Question 1

Consumer protection laws,which commonly regulate the form of consumer contracts,provide that back-page disclaimers are void if the front page of a contract does not call attention to the presence of the terms on the back page.

Accepted Answer

Consumer protection laws do require that if a contract has certain terms on the back page, the front page should clearly indicate the presence of such terms. If this is not done, back-page disclaimers are considered void.

Question 2

The aim of consumer protection legislation is to protect persons of limited means and limited knowledge.

Accepted Answer

Consumer protection legislation is designed to protect vulnerable and less informed individuals from unfair practices and exploitation by businesses.

Question 3

An auto dealer who does not actually know of a roll-back can use lack of knowledge as a defense against odometer fraud,regardless of the condition of the car.

Accepted Answer

Under federal law, ignorance of an odometer rollback is not a defense for auto dealers. Dealers are expected to know, or should have known, about the true mileage of the vehicles they sell, and they have a responsibility to ensure the accuracy of the odometer readings.

Question 4

Consumer protection law often requires those dealing with consumers to make certain mandated disclosures.

Accepted Answer

Consumer protection law mandates businesses and companies to provide certain disclosures and information to consumers to protect their rights and interests. These disclosures may include information related to prices, fees, terms and conditions of contracts, warranties, and other relevant details.

Question 5

The FTC requires advertisers to maintain records of the data used as support for statements made in the ads that deal with the safety,performance,efficacy,quality,or comparative price of an advertised product.

Accepted Answer

This statement is true, according to the FTC's guidelines for advertising and marketing. Advertisers must maintain records to back up any claims made in their advertisements regarding a product's safety, performance, efficacy, quality, and comparative price. Failure to do so could result in legal consequences.

Question 6

Consumers must re-register every three years in order to stay on the National Do Not Call Registry.

Accepted Answer

Once a number is registered on the National Do Not Call Registry, it remains there permanently unless the consumer removes it or the number is disconnected and reassigned to someone else.

Question 7

Predatory lending is a practice on the part of the subprime lending market whereby lenders take advantage of less sophisticated consumers or those who are desperate for funds by using the lenders' superior bargaining positions to obtain credit terms that go well beyond compensating them for their risk.

Accepted Answer

Predatory lending is a well-known practice in the subprime lending market where lenders employ deceitful, exploitative, or unfair loan terms, often leading to loan default or financial collapse for the borrower.

Question 8

A consumer claiming that there has been a violation of a consumer protection statute has the burden of proving that the statutory definition of "consumer" has been satisfied.

Accepted Answer

This is true. The burden of proving that the definition of "consumer" has been satisfied falls on the consumer making the claim. They must demonstrate that they meet the criteria outlined in the relevant consumer protection statute to be eligible for its protections.

Question 9

Consumer protection statutes are identical in all fifty states and the District of Columbia.

Accepted Answer

Consumer protection statutes vary from state to state and can differ in their specific provisions and requirements, as well as the agencies responsible for enforcing them. While some states may have similar or overlapping statutes, there are important differences that consumers should be aware of when seeking protection under the law.

Question 10

The types of provisions that make contracts unconscionable include clauses that award excessive damages or the application of credit payments across purchases over time so that the consumer is never able to pay off any goods.

Accepted Answer

This is a correct statement about unconscionable provisions in contracts.

Question 11

Despite consumer protection legislation,for most consumers pursing their rights in court is not cost beneficial.

Accepted Answer

The answer of Despite consumer protection legislation,for most consumers pursing...

Question 12

The FTC requires that only descriptive and non-ambiguous terms such as jumbo,giant,or full be used in product labeling.

Accepted Answer

This statement is false. The FTC actually requires that labels use specific, measurable terms such as ounces, milliliters, or pounds to describe product size. Terms like jumbo or giant can be ambiguous and misleading to consumers.

Question 13

The category of protected consumers for many statutes has been expanded to include partnerships,corporations and government entities.

Accepted Answer

This is true. Many statutes have expanded the category of protected consumers to include partnerships, corporations and government entities. This is because these entities may also be vulnerable to unfair or deceptive business practices.

Question 14

Consumer protection even protects a consumer from the consumer's own negligence.

Accepted Answer

Consumer protection laws generally provide protection from fraudulent or unfair practices by businesses, but they do not typically protect consumers from their own negligence or poor judgment.

Question 15

Individuals can seek criminal and civil penalties against those who violate consumer protection statutes.

Accepted Answer

Individuals can seek civil penalties, but criminal penalties are pursued by the state or federal government, not by individuals.

Question 16

The subterranean lending market makes loans to consumers who have bankruptcies,no credit history,low-to-moderate incomes,or a poor credit history.

Accepted Answer

The answer of The subterranean lending market makes loans to...

Question 17

A sale of goods or services for $25 or more made to a buyer at home may be set aside without cause within five (5)business days.

Accepted Answer

The answer of A sale of goods or services for...

Question 18

Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product.

Accepted Answer

Labels on packages are regulated by government agencies to provide information about the contents of the product as well as any potential hazards associated with use.

Question 19

Corrective advertising required by the FTC also is called retroactive advertising.

Accepted Answer

Corrective advertising is not called retroactive advertising. Retroactive advertising refers to advertising that promotes a product or service that has been available for a long time, while corrective advertising is required by the FTC to remedy previous deceptive advertising.

Question 20

Those who are liable for violations of consumer protection situations are persons or enterprises that regularly enter into the type of transaction in which the injured consumer was involved.

Accepted Answer

This is known as the "transactional test" used to determine liability for violations of consumer protection laws. It holds that those who regularly engage in the type of transaction in which the injured consumer was involved (such as manufacturers, sellers, or service providers) are liable for any violations of consumer protection laws.

Quiz 33: Consumer Protection