Question 1

The Telephone Consumer Protection Act prohibits:

Accepted Answer

The Telephone Consumer Protection Act prohibits automated marking calls without prior express consent, calls to patients' rooms in hospitals, and calls after 9:00 PM. Therefore, all of the above options are prohibited by the act.

Question 2

When improper collection methods are used,it is no defense to the creditor that the improper acts were performed by an agent,an employee,or any other person acting on behalf of the creditor.

Accepted Answer

The creditor is ultimately responsible for the actions of their agents and employees in the collection process.

Question 3

Under the Equal Credit Opportunity Act,it is unlawful to discriminate against an applicant because all or part of the applicant's income is obtained from a public assistance program.

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination on the basis of sources of income, including public assistance programs.

Question 4

What is not a correct statement concerning consumer protection legislation?

Accepted Answer

The answer of What is not a correct statement concerning...

Question 5

A letter from a collection agency to a consumer that gives the impression a lawsuit is about to be brought against the consumer when in fact it will not be brought is not a violation of the Fair Debt Collection Practices Act.

Accepted Answer

The FDCPA prohibits debt collectors from making false or misleading statements regarding the legal status of a debt, including threatening legal action that is not intended to be taken. Therefore, if a letter from a collection agency gives the impression that a lawsuit is about to be brought against a consumer when it will not be brought, it is a violation of the FDCPA.

Question 6

When a credit application is refused,it is sufficient that the lender give the applicant a written statement saying: "application refused."

Accepted Answer

When a credit application is refused, the lender is required to provide a written statement that includes the specific reasons for the refusal, as well as the applicant's right to obtain a copy of their credit report. Simply stating "application refused" is not sufficient.

Question 7

Odometer fraud laws:

Accepted Answer

The answer of Odometer fraud laws:
...

Question 8

Pursuant to the Credit Repair Organization Act of 1996,credit repair organizations must be "non-profit."

Accepted Answer

The Credit Repair Organization Act of 1996 does not require credit repair organizations to be non-profit.

Question 9

Automobile lemon laws protect only persons buying automobiles for personal,family,or household use.

Accepted Answer

Automobile lemon laws are specific to protecting individuals who purchase automobiles for personal, family, or household use, and do not apply to commercial or business purchases.

Question 10

Compensatory damages:

Accepted Answer

Compensatory damages are meant to compensate consumers for their actual loss, not to punish the defendant for wrongdoing.

Question 11

The Fair Credit Reporting Act applies only to consumer credit.

Accepted Answer

The Fair Credit Reporting Act (FCRA) applies only to consumer credit, which includes credit reports and scores for individuals related to personal, family, or household purposes. It does not regulate business credit reporting.

Question 12

Who may bring an action for relief under consumer protection legislation?

Accepted Answer

All of the above may bring an action for relief under consumer protection legislation. The Federal Trade Commission and state attorneys general are often tasked with enforcing consumer protection laws and can bring legal action against businesses that engage in unfair or deceptive practices. However, consumers themselves also have the right to bring legal action against businesses that violate their rights under consumer protection laws.

Question 13

A sale of goods or services for $25 or more made to a buyer at home may be set aside within __________ days.

Accepted Answer

Under the Federal Trade Commission's Cooling-Off Rule, sales made at a buyer's home, workplace, or dormitory, or at a seller's temporary location, like a hotel or motel room, convention center, fairground, or restaurant, can generally be canceled by the buyer within three business days.

Question 14

Consumer protection statutes and regulations do not protect against:

Accepted Answer

Consumer protection statutes and regulations aim to protect consumers from unfair and deceptive practices by businesses. However, they do not protect consumers from their own negligence or mistakes. It is the responsibility of the consumer to exercise caution and make informed choices when purchasing goods or services. Therefore, option B is not protected under consumer protection statutes and regulations.

Question 15

Advertising regulations are designed to:

Accepted Answer

Advertising regulations are put in place to ensure that advertisements give the consumer an accurate description of the product being advertised. The regulations are intended to prevent false, misleading, or deceptive advertising techniques.

Question 16

The CARD Act substantially restricts the solicitation of credit card accounts for those under the age of 18.

Accepted Answer

The answer of The CARD Act substantially restricts the solicitation...

Question 17

The policing of fraudulent advertising is entrusted to which of the following administrative agencies?

Accepted Answer

The Federal Trade Commission (FTC) is responsible for regulating and policing fraudulent advertising. The IRS (Internal Revenue Service) is responsible for collecting taxes, UCCC (Uniform Commercial Code Commission) is responsible for establishing commercial laws, and the FDA (Food and Drug Administration) is responsible for regulating food, drug, and medical device safety.

Question 18

When an enterprise has made false and deceptive statements in advertising,the FTC may require new advertising to correct the former statement so that consumers are aware of the truth.This corrective advertising required by the FTC is also called __________ advertising.

Accepted Answer

Retractive advertising is the correct term used for the advertising that is required by the FTC in order to correct false and deceptive statements previously made by an enterprise in their advertising. Redactive, retroactive, and refractive do not accurately describe this type of corrective advertising.

Question 19

Anyone promoting the sale of a real estate development that is divided into fifty (50)or more parcels of less than five (5)acres each must file a development statement with the secretary of Housing and Urban Development.

Accepted Answer

This is in accordance with the Interstate Land Sales Full Disclosure Act (ILSA) of 1968.

Question 20

A consumer may waive all defenses otherwise provided for by law.

Accepted Answer

A consumer cannot waive all defenses as consumer protection laws often include provisions that prevent consumers from waiving certain rights or defenses, ensuring they retain protection against unfair or deceptive practices.

Quiz 33: Consumer Protection