Deck 13: Consumer Rights, Privacy, and Protection

Question 1

From the cardholder's point of view there are no differences in the statutory protections available between credit cards and debit cards. ​

Answer 1

False

Question 2

A can of Alpo cat food states on its label, "Tastes Better than 9-Lives." Ruby's cat "Tom," in fact, prefers 9 Lives to the Alpo brand. Which warranties have been breached?​

A)Express warranty
B)Implied warranty of merchantability
C)Both of the above
D)Neither of the above. The statement is not an affirmation of fact or promise.

Answer 2

D

Question 3

Chapter 7 bankruptcy involves total liquidation, whereas Chapter 11 bankruptcy involves debt reorganization. ​

Answer 3

True

Question 4

A manufacturer of tomato sauce stated on the can that the sauce was "100% natural--No artificial flavors or preservatives" when in fact the sauce contained MSG and preservatives. Have any warranties been breached?

A)Yes, an express warranty
B)Yes, the implied warranty of merchantability
C)Both of the above
D)Neither of the above.

Question 5

The implied warranty of merchantability arises only in the sale by a merchant. ​

Question 6

Which statement based on textbook discussion is true about debit or credit cards?​

A)A debit card draws against either an account the user has with a financial institution or a prior payment of money made to the card issuer.
B)Credit card transactions provide the greater profit to financial institutions.
C)Debit cards provide greater protection as a matter of law to the consumer.
D)Debit and credit cards are treated identically by the law.

Question 7

Ruby is the owner of Bistro 24, a popular eatery located in Wilmington. Her chef informed her that the latest shipment of beef, supposedly prime grade, valued at $5,000 is actually choice steak grade valued much less. What UCC warranties have been breached?​

A)Express
B)Fitness for a particular purpose
C)Implied warranty of merchantability
D)All of the above
E)None of the above.

Question 8

Which of the following could be considered an express warranty under the UCC?

A)A manufacturer advertised that a bag of candy contained "at least 60 pieces of candy."
B)"Shatterproof Glass"
C)Kuranda Dog Beds: "Chew proof"
D)All of the above
E)None of the above

Question 9

Under the federal Magnuson-Moss Warranty Act no seller is required to give a written warranty, but the seller who elects to do so must label it as either full or limited. ​

Question 10

A deli advertises that a certain sandwich platter "Feeds 25." If the platter fails provide sufficient food to feed 25 ordinary persons a reasonable portion under the circumstances, have any warranties been breached?

A)Yes, an express warranty
B)Yes, and implied warranty of merchantability
C)Yes, a warranty of fitness for a particular purpose.
D)All of the above.
E)None of the above. It was only a sales claim.

Question 11

The FDA cannot require that nutritional information be provided on labels on canned and packaged foods because forced speech violates the federal Constitution.

Question 12

Which statement based on textbook discussion is true about debit or credit cards?

A)A debit card draws against either an account the user has with a financial institution or a prior payment of money made to the card issuer.
B)Credit card transactions provide the greater profit to financial institutions.
C)Debit cards provide greater protection as a matter of law to the consumer.
D)Debit and credit cards are treated identically by the law.

Question 13

It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee." ​

Question 14

The UCC establishes certain warranties in the sale of goods and requires the government to recall defective products. ​

Question 15

The Fair Debt Collections Practices Act protects consumers from abusive debt collection practices, while the Fair Credit Reporting Act regulates the conditions under which disclosure of personal information may be made to third parties by consumer reporting agencies. ​

Question 16

The federal statute which requires a full disclosure of the comparative costs of buying goods for cash or on credit is called the​

A)Uniform Commercial Code.
B)Uniform Credit Code.
C)Consumer Credit Protection Act of 1968.
D)Complete Credit Reform Act of 2001.

Question 17

Even though a sale by a merchant, an implied warranty of merchantability does not arise if the goods are sold used​

Question 18

A label on a jar containing a product states "Kosher Dill Pickles." What express warranty is created by that statement on the label?

A)That the items inside the jar are kosher.
B)That the items inside the jar are pickles.
C)That the items inside the jar are dill.
D)All of the above
E)None of the above. The label did not create a warranty.

Question 19

Because the right to privacy is considered a fundamental human right, it is expressly guaranteed by the U.S. Constitution. ​

Question 20

Bill needs some hiking boots that will protect his feet from sub-zero temperatures for extended periods because he will be traveling to the Arctic Circle. He visits a local Outdoors shop and asks the salesperson to recommend the best boots for these conditions. The sales
Person selects a specific brand and hands it to Bill, who purchased the boots. Unfortunately, on his expedition, his feet were badly frostbitten. Which warranty was breached?​

A)Implied warranty of merchantability
B)Implied warranty of fitness for a particular purpose
C)Express warranty
D)Warranty of title

Question 21

A warranty that goods delivered will be free of creditors' claims, such as liens of which the buyer is not aware at the time of contracting is known as:​

A)Warranty of title
B)Warranty against encumbrances
C)Warranty of merchantability
D)Warranty of conformity

Question 22

The implied warranty of _________________ is given by merchant sellers.​

Question 23

A sales representative called on the Smiths at their home to sell them frozen food (steaks, chicken and veal) along with a small freezer for $1000. After a very persuasive sales pitch, the Smiths agreed. Two days later they regretted their decision, contacted the company, and stated that they had decided to rescind the contract and return the food and the freezer. May they?​

A)No, it was an in-home sale and not unsolicited merchandise.
B)No, they executed a contract.
C)No, the Smiths have title to the food and the freezer.
D)Yes, the three-day in-home sales rule of the FTC allows the Smiths to rescind the contract.

Question 24

Which statute protects the privacy of personally identifiable, nonpublic financial information by restricting when and how it can be disclosed to nonaffiliated third parties by financial institutions?​

A)Gramm-Leach-Bliley Act
B)Right to Financial Privacy Act of 1978
C)Fair Debt Collections Practices Act
D)The Privacy Act of 1974

Question 25

Which of the following can create an express warranties?​

A)Affirmation of fact or promise
B)Description of the goods
C)A sample or model
D)All of the above
E)None of the above

Question 26

If a consumer does not wish to be contacted by telephone solicitors and telemarketers, they should put their phone number on the national ______________________________.​

Question 27

KWC sold a defective mountain bike which caused injury to a consumer when the handle brakes did not stop the wheels from turning. Because reasonable consumers would expect a mountain bike with brake handles to stop the bike, the product is not fit for its ordinary purpose of cycling. Which warranty has been breached?​

A)Implied warranty of merchantability
B)Implied warranty of fitness for a particular purpose
C)Express warranty
D)Warranty of title

Question 28

Which statute prohibits the government from accessing the financial records of any customer from a financial institution unless the financial records are reasonably described and the customer allows such access or certain approvals are made by a search warrant or
Administrative subpoena?​

A)Right to Financial Privacy Act of 1978
B)Fair Debt Collections Practices Act
C)The Privacy Act of 1974
D)Gramm-Leach-Bliley Act

Question 29

An ________________ contract is one drafted by a dominant party and then presented to the weaker party on a take-it-or-leave-it basis.​

Question 30

The federal law which requires written warranties of consumer products to disclose, fully and conspicuously, in simple and readily understood language, the terms and conditions of the warranty is the ______________________________Act.​

Question 31

Department Store sold Mary a food processor. When she took it out of the box, and attempted to use it, the motor did not work. On these facts which UCC warranties have been breached?​

A)Express warranty
B)Implied warranty of merchantability
C)Implied warranty of fitness for a particular purpose
D)Warranty of Title

Question 32

______________________is the right to control the collection and sharing of data about oneself.​

Question 33

The transaction doctrine that means "let the buyer beware" is ______________, and the transaction doctrine that means "let the buyer beware" is ________________.​

Question 34

A light-bulb exploded when it was switched on. Which of the following people may recover under the implied warranty of merchantability of they are injured?​

A)The purchaser of the bulb only
B)The purchaser of the bulb and family members living in the home only
C)The purchaser of the bulb, family members living in the home and guests only
D)No one unless the bulb was guaranteed not to explode

Question 35

If consumers receive merchandise that they did not order:​

A)They must pay for the merchandise within three days.
B)They must return the goods but are not liable for shipping costs.
C)They must return the goods and pay for return shipping if a return label was not included.
D)They may treat the merchandise as a gift and not pay for it or return it.

Question 36

The Uniform Deceptive Trade Practices Act:​

A)Prohibits unfair or fraudulent business practices and untrue or misleading advertising.
B)Allows for private causes of action, including attorneys' fees in certain situations.
C)Both of the above
D)Neither of the above.

Question 37

The Consumer Privacy Bill of Rights is:​

A)A federal regulation issued by the Department of Commerce.
B)federal regulation issued by the FTC.
C)A proposal to improve consumers' privacy protections and ensure that the Internet remains an engine for innovation and economic growth.
D)A federal law designed to protect privacy rights.

Question 38

Which agency regulates deceptive practices and advertising?​

A)Food and Drug Administration
B)Federal Trade Commission
C)Consumer Product Safety Commission
D)The Department of Consumer Affairs

Question 39

A seller or lessor may generally _______________ (limit or negate) all warranties.​

Question 40

Which of the following is NOT one of the provisions of the Truth in Lending Act?

A)It requires a full disclosure of the comparative costs of buying goods for cash or on credit.
B)The creditor must disclose, in writing and in advance of signing, the total dollar finance charge and the effective annual percentage rate (APR)of the interest or finance charge.
C)It provides for a three-day "cooling-off" period when a consumer agrees to borrow on the security of a second mortgage on a home.
D)It places a limit on the rate or amount of interest or carrying charge.

Question 41

The ______________________restricts the manner in which website operators can interact with children and collect data from them and is administered by the _________________.​

Question 42

The ___________________________requires that nutritional information be provided on labels on can and packaged foods.​

Question 43

______________________is the right to is the right to protect fiscal and consumer data and information about oneself.​

Question 44

The _________________________________is charged with overseeing the safety of all consumer products other than autos, trucks, airplanes, boats, food, drugs, and cosmetics.​

Question 45

Kay Kirk had paid the outstanding balance on her MasterCard credit card, and had made no further purchases with the card for three months. Then, she was shocked when a statement arrived by mail  showing assorted charges on the card for a total of $2,700. She quickly checked her wallet and found her card. Must she pay the $2,700?​

Question 46

Think of a retail establishment--restaurant, clothing store, appliance store, department  store. Now think of the sales associated with three items and how each of the UCC  warranty provisions, express, implied warranty of merchantability and implied warranty of  fitness for a particular purpose could be beached.
​

Question 47

What is the Consumer Privacy Bill of Rights? What are some of the proposal's safeguards? Do you think it should become of our federal statutes or regulations? Why or why not? Which of its provisions are the most important in your opinion and why?​

Question 48

The Fair Debt Collection Practices Act was a significant piece of legislation to protect debtors.  Explain why it was needed and discuss some of its protections.

Question 49

The warranty ____________________________ provides that goods sold are delivered free of any rightful claim of a third party under patent, copyright, or other legal protection.​

Question 50

Explain the differences between a debit and a credit card.

Question 51

This chapter presented a multitude of laws designed to protect consumers. Which three statutes do you think are most important and why? Make sure to define what protections the legislation affords consumers, and then explain the importance of the statute.​

Question 52

Defendant Robert Martin gave his American Express credit card to McBride, a business associate, for use in a joint venture. McBride retuned the card to Martin and then disappeared. Martin  claimed that he had orally authorized McBride to charge up to $500, but McBride charged about $5300. Is Martin liable for $50 or $5300? Explain.​