Question 1

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, state attorney general, and the consumer have the right to take legal action to seek relief for consumer protection violations.

Question 2

Odometer fraud laws:

Accepted Answer

The answer of Odometer fraud laws:
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Question 3

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 4

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.

Question 5

The Telephone Consumer Protection Act prohibits:

Accepted Answer

The Telephone Consumer Protection Act prohibits automated marketing calls without prior express consent, calls to patients' rooms in hospitals, and calls after 9:00 PM. Therefore, choice D is the correct answer as it encompasses all the options.

Question 6

Consumer protection statutes and regulations do not protect against:

Accepted Answer

Consumer protection statutes and regulations generally do not protect against the consumer's own negligence, such as when a consumer chooses to sign a contract without reading it thoroughly or fails to adequately research a product or service before purchasing it. The other options listed are typically covered and prohibited by consumer protection laws.

Question 7

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, employees, or other representatives when it comes to collection methods.

Question 8

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 in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives public assistance. Therefore, it is unlawful to discriminate against an applicant because all or part of their income is obtained from a public assistance program.

Question 9

The Fair Credit Reporting Act applies only to consumer credit.

Accepted Answer

The Fair Credit Reporting Act (FCRA) applies to credit reporting agencies and the information they gather about individuals. This includes information related to consumer credit, as well as other types of information such as employment and insurance. However, the FCRA primarily focuses on consumer credit reporting and the rights of consumers to have accurate and fair credit reports.

Question 10

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 11

Compensatory damages:

Accepted Answer

Compensatory damages are awarded to compensate the plaintiff for their actual losses or harm suffered as a result of the defendant's actions or breach of contract. They are not intended to punish the defendant and are distinguishable from punitive damages.

Question 12

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

The correct term for advertising required by the FTC to correct false and deceptive statements is "corrective advertising." Of the choices given, "retractive" is the closest in meaning to "corrective." "Redactive" and "refractive" are not terms typically associated with advertising, and "retroactive" refers to something that applies to a period before the present.

Question 13

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

Accepted Answer

Automobile lemon laws are designed to protect consumers who buy vehicles for personal, family, or household use. Businesses and commercial entities are generally not covered by these laws.

Question 14

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 must provide an explanation of the reasons for the refusal under the Fair Credit Reporting Act. Simply stating "application refused" is not sufficient.

Question 15

What is not a correct statement concerning consumer protection legislation?

Accepted Answer

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

Question 16

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 a requirement under the Interstate Land Sales Full Disclosure Act (ILSFDA) for any real estate development that meets the criteria mentioned in the statement.

Question 17

Advertising regulations are designed to:

Accepted Answer

The answer of Advertising regulations are designed to:
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Question 18

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 19

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 Fair Debt Collection Practices Act prohibits debt collectors from making false or misleading statements to consumers, including giving the impression that a lawsuit is imminent when it is not. Therefore, a letter from a collection agency that gives that impression would be a violation of the FDCPA.

Question 20

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

Accepted Answer

The Federal Trade Commission (FTC) is responsible for policing fraudulent advertising and unfair business practices. The IRS is responsible for collecting taxes, the UCCC (Uniform Consumer Credit Code) varies by state but typically regulates debt collection and credit reporting practices, and the FDA regulates food and drug safety.

Quiz 33: Consumer Protection