Question 1

Refuse Reuse & Disposal Center operates a recycling plant. Stan and other Refuse Reuse neighbors file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on​

Accepted Answer

A negligence theory requires the plaintiff to show that the defendant failed to use reasonable care, resulting in harm to the plaintiff. In this case, the plaintiffs must show that Refuse Reuse & Disposal Center did not take reasonable care in operating the recycling plant, which caused their injuries.

A nuisance theory, on the other hand, focuses on the unreasonable interference with the use and enjoyment of the plaintiffs' property. If the plaintiffs can show that the operation of the recycling plant created a nuisance that affected the use and enjoyment of their property, they may be able to succeed in their lawsuit.

While the plaintiffs could potentially bring a suit under any theory, negligence and nuisance are the most relevant theories in this particular case.

Question 2

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Accepted Answer

The answer of Wellness Insurance Company offers health and medical...

Question 3

Fact Pattern 32-1
​Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property.
-Refer to Fact Pattern 32-1. The court is most likely to award Robyn an injunction

Accepted Answer

The court is most likely to award Robyn an injunction if letting the pollution caused by Open Pit's quarry continue is more harmful than stopping it. An injunction is a court order that requires a party to do or not do a particular act, and it is often used as a remedy in nuisance cases. In this case, if the court finds that Open Pit's quarry is causing an unreasonable interference with Robyn's use and enjoyment of her property, and that the harm caused by the quarry's pollution is greater than the harm that would result from an injunction, the court would be more likely to grant Robyn's request for an injunction.

Question 4

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

Accepted Answer

The Truth-in-Lending Act and Regulation Z apply to all consumer loans, including car loans, home repair loans, and retail installment sales such as the purchase of a laptop from eStuf Store. Therefore, all of the transactions mentioned in the question are subject to Regulation Z.

Question 5

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to​

Accepted Answer

The FTC's first step when receiving complaints about a deceptive ad is to investigate to gather information and determine if there is sufficient evidence to proceed with legal action. From there, the FTC may take further action such as drafting a formal complaint, issuing a cease-and-desist order, or ordering restitution. However, the initial step is always to investigate the complaint.

Question 6

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

Accepted Answer

The Consumer Product Safety Commission has the authority to remove potentially hazardous toys from the market. The other agencies listed may have other areas of regulatory authority, but they do not have jurisdiction over toy safety.

Question 7

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

Accepted Answer

Federal law requires Gear Motor Company to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for every new car. Compliance with this law is mandatory and not voluntary. Selecting old and new cars or choosing whichever vehicles Gear Motor Company wants to attach the label to would not be in compliance with federal law.

Question 8

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

Accepted Answer

The answer of Phil has a credit-card from Credible Cards,...

Question 9

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Accepted Answer

The Truth-in-Lending Act requires that lenders provide certain disclosures to borrowers, including the annual percentage rate, finance charges, and total amount to be repaid. This is applicable for installment contracts like the one Grover signed with Home Appliance Store.

Question 10

Fact Pattern 32-1
​Open Pit Excavation Inc. operates a rock quarry next to Robyn's vineyard and winery. Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and unreasonably interferes with Robyn's enjoyment of her property.
-Refer to Fact Pattern 32-1. The court is most likely to award Robyn damages​

Accepted Answer

The answer of Fact Pattern 32-1
​Open Pit Excavation Inc. operates...

Question 11

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

Accepted Answer

The answer of SmartPhone Company's ad states that its product...

Question 12

Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from

Accepted Answer

To succeed in a suit against the company on the ground of negligence, Quinn must show that Plywood failed to use reasonable care to avert harm to him. The fact that Plywood's actions also harm the general public is relevant, but not determinative of Quinn's individual claim.

Question 13

Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include

Accepted Answer

According to the US Food and Drug Administration's regulations, product packages must display the net quantity of the contents. The other options are not necessary or relevant information to include on a product package.

Question 14

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include

Accepted Answer

The Clean Air Act imposes penalties on corporate officers who knowingly violate the act, as well as on the companies they represent. The act does not impose penalties on individuals who fail to act or private citizens who fail to sue violators.

Question 15

Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vincent's suit against Ultrahazard to recover for the injury is known as​

Accepted Answer

Vincent's lawsuit against Ultrahazard would be a toxic tort case, as he is seeking to recover damages for harm caused by exposure to toxic or hazardous materials.

Question 16

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 action that it will take. This is a violation of

Accepted Answer

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

Question 17

Teri 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 total cost of borrowing money, including interest rates, fees, and other charges. Since Teri is borrowing $10,000, this law applies to her transaction with USA National Bank.

Question 18

Mello's Mattress Company advertises a special sale on mattresses on its Website. The mattresses are normally sold for $1,000, but are advertised on the site for $499. The sale price does not include the shipping cost. Mello's charges $250 for shipping. To avoid claims of Advertising, Marketing, and Sales, Mello's should​

Accepted Answer

Mello's should clearly and conspicuously disclose the shipping cost in its ads to avoid any claims of false advertising or misleading consumers. This ensures that consumers are fully aware of the total cost of the item and can make an informed decision before making a purchase. Simply including the shipping cost on a separate page or in small print may not be sufficient to avoid claims of deceptive advertising.

Question 19

Congress enacts a new air quality statute that applies to businesses. To enforce federal environmental legislation, the federal government relies on​

Accepted Answer

Federal environmental legislation requires cooperation and enforcement from all levels of government, including federal, state, and local, as well as individuals and private organizations. The federal government may also rely on federal agencies to enforce these laws, but their enforcement efforts are often supported by other government entities and private citizens. Additionally, businesses are not simply relied on to voluntarily comply with the law, but rather are required to do so and may face penalties for noncompliance.

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 require lenders to disclose the annual percentage rate, finance charges, and other loan terms to consumers. This act is applicable to all types of consumer loans, including personal loans and home improvement loans like the one taken by Tory.

Quiz 32: Consumer and Environmental Law

Refuse Reuse & Disposal Center operates a recycling plant. Stan and other Refuse Reuse neighbors file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on​

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to​

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

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to​

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

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from

Bagels n' Pastries, Inc., makes and sells a variety of bread products. Bagels n' Pastries's product packages must include

Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include

Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vincent's suit against Ultrahazard to recover for the injury is known as​

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 action that it will take. This is a violation of

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

Congress enacts a new air quality statute that applies to businesses. To enforce federal environmental legislation, the federal government relies on​

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

Refuse Reuse & Disposal Center operates a recycling plant. Stan and other Refuse Reuse neighbors file a suit, alleging injuries from the plant. To succeed, they must show that the defendant failed to use reasonable care if the suit is based on

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Cecilia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vincent's suit against Ultrahazard to recover for the injury is known as

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

Congress enacts a new air quality statute that applies to businesses. To enforce federal environmental legislation, the federal government relies on