Question 1

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Accepted Answer

A) True 
 B)False

Question 2

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Accepted Answer

A) True 
 B)False

Question 3

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Accepted Answer

A)  no federal law.
B)  the Equal Credit Opportunity Act.
C)  the Fair Credit Reporting Act.
D)  the Fair Debt Collection Practices Act.E) A) and B)
F) None of the above

Question 4

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Accepted Answer

A)  false and misleading.
B)  impermissibly vague and general.
C)  a deceptive half-truth.
D)  puffery.E) C) and D)
F) B) and C)

Question 5

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Accepted Answer

A)  liable for $1,000.
B)  liable for $500.
C)  liable for $50.
D)  not liable for any amount.E) A) and D)
F) B) and D)

Question 6

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. If done systematically, this is

Accepted Answer

A)  a cease-and-desist order.
B)  bait-and-switch advertising.
C)  counteradvertising.
D)  puffery.E) B) and D)
F) A) and B)

Question 7

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to​

Accepted Answer

A)  no federal law.
B)  the Fair Credit Reporting Act.
C)  the Telecommunications Act.
D)  the Truth-in-Lending Act.E) A) and B)
F) A) and D)

Question 8

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose​

Accepted Answer

A)  all material facts related to a sale.
B)  only the seller's name.
C)  only facts directly related to a potential customer's request.
D)  only facts needed to make a sale.E) None of the above
F) A) and C)

Question 9

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

Accepted Answer

A)  the Consumer Product Safety Commission.
B)  the Federal Reserve Board of Governors.
C)  the Federal Trade Commission.
D)  the Food and Drug Administration.E) B) and D)
F) B) and C)

Question 10

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Accepted Answer

A)  denying coverage for preexisting conditions.
B)  enabling more children to obtain health-insurance coverage.
C)  allowing adults under age twenty-six to remain on their parents' health insurance.
D)  ending lifetime and most annual limits on care.E) B) and C)
F) A) and D)

Question 11

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are​

Accepted Answer

A)  prohibited.
B)  required.
C)  strictly voluntary.
D)  warranted by the nature of the food.E) None of the above
F) A) and D)

Question 12

Comfy's Bed Company advertises a special sale on mattresses on its website. The mattresses are normally sold for $1,000, but are advertised on the website for $499. The sale price does not, however, include shipping costs. Comfy's charges $250 for shipping any mattress. To avoid any claims of deceptive advertising, Comfy's should​

Accepted Answer

A)  clearly and conspicuously disclose the shipping cost in its ads.
B)  display the shipping cost in small print on Mello's Web page.
C)  include the shipping cost on the last page of Mello's Web site.
D)  not reveal the shipping cost.E) A) and C)
F) B) and D)

Exam 13: Consumer Law

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

Correct Answer
verified

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Correct Answer
verified

Correct Answer
verified

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Correct Answer
verified

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

Correct Answer
verified

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

Correct Answer
verified

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Correct Answer
verified

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose

Correct Answer
verified

Correct Answer
verified

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Correct Answer
verified

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Correct Answer
verified

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Correct Answer
verified

Exam 13: Consumer Law

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is​

Correct AnswerverifiedShow Answer

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from​

Correct AnswerverifiedShow Answer

Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a imminently hazardous toy from the market is

Correct AnswerverifiedShow Answer

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are​

Correct AnswerverifiedShow Answer

Sound bites Corporation makes and markets cellphones. Sound bites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Correct AnswerverifiedShow Answer

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Advertising that contains an endorsement by a celebrity will be deemed deceptive if the celebrity does not actually use the product.

Correct AnswerverifiedShow Answer

The Food and Drug Administration is responsible for ensuring the safety of new drugs.

Correct AnswerverifiedShow Answer

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to​

Correct AnswerverifiedShow Answer

Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is

Correct Answer
verified

Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under

Correct Answer
verified

Correct Answer
verified

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws, Wellness is prohibited from

Correct Answer
verified

Correct Answer
verified

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

Correct Answer
verified

Correct Answer
verified

To generate sales, Goldline Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Goldline's telemarketers must disclose

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances-stove, refrigerator, dishwasher, microwave, and toaster oven-for $3,999. This transaction is subject to

Correct Answer
verified