Question 1

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites,Jill,the salesperson,tells her that they are all sold and no more are obtainable.Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599.This is​

Accepted Answer

A)  a cease-and-desist order.
B)  bait-and-switch advertising.
C)  counteradvertising.
D)  puffery.E) B) and D)
F) B) and C)

Question 2

Food products are required to bear labels detailing the nutritional content.

Accepted Answer

A) True 
 B)False

Question 3

To generate sales,Golden Investments,Inc. ,uses phone solicitation.Under federal law,in soliciting business,Golden's telemarketers must disclose​

Accepted Answer

A)  all material facts related to a sale.
B)  only the seller's name.
C)  only facts directly related to a potential customer's request.
D)  only facts needed to make a sale.E) B) and C)
F) All of the above

Question 4

ChemCo,Inc. ,makes and sells products containing ingredients potentially hazardous to consumers.The government agency that has the authority to order ChemCo to remove a product from the market is​

Accepted Answer

A)  the Consumer Product Safety Commission.
B)  none of the choices.
C)  the Federal Trade Commission.
D)  the Food and Drug Administration.E) None of the above
F) B) and C)

Question 5

Breadboard,Inc. ,makes and sells a variety of grain products.Breadboard's product packages must include​

Accepted Answer

A)  the company owner's identity.
B)  the contents' net quantity.
C)  the restaurants and stores in which the product is sold.
D)  the type of consumer most likely interested in the product.E) A) and D)
F) B) and C)

Question 6

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Accepted Answer

A) True 
 B)False

Question 7

Ads must disclose relevant limitations underlying their claims.

Accepted Answer

A) True 
 B)False

Question 8

Through careless manufacturing practices,Plastics Company makes and sells products that are unsafe to consumers.This may be subject to sanctions under​

Accepted Answer

A)  federal and state law.
B)  federal law only.
C)  no law,according to the principles of freedom to contract.
D)  state law only.E) All of the above
F) B) and C)

Question 9

Vague generalities are permissible in advertising.

Accepted Answer

A) True 
 B)False

Question 10

Dian takes out a loan from Equity Bank.When she fails to make the scheduled payments,Equity advises her of further action that it will take.This is a violation of​

Accepted Answer

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.E) C) and D)
F) None of the above

Question 11

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Accepted Answer

A) True 
 B)False

Question 12

Wellness Insurance Company offers health insurance to consumers.Under current federal law,Wellness must not​

Accepted Answer

A)  deny coverage for preexisting conditions.
B)  enable more children to obtain health-insurance coverage.
C)  allow adults under twenty-six to remain on their parents' health policies.
D)  end lifetime and most annual limits on care.E) B) and D)
F) C) and D)

Question 13

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Accepted Answer

A) True 
 B)False

Question 14

The credit department of Mega-Mart often calls Nora at work about an overdue bill.Nora's employer objects.This is a violation of​

Accepted Answer

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.E) None of the above
F) All of the above

Question 15

One of the most important federal consumer protection laws is directed at deceptive trade practices.

Accepted Answer

A) True 
 B)False

Question 16

Corner Market sells groceries.Deli & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

Accepted Answer

A)  Corner Market and Deli & Drug.
B)  Deli & Drug only.
C)  the Federal Trade Commission.
D)  the Food and Drug Administration.E) B) and D)
F) None of the above

Question 17

In its ads,Crunchy Inc.makes various claims about its snack products.Crunchy's advertising claims would most likely be deemed deceptive if the claims​

Accepted Answer

A)  mislead a reasonable consumer.
B)  contain vague generalities.
C)  consist of what is known as puffery.
D)  include obvious exaggerations.E) B) and D)
F) None of the above

Question 18

Rely Battery Corporation makes batteries for motor vehicles.The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in deceptive advertising practices.What actions can the FTC take against Chuck's?​

Accepted Answer

The Federal Trade Commission (FTC)can in...

Question 19

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive.The FTC's first step is to​

Accepted Answer

A)  send a formal complaint.
B)  investigate.
C)  issue a cease-and-desist order.
D)  order restitution.E) B) and D)
F) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 24: Consumer Protection

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Correct Answer
verified

Dian takes out a loan from Equity Bank.When she fails to make the scheduled payments,Equity advises her of further action that it will take.This is a violation of

Correct Answer
verified

ChemCo,Inc. ,makes and sells products containing ingredients potentially hazardous to consumers.The government agency that has the authority to order ChemCo to remove a product from the market is

Correct Answer
verified

Correct Answer
verified

Food products are required to bear labels detailing the nutritional content.

Correct Answer
verified

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

Correct Answer
verified

Wellness Insurance Company offers health insurance to consumers.Under current federal law,Wellness must not

Correct Answer
verified

Corner Market sells groceries.Deli & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Correct Answer
verified

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Correct Answer
verified

To generate sales,Golden Investments,Inc. ,uses phone solicitation.Under federal law,in soliciting business,Golden's telemarketers must disclose

Correct Answer
verified

One of the most important federal consumer protection laws is directed at deceptive trade practices.

Correct Answer
verified

Through careless manufacturing practices,Plastics Company makes and sells products that are unsafe to consumers.This may be subject to sanctions under

Correct Answer
verified

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive.The FTC's first step is to

Correct Answer
verified

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Correct Answer
verified

Rely Battery Corporation makes batteries for motor vehicles.The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in deceptive advertising practices.What actions can the FTC take against Chuck's?

Correct Answer
verified
The Federal Trade Commission (FTC)can in...
View Answer

The credit department of Mega-Mart often calls Nora at work about an overdue bill.Nora's employer objects.This is a violation of

Correct Answer
verified

Vague generalities are permissible in advertising.

Correct Answer
verified

Breadboard,Inc. ,makes and sells a variety of grain products.Breadboard's product packages must include

Correct Answer
verified

Ads must disclose relevant limitations underlying their claims.

Correct Answer
verified

In its ads,Crunchy Inc.makes various claims about its snack products.Crunchy's advertising claims would most likely be deemed deceptive if the claims

Correct Answer
verified

Exam 24: Consumer Protection

The Fair Debt Collection Practices Act attempts to ensure that creditors are always paid by debtors.

Correct AnswerverifiedShow Answer

Dian takes out a loan from Equity Bank.When she fails to make the scheduled payments,Equity advises her of further action that it will take.This is a violation of​

Correct AnswerverifiedShow Answer

ChemCo,Inc. ,makes and sells products containing ingredients potentially hazardous to consumers.The government agency that has the authority to order ChemCo to remove a product from the market is​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Food products are required to bear labels detailing the nutritional content.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Wellness Insurance Company offers health insurance to consumers.Under current federal law,Wellness must not​

Correct AnswerverifiedShow Answer

Corner Market sells groceries.Deli & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is​

Correct AnswerverifiedShow Answer

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Correct AnswerverifiedShow Answer

To generate sales,Golden Investments,Inc. ,uses phone solicitation.Under federal law,in soliciting business,Golden's telemarketers must disclose​

Correct AnswerverifiedShow Answer

One of the most important federal consumer protection laws is directed at deceptive trade practices.

Correct AnswerverifiedShow Answer

Through careless manufacturing practices,Plastics Company makes and sells products that are unsafe to consumers.This may be subject to sanctions under​

Correct AnswerverifiedShow Answer

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive.The FTC's first step is to​

Correct AnswerverifiedShow Answer

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Correct AnswerverifiedShow Answer

Rely Battery Corporation makes batteries for motor vehicles.The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in deceptive advertising practices.What actions can the FTC take against Chuck's?​

Correct AnswerverifiedThe Federal Trade Commission (FTC)can in...View AnswerShow Answer

The credit department of Mega-Mart often calls Nora at work about an overdue bill.Nora's employer objects.This is a violation of​

Correct AnswerverifiedShow Answer

Vague generalities are permissible in advertising.

Correct AnswerverifiedShow Answer

Breadboard,Inc. ,makes and sells a variety of grain products.Breadboard's product packages must include​

Correct AnswerverifiedShow Answer

Ads must disclose relevant limitations underlying their claims.

Correct AnswerverifiedShow Answer

In its ads,Crunchy Inc.makes various claims about its snack products.Crunchy's advertising claims would most likely be deemed deceptive if the claims​

Correct AnswerverifiedShow Answer

Correct Answer
verified

Dian takes out a loan from Equity Bank.When she fails to make the scheduled payments,Equity advises her of further action that it will take.This is a violation of

Correct Answer
verified

ChemCo,Inc. ,makes and sells products containing ingredients potentially hazardous to consumers.The government agency that has the authority to order ChemCo to remove a product from the market is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Wellness Insurance Company offers health insurance to consumers.Under current federal law,Wellness must not

Correct Answer
verified

Corner Market sells groceries.Deli & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Correct Answer
verified

Correct Answer
verified

To generate sales,Golden Investments,Inc. ,uses phone solicitation.Under federal law,in soliciting business,Golden's telemarketers must disclose

Correct Answer
verified

Correct Answer
verified

Through careless manufacturing practices,Plastics Company makes and sells products that are unsafe to consumers.This may be subject to sanctions under

Correct Answer
verified

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive.The FTC's first step is to

Correct Answer
verified

Correct Answer
verified

Rely Battery Corporation makes batteries for motor vehicles.The Federal Trade Commission (FTC)learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in deceptive advertising practices.What actions can the FTC take against Chuck's?

Correct Answer
verified
The Federal Trade Commission (FTC)can in...
View Answer

The credit department of Mega-Mart often calls Nora at work about an overdue bill.Nora's employer objects.This is a violation of

Correct Answer
verified

Correct Answer
verified

Breadboard,Inc. ,makes and sells a variety of grain products.Breadboard's product packages must include

Correct Answer
verified

Correct Answer
verified

In its ads,Crunchy Inc.makes various claims about its snack products.Crunchy's advertising claims would most likely be deemed deceptive if the claims

Correct Answer
verified