East Mississippi Community College

ECON 2123

Chapter 33-CONSUMER PROTECTION

TRUE/FALSE

1)The aim of consumer protection legislation is to protect persons of limited means and limited knowledge.

 

                                           

 

2. The category of protected consumers has been expanded by the social forces of protecting the person and protecting from fraud, exploitation, and oppression.

 

                                           

 

3. Consumer protection statutes apply only in situations in which the statute is intentionally violated.

 

                                           

 

4. A consumer claiming that there has been a violation of a consumer protection statute has the burden of proving that the statutory definition of "consumer" has been satisfied.

 

                                           

 

5. Those who are liable for violations of consumer protection situations are persons or enterprises that regularly enter into the type of transaction in which the injured consumer was involved.

 

                                           

 

6. Consumer protection even protects a consumer from the consumer's own negligence.

 

                                           

 

7. Consumer protection law often requires those dealing with consumers to make certain mandated disclosures.

 

                                           

 

8. In order to recover under a fair business practices or deceptive trade practices act, a consumer is only required to show that the defendant is in breach of contract.

 

                                           

 

9. The FTC requires advertisers to maintain records of the data used as support for statements made in the ads that deal with the safety, performance, efficacy, quality, or comparative price of an advertised product.

 

                                           

 

10. Corrective advertising required by the FTC also is called retroactive advertising.

                                           

 

11. Violation of a consumer protection statute occurs even without proof that the wrongdoer intended to defraud or deceive anyone.

 

                                           

 

12. Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product.

 

                                           

 

13. The FTC requires that only descriptive and non-ambiguous terms such as jumbo, giant, or full be used in product labeling.

 

                                           

 

14. To be found guilty of violating a consumer protection statute or a deceptive trade practices act, a defendant must be proven guilty of fraud.

 

                                           

 

15. A sale of goods or services for $25 or more made to a buyer at home may be set aside within five (5) business days.

 

                                           

 

16. Dilatory lending is a practice on the part of the subprime lending market whereby lenders take advantage of less sophisticated consumers or those who are desperate for funds by using the lenders’ superior bargaining positions to obtain credit terms that go well beyond compensating them for their risk.

 

                                           

 

17. Consumer protection laws, which commonly regulate the form of consumer contracts, provide that back-page disclaimers are void if the front page of a contract does not call attention to the presence of the terms on the back page.

 

                                           

 

18. The subterranean lending market makes loans to consumers who have bankruptcies, no credit history, low-to-moderate incomes, or a poor credit history.

 

                                           

 

19. Consumer protection legislation regulates the prices that sellers may charge consumers.

 

                                           

 

20. The types of provisions that make contracts unconscionable include clauses that award excessive damages or the application of credit payments across purchases over time so that the consumer is never

able to pay off any goods.

 

                                           

 

21. A consumer may waive all defenses otherwise provided for by law.

 

                                           

 

22. Under the Equal Credit Opportunity Act, it is unlawful to discriminate against an applicant because all or part of the applicant’s income is obtained from a public assistance program.

 

                                           

 

23. When a credit application is refused, it is sufficient that the lender give the applicant a written statement saying: "application refused."

 

                                           

 

24. When improper collection methods are used, it is no defense to the creditor that the improper acts were performed by an agent, an employee, or any other person acting on behalf of the creditor.

 

                                           

 

25. Unreasonable methods of debt collection may be held by the courts to constitute an unreasonable invasion of privacy.

 

                                           

 

26. A letter from a collection agency to a consumer that gives the impression a lawsuit is about to be brought against the consumer when in fact it will not be brought is not a violation of the Fair Debt Collection Practices Act.

 

                                           

 

27. The Fair Credit Reporting Act applies only to consumer credit.

 

                                           

 

28. Pursuant to the Credit Repair Organization Act of 1996, credit repair organizations must be “non- profit.”

 

                                           

 

29. Anyone promoting the sale of a real estate development that is divided into fifty (50) or more parcels of less than five (5) acres each must file a development statement with the secretary of Housing and Urban Development.

 

                                           

 

30. Automobile lemon laws protect only persons buying automobiles for personal, family, or household use.