Mindtap Consumer Protection

Mindtap Consumer Protection Learn Its What does the Magnuson-Moss Warranty Act require? Choose 2 answer choices. a. Manufacturers must offer at least limited warranties. b. Manufacturers must offer warranties for products selling for over $25. c. The address of the person to contact for warranty services. d. The name of the person to contact for warranty services. Which of these situations are governed by the Magnuson-Moss Warranty Act? Choose 2 answer choices. a. A fan costs $22. b. A fan is selling for $100, and the manufacturer offers a full warranty. c. A fan is selling for $47, but the manufacturer does not want to offer a warranty. d. A fan is selling for $34, but the manufacturer does not want to offer a full warranty. Puffery includes what kinds of activities? a. Ads with exaggerated statements b. Ads appearing to be based on facts, but without factual evidence c. Bait-and-switch advertising d. Ads including half-truths What is the difference between deceptive advertising and puffery? Choose 2 answer choices. a. Deceptive advertising is prohibited; puffery is allowed. b. Puffery is heavily regulated, while deceptive advertising is prohibited. c. Puffery can include half-truths, but deceptive advertising does not. d. Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising. Which consumer protection law specifically provides for punitive damages? a. Federal Trade Commission Act b. Fair Debt Collection Practices Act c. Fair Credit Reporting Act d. Consumer Protection Safety Act of 1972 What remedies can consumers get from a debt collection agency for illegal treatment? Choose 3 answer choices. a. Attorney’s Fees b. Damages c. Court Costs d. $1,000 per violation If a credit reporting agency fails to remove known errors in a consumer’s credit report after request by the consumer, the agency: a. must pay $1,000,000 in damages to the consumer. b. may be required to shut down its operation. c. may be required to pay damages to the consumer. d. must delete the consumer’s credit report entirely. Which of the following behaviors is prohibited under the FDCPA? Choose 2 answer choices. a. b. c. d. Notifying a consumer’s neighbor that they are in debt Calling a consumer’s mother to determine the consumer’s address Calling a consumer at 3 a.m. Telling the consumer if they do not pay their debt that legal action will be initiated Check Your Understanding a. Which of the following consumer credit acts examines lenders’ practices regarding race, religion, national origin, color, gender, marital status, or age? b. Truth-in-Lending Act (TILA) c. Fair Credit Reporting Act (FCRA) d. Fair Debt Collection Practices Act (FDCPA) e. Equal Credit Opportunity Act (ECOA) Which of the following consumer credit acts helps potential borrowers understand the cost of a loan? a. Fair Debt Collection Practices Act (FDCPA) b. Truth-in-Lending Act (TILA) c. Equal Credit Opportunity Act (ECOA) d. Fair Credit Reporting Act (FCRA) The agency that oversees the credit practices of banks, mortgage lenders, and credit card companies is called the: a. Financial Regulation Bureau. b. Consumer Financial Protection Bureau. c. Consumer Investigation Agency. d. Federal Banking Investigation. Which of the following actions are associated with the Consumer Financial Protection Bureau (CFPB)? Choose 2 answers. a. writing and enforcing rules for financial institutions b. determining and establishing credit limits for credit cards c. collecting and tracking consumer complaints d. preventing and providing remedies for repossessions When a product is advertised for sale at a greatly reduced price, but the salesperson tries to get customers to buy a more expensive item instead, this is called: a. substitution deception. b. bait and switch. c. rain check. d. sleight of hand. Which of the following actions can the Federal Trade Commission (FTC) employ against unfair and deceptive advertising? Choose 2 answers. a. native ad integration b. bait and switch order c. counteradvertising sanction d. cease and desist order A consumer product is any article, or its component parts, produced or distributed for sale to a consumer: a. for household use and consumption only. b. for the consumer’s own use or enjoyment, including boats, aircraft, motor vehicles, drugs, tobacco products, and food. c. for the consumer’s own use or enjoyment, which may include wholesale and retail uses. d. for the consumer’s own use or enjoyment. What are two functions of the Consumer Product Safety Commission (CPSC)? Choose 2 answers. a. to enforce violations of false advertising b. to set the safety standards for consumer products c. to sue a manufacturer regarding a state claim d. to ban the manufacture and sale of hazardous products The remedies available to injured consumers under federal and state consumer protection laws may include: (Choose 3 answers.) a. recall of dangerous products. b. punitive damages. c. attorney’s fees and costs. d. damages for actual injury or harm caused. The role of a state’s attorney general in handling complaints about potential violations of consumer protection laws is to: a. set the standards for consumer protection and enforce them. b. ensure a safe and fair marketplace for the citizens of the state. c. implement recalls of defective products. d. represent individual consumers in consumer protection lawsuits.