1. Which of the following statements about consumer protection laws is true?

a. The purpose of the Do Not Call registry is to give consumers a choice regarding telemarketing calls.

b. The FTC does not prohibit bait-and-switch advertising.

c. There are no federal laws that regulate product labeling.

d. Advertisements can contain a material misrepresentation that is likely to mislead a reasonable consumer.

e. Advertisers cannot use generalities and exaggerations in their advertisements.

2. Which of the following laws requires that sellers disclose the terms of the credit or loan so that consumers can better compare a variety of credit lines or loans?

a.Fair Credit Reporting Act

b.Fair Credit Billing act

c.Truth in lending act

d. Fair Debt Collection practices act

3. Hilda owes a significant amount of debt to a doctor's office, and they hired a collection agency to take up those claims. The collection agency calls frequently, sometimes as late as 1 a.m. or 2 a.m. on weekdays. In this case, the collection agency ____________________.

a.is justified in calling so frequently until the debtor pays

b.is only in violation of the Fair Debt Collection Practices Act if the caller threatens Hilda

c. is violating the Fair Debt Collection Practices Act

d.is in violation of the Equal Credit Opportunity Act

e. is in violation of the Credit Card Fraud Act

4.An advertisement for a fast-food burger restaurant that states "World's Best Burgers" is an example of which of the following according to U.S. standards?

a. Puffery.

b.Deceptive advertising.

c. Bait-and-switch advertising.

d. Ad substantiation.

e. An untruth.

5.A salesman says, "This house has the most efficient floor plan of any home in the world." This statement is a generality or exaggeration that cannot be proven. In this situation, what can we accurately say about this statement?

a.Ad substantiation is required.

b.This statement is prohibited, as it is puffing.

c.This statement is allowed, as it is puffing.

d.This statement is prohibited, as it is a half-truth.

e. This statement is prohibited, as it is deceptive advertising

6. ____________ prohibits radio and television cigarette advertisements.

a.Two of these

b.Section 5 of the Federal Trade Commission Act

c.The FTC

d. The Public Health Cigarette Smoking Act

e.The Smokeless Tobacco Act

7.Claire purchases a $125 suit on her credit card from a local clothing store in her hometown. When she takes it home, she realizes it is damaged. She tries to take the product back for a full refund or store credit, but the store refuses. In this situation, ____________________.

a.Claire is protected under the Fair Credit Reporting Act

b.she cannot receive a refund unless the transaction was a lease

c.the credit card company can bill Claire because it is not their fault she bought damaged goods

d.the credit card company cannot bill Claire for the damaged item

e.the store violated TILA

8.The purpose of the _______________ is to require that sellers disclose the terms of the credit or loan to help consumers compare a variety of credit lines or loans.

a.Truth in Lending Act

b.Equal Credit Opportunity Act

c.Fair Credit Reporting Act

d.Consumer Leasing Act

e.Limited Liability Corporations