint production ventures and what provisions must joint product ventures follow?
Q:
What is the Colgate doctrine?
Q:
Can the existence of a monopoly be lawful? Explain why or why not.
Q:
What is the Parker v. Brown doctrine?
Q:
What is per se illegality and how is it applied?
Q:
What did the Standard Oil v. U.S. case establish, and what does it mean?
Q:
What is the purpose of the Sherman Act and what does it cover?
Q:
The National Cooperative Production Amendment Act mandates:
A.Joint production ventures are subject to the rule of reason.
B.Private civil actions against a joint production venture can result in triple damages.
C.A joint production venture must notify the justice department, but not the FTC, regarding its plans to engage in joint activities.
D.A joint production venture must notify the FTC, but not the justice department, regarding its plans to engage in joint activities.
Q:
Which of the following businesses does not enjoy a statutory exemption from the Sherman Act?
A.Insurance companies.
B.Farmers' cooperatives.
C.Investment companies.
D.Computer companies.
Q:
Regarding price fixing, which of the following is an incorrect statement?
A.Ethical standards may not be used to fix prices.
B.It is just as illegal for competitors to fix a low price as it is to fix a high price.
C.Attempts by manufacturers to control the ultimate sale of their product are analyzed under the rule of reason.
D.The mere exchange of price information among creditors is not a violation of the Sherman Act.
Q:
Predatory pricing was declared illegal by the:
A.Robinson Patman Act.
B.Federal Trade Commission Act.
C.Sherman Act.
D.Wheeler-Lea amendment to the Clayton Act.
Q:
The president of Pepsi-Cola Bottling Co. agreed with a Coca-Cola bottler to stop discounts to retailers, which earned him a jail sentence. What was his crime?
A.Horizontal price-fixing.
B.Vertical price-fixing.
C.Resale price maintenance.
D.Predatory conduct.
Q:
Pricing goods at a low level to discourage market entry by competitors is called:
A.Profit maximizing pricing.
B.Exemption pricing.
C.Limit pricing.
D.Per se pricing.
Q:
Your school has decided to expand and open a new campus in another state. Rather than acquiring land and building new buildings, etc., they decide to merge with an existing school that has similar programs in that other state. The school you're merging with is a small commuter school with no dorms and 98% of its students not only instate, but from the city the school is located in. This merger would be best described as a:
A.Vertical merger.
B.Geographic market extension merger.
C.Product market extension merger.
D.Horizontal extension merger.
Q:
What doctrine exempts certain lobbying activities from the Sherman Act?
A.Noerr-Pennington doctrine.
B.Quick look doctrine.
C.State action doctrine.
D.Per se illegality doctrine.
Q:
The Parker v. Brown doctrine is also known as the:
A.Noerr-Pennington doctrine.
B.Quick look doctrine.
C.State action exemption.
D.Per se illegality doctrine.
Q:
What rule did the Supreme Court announce when it held that contracts or conspiracies in restraint of trade were illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize were covered by the Sherman Act?
A.Rule of per se illegality.
B.Parker v. Brown doctrine.
C.Rule of reason.
D.Quick look doctrine.
Q:
In Weyerhausen Company v. Ross-Simons Hardwood Lumber Company, the court ruled that:
A.The charging of low prices by a seller and the paying of higher prices by a buyer must be analyzed using different standards when predatory pricing is alleged.
B.The charging of low prices by a seller must meet the same standards as the paying of higher prices by a buyer when predatory pricing is alleged.
C.Predatory pricing can only result from the seller charging low prices and cannot result from a buyer paying high prices.
D.Predatory pricing can only result from the seller charging high prices and cannot result from a buyer paying low prices.
Q:
Full-line forcing is a typical form of a:
A.Reciprocal agreement.
B.Exclusive dealing contract.
C.Requirements contract.
D.Tying agreement.
Q:
Violations of the Robinson-Patman Act that involve injury to competition at the level of the purchaser's customers would be called a:
A.Primary-line case.
B.Secondary-line case.
C.Straight-line case.
D.Tertiary-line case.
Q:
An agreement between a manufacturer and a dealer to supply only that dealer in the territory is called a ______ territorial agreement.
A.Vertical.
B.Horizontal.
C.Competitive.
D.Bilateral.
Q:
An agreement to allocate geographical areas among competitors is called a _______ territorial agreement.
A.Bilateral.
B.Vertical.
C.Horizontal.
D.Competitive.
Q:
Kelly is a computer genius. After graduating college in two years she's now extremely bored. One afternoon while playing games on her computer she decides to design a new computer game system. The results of her efforts are incredible. The game system she devises uses new technology that she has created and far exceeds the capabilities of any current gaming systems. It is also so simple to manufacture that she can do so at a very minimal cost. When it hits the market it is so much better and cheaper than her "competition" that they all end up either in bankruptcy or simply withdrawing their products from the market. Her system is now the only gaming system on the market.
A.Kelly is guilty of engaging in predatory conduct.
B.Kelly has a monopoly which violates the Sherman Act.
C.Kelly has a monopoly which violates the Clayton Act.
D.Kelly has a monopoly which does not violate either the Sherman or Clayton Act
Q:
In Leegin Creative Leather Products, Inc. v. PSKS, Inc., when Leegin refused to sell their products to PSKS because PSKS sold Leegin's belts below the price established by Leegin and agreed to by PSKS, the court found:
A.Horizontal price restraints should be analyzed under a rule of reason theory.
B.Horizontal price restraints should be analyzed under a per se illegality theory.
C.Vertical pricing restraints should be analyzed under a rule of reason theory.
D.Vertical pricing restraints should be analyzed under a per se illegality theory.
Q:
Attempts by manufacturers to control retail prices are known as _________ price fixing.
A.Horizontal.
B.Vertical.
C.Lateral.
D.Bilateral.
Q:
Professional groups tried unsuccessfully to avoid restrictions on price fixing by using:
I. Professionally set ethical standards.
II. Relative value scores.
III. Subversive meetings.
A.I.
B.II.
C.II and III.
D.I and II.
Q:
In the mid-1970s, the Supreme Court, for the first time, interpreted the Sherman Act to include:
A.Services.
B.Goods.
C.Interstate sale of goods.
D.All of the above.
Q:
A merger in which the companies neither compete nor are related as a customer or supplier is called a:
A.Market extension merger.
B.Vertical merger.
C.Horizontal merger.
D.Conglomerate merger.
Q:
Recently Anheuser-Bush, an American Corporation, and InBev, a Belgian Corporation, finalized a multibillion dollar merger to form the largest beer company in the world. Anheuser-Bush and InBev, prior to the merger, each sold beer in many countries around the world, including both Belgium and the United States. This merger is best described as a:
A.Vertical merger.
B.Horizontal merger.
C.Conglomerate merger.
D.Geographic market extension merger.
Q:
The Wheeler-Lea amendment in 1938 made unfair or deceptive acts or practices in commerce illegal under:
A.Section 5 of the Federal Trade Commission Act.
B.Section 1 of the Sherman Act.
C.Section 2 of the Clayton Act.
D.The Robinson-Patman Act.
Q:
A corporation found guilty of a crime under the Sherman Act may be:
A.Fined up to $1 million per offense.
B.Fined up to $25 million per offense.
C.Fined up to $50 million per offense.
D.Fined up to $100 million per offense.