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Q:
Which of the following acts has provisions for combating identity theft?
A. The Fair Credit Billing Act.
B. The Fair Credit and Charge Card Disclosure Act.
C. The Fair and Accurate Credit Transactions Act.
D. The Gramm-Leach-Bliley Act.
Q:
The Equal Credit Opportunity Act:
A. is designed to protect consumers from unfair or inaccurate credit reporting.
B. requires online ads for free credit reports to disclose whether the consumer must buy credit monitoring or other products or services to get the report.
C. prohibits discrimination in credit transactions on grounds of sex, marital status, race, color, religion, national origin, and age.
D. sets forth basic privacy protections that must be provided by financial institutions and requires them to respect the privacy of their customers' nonpublic personal information.
Q:
According to Congress, the Fair Credit and Charge Card Disclosure Act:
A. would enable consumers to shop around for the best cards.
B. would prevent unauthorized use of credit cards.
C. would challenge the authority of the FTC.
D. would compel issuers to process customer applications faster.
Q:
The Consumer Leasing Act:
A. requires the creditor to disclose the aggregate costs of leasing consumer goods.
B. does not require the lease agreement to define the consumer's liability.
C. applies to leases of consumer goods only if the leases are for more than five years.
D. applies to leases of consumer goods if the total contractual obligation exceeds $25,000.
Q:
Under the Fair Credit Billing Act:
A. a card issuer may report a cardholder's delinquency to a credit reporting agency at any time deemed reasonable by it.
B. a card issuer must inform the cardholder of the reporting agency to which the issuer sends its reports.
C. the seller cannot offer discounts if the buyer pays cash for a purchase rather than using a credit card.
D. the consumer has the right to have a credit report withheld from anyone not having a legitimate business need for the information.
Q:
According to the Fair Credit Billing Act (FCBA), if the credit card holder thinks that the card issuer has made an error on the statement:
A. he has 90 days from the time the card was issued to report, in writing, the error.
B. he has 30 days from the time the statement was mailed to report the error.
C. he has 60 days from the time the statement was mailed to report, in writing or orally, the error.
D. he has 60 days from the time the statement was mailed to report, in writing, the error.
Q:
Henry applied for a loan from First Bank and was denied the loan two weeks later. He discovered that the reason behind the denial was that the bank considered him a poor credit risk because a credit report stated that he was an alcoholic. Henry claimed that this information was not true. Which of the following Acts will allow Henry to approach First Bank for reconsideration of his loan application?
A. Equal Credit Opportunity Act
B. Fair Debt Collection Practices Act
C. Fair Credit Billing Act
D. Fair Credit Reporting Act
Q:
The Wagners entered into a contract with Crummy Construction under which Crummy agreed to do $33,000 worth of remodeling of the Wagner home. Crummy agreed that the contract price could be paid in installments, and that to secure these payments, Crummy would take out a second mortgage on the Wagner home. The day after signing the contract, the Wagners had second thoughts and immediately hand-delivered a written notice to Crummy stating that they wanted to rescind the contract. Can they do so?
A. Yes, under the rescission right of the Truth in Lending Act.
B. No, because the transaction involved more than $25,000 and was, therefore, not covered by the rescission right in the Truth in Lending Act.
C. No, because the rescission right in the Truth in Lending Act does not apply to transactions in which the creditor takes a mortgage to secure the loan.
D. Yes, under the rescission right provided by TILA as their house wasn't used as collateral.
Q:
A debtor may rescind a contract under the Truth in Lending Act:
A. only if the debtor's home is used as collateral.
B. only in the instance of a first mortgage on his home.
C. by way of oral notification to the creditor.
D. within 30 days after the purchase on credit.
Q:
____ is defined as use by a person who lacks express, implied, or apparent authority to use a credit or debit card.
A. Authorized use
B. Rescissionary use
C. Undisclosed use
D. Unauthorized use
Q:
According to TILA, charges on a stolen credit card that exceed $50:
A. would have to be paid by the cardholder.
B. would not have to be paid by the cardholder if the loss is reported within 2 days.
C. would not have to be paid by the cardholder.
D. would have to be recovered from the person who stole the card.
Q:
Which of the following statements is true for gift cards?
A. They are subject to TILA regulations.
B. Recipients have 2 years to use the cards.
C. A fee can be assessed if the card has not been used within 6 months.
D. A fee can only be assessed if a customer is first notified of the fees.
Q:
Under the Truth in Lending Act, "finance charge":
A. includes all costs related to the extension of credit.
B. includes all costs related to the extension of credit except for fees for credit reports.
C. includes only interest rates but not any other credit charges.
D. does not include loan fees and fees for credit reports.
Q:
What is the "right of rescission"?
A. Correction of outdated or wrong information and its notification to credit information recipients.
B. A cancellation right for three business days after the purchase on credit or after the creditor makes the required disclosure.
C. Rights to the creditor to accept or reject consumer applications within 30 days.
D. A cardholder's right to limited liability for unauthorized use of a credit card.
Q:
The FTC:
A. has authority to decide whether specific marketing and sales practices are unfair or deceptive.
B. does not have power to regulate unfair and deceptive practices in cyberspace.
C. can find that a seller is engaged in unfair trade practices only if the seller violated one of the other federal laws the FTC is empowered to enforce.
D. holds no powers to order federal courts to award redress.
Q:
The Telemarketing and Consumer Fraud and Abuse Prevention Act:
A. prohibits calling between 9:00 AM and 5:00 PM.
B. requires that all disclosures must be made before the customer pays for the goods or services.
C. prohibits customers from demanding disclosure if the solicitation pertains to a prize promotion.
D. allows telemarketers and sellers to deny a person the right to be placed on the do-not-call registry.
Q:
The Credit Card Accountability and Disclosure Act (CARD) regulates credit card billing cycles by:
A. allowing a $30 penalty fee for late payment of credit card debts.
B. allowing penalties to exceed the minimum balance due.
C. prohibiting double-cycle billing.
D. issuing cards to applicants under 21 years without a cosigner.
Q:
The Holder in Due Course rule creates a warranty claim or defense where the product is sold "as is."
Q:
"Imminently hazardous consumer products" are those that pose an immediate and unreasonable risk of death, serious illness, or severe personal injury.
Q:
The Consumer Product Safety Commission (CPSC)'s authority is limited to cosmetics and food products.
Q:
"Lemon laws" apply only to car manufacturers.
Q:
The FTC requires used car dealers to display a "Buyer's Guide" on each car that tells whether the car is covered by a warranty.
Q:
One of the purposes of the TILA is to enable the consumer to understand all the charges made in connection with credit.
Q:
The TILA fixes interest rates.
Q:
The Fair Credit and Charge Card Disclosure Act requires more detailed and uniform disclosure by credit and charge card issuers at the time of application by the consumers.
Q:
Under the Fair Credit Billing Act, if the credit card holder thinks that the card issuer has made an error on the statement, he/she has three years to report the error.
Q:
The Equal Credit Opportunity Act prohibits discrimination in credit transactions based on wealth.
Q:
The Fair Debt Collection Practices Act affects only the practices of debt collection agencies that collect consumer bills for creditors other than themselves.
Q:
The FTC does not prohibit pre-recorded telemarketing sales calls.
Q:
(p. 978, 979) Geoffrey is a car dealer in Austin, Texas. His financial dealings with customers come directly under the jurisdiction of the Consumer Financial Protection Bureau.
Q:
The FTC has legal authority to assist overseas investigations to track down Internet scammers using devices such as spam and spyware.
Q:
The FTC rules prohibit a telemarketer or seller from initiating an outbound call to a person whose telephone number is listed on a national "do not call" registry.
Q:
Yardqueen, Inc., a manufacturer of lawn mowers, sells a lawnmower model both to retail chain Streetmart and to standalone store Lawnworks in the town of Bayside. Yardqueen sells the model to Streetmart at five dollars less per unit than it sells to Lawnworks as Streetmart buys more mowers. Streetmart's retail prices are therefore lower than those of Lawnworks. Based on the above information, which of the following is true?
A. Yardqueen violates Section 2(a) of the Robinson-Patman Act.
B. Yardqueen violates the provisions of the Parker Doctrine.
C. Yardqueen is in violation of the Noerr Doctrine.
D. Yardqueen violates Section 3 of the Clayton Act.
Q:
What is price fixing?
Q:
Describe Section 2 of the Sherman Act.
Q:
(p. 964; 965) Describe the type of behavior Section 3 of the Clayton Act is designed to attack.
Q:
Describe the Hart-Scott-Rodino Antitrust Improvements Act.
Q:
Describe defenses to direct price discrimination under the Robinson-Patman Act.
Q:
Section 3 of the Clayton Act was designed to attack:
A. licensing arrangements.
B. exclusive dealing contracts.
C. aleatory contracts.
D. interlocking contracts.
Q:
Acme Candy, Inc. agrees to buy all the sugar it requires from one sugar refiner. Which type of contract is created in this case?
A. Requirements
B. Tie-in
C. Exclusive dealing
D. Interlocking
Q:
A lawn and garden store agreeing to sell only Brand A lawn mowers is an example of:
A. a requirements contract.
B. an exclusive dealing contract.
C. a tie-in contract.
D. price discrimination.
Q:
If one automobile firm merges with another automobile firm it is called a:
A. push down merger.
B. vertical merger.
C. conglomerate merger.
D. horizontal merger.
Q:
An oil producer's merger with an oil refiner is an example of a:
A. conglomerate merger.
B. push down merger.
C. horizontal merger.
D. vertical merger.
Q:
Conglomerate mergers that create a potential for reciprocal dealing have been successfully challenged under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Q:
A candy company merging with a greeting cards company is a:
A. vertical merger.
B. conglomerate merger.
C. product-extension merger.
D. market-extension merger.
Q:
Acme Seeds, Inc. refuses to sell its seeds to farmers unless they also agree to buy fertilizer from Acme, this is an example of a(n):
A. requirements contract.
B. tie-in contract.
C. exclusive dealing contract.
D. indirect price discrimination.
Q:
The functional interchangeability test helps to determine if:
A. a firm controls a very high percentage share of the relevant market.
B. the plaintiff has standing to bring an antitrust suit.
C. there has been joint action.
D. the defendant had an anticompetitive intent.
Q:
Section 3 of the Clayton Act applies to:
A. service contracts.
B. true consignments.
C. anticompetitive behavior.
D. monopolies.
Q:
Tie-in contracts are illegal under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Q:
Tie-in contracts:
A. violate Section 3 of the Clayton Act regardless of the seller having monopoly power in the tie-in product.
B. do not violate Section 1 of the Sherman Act under any circumstance.
C. violate Section 3 of the Clayton Act if the seller has foreclosed competitors from a substantial volume of commerce in the tied product.
D. violate Section 1 of the Sherman Act and Section 7 of the Clayton Act.
Q:
The abbreviated rule of reason analysis applies to:
A. restraints in which the overall reasonableness can be ascertained without a thorough examination of their pernicious and beneficial effects in the relevant markets.
B. restraints that have an obvious adverse impact on competition, but whose overall reasonableness cannot be immediately ascertained.
C. fully competitive behavior.
D. restraints that deserve a per se treatment because of their obvious unreasonableness.
Q:
Which of the following is true of joint ventures?
A. They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution.
B. They directly violate Section 2 of the Sherman Act.
C. If the venture partners have complied with the act's notification requirements, they are liable for only treble damages in any civil suits that successfully challenge the arrangement.
D. They refer to the acquisition of one company by the other.
Q:
Licensing arrangements are:
A. per se violations of U.S. anti-trust laws.
B. subject to the rule of reason.
C. subject to strict scrutiny analysis.
D. unlikely to raise antitrust issues.
Q:
Section 2 of the Sherman Act:
A. outlaws monopolies.
B. outlaws the act of "monopolizing."
C. outlaws monopolies and monopolizing.
D. outlaws contracts, combinations, and conspiracies.
Q:
In a typical predatory-pricing scheme, the predator:
A. reflects changing conditions in the marketplace affecting the marketability of competitor's goods.
B. reduces the sale price of its product to below cost, hoping to drive competitors out of business.
C. grants a discriminatory price to a customer who has been offered a lawful, lower price by competitors.
D. furnishes customers with certain services that were not provided by the competitors.
Q:
When a manufacturer sells goods to retail outlets and suggests a retail price, there is no violation of Section 1 of the Sherman Act because:
A. there is no merger of any type.
B. there is no contract, combination, or conspiracy to fix the price.
C. there is no indication of an intent to monopolize.
D. there is no exclusive dealing contract.
Q:
Which of the following is true of a consignment agreement?
A. If a manufacturer delivers all goods to its dealers on a consignment basis, the goods become the property of the dealer.
B. The owner of goods delivers them to another who is to act as the owner's agent in selling the goods.
C. If a manufacturer delivers all goods to its dealers on a consignment basis, the dealer can lawfully fix the price of those goods.
D. Consignments have been held to be joint action.
Q:
Horizontal price fixing:
A. is also called resale price fixing.
B. can be legally justified if there was a direct agreement between competitors.
C. occurs when the manufacturer gets the retailer to agree to follow the suggested retail price.
D. is an attempt by competitors to interfere with the market and control prices.
Q:
Which of the following is true of vertical price-fixing?
A. It is an attempt by competitors to interfere with the market and control prices.
B. Vertical price fixing is not within the scope of section 1 of the Sherman Act.
C. It is illegal per se for manufacturers to state a "suggested retail price" for their products.
D. It is an attempt by manufacturers to control the resale price of their products.
Q:
If a distributor persuades a manufacturer to refuse to deal with a rival distributor, the two parties:
A. have committed a per se violation of Section 1 of the Sherman Act.
B. do not violate Section 1 of the Sherman Act since this is a unilateral action.
C. are conspiring to form a monopoly thus directly violating Section 2 of the Sherman Act.
D. are attempting vertical price-fixing.
Q:
Full rule of reason analysis:
A. cannot be determined until after a court conducts a full market analysis.
B. is a "quick look" form of rule of reason analysis.
C. like per se restraints, applies to restraints that are facially illegal.
D. is utilized for restraints that have an obvious adverse impact on competition.
Q:
Section 1 of the Sherman Act applies to:
A. unilateral actions.
B. joint actions.
C. nonimport trade.
D. mergers.
Q:
The ________ gives the federal courts broad injunctive powers to remedy antitrust violations.
A. Noerr Doctrine
B. Sherman Act
C. Parker Doctrine
D. Robinson-Patman Act
Q:
The Sherman Act:
A. makes contracts in restraint of trade and monopolization illegal.
B. does not provide criminal penalties for violations of its provisions.
C. does not give the federal courts any injunctive powers.
D. was specifically designed to attack tie-in, exclusive dealing, and requirements contracts.
Q:
The federal government's right to regulate business is derived from the _____ of the U.S. Constitution.
A. Commerce Clause
B. Separation Clause
C. Due Process Clause
D. Renegade Clause
Q:
To which of the following antitrust violations do federal antitrust laws apply?
A. Behavior that affects only intrastate (purely local) commerce.
B. Behavior that substantially affects interstate commerce or international trade.
C. Behavior that affects external economies other than the U.S.
D. Any type of nonimport trade.
Q:
(p. 952; 953) ________ provides that the Sherman Act shall not apply to nonimport trade unless the conduct has a direct, substantial, and reasonably foreseeable effect on trade or commerce within the U.S, on the U.S. import trade, or on the activities of U.S. exporters.
A. The Robinson-Patman Act
B. The Clayton Act
C. The Noerr Doctrine
D. The Foreign Trade Antitrust Improvement Act
Q:
In most cases, only a probability of anticompetitive effect is necessary for Clayton Act violations.
Q:
Since the Clayton Act deals with probable harms to competition, there is criminal liability for Clayton Act violations.
Q:
Tie-in contracts occur when a seller refuses to sell a product to a buyer unless the buyer also purchases another product from the seller.
Q:
The Parker Doctrine exempts many anticompetitive acts from the antitrust laws.
Q:
Foreign sovereign compulsion defense is in no way related to sovereign immunity.
Q:
Section 1 of the Sherman Act aims to attack joint action in restraint of trade.
Q:
Acts classified as per se illegal are presumed to be illegal.
Q:
When a manufacturer states a "suggested retail price" for their products, this violates Section 1 of the Sherman Act.
Q:
Horizontal (among competitors) price fixing is always per se illegal.
Q:
Under no circumstances can a single firm lawfully refuse to deal with firms or agree to deal only on certain terms.
Q:
The two components to a relevant market determination to decide if a firm has monopoly power are the geographic market and the product market.
Q:
What types of debts are not affected by the discharge of a bankrupt debtor?
Q:
Anti-trust laws aim to maintain domestic and international competition and protect consumers from anti-trust conduct.