Question 1

The credit department of Mega-Mart often calls Nora at work about an overdue bill.Nora's employer objects.This is a viola?tion of

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from contacting a debtor at their place of employment if they are not allowed to receive personal calls there or if the employer prohibits such calls. In this case, Nora's employer objects to the calls, therefore it is a violation of the FDCPA.

Question 2

Corner Market sells groceries.Delta Food & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Accepted Answer

The Food and Drug Administration (FDA) is the government agency responsible for ensuring the safety and efficacy of drugs and food products sold in the United States. While Corner Market and Delta Food & Drug Store have a responsibility to ensure that the products they sell are safe, the ultimate responsibility rests with the FDA.

Question 3

On behalf of RiteNow Collection Agency,Sid poses as a police officer in an attempt to collect payment from Tylo for a shipment of scuba equipment that she returned to Undersea Company two months earlier.This violates

Accepted Answer

This violates the Fair Debt Collection Practices Act, which prohibits debt collectors from using false or deceptive tactics, such as pretending to be a law enforcement officer, to collect a debt.

Question 4

Quik Collection Agency calls Pat several times a day,and some?times in the middle of the night,about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA) sets guidelines for debt collectors regarding when and how they can contact a debtor. The act prohibits debt collectors from calling at unreasonable times or repeatedly throughout the day. Therefore, Quik Collection Agency's actions in calling Pat several times a day and in the middle of the night violate the FDCPA.

Question 5

Phillipa has a credit-card from Credible Cards,Inc.Credible Cards decides to make changes to Phillipa's credit-card terms.Credible Cards

Accepted Answer

Under the Credit CARD Act of 2009, credit card issuers must provide at least 45 days' notice before making significant changes to the terms of a credit card agreement.

Question 6

Rely Battery Corporation makes batteries for motor vehicles.The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores,a retail company that sells Rely's batteries,engages in deceptive advertising practices.What actions can the FTC take against Chuck's?

Accepted Answer

The answer of Rely Battery Corporation makes batteries for motor...

Question 7

Steel Tool Company makes and sells tools.One of the tools is believed to be haz?ardous.Steel may be required to

Accepted Answer

The best choice for Steel Tool Company is to remove the hazardous tool from the market to avoid any potential injuries or damages to consumers. It is the ethical and responsible decision for the company to prioritize the safety of their customers above profit. Selling the tool abroad, increasing or reducing the price to indicate the danger, are not viable options as they do not eliminate the risk of harm to consumers.

Question 8

Leo opens a credit card account with Macro Credit,Inc.Nina steals Leo's identity and makes unauthorized charges on the card.Under the Fair and Accurate Credit Transactions Act,Macro must

Accepted Answer

Under the Fair and Accurate Credit Transactions Act, Macro Credit, Inc. must provide Leo with copies of its records that help to prove the theft. This is because the act requires creditors to provide victims of identity theft with relevant records, such as applications and transaction records, to help them prove that the charges were not made by them.

Question 9

Mouth-Waterin' Treats Company wants to sell its candy in a normal-sized package la?beled "Gigantic Size." NuFabrics,Inc.,wants to advertise its sweaters as hav?ing "That Wool Feel," but does not want to specify on labels that the sweat?ers are 100 percent polyester.Can these firms market their products as they would like? If not,why not?

Accepted Answer

The answer of Mouth-Waterin' Treats Company wants to sell its...

Question 10

Fiona goes to GreatNuTech,a consumer electronics store in Houston,Texas,to buy a pocket calculator.Ilsa,the salesperson,sells Fiona a top-of-the-line home theater,which Fiona does not need and cannot af?ford.This is a violation of

Accepted Answer

The Texas Deceptive Trade Practices Act prohibits deceptive acts or practices in the course of any trade or commerce. In this case, selling a top-of-the-line home theater to a customer who only needs a pocket calculator and cannot afford it qualifies as a deceptive practice. Therefore, Ilsa's actions violate the Texas Deceptive Trade Practices Act.

Question 11

Dina takes out a student loan from Earnest Bank.When she fails to make the scheduled payments for six months,Earnest advises her of further ac?tion that it will take.This is a violation of

Accepted Answer

The answer of Dina takes out a student loan from...

Question 12

Fun-E Products,Inc.,makes and sells toys.The government agency that has the authority to remove a poten?tially hazardous toy from the market is

Accepted Answer

The Consumer Product Safety Commission is the government agency responsible for ensuring the safety of products sold to consumers, including toys. If a toy is found to be potentially hazardous, the CPSC has the authority to remove it from the market. The other agencies listed do not have jurisdiction over toys or product safety.

Quiz 22: Consumer Protection