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Exam 21: Consumer Protection

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Question 21

True/False

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Major credit-reporting agencies must provide consumers with a free copy of their credit reports every twelve months.

A) True
B) False

Correct Answer

verified

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Question 22

True/False

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Under the Truth-in-Lending Act, most, but not all, of the terms of a credit instrument must be fully disclosed.

A) True
B) False

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Question 23

Multiple Choice

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

Credit cannot be denied solely on the basis of marital status.

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 violates

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. Bea will pay those loans off over two to four years. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Labels on products must use words that are easily understood by the general consumer.

Credit Agency Corporation issues consumer credit reports. The company generally does not delete unverifiable or erroneous information from the reports. Under the Fair Credit Reporting Act, this firm may be subject to

Automakers must attach an information label to every new car that includes the fuel economy estimate for the vehicle.

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Creditors that use information from credit-reporting agencies cannot be held liable for violations of the Fair Credit Reporting Act.

Corner Market sells groceries. Deli & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to monitor and enforce laws designed to protect consumers from unsafe food and drugs being sold is

The Federal Commerce Commission is charged with the goal of preventing unfair and deceptive trade practices.

Under the Fair Credit Reporting Act, a consumer can request the identity of anyone who has received a credit agency's report on the consumer.

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

Mattress Company advertises a special sale-all bedding, half price. The ad does not state that the sale price does not include delivery or shipping costs. To avoid claims of deceptive advertising, Mattress should

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

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

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

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