Question 1

The Federal Trade Commission was created to prevent unfair and deceptive trade practices.​

Accepted Answer

A) True 
 B)False

Question 2

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) B) and C)
F) A) and B)

Question 3

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 C)
F) C) and D)

Question 4

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Accepted Answer

A)   ​credibility.
B)   ​financial awareness.
C)   ​occupation.
D)   ​gender.E) A) and C)
F) B) and C)

Question 5

Drugs can be test-marketed to the public before they are ensured to be safe and effective.​

Accepted Answer

A) True 
 B)False

Question 6

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about​

Accepted Answer

A)   ​its products only.
B)   ​its competitors' products only.
C)   ​its products and its competitors' products.
D)   ​none of the choices.E) A) and B)
F) A) and C)

Question 7

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) A) and B)
F) All of the above

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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) B) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Imported foods do not have to meet U.S. safety standards.​

Accepted Answer

A) True 
 B)False

Question 12

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 13

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue​

Accepted Answer

A)   ​a cease-and-desist order.
B)   ​a counteradvertising order.
C)   ​a restitution order.
D)   ​none of the choices.E) B) and C)
F) A) and B)

Question 14

Advertising that contains an endorsement by a celebrity is presumed to be deceptive.​

Accepted Answer

A) True 
 B)False

Question 15

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) A) and C)
F) All of the above

Question 16

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​

Accepted Answer

A)   ​clearly and conspicuously disclose the shipping cost in its ads.
B)   ​display the shipping cost in small print on ads displayed in stores.
C)   ​include the shipping cost in small print on its receipts.
D)   ​not reveal the shipping cost.E) A) and B)
F) B) and C)

Question 17

Puffery constitutes deceptive advertising.​

Accepted Answer

A) True 
 B)False

Question 18

Credit can be denied solely on the basis of marital status.​

Accepted Answer

A) True 
 B)False

Question 19

A credit collection agency may contact a debtor at any time.​

Accepted Answer

A) True 
 B)False

Question 20

Ads must disclose relevant limitations underlying their claims.​

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Law

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

Correct Answer
verified

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Correct Answer
verified

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Advertising that contains an endorsement by a celebrity is presumed to be deceptive.

Correct Answer
verified

Puffery constitutes deceptive advertising.

Correct Answer
verified

The Federal Trade Commission was created to prevent unfair and deceptive trade practices.

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

Ads must disclose relevant limitations underlying their claims.

Correct Answer
verified

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

Correct Answer
verified

Credit can be denied solely on the basis of marital status.

Correct Answer
verified

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct Answer
verified

A credit collection agency may contact a debtor at any time.

Correct Answer
verified

Imported foods do not have to meet U.S. safety standards.

Correct Answer
verified

Drugs can be test-marketed to the public before they are ensured to be safe and effective.

Correct Answer
verified

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

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

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

Exam 44: Consumer Law

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​

Correct AnswerverifiedShow Answer

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​

Correct AnswerverifiedShow Answer

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about​

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Advertising that contains an endorsement by a celebrity is presumed to be deceptive.​

Correct AnswerverifiedShow Answer

Puffery constitutes deceptive advertising.​

Correct AnswerverifiedShow Answer

The Federal Trade Commission was created to prevent unfair and deceptive trade practices.​

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

Ads must disclose relevant limitations underlying their claims.​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Credit can be denied solely on the basis of marital status.​

Correct AnswerverifiedShow Answer

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue​

Correct AnswerverifiedShow Answer

A credit collection agency may contact a debtor at any time.​

Correct AnswerverifiedShow Answer

Imported foods do not have to meet U.S. safety standards.​

Correct AnswerverifiedShow Answer

Drugs can be test-marketed to the public before they are ensured to be safe and effective.​

Correct AnswerverifiedShow Answer

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

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

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

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

Correct Answer
verified

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Correct Answer
verified

Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Advertising that contains an endorsement by a celebrity is presumed to be deceptive.

Correct Answer
verified

Puffery constitutes deceptive advertising.

Correct Answer
verified

The Federal Trade Commission was created to prevent unfair and deceptive trade practices.

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

Ads must disclose relevant limitations underlying their claims.

Correct Answer
verified

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

Correct Answer
verified

Credit can be denied solely on the basis of marital status.

Correct Answer
verified

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

Correct Answer
verified

A credit collection agency may contact a debtor at any time.

Correct Answer
verified

Imported foods do not have to meet U.S. safety standards.

Correct Answer
verified

Drugs can be test-marketed to the public before they are ensured to be safe and effective.

Correct Answer
verified

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

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

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