Question 1

A warranty that goods delivered will be free of creditors' claims, such as liens of which the buyer is not aware at the time of contracting is known as:​
A)Warranty of title
B)Warranty against encumbrances
C)Warranty of merchantability
D)Warranty of conformity

Accepted Answer

A warranty against encumbrances ensures that the goods delivered are free from any third-party claims, such as liens or encumbrances, that the buyer was unaware of at the time of the contract. This warranty protects the buyer from legal disputes over the goods' ownership.

Question 2

The implied warranty of _________________ is given by merchant sellers.​

Accepted Answer

The answer of The implied warranty of _________________ is given...

Question 3

A sales representative called on the Smiths at their home to sell them frozen food (steaks, chicken and veal) along with a small freezer for $1000. After a very persuasive sales pitch, the Smiths agreed. Two days later they regretted their decision, contacted the company, and stated that they had decided to rescind the contract and return the food and the freezer. May they?​
A)No, it was an in-home sale and not unsolicited merchandise.
B)No, they executed a contract.
C)No, the Smiths have title to the food and the freezer.
D)Yes, the three-day in-home sales rule of the FTC allows the Smiths to rescind the contract.

Accepted Answer

The FTC's Cooling-Off Rule gives consumers three days to cancel purchases of $25 or more made at their home or a location that is not the seller's permanent place of business. This rule applies to the situation described, allowing the Smiths to rescind the contract.

Question 4

Which statute protects the privacy of personally identifiable, nonpublic financial information by restricting when and how it can be disclosed to nonaffiliated third parties by financial institutions?​
A)Gramm-Leach-Bliley Act
B)Right to Financial Privacy Act of 1978
C)Fair Debt Collections Practices Act
D)The Privacy Act of 1974

Accepted Answer

The Gramm-Leach-Bliley Act (GLBA) specifically addresses the issue of protecting nonpublic personal information held by financial institutions and sets forth requirements on how this information can be shared with nonaffiliated third parties.

Question 5

Which of the following can create an express warranties?​
A)Affirmation of fact or promise
B)Description of the goods
C)A sample or model
D)All of the above
E)None of the above

Accepted Answer

Express warranties can be created by an affirmation of fact or promise about the goods, a description of the goods, or by providing a sample or model, making all of the given options correct ways to create an express warranty.

Question 6

If a consumer does not wish to be contacted by telephone solicitors and telemarketers, they should put their phone number on the national ______________________________.​

Accepted Answer

The answer of If a consumer does not wish to...

Question 7

KWC sold a defective mountain bike which caused injury to a consumer when the handle brakes did not stop the wheels from turning. Because reasonable consumers would expect a mountain bike with brake handles to stop the bike, the product is not fit for its ordinary purpose of cycling. Which warranty has been breached?​
A)Implied warranty of merchantability
B)Implied warranty of fitness for a particular purpose
C)Express warranty
D)Warranty of title

Accepted Answer

The implied warranty of merchantability guarantees that a product will work as expected for its ordinary purposes, such as a bike being able to stop when its brakes are applied. Since the bike's brakes failed to stop it, this warranty was breached.

Question 8

Which statute prohibits the government from accessing the financial records of any customer from a financial institution unless the financial records are reasonably described and the customer allows such access or certain approvals are made by a search warrant or
Administrative subpoena?​
A)Right to Financial Privacy Act of 1978
B)Fair Debt Collections Practices Act
C)The Privacy Act of 1974
D)Gramm-Leach-Bliley Act

Accepted Answer

The Right to Financial Privacy Act of 1978 specifically restricts government access to personal financial records without a customer's consent, unless certain conditions are met, such as obtaining a search warrant or an administrative subpoena.

Question 9

An ________________ contract is one drafted by a dominant party and then presented to the weaker party on a take-it-or-leave-it basis.​

Accepted Answer

The answer of An ________________ contract is one drafted by...

Question 10

The federal law which requires written warranties of consumer products to disclose, fully and conspicuously, in simple and readily understood language, the terms and conditions of the warranty is the ______________________________Act.​

Accepted Answer

The answer of The federal law which requires written warranties...

Question 11

Department Store sold Mary a food processor. When she took it out of the box, and attempted to use it, the motor did not work. On these facts which UCC warranties have been breached?​
A)Express warranty
B)Implied warranty of merchantability
C)Implied warranty of fitness for a particular purpose
D)Warranty of Title

Accepted Answer

The implied warranty of merchantability has been breached because the food processor, a product sold by the Department Store, did not work as expected right out of the box, indicating it was not fit for its ordinary use.

Question 12

______________________is the right to control the collection and sharing of data about oneself.​

Accepted Answer

The answer of ______________________is the right to control the collection...

Question 13

The transaction doctrine that means "let the buyer beware" is ______________, and the transaction doctrine that means "let the buyer beware" is ________________.​

Accepted Answer

The answer of The transaction doctrine that means "let the...

Question 14

A light-bulb exploded when it was switched on. Which of the following people may recover under the implied warranty of merchantability of they are injured?​
A)The purchaser of the bulb only
B)The purchaser of the bulb and family members living in the home only
C)The purchaser of the bulb, family members living in the home and guests only
D)No one unless the bulb was guaranteed not to explode

Accepted Answer

The implied warranty of merchantability ensures that a product will work as expected for its intended use, which includes not exploding when turned on. This warranty extends to anyone who might reasonably be expected to use the product or be affected by it, including the purchaser, their family members, and guests in the home.

Question 15

If consumers receive merchandise that they did not order:​
A)They must pay for the merchandise within three days.
B)They must return the goods but are not liable for shipping costs.
C)They must return the goods and pay for return shipping if a return label was not included.
D)They may treat the merchandise as a gift and not pay for it or return it.

Accepted Answer

Under U.S. federal law, unsolicited merchandise sent to a consumer can be legally kept as a gift without any obligation to pay for it or return it.

Question 16

The Uniform Deceptive Trade Practices Act:​
A)Prohibits unfair or fraudulent business practices and untrue or misleading advertising.
B)Allows for private causes of action, including attorneys' fees in certain situations.
C)Both of the above
D)Neither of the above.

Accepted Answer

The Uniform Deceptive Trade Practices Act prohibits unfair or fraudulent business practices and untrue or misleading advertising, and it allows for private causes of action, including the recovery of attorneys' fees in certain situations.

Question 17

The Consumer Privacy Bill of Rights is:​
A)A federal regulation issued by the Department of Commerce.
B)federal regulation issued by the FTC.
C)A proposal to improve consumers' privacy protections and ensure that the Internet remains an engine for innovation and economic growth.
D)A federal law designed to protect privacy rights.

Accepted Answer

The answer of The Consumer Privacy Bill of Rights is:​
A)A...

Question 18

Which agency regulates deceptive practices and advertising?​
A)Food and Drug Administration
B)Federal Trade Commission
C)Consumer Product Safety Commission
D)The Department of Consumer Affairs

Accepted Answer

The Federal Trade Commission (FTC) is the primary agency that regulates advertising to ensure that it is not deceptive or misleading.

Question 19

A seller or lessor may generally _______________ (limit or negate) all warranties.​

Accepted Answer

The answer of A seller or lessor may generally _______________...

Question 20

Which of the following is NOT one of the provisions of the Truth in Lending Act?
A)It requires a full disclosure of the comparative costs of buying goods for cash or on credit.
B)The creditor must disclose, in writing and in advance of signing, the total dollar finance charge and the effective annual percentage rate (APR)of the interest or finance charge.
C)It provides for a three-day "cooling-off" period when a consumer agrees to borrow on the security of a second mortgage on a home.
D)It places a limit on the rate or amount of interest or carrying charge.

Accepted Answer

The Truth in Lending Act (TILA) focuses on the disclosure of credit terms and costs, ensuring consumers are informed about charges, APR, and their rights. It does not directly place a limit on interest rates or carrying charges; such regulations are typically handled by state laws or other federal regulations.

Quiz 13: Consumer Rights, Privacy, and Protection

A warranty that goods delivered will be free of creditors' claims, such as liens of which the buyer is not aware at the time of contracting is known as:

The implied warranty of _________________ is given by merchant sellers.

Which statute protects the privacy of personally identifiable, nonpublic financial information by restricting when and how it can be disclosed to nonaffiliated third parties by financial institutions?

Which of the following can create an express warranties?

If a consumer does not wish to be contacted by telephone solicitors and telemarketers, they should put their phone number on the national ______________________________.

Which statute prohibits the government from accessing the financial records of any customer from a financial institution unless the financial records are reasonably described and the customer allows such access or certain approvals are made by a search warrant or Administrative subpoena?

An ________________ contract is one drafted by a dominant party and then presented to the weaker party on a take-it-or-leave-it basis.

The federal law which requires written warranties of consumer products to disclose, fully and conspicuously, in simple and readily understood language, the terms and conditions of the warranty is the ______________________________Act.

Department Store sold Mary a food processor. When she took it out of the box, and attempted to use it, the motor did not work. On these facts which UCC warranties have been breached?

______________________is the right to control the collection and sharing of data about oneself.

The transaction doctrine that means "let the buyer beware" is , and the transaction doctrine that means "let the buyer beware" is __.

A light-bulb exploded when it was switched on. Which of the following people may recover under the implied warranty of merchantability of they are injured?

If consumers receive merchandise that they did not order:

The Uniform Deceptive Trade Practices Act:

The Consumer Privacy Bill of Rights is:

Which agency regulates deceptive practices and advertising?

A seller or lessor may generally _______________ (limit or negate) all warranties.

Which of the following is NOT one of the provisions of the Truth in Lending Act?

Quiz 13: Consumer Rights, Privacy, and Protection

A warranty that goods delivered will be free of creditors' claims, such as liens of which the buyer is not aware at the time of contracting is known as:​

The implied warranty of _________________ is given by merchant sellers.​

Which statute protects the privacy of personally identifiable, nonpublic financial information by restricting when and how it can be disclosed to nonaffiliated third parties by financial institutions?​

Which of the following can create an express warranties?​

If a consumer does not wish to be contacted by telephone solicitors and telemarketers, they should put their phone number on the national ______________________________.​

Which statute prohibits the government from accessing the financial records of any customer from a financial institution unless the financial records are reasonably described and the customer allows such access or certain approvals are made by a search warrant or Administrative subpoena?​

An ________________ contract is one drafted by a dominant party and then presented to the weaker party on a take-it-or-leave-it basis.​

The federal law which requires written warranties of consumer products to disclose, fully and conspicuously, in simple and readily understood language, the terms and conditions of the warranty is the ______________________________Act.​

Department Store sold Mary a food processor. When she took it out of the box, and attempted to use it, the motor did not work. On these facts which UCC warranties have been breached?​