Question 1

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm​

Accepted Answer

As per the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), Quality Credit, Inc. must give Phil at least forty-five days' notice before making significant changes to the terms of the credit card. This gives Phil enough time to decide if he wants to continue using the credit card or close the account.

Question 2

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

Accepted Answer

The Truth-in-Lending Act (TILA) requires lenders to provide consumers with clear and accurate information about the terms and costs of credit, including installment contracts. It also gives consumers the right to cancel certain credit transactions within a specified time frame.

Question 3

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount 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, also known as Regulation Z, applies to all of the loans and transactions mentioned in the scenario. It requires lenders and sellers to disclose certain information to consumers, such as the annual percentage rate, finance charges, and total loan costs.

Question 4

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

Accepted Answer

The Fair Debt Collection Practices Act prohibits debt collectors from engaging in abusive, harassing, or deceptive practices when attempting to collect a debt, including calling at unreasonable or inconvenient times.

Question 5

Mouth-Waterin' Treats Company wants to sell its candy in a normal-sized package labeled "Gigantic Size." NuFabrics, Inc., wants to advertise its sweaters as having "That Wool Feel," but does not want to specify on labels that the sweaters are 100 percent polyester. Can these firms market their products as they would like? If not, why not?

Accepted Answer

The answer of Mouth-Waterin' Treats Company wants to sell its...

Question 6

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of​

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from contacting debtors at work if the debtor's employer objects to such communications. In this case, Nora's employer has objected to the credit department of Mega-Mart calling her at work about an overdue bill, making it a violation of the FDCPA.

Question 7

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. Discrimination based on intelligence, education, or income is not specifically prohibited under this act.

Question 8

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

Accepted Answer

The answer of Kip opens an account at Lotsa Goodies,...

Question 9

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Accepted Answer

The answer of In the ordinary course of business, Loan2Buy...

Question 10

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?​

Accepted Answer

The answer of Rely Battery Corporation makes batteries for motor...

Question 11

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of​

Accepted Answer

The answer of Dian takes out a loan from Equity...

Question 12

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Accepted Answer

The Fair Credit Reporting Act gives consumers the right to obtain a free copy of their credit report once a year from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. This would allow Logan to access information about his credit history and potentially identify any errors or issues that may have led to his credit card application being denied.

Quiz 24: Consumer Law

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm​

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to​

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to​

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of​

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

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

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in​

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?​

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of​

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to

Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of

The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of

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

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

In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in

Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?

Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under