Question 1

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is​

Accepted Answer

A)   ​an obvious exaggeration.
B)   ​puffery.
C)   ​a false claim about a competitor's product.
D)   ​a half-truth.E) A) and B)
F) B) and C)

Question 2

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

Accepted Answer

A)   ​no federal law.
B)   ​the Fair Credit Reporting Act.
C)   ​the Telecommunications Act.
D)   ​the Truth-in-Lending Act.E) A) and D)
F) A) and C)

Question 3

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Accepted Answer

A)   ​a levy of a nominal fine.
B)   ​an assessment of damages.
C)   ​an order of rescission of the loan contracts.
D)   ​no sanctions.E) B) and D)
F) C) and D)

Question 4

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

Accepted Answer

A) True 
 B)False

Question 5

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Accepted Answer

A) True 
 B)False

Question 6

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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) A) and B)
F) None of the above

Question 9

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

Accepted Answer

A)   ​credit terms offered by other lenders.
B)   ​comparative prices for goods to be bought with the borrowed funds.
C)   ​Credit Loan's credit terms.
D)   ​the borrowers' credit scores.E) B) and C)
F) None of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Accepted Answer

A)   ​liable for $1,000.
B)   ​liable for $500.
C)   ​liable for $50.
D)   ​not liable for any amount.E) A) and D)
F) A) and C)

Question 12

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Accepted Answer

A)   ​export the tool and sell it only abroad.
B)   ​increase the price to cover the cost of any injuries or damage.
C)   ​reduce the price to indicate the hazard to consumers.
D)   ​remove the tool from the market.E) B) and C)
F) A) and D)

Exam 24: Consumer Law

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

Correct Answer
verified

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

Correct Answer
verified

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

Correct Answer
verified

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

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

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Correct Answer
verified

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of

Correct Answer
verified

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Correct Answer
verified

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

Correct Answer
verified

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Correct Answer
verified

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Correct Answer
verified

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is

Correct Answer
verified

Exam 24: Consumer Law

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to​

Correct AnswerverifiedShow Answer

A consumer may be denied credit or insurance on the basis of his or her credit report, and need not be notified of that fact.

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

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

Correct AnswerverifiedShow Answer

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of​

Correct AnswerverifiedShow Answer

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A consumer who receives an unsolicited credit card can be charged by the company that issued the card for any unauthorized charges.

Correct AnswerverifiedShow Answer

The Truth-in-Lending Act applies to persons who, in the ordinary course of their business, lend money, sell on credit, or arrange for the extension of credit.

Correct AnswerverifiedShow Answer

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is​

Correct AnswerverifiedShow Answer

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

Correct Answer
verified

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

Correct Answer
verified

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

Correct Answer
verified

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

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Correct Answer
verified

Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of

Correct Answer
verified

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is

Correct Answer
verified