Business Law, 8e: Chapter 27

Chapter 27
Other Credit Transactions:

Your Full Name:

Your Email Address:

The Email address of an instructor to mail your quiz results:

2. A "signature loan" would be an example of a unsecured credit transaction.: a. True
b. False

3. The Truth in Lending Act (TILA) allows issuing unsolicited credit cards.: a. True
b. False

4. TILA limits the liability of credit card holders to $100.00.: a. True
b. False

5. Mark was interested in buying his neighbor's piano but didn't have the cash. Mark and his neighbor worked out an arrangement whereby Mark would pay for the piano in 36 monthly payments. Under the Truth-in-Lending Act, Mark's neighbor must disclose the finance charge and the annual percentage rate.: a. True
b. False

7. The FTC Holder in Due Course rule requires special language on a consumer credit transaction.: a. True
b. False

9. The Coelho v. Park Ridge Oldsmobile case involved a question of whether a finance charge must be disclosed in the retail contract.: a. True
b. False

10. Merchant cards can be used in almost any location that accepts credit cards.: a. True
b. False

11. Art purchased tools from Harvey's Home Improvement Center using his MasterCard credit card. When Art received the MasterCard statement, he thought that Harvey's had charged too much for the tools. Harvey's claimed that it did not overcharge Art and refused to credit his MasterCard for the disputed amount. Which of the following is correct?: a. Art can withhold payment of the disputed amount until the credit card company has investigated the claim.
b. Art must pay the disputed amount but the credit card company has an obligation to investigate the claim.
c. Art must pay the disputed amount. The credit card company has no obligations in this situation. Art must resolve the dispute with Harvey's.
d. Art's liability is $50.

12. A borrower who creates a mortgage on real estate is called the:: a. mortgagor.
b. mortgagee.
c. assignee.
d. successor.

13. "Offsets" by credit card issuers are prohibited by:: a. Regulation R.
b. Regulation Z.
c. Regulation M.
d. Regulation N.

14. Paula's credit card was stolen. As soon as she noticed that her card was missing, she notified the bank. By the time she called the bank, the thief had charged $549 on her account. Paula is liable for:: a. $549.
b. $500.
c. $50.
d. -0-.

15. Jake lent his friend $5,000. In making the loan, Jake must comply with which of the following laws?: a. The federal Credit Protection Act.
b. The federal Truth-in-Lending Act.
c. The federal Fair Debt Collection Practices Act.
d. None of the above.