Business Law II BA 304-01: N/A
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Chapter 33 - Consumer Protection - Review

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1) The aim of consumer-protection legislation is to protect persons of limited means and limited knowledge.

2) The category of protected consumers has been expanded by the social forces of protecting the person and protecting from fraud, exploitation, and oppression.

3) A defendant in consumer-protection cases is a person or enterprise that regularly enters into the kind of transaction in which the injured consumer was harmed.

4) Consumer-protection law often requires those dealing with consumers to make certain mandated disclosures.

5) The FTC requires that an advertiser maintain a file containing the data claimed to support statements relevant to the safety, performance, efficacy, quality, or comparative price of an advertised product.

6) Corrective advertising required by the FTC also is called retractive advertising.

8) Consumer-protection statutes and regulations do not protect against the negligence of the consumer.

9) An administrator provided for by the UCCC, a state attorney general, or the consumer may bring an action for relief under consumer-protection legislation

10) Consumer-protection legislation prohibits the consumer from suing in his or her own right and gives the right to sue solely to an agency or to the attorney general.

11) Consumer-protection legislation provides special remedies.

12) Consumer-protection legislation provides certain agencies to police statutes passed to aid consumers.

13) The policing of fraudulent advertising is entrusted to the FTC.

14) Truth-in-advertising legislation is designed to give the consumer an accurate description of the product.

15) Firms charged with fraudulent advertising by the FTC may be required to provide consumers with truthful information through corrective advertising.

16) If sellers advertise that they will sell or lease on credit, the buyermust be furnished an accounting of the financial strength of the lending institution.

17) The Truth in Lending Act does not apply to a sale when the purchase price is to be paid in three installments with no financing charges added.

18) A consumer may rescind a contract without liability when the contract is for a home-solicited sale of services for $50.

19) When a mortgage secures a specified debt and such additional loans as may thereafter be made, this is called an open-end mortgage.

20) An unsolicited distribution of credit cards to persons who have not applied for them is prohibited.

21) Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product.

22) Consumer-protection statutes designed to prohibit the use of improper and deceptive selling methods are liberally construed to protect consumers.

23) In a credit transaction, the seller generally must reveal not only the interest rate but also the annual percentage rate.

24) Consumer-protection laws, which commonly regulate the form of consumer contracts, provide that back-page disclaimers are void if the front page of a contract does not call attention to the presence of the terms on the back page.

25) Every contract for the sale or lease of goods or services to a consumer must contain a statement that the consumer has the right to assert defenses arising from the transaction against a third person to whom the seller or lessor transfers the contract.

26) A creditor cannot send a bill to a debtor in an envelope that gives the false impression that the debtor is being sued.

27) Unreasonable methods of debt collection may be held by the courts to constitute an unreasonable invasion of privacy.

28) A credit bureau cannot report a bankruptcy proceeding after ten years.

29) A development statement is a document that the Land Sales Act requires to be filed with the Secretary of Housing and Urban Development by promoters of certain specified real estate developments.

30) The owner of a lost credit card is never liable for more than $50 of the purchases made by the finder.

31) If you allow another person to use your credit card but the person uses the card for a purpose other than the one you specified an authorized usage has occurred.

32) Debt collectors liable for violations of the Fair Debt Collection Practices Act would include collection agencies.

33) It is lawful to refuse to extend credit to a consumer based on the consumer's credit history. 35) The Fair Credit Reporting Act applies to applications for consumer loans.

36) Certain consumer-service contracts are treated the same as consumer-sales contracts under the Consumer Leasing Act.

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