Question 1

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 ac?tion that it will take. This violates

Accepted Answer

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

Question 2

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

Federal law requires that chain restaurants with twenty or more locations post calorie information on their menus. Option B is incorrect since it mentions food distributors and not restaurants, option C is incorrect since it mentions food processors and not restaurants, and option D is incorrect since it mentions the size of a food producer's land and not the number of restaurant locations.

Question 3

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

The Clean Air Act requires major sources of hazardous air pollutants to implement maximum achievable control technology (MACT) to reduce emissions. The fact that the plant does not use any equipment to reduce its emissions puts it in violation of the act.

Question 4

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 requires lenders to disclose the terms and conditions of a loan, including the annual percentage rate (APR), finance charges, and total amount financed. Therefore, this transaction is subject to the Truth-in-Lending Act.

Question 5

Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit dis?crimination 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, education, or income is not prohibited by this act.

Question 6

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

Accepted Answer

The operations of Metal Refining Industries, Inc. are major sources of air pollution, which implies that the use of scrubbing technology may not suffice to reduce the pollution levels to acceptable standards. Therefore, the most appropriate choice would be to use the maximum achievable control technology to ensure that the air pollutants are minimized to the greatest extent possible.

Question 7

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 8

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

When a development project is proposed on federal land, it is subject to the National Environmental Policy Act (NEPA), which requires a thorough analysis of the potential environmental impacts through an Environmental Impact Statement (EIS). Therefore, Ski Resorts, Inc. is required to conduct an EIS before adding a new run to its facility on federal land in a national park.

Question 9

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 (FCRA) requires credit reporting agencies to provide individuals with a copy of their credit report upon request, free of charge once every 12 months, and also when an adverse action is taken against them, such as a credit card application denial. The FCRA sets guidelines for the accuracy, fairness, and privacy of credit reports.

Question 10

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

Accepted Answer

The best choice is for Steel to remove the hazardous tool from the market as it poses a potential risk to consumers. This is the safest and most ethical solution to ensure consumer safety. Exporting the tool to other countries or increasing its price to cover the cost of any injuries or damage would not address the underlying safety issue. Similarly, lowering the price to indicate the hazard to consumers may not effectively communicate the seriousness of the risk and could still result in injuries or damage.

Question 11

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 did not give permission to his roommate to use the credit card, so he is not liable for any amount. It is important to immediately report unsolicited credit cards to the bank to avoid any potential fraudulent use.

Question 12

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

Accepted Answer

The Truth-in-Lending Act requires lenders to disclose their own credit terms to potential borrowers. This includes information such as the annual percentage rate (APR), finance charges, and any fees associated with the loan. The Act does not require lenders to disclose credit terms offered by other lenders or comparative prices for goods to be purchased with the borrowed funds. Additionally, lenders are not required to disclose the borrowers' credit scores to them under the Truth-in-Lending Act.

Question 13

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 is a federal law that regulates debt collection practices and prohibits debt collectors from engaging in harassing or abusive behavior, including calling at unreasonable hours.

Question 14

Sweet Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

Accepted Answer

Standard nutrition facts are required to be included on the label of most packaged foods in the U.S. This is mandated by the U.S. Food and Drug Administration (FDA) under the Nutrition Labeling and Education Act (NLEA) of 1990.

Question 15

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 inter?feres with the enjoyment of her property The court is most likely to award Siera an injunction

Accepted Answer

The court is most likely to award Siera an injunction if letting the pollution continue is more harmful than stopping it. In nuisance cases, the court considers the gravity of the harm caused to the plaintiff as well as the utility of the conduct of the defendant. If the harm caused to the plaintiff outweighs the utility of the defendant's conduct, the court is likely to grant an injunction to stop the defendant from continuing the conduct.

Question 16

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 state?ment is most likely

Accepted Answer

When a company submits a bid to build a dam on federal land as part of a federal project, an environmental impact statement is most likely required by law. This is because the project may have significant environmental impacts that need to be assessed and considered before proceeding with the construction. The purpose of the statement is to identify potential environmental impacts, analyze alternative approaches, and provide the public with an opportunity to comment on the proposal.

Question 17

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

Private nuisance requires a plaintiff to allege a distinct harm separate from that affecting the general public. It is not necessary for the harm to be unique, but it must be different from that experienced by the public as a whole.

Question 18

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 (FDA) is responsible for ensuring the safety of food and drugs sold to consumers. The Consumer Product Safety Commission (CPSC) primarily focuses on regulating and recalling non-food products that could pose a danger to consumers. The Federal Trade Commission (FTC) is responsible for regulating unfair or deceptive business practices, but does not have a primary role in overseeing food and drug safety. While there are other federal agencies that play a role in the regulation of food and drugs, the FDA is the primary agency responsible for ensuring their safety.

Question 19

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 20

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 viola?tion of

Accepted Answer

Metro-Mart's behavior violates the Fair Debt Collection Practices Act, which prohibits debt collectors from contacting debtors at their place of work if the debtor's employer objects to such contact.

Quiz 40: Consumer and Environmental Law