Deck 44: Consumer Protection

Question 1

Lemon law protection arises under state law, for every U.S. state, as well as the District of Columbia, has enacted its own lemon laws.

Answer 1

True

Question 2

New-vehicle lemon laws require that an auto manufacturer repurchase a vehicle that has a minor defect that the manufacturer is unable to repair within a reasonable amount of time.

Answer 2

False

Question 3

The FTC established the Do Not Call Registry whereby consumers sign up to be on a list that protects them from certain unsolicited calls by telemarketers.

Answer 3

True

Question 4

In bait-and-switch schemes, a seller advertises an item for sale at a very good price or on favorable terms and has all intentions of actually selling that product at that price or on those terms.

Question 5

The FDA regulates the labeling of food packages and investigates any public outbreaks of illness related to food contamination.

Question 6

The FDA defines obliterated food as that which contains a "filthy, putrid, or decomposed substance" or any food "unfit for consumption."

Question 7

State administrative law often mirrors the federal system in terms of how regulations are developed, implemented, and enforced.

Question 8

Which agency has oversight over making expressly false statements in an advertisement about a product's quality, ingredients, or effectiveness?

A) Interstate Commerce Commission.
B) Consumer Protection Agency.
C) Securities and Exchange Commission.
D) Federal Trade Commission.

Question 9

What is the name of the first piece of legislation enacted in response to protect consumers?

A) Federal Product Act.
B) Federal Trade Commission Act.
C) Product Liability and Safety Reform Act.
D) Consumer Product Safety Act.

Question 10

Lemon law protection arises under:

A) state law
B) District of Columbia
C) All of the choices are correct
D) None of the choices are correct

Question 11

Lemon laws consider the nature of the problem with the vehicle, the number of __________ that the vehicle is unavailable to the consumer for service of the same mechanical issue, and the number of repair attempts made.

A) hours
B) days
C) months
D) years

Question 12

A __________ number of states also have enacted lemon laws that cover used vehicles as well.

A) large
B) moderate
C) small
D) None of the choices are correct

Question 13

In bait-and-switch schemes, a seller advertises an item for sale:

A) at a very good price
B) on favorable terms
C) All of the choices are correct
D) None of the choices are correct

Question 14

The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act of 2003 regulates the sending of unsolicited e-mail (spam) by prohibiting certain online __________ practices, including falsifying the "from" name and information in the subject line, and mandating that senders provide a physical address of the producer of the e-mail.

A) selling
B) business
C) marketing
D) None of the choices are correct

Question 15

In December 2016, Congress enacted the __________ which protects people's ability to share their honest opinions about a business's products, services, or conduct in any forum, including social media.

A) Consumer Review Fairness Act (CRFA)
B) Consumer Refresh Fairness Act (CRFA)
C) Consumer Review Foster Act (CRFA)
D) Congressional Review Fairness Act (CRFA)

Question 16

The Food and Drug Administration (FDA) is a federal agency of the United States Department of __________, one of the many cabinet-level executive departments of the federal government.

A) Health
B) Health and Human Services
C) Labor
D) Agriculture

Question 17

The FDA was empowered by Congress to enforce the Food, Drug, and Cosmetic Act to regulate the __________ of foods, medications (including over-the-counter medications and prescription drugs), medical devices, and cosmetics.

A) testing
B) manufacture
C) distribution
D) all of the choices are correct.

Question 18

A major component of the Food, Drug, and Cosmetic Act is the requirement that makers of certain food ingredients, additives, drugs, or medical devices obtain __________ FDA approval prior to selling the product to the general public.

A) legislative-based
B) preliminary
C) procedural
D) formal

Question 19

One of the largest fines ever levied by the FDA was against Odwalla Juice Company in the 1990s, when Odwalla was accused of producing a bad batch of apple juice using blemished fruit contaminated with the infectious __________ bacterium.

A) E. coli
B) C. diff
C) H. pylori
D) None of the choices are correct

Question 20

The FDA is led by the __________ of Food and Drugs, who is appointed by the president with the advice and consent of the Senate.

A) Head
B) Treasurer
C) Commissioner
D) Secretary

Question 21

The United States Department of Transportation (DOT), a cabinet-level department of the U.S. government, is concerned with transportation and __________.

A) public safety
B) legislative drafting
C) judicial decisions
D) None of the choices are correct

Question 22

The National Highway Traffic Safety Administration is __________ of the U.S. Department of Transportation.

A) an agency
B) in charge
C) not an agency
D) None of the choices are correct

Question 23

The National Highway Traffic Safety Administration:

A) licenses vehicle manufacturers and importers
B) allows or blocks the import of vehicles and safety-regulated vehicle parts
C) provides automobile insurance cost information
D) all of the choices are correct

Question 24

What main reporting system has become a resource for traffic safety research?

A) Traffic Safety Reporting Board
B) First Responder Reporting System
C) Fatality Analysis Reporting System
D) None of the choices are correct

Question 25

The Consumer Financial Protection Bureau (CFPB), one of the __________ federal regulatory agencies to be created by Congress, is empowered to monitor and regulate consumer financial markets, including consumer loans and credit cards.

A) oldest
B) newest
C) largest
D) broadest

Question 26

Under the Fair and Accurate Credit Transactions Act (FACTA), consumers are entitled to request a free copy of their credit reports once every __________.

A) 90 days
B) 6 months
C) 12 months
D) 2 years

Question 27

In Palmer v. Champion Mortgage, 465 F.3d 24 (1st Cir. 2006), the court

A) remanded the trial court's decision and dismissed Palmer's claim.
B) dismissed the trial court's decision and dismissed Palmer's claim.
C) affirmed the trial court's decision and awarded Palmer's claim.
D) affirmed the trial court's decision and dismissed Palmer's claim.

Question 28

There is a large body of __________ law that regulates credit transactions.

A) administrative.
B) local.
C) state.
D) none of the choices are correct.

Question 29

What does the Food and Drug Administration regulate? Explain the powers of the FDA.

Question 30

Explain the Truth in Lending Act, what it covers, and whom it protects.