Chapter 38
Consumer Protection:
Your Full Name:
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The Email address of an instructor to mail your quiz results:
1. To prevail in a lawsuit alleging deceptive trade practices, a consumer is only required to show that a defendant has breached a contract.
a. True
b. False
2. A retractive ad is required by the FTC to correct misleading advertising.
a. True
b. False
3. Consumer-protection statutes apply only in situations in which the statute is intentionally violated.
a. True
b. False
4. A plaintiff-consumer must prove that she is in fact a "consumer" under the statute.
a. True
b. False
5. A defendant in consumer-protection cases is any legal person that enters into the kind of transaction in which the injured consumer was harmed.
a. True
b. False
6. A credit bureau cannot report a bankruptcy proceeding after ten years.
a. True
b. False
7. Automobile lemon laws apply only to purchases of vehicles by businesses.
a. True
b. False
8. The FTC insists that only such descriptive and well-understood terms as jumbo, giant, or full be used in product labeling.
a. True
b. False
9. To prevail in a consumer-protection statute or a deceptive trade-practice act, a plaintiff must prove the defendant guilty of fraud.
a. True
b. False
10. A back-page disclaimer is void if the front page of a contract does not call attention to the presence of the terms on the back page.
a. True
b. False
11. The Fair Credit Reporting Act applies:
a. to anyone who generates a credit report.
b. to anyone who regularly engages in the practice of disseminating or evaluating consumer credit for third parties.
c. only to commercial lenders.
d. only to credit reporting bureaus, whose reports, in addition to financial information, include information from interviews with colleagues and neighbors.
12. Consumer-protection statutes and regulations do not protect against:
a. deceptive advertising.
b. the negligence of the consumer.
c. unsolicited credit cards to creditworthy consumers.
d. unreasonable methods of debt collection by debt-collection agencies.
13. A consumer may rescind a contract without liability when the contract is for:
a. the purchase of a new automobile.
b. the purchase of a used automobile.
c. a home-solicited sale of services for $50 within three days.
d. a home-solicited sale of goods for $25 that was made ten days earlier.
14. Firms charged with fraudulent advertising by the FTC may be required to provide consumers with truthful information through:
a. a mass mailing campaign.
b. recall notices.
c. corrective advertising.
d. public statements of guilt.
15. The owner of a lost credit card is:
a. liable for all purchases made by its finder if the card was lost through negligence.
b. not liable for any purchases if the card was lost despite the exercise of reasonable care by the cardholder.
c. liable for all purchases if the card originally had been sent to the cardholder without any prior request and never was used by such holder.
d. never liable for more than $50 of the purchases made by the finder.
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