FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Consumer Protection

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

A sanction known as counteradvertising requires a company to advertise anew to inform the public about earlier misinformation.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Teri borrows $10,000 from USA National Bank to remodel a room in her home.This transaction is subject to

QuikPay Inc.extends credit to consumers.QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on

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

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

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

Nature's Food Market sells groceries.Metro Snacks & Drug Store sells groceries and fills prescriptions.The party with the chief responsibility to prevent unsafe food and drugs from being sold is

Corner Market sells groceries.Delite Food & Drug Store sells groceries and fills prescriptions.The chief responsibility to prevent unsafe food and drugs from being sold rests with

In its ads, Crunchy Inc.makes various claims about its snack products.Crunchy's advertising claims would most likely be deemed deceptive if the claims

Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Commission is most likely to issue

Creditworthy Loan Company extends credit in the ordinary course of its business.Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of

The Fair Debt Collection Practices Act generally applies only to debt-collection agencies that regularly attempt to collect debts on someone else's behalf.

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

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

Slow-Brew Coffee Company sells coffee and related beverages.The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!'" The Federal Trade Commission would consider this ad to be

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.This is

Quik Collection Agency calls Pat several times a day, and some-times in the middle of the night, about an overdue bill that Regal Sporting Goods turned over to Quik for collection.This is a violation of

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

Owen buys a restored 1969 Dodge Charger from Prime Restorations, Inc., on credit but makes no payments on the account.Quentin, the owner of Prime Restorations, calls Owen at home on a Monday morning at three a.m.Quentin represents himself as RiteNow Collection Agency and demands payment "or else." The next day, Quentin sends Owen notice that he has thirty days to request verification of the debt, during which its payment will be suspended, but that if he does not pay the full amount due within five business days, Quentin will arrange for the "destruction of Owen's good credit rating." Which laws has Quentin violated, if any, and in what ways?