Q&A Hero

Q: The Bureau of Consumer Protection may allege that an individual or company has violated Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices. The alleged individual or company is called a(n) ______. A. respondent B. claimant C. appellant D. plaintiff E. pursuer

Q: Most cases brought by the Bureau of Consumer Protection are settled using ______. A. the cease and desist order B. arbitration C. extradition D. an injunction E. the consent-order procedure

Q: Section 5 of the ______ prohibits unfair or deceptive acts or business practices. A. Equal Credit Opportunity Act B. Fair Credit Reporting Act C. Truth-in-Lending Act D. Fair Debt Collection Practices Act E. Federal Trade Commission Act

Q: To obtain civil fines, either the Federal Trade Commission (FTC) or the Justice Department must ask the federal court to assess them. The exception to this rule is when companies A. violate a cease and desist order. B. agree to fines as part of a cease and desist order. C. knowingly violate a prior FTC order against others. D. violate a trade regulation rule. E. agree to fines as part of a consent order.

Q: The basic penalty for trade practice violations under the Federal Trade Commission Act is a civil fine of not more than ______. A. $16,000 per violation B. $36,000 per violation C. $90,000 per violation D. $200,000 per violation E. $500,000 per violation

Q: Which of the following statements is true of the Federal Trade Commissions (FTCs) penalties or remedies? A. The basic penalty for trade practice violations under the FTC Act is a civil fine of not more than $1,000 per violation. B. The FTCs main purpose is to find violators and punish them. C. Either the FTC or the Justice Department must ask the federal court to assess all civil fines including fines accepted by companies that are imposed as part of a consent order. D. Civil fines may be assessed by courts only under two distinct situations: for a violation of a consent or cease and desist order or for a violation of a trade regulation rule. E. The FTC Act states that in the case of a violation through continuing failure to obey an order, each day the violation continues is a separate offense.

Q: The regulatory center for federal consumer protection is the ______. A. United States Consumer Product Safety Commission B. Bureau of Consumer Protection C. Federal Consumer Protection Agency D. Bureau of Consumer Trade E. Department of Consumer Affairs

Q: The familiar telemarketing sales rule that established the national Do Not Call list is an example of a(n) ______. A. Congressional statute B. trade regulation rule C. executive order of the president D. Uniform Commercial Code rule E. procedural law

Q: The Federal Food, Drug, and Cosmetic Act is administered by the Federal Trade Commission.

Q: The Equal Credit Opportunity Act applies to all businesses that regularly extend credit, including financial institutions, retail stores, and credit-card issuers.

Q: ______ ensures fair competition by preventing those who would deceive consumers from diverting trade from those who compete honestly. A. trade practice regulation B. redlining procedure C. resale price maintenance D. restraint of trade E. full-line forcing

Q: The Magnuson-Moss Warranty Act establishes rules for resolving billing disputes with a credit card issuer.

Q: In the context of the Magnuson-Moss Warranty Act, under full warranties, a warrantor does not have to replace a defective product, if a buyer of the product does not pay shipping costs.

Q: In a bankruptcy proceeding, a voluntary petition is one filed by a creditor.

Q: The trustee in bankruptcy is elected by a debtor to represent the debtors estate in taking possession of and liquidating the debtors property.

Q: Under bankruptcy laws, certain creditors receive priority over others in the distribution of a debtors assets.

Q: The Consumer Financial Protection Bureau regulates insurance companies.

Q: The bankruptcy laws are subject to regulatory interpretation.

Q: Among the costs frequently paid by debtors that are not included in the finance charge are recording fees and taxes.

Q: The Fair Debt Collection Practices Act applies only to consumer debt collections.

Q: The Fair Debt Collection Practices Act exempts attorneys who collect consumer debts on behalf of their clients.

Q: According to the Fair Debt Collection Practices Act, a debt collector is not required to disclose his or her identity as a debt collector to debtors when attempting to collect a legitimate, delinquent debt.

Q: According to the Fair Debt Collection Practices Act, a collector must only telephone a debtor before 8:00 A.M. or after 9:00 P.M. so as to not disturb the debtor while he or she is at work.

Q: The Truth-in-Lending Act covers transactions in which a debtor is a corporation or a business entity.

Q: The Fair Credit Reporting Act eliminates the need for a potential employer to inform a job applicant that an investigative report is being obtained on him or her.

Q: The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

Q: Only if private remedies fail for violations of the Equal Credit Opportunity Act (ECOA), can the government bring suit to enjoin violations of the ECOA.

Q: Marie is an unmarried woman with a well-paid job. If she applies for credit solely at a bank in her own name, the bank is legally allowed to assign negative values on a credit checklist because of the fact that she is unmarried.

Q: The Fair Credit Reporting Act provides that a report containing information solely as to transactions or experiences between a consumer and a person making the report is not a consumer report covered by the act.

Q: The Health Insurance Portability and Accountability Act applies only to physical records of patients health care information.

Q: The Electronic Communications Privacy Act and Stored Communications Act protect all personally identifiable information.

Q: The Federal Trade Commission is the most significant enforcer of false and deceptive advertising laws.

Q: With regard to privacy, protections against intrusions by private actors are often limited to particular business contexts or certain forms of communications.

Q: Under the Right to Financial Privacy Act of 1978, an individual depositor has the right to challenge an agencys legal basis for seeking financial records.

Q: Under a cease and desist order issued by the Bureau of Consumer Protection, a party consents to sign an order which restrains the promotional activity deemed offensive.

Q: The main purpose of the Federal Trade Commission is to find violators and punish them.

Q: The president appoints the commissioners of the Federal Trade Commission for four-year terms.

Q: The Magnuson-Moss Warranty Act requires the Federal Trade Commission to issue rules regarding warranties for consumer products.

Q: A plaintiff would have less flexibility making a claim under false and deceptive than she would making a claim under common law.

Q: Roberts debit card was stolen by a thief who emptied his bank account. What law governs the liability for Roberts money in this situation? What are Roberts potential liabilities?

Q: Describe the warranty guidelines established for consumer product organizations in the Magnuson-Moss Warranty Act.

Q: Which type of debts is nondischargeable in bankruptcy?

Q: The Federal Trade Commission is the primary federal agency that protects consumers.

Q: The Federal Trade Commission is charged with eliminating competition to protect consumers.

Q: The Federal Trade Commission advises firms that request advice as to whether a proposed practice is unfair or deceptive.

Q: Industry guides issued by the Federal Trade Commission are formal and legally binding.

Q: What is the legal recourse for a debtor in case of violations of the Fair Debt Collection Practices Act by a debt collector?

Q: What are the areas encompassed by the authority of the Consumer Financial Protection Bureau?

Q: What are the two types of petitions that are filed to begin bankruptcy proceedings?

Q: What are the alternatives possible in a bankruptcy proceeding?

Q: What are the broad powers granted to a trustee in bankruptcy?

Q: What is covered under the Fair Debt Collection Practices Act and what is exempt from the provisions of this Act?

Q: What guidelines as issued by the Fair Debt Collection Practices Act (FDCPA) does a debt collector have to follow in order to contact a debtor?

Q: What are the Fair Debt Collection Practices Acts restrictions on collection methods of collection agencies?

Q: What are the two changes incorporated in the Truth-in-Lending Simplification Act that makes it different from the Truth-in-Lending Act?

Q: Briefly explain the concept of user provisions as mentioned in the Fair Credit Reporting Act.

Q: In the context of the Truth-in-Lending philosophy of full disclosure, what is meant by a finance charge and what are the items included in a finance charge?

Q: What are the transactions that are covered by the Truth-in-Lending Act?

Q: What information should a financing statement contain apart from the finance charge and annual percentage rate?

Q: What are the provisions of the Right to Financial Privacy Act of 1978?

Q: What is the purpose of the Privacy Act of 1974?

Q: Name the three major rights given to consumers under the Fair Credit Reporting Act.

Q: What is the purpose of the Health Insurance Portability and Accountability Act of 1996?

Q: What is the purpose of the Video Privacy Protection Act of 1988 and why was the Act amended by Congress in 2012?

Q: What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

Q: When will federal courts assess civil fines related to trade practice violations under the Federal Trade Commission Act?

Q: Briefly explain the concept of corrective advertising.

Q: What remedies are used by the Federal Trade Commission, apart from penalty fines and corrective advertising, to protect consumers in trade regulation cases?

Q: How does the Federal Trade Commission determine deception in an advertisement?

Q: What are the two related ways in which the Federal Trade Commission (FTC) prosecutes businesses for committing unfair or deceptive trade practices?

Q: The Electronic Fund Transfer Act, administered by the Consumer Financial Protection Bureau, limits liability on lost, stolen, or misused automatic teller and check cards (debit cards) to A. $600 if reported after two days but before 60 days of consumers learning of a misuse. B. amounts over $15 within the consumers home state if reported within seven business days. C. $50 if reported within two business days of consumers learning of a misuse. D. $15 within a 100-mile radius of a consumers home if reported within seven business days. E. $500 after 60 days without reporting.

Q: The Magnuson-Moss Warranty Act, administered by the Federal Trade Commission, applies to all product warranties on consumer products costing more than ______. A. $100 B. $10 C. $15 D. $25 E. $50

Q: What are industry guides and who issues industry guides?

Q: Which of the following types of debts are nondischargeable in bankruptcy? A. negligence claims B. personal loans from friends C. liabilities under guaranty agreements D. business debts E. debts arising from intentional torts

Q: In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive highest priority? A. government tax claims B. employees who are owed wages earned within 180 days of the bankruptcy petition C. consumers who have paid deposits or prepayments for undelivered goods or services D. spouse, former spouse, child, or guardian with claims for domestic support E. general creditors

Q: In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive the lowest priority? A. one who is injured from a motor vehicle operated by a debtor while he was intoxicated B. employees who are owed wages earned within 180 days of the bankruptcy petition C. consumers who have paid deposits or prepayments for undelivered goods or services D. creditors with claims that occur in the ordinary course of the debtors business after a bankruptcy petition has been filed E. creditors with claims that arise from the costs of preserving and administering the debtors estate

Q: The creditors who file an involuntary petition to the court to begin a bankruptcy proceeding must be owed at least ______ by the debtor. A. $1,200 B. $1,500 C. $2,500 D. $2,300 E. $1,000

Q: The Consumer Financial Protection Bureaus authority applies to A. businesses regulated by the Securities and Exchange Commission. B. Internet service providers. C. persons regulated by the Securities and Exchange Commission. D. insurance companies. E. banks that extend credit loans.

Q: Which of the following acts establishes procedures that banks and other financial institutions must follow when consumers dispute amounts billed by a bank? A. the Electronic Fund Transfer Act B. the Fair Credit Reporting Act C. the Magnuson-Moss Warranty Act D. the Federal Trade Commission Act E. the Equal Credit Opportunity Act

Q: Which of the following statements is true of the Fair Debt Collection Practices Act? A. It permits debt collectors to contact a third party, even if an attorney representing a debtor responds to all communications by the collector. B. It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer but may not disclose the nature or amount of the debt. C. It permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against a consumer and may also disclose the nature or amount of the debt. D. It forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of a consumers debt. E. It permits debt collectors to contact third parties, but the debt collector may not state that the consumer owes a debt.