Question 1

Regulations for the 2009 Credit Card Accountability, Responsibility, and Disclosure Act (CARD) include that credit card issuers must mail account statements 21 days prior to the payment due date and that credit card issuers are prohibited from giving credit cards to full-time college students under 21 years old unless the student can prove the means to pay or a parent\guardian cosigns for the card.

Accepted Answer

A) True 
 B)False

Question 2

Under the Fair Credit Reporting Act:

Accepted Answer

A)   credit reports may be used by potential employers and lenders, but not insurers.
B)   consumer reporting agencies must notify consumers, orally or in writing, before making an investigative report.
C)   if a consumer does not agree with information in the file and so notifies the reporting agency, the agency must reinvestigate the matter, even if the agency thinks the complaint is frivolous or irrelevant.
D)   upon request, each nationwide consumer reporting company must provide a free copy of an individual's credit report once every 12 months.

Question 3

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Accepted Answer

A) True 
 B)False

Question 4

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Accepted Answer

A)   females.
B)   men over 70 years of age.
C)   people with incomes below $10,000.
D)   people from Italy.

Question 5

If the FTC rules that a seller has made a false or deceptive advertising statement, the Commission can:

Accepted Answer

A)   as a first course of action fine the seller and, if that is not effective, file suit in federal court.
B)   require the seller to make additional advertisements to correct it.
C)   require the company to go out of business.
D)   report the company to the President of the United States for deregulation.

Question 6

The FTC remedy of "affirmative disclosure" would require:

Accepted Answer

A)   a new ad that admits the first ad was false.
B)   providing certain information in a company's ad.
C)   that the advertiser desist from deception in all products it markets.
D)   All of these would be required.

Question 7

Discuss the role of the state attorneys general in consumer protection.

Accepted Answer

Most state attorneys general help facili...

Question 8

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Accepted Answer

A)   Consumer Financial Protection Bureau.
B)   Justice Department.
C)   Federal Trade Commission.
D)   Federal Reserve Board.

Question 9

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Accepted Answer

A) True 
 B)False

Question 10

a. What was the common law rule with respect to consumer transactions? How has this rule been changed by recent statutory enactments? 
b. Why do you think there were so many consumer protection statutes passed in the last fifty years?

Accepted Answer

a. The common law rule was caveat emptor...

Question 11

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Accepted Answer

A) True 
 B)False

Question 12

A collection agency is prohibited from:

Accepted Answer

A)   calling the debtor in the middle of the night.
B)   calling the debtor from 5-6 p.m. when he is likely to be eating dinner.
C)   threatening to sue if it actually intends to do so.
D)   contacting third persons to find out the whereabouts of a debtor.

Question 13

The Consumer Product Safety Commission:

Accepted Answer

A)   only has the authority to educate the public concerning product safety problems.
B)   uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers.
C)   can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards.
D)   have no enforcement powers since compliance with its regulations is left up to the manufacturer.

Question 14

The Fair Debt Collection Practices Act applies directly to creditors.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Accepted Answer

A)   To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board.
B)   To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets.
C)   To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms.
D)   To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

Question 16

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

Accepted Answer

A) True 
 B)False

Question 17

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Accepted Answer

A)   $100.
B)   $75.
C)   $50.
D)   None of these; liability is unlimited.

Question 18

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

Accepted Answer

A) True 
 B)False

Question 19

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union Administration, HUD, and the FTC.

Accepted Answer

A) True 
 B)False

Question 20

The Home Equity Loan Consumer Protection Act:

Accepted Answer

A)   defines a principal dwelling to include second or vacation homes.
B)   amends the Truth-in-Lending Act to require that lenders provide a disclosure statement to potential borrowers at least five days before they receive an application for the loan.
C)   only covers loans with adjustable rate mortgages.
D)   forbids the creditor from accelerating the outstanding balance of the loan if the consumer fails to make payments on time.

Exam 44: Consumer Protection

The FTC remedy of "affirmative disclosure" would require:

Correct Answer
verified

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Correct Answer
verified

The Consumer Product Safety Commission:

Correct Answer
verified

If the FTC rules that a seller has made a false or deceptive advertising statement, the Commission can:

Correct Answer
verified

a. What was the common law rule with respect to consumer transactions? How has this rule been changed by recent statutory enactments? b. Why do you think there were so many consumer protection statutes passed in the last fifty years?

Correct Answer
verified
a. The common law rule was caveat emptor...
View Answer

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

Correct Answer
verified

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Correct Answer
verified

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Correct Answer
verified

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Correct Answer
verified

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Correct Answer
verified

Correct Answer
verified

Under the Fair Credit Reporting Act:

Correct Answer
verified

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Correct Answer
verified

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

Correct Answer
verified

The Fair Debt Collection Practices Act applies directly to creditors.

Correct Answer
verified

A collection agency is prohibited from:

Correct Answer
verified

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union Administration, HUD, and the FTC.

Correct Answer
verified

The Home Equity Loan Consumer Protection Act:

Correct Answer
verified

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Correct Answer
verified

Discuss the role of the state attorneys general in consumer protection.

Correct Answer
verified
Most state attorneys general help facili...
View Answer

Exam 44: Consumer Protection

The FTC remedy of "affirmative disclosure" would require:

Correct AnswerverifiedShow Answer

Which of the following best expresses the policy behind the Truth-in-Lending Act?

Correct AnswerverifiedShow Answer

The Consumer Product Safety Commission:

Correct AnswerverifiedShow Answer

If the FTC rules that a seller has made a false or deceptive advertising statement, the Commission can:

Correct AnswerverifiedShow Answer

a. What was the common law rule with respect to consumer transactions? How has this rule been changed by recent statutory enactments? b. Why do you think there were so many consumer protection statutes passed in the last fifty years?

Correct Answerverifieda. The common law rule was caveat emptor...View AnswerShow Answer

The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction.

Correct AnswerverifiedShow Answer

If a manufacturer of a consumer product tells a buyer that he is selling it with no warranties, there is a violation of the Magnuson-Moss Act.

Correct AnswerverifiedShow Answer

Enforcement and interpretation of the Truth-in-Lending Act is now the responsibility of the:

Correct AnswerverifiedShow Answer

When the creditor has been notified that a credit card was lost, the liability of the credit card holder is limited to:

Correct AnswerverifiedShow Answer

A warranty creates a duty on the seller's part that the goods and services she sells will conform to certain qualities, characteristics, or conditions.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under the Fair Credit Reporting Act:

Correct AnswerverifiedShow Answer

The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:

Correct AnswerverifiedShow Answer

The Gramm-Leach-Bliley Financial Modernization Act is administered and enforced solely through two federal agencies: the SEC and FTC.

Correct AnswerverifiedShow Answer

The Fair Debt Collection Practices Act applies directly to creditors.

Correct AnswerverifiedShow Answer

A collection agency is prohibited from:

Correct AnswerverifiedShow Answer

The Consumer Financial Protection Bureau replaced the federal consumer financial regulatory system which had been split among the Office of the Comptroller of the Currency, Office of Thrift Supervision, FDIC, Federal Reserve, National Credit Union Administration, HUD, and the FTC.

Correct AnswerverifiedShow Answer

The Home Equity Loan Consumer Protection Act:

Correct AnswerverifiedShow Answer

Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Correct AnswerverifiedShow Answer

Discuss the role of the state attorneys general in consumer protection.

Correct AnswerverifiedMost state attorneys general help facili...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. The common law rule was caveat emptor...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Most state attorneys general help facili...
View Answer