Question 1

Bodie's application to City Bank for a credit card is denied. Bodie can obtain information on her credit history in a credit agency's files under

Accepted Answer

The Fair Credit Reporting Act requires credit reporting agencies to provide individuals with a copy of their credit report upon request. This allows Bodie to obtain information on her credit history and potentially identify any errors or discrepancies that may have led to her credit card application being denied.

Question 2

Quik Collection Agency calls Pat several times a day, and sometimes 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 regulates debt collectors and prohibits them from engaging in abusive, harassing, or deceptive behavior, including calling debtors at unreasonable hours. Quik Collection Agency's behavior of calling Pat several times a day and in the middle of the night would be considered a violation of this act.

Question 3

The operations of Metal Refining Industries, Inc., are major sources of air pollution. These operations must use

Accepted Answer

The operations of Metal Refining Industries, Inc., are major sources of air pollution, therefore, they must use the maximum achievable control technology to minimize their emissions and meet regulatory requirements. The other options listed are not sufficient to meet these requirements.

Question 4

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates

Accepted Answer

The answer of Kip opens an account at a Lotsa...

Question 5

Metal Smelting, Inc., operates a plant-a "major source"-that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely

Accepted Answer

Operating a plant that emits hazardous air pollutants without using any equipment to reduce the emissions is a violation of the Clean Air Act. This violation can lead to penalties and fines levied by the Environmental Protection Agency. Being a "major source" does not exempt the plant from complying with emission standards set by the EPA. Additionally, the fact that the plant is not a mobile source is irrelevant to determining whether or not it is in violation of the Clean Air Act.

Question 6

Dita takes out a student loan from Everloan Bank. When she fails to make the scheduled payments for six months, Everloan advises her of further action that it will take. This violates

Accepted Answer

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

Question 7

Creditworthy Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of

Accepted Answer

The Truth-in-Lending Act requires lenders to provide borrowers with disclosures about their own credit terms, including the annual percentage rate (APR), finance charges, and other fees associated with the loan. Lenders are not required to disclose information about other lenders or the prices of goods that may be bought with the borrowed funds. Disclosure of the borrowers' credit scores is also not required under this Act.

Question 8

New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is

Accepted Answer

The answer of New Town Construction, Inc., wants to build...

Question 9

Rural Electric Company submits a bid to build a dam on federal land as part of a federal project. For this action, an environmental impact statement is most likely

Accepted Answer

Whenever an action involves federal land, there is a high possibility that an environmental impact statement will be required. It is required to evaluate the impacts of the proposed action on the environment, and this is especially important when the project involves significant changes to the land or the water bodies. As the construction of a dam is likely to have a considerable impact on the environment, Rural Electric Company is highly likely to be required to provide an environmental impact statement.

Question 10

Rock Mining Company operates a gravel pit next to Siera's residence. Siera files a suit against Rock, alleging that the pit is a nuisance and unreasonably interferes with the enjoyment of her property The court is most likely to award Siera an injunction

Accepted Answer

In order for Siera to be awarded an injunction, she must show that the gravel pit is causing more harm than the potential harm that would result from stopping its operation. This means that if letting the pollution continue is more harmful than stopping it, the court is likely to grant Siera an injunction. Option A is not applicable because the harm caused by pollution cannot be equally as harmful as stopping its source. Option B is incorrect because the court will not allow for continued harm to Siera's property just because stopping the source may also cause some harm. Option D is not true because there may be circumstances where an injunction is warranted.

Question 11

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

Accepted Answer

The Equal Credit Opportunity Act prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance. Discrimination based on intelligence or education is not prohibited by the act, and discrimination based on income is only prohibited in certain circumstances (such as discriminating against those receiving public assistance).

Question 12

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

Accepted Answer

According to federal law, restaurants or food establishments with twenty or more locations must post the calorie content of the food on their menu. Therefore, Organic Mix LLC, if it is a restaurant chain with twenty or more locations, would be required to post the calorie content on their menu.

Question 13

Verna makes a living by commercial fishing in a river allegedly polluted by Wall Paint Company. To bring a suit against Wall Paint on the ground of private nuisance, Verna must allege that she suffers from

Accepted Answer

In order to bring a suit on the ground of private nuisance, Verna must prove that she has suffered a distinct harm that is different from harm suffered by the general public. If her harm is the same as that affecting the general public, she cannot bring a private nuisance lawsuit against Wall Paint.

Question 14

The credit department of Metro-Mart calls Nikki at work about an overdue bill. Nikki's employer objects. Metro-Mart continues to call Nikki at work. This is a violation of

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA) regulates the actions of debt collectors and prohibits them from engaging in certain harassing or abusive tactics, such as calling a debtor at work after being informed that the employer objects to such calls. Therefore, Metro-Mart's actions in this scenario would be a violation of the FDCPA.

Question 15

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

Accepted Answer

The Food and Drug Administration is responsible for regulating and ensuring the safety of food and drugs in the United States. They have the authority to inspect and enforce regulations for food and drugs sold in retail stores such as Corner Market and Delite Food & Drug Store. The Consumer Product Safety Commission and Federal Trade Commission focus on different areas of consumer safety and do not have the same level of authority and responsibility as the FDA in this regard.

Question 16

Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Steel to

Accepted Answer

The best choice is to remove the hazardous tool from the market as it poses a risk to consumers. This is the most effective way to ensure the safety of consumers and prevent any potential injuries or harm. Exporting or increasing the price would not address the issue of the hazard, and reducing the price may not effectively indicate the hazard to consumers.

Question 17

Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is

Accepted Answer

A new run in a national park on federal land would have significant environmental impacts, so a thorough environmental impact statement is required by law before the action can be taken.

Question 18

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

Accepted Answer

Standard nutrition facts are required by the FDA on food labels.

Question 19

Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without Kirk's permission, his roommate Leif uses the card to buy a new laptop for $1,800. Kirk is

Accepted Answer

Kirk is not liable for any amount because he did not authorize the use of the credit card and did not agree to be responsible for any charges made on it. It was also unsolicited, which means that it was sent without request or approval from Kirk. In this scenario, the liability falls on the credit card company for issuing a card without proper verification and authorization from the recipient.

Question 20

Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

Accepted Answer

The Truth-in-Lending Act (TILA) requires lenders to disclose the terms and conditions of borrowing money, including the interest rate and any fees associated with the loan. Since Tory is borrowing money from a bank, this transaction is subject to TILA.

Quiz 33: Consumer and Environmental Law