Question 1

Which of the following statements about the CAN-SPAM act is not accurate?

Accepted Answer

The CAN-SPAM Act is enforced by federal and state regulators, such as the Federal Trade Commission (FTC), and not by private individuals. Consumers do not have a private right of action under the CAN-SPAM Act.

Question 2

Explain the scope of the FTC's Cooling-off Rule and what information a seller must provide a buyer.

Accepted Answer

The FTC's Cooling-off Rule requires sellers to give consumers three days to cancel and receive a full refund on any purchase of $25 or more made at the consumer's home or at certain locations other than the seller's normal place of business, such as hotel or motel rooms, convention centers, and fairgrounds. The seller must provide the buyer with: 1) a summary of the right to cancel; 2) two copies of a cancellation form; and 3) a contract or receipt, which must be in the same language that was used in the sales transaction.

Question 3

Jim is in big trouble. He just graduated from business school and started a dot.com. Jim needed the finest clothes to impress the East Coast money establishment so he ran up a huge bill on his store credit card at a large department store. Jim's company was all set to launch his service where customers e-mail Jim when they need their driveway shoveled. His site, shovelyourwalkmister.com, wasn't a big hit and venture capitalists won't even log on to his site, much less return his calls. To make matters worse, the department store is trying to collect on its account and had been calling him at all hours of the night, following him around to social events, and even telling business associates mostly kids hired to shovel driveways) that Jim is a deadbeat. Can Jim use the Fair Debt Collections Practices Act FDCPA) to protect himself from the department store?

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA) applies specifically to third-party debt collectors, not to creditors collecting their own debts.

Question 4

What action does a consumer have to take in order to treat unsolicited merchandise received through the mail as a gift?

Accepted Answer

BUnder U.S. federal law, unsolicited merchandise sent through the mail can be treated as a gift by the recipient. The consumer does not have to take any specific action to treat the merchandise as a gift, which aligns with choice A. Additionally, for the merchandise to be considered a gift, the consumer must believe in good faith that it was not sent as part of a "sales on approval" transaction, as stated in choice B. This means the consumer's belief about the nature of the transaction plays a role in determining how the merchandise can be treated.

Question 5

The Telephone Consumer Protection Act TCPA) prohibits all but which of the following?

Accepted Answer

The Telephone Consumer Protection Act (TCPA) specifically targets unsolicited fax ads, the use of automatic telephone dialing systems, and prerecorded voices in its restrictions. It does not, however, address unsolicited emails, which are instead covered under the CAN-SPAM Act.

Question 6

Which of the following statements about the National Do Not Call Registry is false?

Accepted Answer

The National Do Not Call Registry prohibits telemarketers from calling numbers listed on the registry, regardless of the use of an automatic dialer, unless there is prior consent.

Question 7

Under the FTC's Telemarketing Sales Rule, which of the following is NOT one of the things telemarketers must disclose?

Accepted Answer

The FTC's Telemarketing Sales Rule requires telemarketers to disclose all of the information listed: the total cost of the product, the quantity of goods being sold, and whether the sale is final or non-refundable.

Question 8

Which of the following is NOT one of the reasons why a company must notify the Consumer Product Safety Commission CPSC) about its product?

Accepted Answer

Companies are required to notify the CPSC if their product has a defect that could create a substantial risk of injury, poses an unreasonable risk of serious injury or death, or violates a consumer product safety standard or ban. Pre-registration of products with the CPSC before going to market is not a requirement for notification.

Question 9

Third party collection agencies are constantly hounding you for overdue debts. They call you at home, at work, and they have even shown up to "work out" a payment plan with you at social events. You are beginning to fear for your safety, as well as your sanity. Is there any federal statute you can turn to for protection? If so, what relief is available?

Accepted Answer

The answer of Third party collection agencies are constantly hounding...

Question 10

Explain what the term "off-label" means in the context of drugs or medical devices.

Accepted Answer

The answer of Explain what the term "off-label" means in...

Question 11

A door-to-door computer salesman, Franz, recently visited Gary Gullible in his house. Franz was selling a model named the Komputer, manufactured by a German computer company. Franz told Gary that the computer was made in Germany but used standard American parts. He assured Gary that the Komputer would be perfect for his kids to use to write reports and do school work. The Komputer came installed with standard software that the user could not modify. Franz told Gary there was no refund and all purchases were final. Gary bought the Komputer for $399.99. Everything was fine until the next day when Gary turned on the Komputer and opened the word processing program. The program used a German dictionary, such that the spelling and grammar checkers were useless. Is there any thing Gary can do?

Accepted Answer

The FTC's Cooling-off Rule gives consumers three days to cancel purchases made at their home or at a location that is not the seller's permanent place of business, providing a safeguard for situations like this.

Question 12

One of your friends is interested in starting a telemarketing company. She comes to you looking for advice on the FTC's Telemarketing Sales Rule. What is the scope of Rule and what conduct does it prohibit?
a.m. or after 9 p.m. and from calling customers who have previously indicated they do not want to be called.

Accepted Answer

The answer of One of your friends is interested in...

Quiz 8: Consumer Protection Law