Question 1

Midwest Power Corporation wants to build a nuclear power plant on private land,for which a federal permit is required.For this action,an environmental impact statement is

Accepted Answer

A federal permit for building a nuclear power plant on private land requires an environmental impact statement (EIS) under the National Environmental Policy Act (NEPA). Therefore, the correct choice is B, which states that an EIS is required.

Question 2

Wheels & Deals Corporation is subject to the Truth-in-Lending Act,which concerns

Accepted Answer

The Truth-in-Lending Act concerns the disclosure of credit terms in certain transactions. It requires creditors to disclose the annual percentage rate (APR), finance charges, and other key terms in credit agreements.

Question 3

In the ordinary course of business,Xtra Charge Company sells goods to Yvon and other consumers on credit under installment sales contracts that typically require at least one year of monthly payments.Xtra does not disclose all of the credit terms to its customers.This practice is most likely to result in

Accepted Answer

The answer of In the ordinary course of business,Xtra Charge...

Question 4

The Environmental Protection Agency (EPA)has the authority to regulate "any air pollutant." Fresher Air Group,a private organization that supports cleaner air,can file a suit against the EPA to

Accepted Answer

Fresher Air Group can file a suit against the EPA to either compel it to act or prevent it from acting in accordance with its authority to regulate any air pollutant. This means that the organization can either ask the EPA to take action in reducing air pollution or challenge any actions taken by the EPA that are not in compliance with its mandate to regulate air pollution.

Question 5

Kristen receives unsolicited merchandise in the mail.Kristen

Accepted Answer

According to the Federal Trade Commission (FTC), if someone receives unsolicited merchandise in the mail, they are under no obligation to pay for it or return it. It is considered a gift or a free sample, and the receiver may keep it without any obligation to the sender. Therefore, the correct option is A.

Question 6

Paychex Loan Company extends credit in the ordinary course of its business.Under the Truth-in-Lending Act,Paychex must inform potential borrowers of

Accepted Answer

Under the Truth-in-Lending Act, Paychex is required to disclose only its own credit terms to potential borrowers. It is not required to disclose the credit terms offered by other lenders, nor is it allowed to manipulate borrowers into accepting its credit terms by disclosing only what will "close the deal."

Question 7

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

Accepted Answer

In a negligence theory, the plaintiff must prove that the defendant (Debris in this case) breached a duty of care owed to them, resulting in injury or damages. In this case, the duty owed by Debris would be to operate the recycling plant in a way that did not cause harm to its neighbors. Therefore, the plaintiffs must demonstrate that Debris failed to use reasonable care, which caused their injuries.

Question 8

In the ordinary course of business,EZ Funds Corporation offers credit to Fay and other consumers and reports on the loans to credit agencies.To save time and money,EZ 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,EZ Funds...

Question 9

Brad borrows $20,000 from Citizens Bank to repair his home and to buy a car.Brad buys a stereo from Deep Discount Store in a transaction financed by Deep.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 credit transactions, including car loans, home repair loans, and retail installment sales. Therefore, all three transactions mentioned in the question are subject to Regulation Z.

Question 10

Special Roast Coffee,Inc.,processes and sells a variety of coffee products.Special Roast's product packages must include

Accepted Answer

According to the Fair Packaging and Labeling Act, product packages must include the contents' net quantity and the product's identity. Therefore, option B is the best choice.

Question 11

Like other manufacturers and sellers,Happy Household Products Company packages its products with labels.Under federal law,such labels must be

Accepted Answer

Federal law requires that labels must be accurate and use easily understood words to inform consumers about the product, its ingredients, and any potential risks or hazards associated with the product. Bright colors, graphic design, and interesting information may be useful in attracting consumer attention, but they are not the primary requirement for product labeling under federal law.

Question 12

Fabio makes a living by farming near Gastric Combustibles,Inc.,which has discharged pollutants into the area's air and water.If Fabio brings a suit asking for an injunction against Gastric on the ground of nuisance,the court is most likely to rule in Gastric's favor if

Accepted Answer

The answer of Fabio makes a living by farming near...

Question 13

On behalf of RiteNow Collection Agency,Sid poses as a police officer in an attempt to collect payment from Tylo for a shipment of scuba equipment that she returned to Undersea Company two months earlier.This violates

Accepted Answer

The scenario describes a violation of the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using false or deceptive tactics, such as posing as law enforcement officers, to collect payments from debtors. The Fair Credit Reporting Act (FCRA) pertains to the accuracy and privacy of credit reports, while the Truth-in-Lending Act (TILA) requires lenders to disclose the terms and costs of credit to consumers.

Question 14

Truckers Storage Depot,a private company,wants to build a warehouse on private land. For this action,an environmental impact statement is

Accepted Answer

The answer of Truckers Storage Depot,a private company,wants to build...

Question 15

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 (CPSC) has the authority to recall or remove potentially hazardous toys from the market. The other agencies listed do not have the specific jurisdiction or authority to regulate toys.

Question 16

Furniture Depot sells Gail a bedroom suite on credit.Gail fails to make the scheduled payments for six months.Furniture Depot sends her a letter,asking for immediate payment.This is a violation of

Accepted Answer

The answer of Furniture Depot sells Gail a bedroom suite...

Question 17

Missoula,Montana,passes an ordinance to regulate waste disposal.The disposal of waste may also be regulated by

Accepted Answer

Waste disposal can also be regulated by other levels of government such as state and federal government. It is common for local regulations to be in compliance with higher level regulations.

Question 18

Longhaul Trucking Company transports radioactive materials.Marla suffers from cancer.To succeed in a strict liability action against Longhaul,Marla must show that her injury was caused by

Accepted Answer

In a strict liability action, the plaintiff (Marla) does not have to prove that the defendant (Longhaul) was negligent or intentionally disregarded the safety of others. Instead, the plaintiff only needs to show that their injury was caused by the defendant's operation or use of a product, such as transporting radioactive materials. Therefore, Marla only needs to prove that her cancer was caused by the radiation from the radioactive materials transported by Longhaul, which falls under their operation. Choices A and B are not applicable in this scenario because they involve negligence or intentional harm, which are not required elements in a strict liability case. Choice D is too broad and speculative as it encompasses any source of radiation, not just the specific transportation of radioactive materials by Longhaul.

Question 19

Penny Stock Company faxes ads to Quality Personnel Corporation and other businesses without the recipients' permission.This is

Accepted Answer

It is illegal to send unsolicited faxes to businesses without their permission under the Telephone Consumer Protection Act (TCPA). This can result in fines and legal action against the company.

Question 20

Prime Equity Company extends credit in the ordinary course of its business to consumers.Under the Truth-in-Lending Act,Prime must inform a prospective borrower of

Accepted Answer

Under the Truth-in-Lending Act, Prime Equity Company is required to inform a prospective borrower of its own credit terms, including the annual percentage rate (APR), finance charge, and other loan terms. This information helps the borrower compare Prime's offer with other lenders and make an informed decision. The Act does not require Prime to disclose other lenders' credit terms, its financial situation, or the borrower's credit score.

Quiz 33: Consumer and Environmental Law