Question 1

The heart of the Truth in Lending Act (TILA) is the required conspicuous disclosure of the amount financed,the finance charge,the annual percentage rate,and the number of payments.

Accepted Answer

A) True 
 B)False

Question 2

Under Chapter 13 of the Bankruptcy Act,individual debtors are prohibited from voluntarily seeking the protection of a court to arrange a debt adjustment plan.

Accepted Answer

A) True 
 B)False

Question 3

Under the _____,liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss.

Accepted Answer

A)  Fair Debt Collection Practices Act
B)  Electronic Fund Transfer Act
C)  Fair Credit Billing Act
D)  Equal Credit Opportunity ActE) A) and D)
F) None of the above B

Question 4

Which of the following is one of the key provisions of the Credit Card Accountability,Responsibility,and Disclosure Act of 2009?

Accepted Answer

A)  Lenders can issue credit cards to those under age 21 without any objections.
B)  Interest rates,with some exceptions,cannot be raised in the first year.
C)  Credit card issuers can charge interest on bills paid on time.
D)  Credit card companies can increase the annual percentage rate on all existing account balances.E) A) and C)
F) None of the above

Question 5

Identify a true statement about the Food and Drug Administration (FDA) .

Accepted Answer

A)  The FDA is empowered to impose fines although it does not have the authority to remove dangerous drugs from the market.
B)  The FDA can regulate tobacco ingredients,including nicotine,but the agency is not yet exercising that power.
C)  The 2011 Food Safety and Modernization Act reduced the food safety powers of the FDA.
D)  The food safety burden for imported food lies primarily with customers as it does not come under the FDA's jurisdiction.E) All of the above
F) B) and D) B

Question 6

Which of the following is the federal agency charged with protecting consumers from "unreasonable risks of injury and death" from products such as toys,lawn mowers,washing machines,bicycles,fireworks,pools,portable heaters,and household chemicals?

Accepted Answer

A)  The Consumer Product Safety Commission
B)  The Consumer Goods Forum
C)  The Consumer Financial Protection Bureau
D)  The Federal Trade CommissionE) None of the above
F) A) and B)

Question 7

Briefly describe the three important forms of bankruptcy action.

Accepted Answer

Bankruptcy in the United States is gover...

Question 8

Which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA) ?

Accepted Answer

A)  In case of inaccurate information in a credit file,the concerned credit reporting agency must make the correction,usually within 90 days.
B)  If a person makes a request,the concerned credit reporting agency must give the person a list of all those who have recently sought information about him or her.
C)  Credit reporting agencies do not need a written consent from a person to provide information to the person's employer or prospective employer.
D)  Negative information more than two years old must not be reported in a consumer's credit file.E) None of the above
F) A) and B)

Question 9

Innocent misrepresentation differs from fraud only in that the falsehood was intentional in the former.

Accepted Answer

A) True 
 B)False

Question 10

The Federal Trade Commission (FTC) has the authority to impose criminal sanctions on businesses that engage in unfair and deceptive trade practices.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following Acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace?

Accepted Answer

A)  The Fair Debt Collection Practices Act
B)  The Social Security Act
C)  The Equal Credit Opportunity Act
D)  The Mortgage Finance ActE) A) and B)
F) A) and D)

Question 12

Which of the following elements must be proved to judge a situation as fraud?

Accepted Answer

A)  The injured party suffered a loss of at least $25,000.
B)  The misrepresentation was unintentional.
C)  The injured party ignored the misrepresentation.
D)  The misrepresented facts resulted in injury.E) A) and B)
F) A) and C)

Question 13

Briefly describe the doctrine of unconscionability.

Accepted Answer

The doctrine of unconscionability emerge...

Question 14

For a debtor to be protected under the Truth in Lending Act (TILA),the credit obtained must be above $25,000.

Accepted Answer

A) True 
 B)False

Question 15

Describe the issues that led to the passing of the Equal Credit Opportunity Act (ECOA) and identify how the Act handles these issues.

Accepted Answer

The Equal Credit Opportunity Act (ECOA) ...

Question 16

Explain the purpose of the Electronic Fund Transfer Act (EFTA).

Accepted Answer

The Electronic Fund Transfer Act (EFTA) provides remedies for lost or stolen cards,billing errors,and other such problems involving ATMs,point-of-sale machines,electronic deposits,and the like.Under the EFTA,liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss.The loss could reach $500 if notice is provided within 60 days and could be unlimited thereafter.The Dodd-Frank Act amended the EFT to impose limits on debit card interchange fees.

Question 17

Which of the following is true of lemon laws?

Accepted Answer

A)  Very few states protect consumers through lemon laws.
B)  The determination about whether a car is a lemon is usually handled by an arbitration panel.
C)  They typically cover used cars for ten years or up to 100,000 miles after purchase.
D)  Lemon laws are the same in every state.E) B) and D)
F) A) and B)

Question 18

The federal Fair Debt Collection Practices Act forbids debt collectors from contacting debtors during "inconvenient" hours.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following federal agencies is primarily responsible for enforcing the finance laws such as the Electronic Fund Transfer Act and the Fair Credit Billing Act?

Accepted Answer

A)  The Chief Financial Officers Council
B)  The American Federation of Labor
C)  The Consumer Financial Protection Bureau
D)  The Consumer Product Safety CommissionE) B) and C)
F) A) and D)

Question 20

When is a contract unconscionable?

Accepted Answer

A)  When foolishness exists on the part of one of the parties to the contract
B)  When one party is spectacularly clever and the other is not
C)  When some contracts are so unfair or oppressive as to demand court intervention
D)  When a want of knowledge exists on the part of one of the parties to the contractE) A) and B)
F) B) and D)

Exam 15: Consumer Protection

The heart of the Truth in Lending Act (TILA) is the required conspicuous disclosure of the amount financed,the finance charge,the annual percentage rate,and the number of payments.

Correct Answer
verified

Under Chapter 13 of the Bankruptcy Act,individual debtors are prohibited from voluntarily seeking the protection of a court to arrange a debt adjustment plan.

Correct Answer
verified

Under the _____,liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss.

Correct Answer
verified
B

Which of the following is one of the key provisions of the Credit Card Accountability,Responsibility,and Disclosure Act of 2009?

Correct Answer
verified

Identify a true statement about the Food and Drug Administration (FDA) .

Correct Answer
verified
B

Which of the following is the federal agency charged with protecting consumers from "unreasonable risks of injury and death" from products such as toys,lawn mowers,washing machines,bicycles,fireworks,pools,portable heaters,and household chemicals?

Correct Answer
verified

Briefly describe the three important forms of bankruptcy action.

Correct Answer
verified
Bankruptcy in the United States is gover...
View Answer

Which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA) ?

Correct Answer
verified

Innocent misrepresentation differs from fraud only in that the falsehood was intentional in the former.

Correct Answer
verified

The Federal Trade Commission (FTC) has the authority to impose criminal sanctions on businesses that engage in unfair and deceptive trade practices.

Correct Answer
verified

Which of the following Acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace?

Correct Answer
verified

Which of the following elements must be proved to judge a situation as fraud?

Correct Answer
verified

Briefly describe the doctrine of unconscionability.

Correct Answer
verified
The doctrine of unconscionability emerge...
View Answer

For a debtor to be protected under the Truth in Lending Act (TILA),the credit obtained must be above $25,000.

Correct Answer
verified

Describe the issues that led to the passing of the Equal Credit Opportunity Act (ECOA) and identify how the Act handles these issues.

Correct Answer
verified
The Equal Credit Opportunity Act (ECOA) ...
View Answer

Explain the purpose of the Electronic Fund Transfer Act (EFTA).

Which of the following is true of lemon laws?

Correct Answer
verified

The federal Fair Debt Collection Practices Act forbids debt collectors from contacting debtors during "inconvenient" hours.

Correct Answer
verified

Which of the following federal agencies is primarily responsible for enforcing the finance laws such as the Electronic Fund Transfer Act and the Fair Credit Billing Act?

Correct Answer
verified

When is a contract unconscionable?

Correct Answer
verified

Exam 15: Consumer Protection

The heart of the Truth in Lending Act (TILA) is the required conspicuous disclosure of the amount financed,the finance charge,the annual percentage rate,and the number of payments.

Correct AnswerverifiedShow Answer

Under Chapter 13 of the Bankruptcy Act,individual debtors are prohibited from voluntarily seeking the protection of a court to arrange a debt adjustment plan.

Correct AnswerverifiedShow Answer

Under the _____,liability for misuse of missing cards is capped at $50 if the consumer provides notice within two business days after learning of the loss.

Correct AnswerverifiedB

Which of the following is one of the key provisions of the Credit Card Accountability,Responsibility,and Disclosure Act of 2009?

Correct AnswerverifiedShow Answer

Identify a true statement about the Food and Drug Administration (FDA) .

Correct AnswerverifiedB

Which of the following is the federal agency charged with protecting consumers from "unreasonable risks of injury and death" from products such as toys,lawn mowers,washing machines,bicycles,fireworks,pools,portable heaters,and household chemicals?

Correct AnswerverifiedShow Answer

Briefly describe the three important forms of bankruptcy action.

Correct AnswerverifiedBankruptcy in the United States is gover...View AnswerShow Answer

Which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA) ?

Correct AnswerverifiedShow Answer

Innocent misrepresentation differs from fraud only in that the falsehood was intentional in the former.

Correct AnswerverifiedShow Answer

The Federal Trade Commission (FTC) has the authority to impose criminal sanctions on businesses that engage in unfair and deceptive trade practices.

Correct AnswerverifiedShow Answer

Which of the following Acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace?

Correct AnswerverifiedShow Answer

Which of the following elements must be proved to judge a situation as fraud?

Correct AnswerverifiedShow Answer

Briefly describe the doctrine of unconscionability.

Correct AnswerverifiedThe doctrine of unconscionability emerge...View AnswerShow Answer

For a debtor to be protected under the Truth in Lending Act (TILA),the credit obtained must be above $25,000.

Correct AnswerverifiedShow Answer

Describe the issues that led to the passing of the Equal Credit Opportunity Act (ECOA) and identify how the Act handles these issues.

Correct AnswerverifiedThe Equal Credit Opportunity Act (ECOA) ...View AnswerShow Answer

Explain the purpose of the Electronic Fund Transfer Act (EFTA).

Which of the following is true of lemon laws?

Correct AnswerverifiedShow Answer

The federal Fair Debt Collection Practices Act forbids debt collectors from contacting debtors during "inconvenient" hours.

Correct AnswerverifiedShow Answer

Which of the following federal agencies is primarily responsible for enforcing the finance laws such as the Electronic Fund Transfer Act and the Fair Credit Billing Act?

Correct AnswerverifiedShow Answer

When is a contract unconscionable?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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B

Correct Answer
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Correct Answer
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Bankruptcy in the United States is gover...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The doctrine of unconscionability emerge...
View Answer

Correct Answer
verified

Correct Answer
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The Equal Credit Opportunity Act (ECOA) ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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