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Exam 40: Consumer Law

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Question 21

True/False

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Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.

A) True
B) False

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Question 22

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An advertisement that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product.

A) True
B) False

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Question 23

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All ads-both online and offline-must be truthful.

Bait-and-switch advertising occurs when an ad appears to be based on factual evidence but in fact is not reasonably supported by evidence.

Frosty's Appliance Store advertises freezers at a "Special Low Price of $299." When Garth tries to buy one of the freezers,Huey,the salesperson,tells him that they are all sold and no more are obtainable.Huey adds that Frosty's has other freezers for $2,299.This is

Federal laws often provide more sweeping and significant protections for the consumer than state laws.

Debt collectors who use a prohibited debt-collection tactic are exempt from liability if they can show that the debtor used misrepresentation in assuming the debt.

Labels on fresh meat must indicate where the food originated.

Creditors are required to provide consumers with copies of records that can help the consumer prove that an account or transaction is fraudulent.

All statutes that serve to protect the interests of consumers are classified as consumer law.

Buyers of goods sold door to door can cancel their contracts within three business days.

A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.

Dita takes out a student loan from Everloan Bank.When she fails to make the scheduled payments for six months,Everloan advises her of further action that it will take.This violates

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

Ads cannot be unfair.

Travel Tours Company faxes ads to Uri and other individual consumers without the recipients' permission.This is subject to

Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Vanna and many other consumers complain to the Federal Trade Commission (FTC) that a Whoopie Wonders Company ad is deceptive.The FTC's first step is to

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