QUESTION 1

Celia has fallen behind on her credit card payments and has missed the last three payments. The credit card company is becoming concerned that Celia is no longer a good credit risk. The company would like to raise Celia's interest rate by 3 percent in order to mitigate the risk. Which of the following statements is true?

	a.	The company may raise interest rates on both past and future purchases provided it gives 45 days' notice and permits Celia to cancel the card.
	b.	The company can raise interest rates on future purchases provided it gives 45 days' notice and a chance to cancel but may not raise interest rates on past purchases.
	c.	The company cannot raise interest rates on past purchases and may only raise interest rates on future purchases with 60 days' notice.
	d.	The company can raise interest rates on past and future purchases at any time.

4 points

QUESTION 2

The Late Night Show is a TV program that provides humorous takes on top news stories. In providing its coverage, it often uses short clips from copyrighted news programs without receiving permission from the copyright's owners. Is the Late Night Show committing copyright infringement?

	a.	Yes, it must receive permission from the individuals who appear in the clip.
	b.	Yes, it must receive permission from the studio that produced the show.
	c.	No, this is fair use.
	d.	No, TV news programs cannot be copyrighted because they are considered a public good.

4 points

QUESTION 3

The vast majority of patents that are issued are

	a.	design patents.
	b.	plant patents.
	c.	utility patents.
	d.	intellectual patents.

4 points

QUESTION 4

Intellectual property is

	a.	protected in the same way as land.
	b.	exclusive.
	c.	expensive to produce but cheap to reproduce and transmit.
	d.	expensive to produce, copy, and transmit.

4 points

QUESTION 5

Vikram is a retired farmer in Idaho. Vikram has been receiving debt collection calls from Tractor Co. for the last six weeks. The calls have been getting more aggressive, and last week the debt collection agency suggested that it would call Vikram's son, Randip, to discuss the issue. Which of the following statements is true?

	a.	The debt collection agency can contact Randip as many times as it wishes but cannot demand payment from him. It can, however, tell Randip that Vikram is in debt.
	b.	The debt collection agency can contact Randip only once, and only to inquire about Vikram's whereabouts. It may not tell Randip that Vikram is in debt.
	c.	The debt collection agency is forbidden from contacting Randip under any circumstances.
	d.	The debt collection agency can contact Randip as often as it wishes, can tell him that Vikram is in debt, and can demand payment.

4 points

QUESTION 6

The Consumer Financial Protection Bureau (CFPB) has the authority to take action against anyone committing "abusive acts." Abusive acts are defined as

	a.	taking advantage, reasonable or not, of a lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service.
	b.	forcing the consumer by force or threat of force into a purchase they would not have otherwise made.
	c.	luring the customer to the store with an advertised product at a low price and then pressuring them into buying a product at a higher price.
	d.	taking unreasonable advantage of a lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service.

4 points

QUESTION 7

Which section of the Federal Trade Commission (FTC) Act prohibits unfair and deceptive acts or practices?

	a.	Section 5
	b.	Section 1
	c.	Section 6
	d.	Section 10

4 points

QUESTION 8

The application process for a patent is called a(n)

	a.	discussion.
	b.	examination.
	c.	prosecution.
	d.	argument.

4 points

QUESTION 9

Mills Coffee has been a successful brand since the early 2000s. Mills has stores throughout the New England area. It also has a substantial internet presence and sells coffee nationwide. In late 2019, Ernie Mill started his own coffee company in Georgia and called it Mill's Coffee. Ernie had not heard of Mills Coffee before. In the first year of business, Mill's Coffee made a $1 million profit. Which of the following damages is Mills Coffee entitled to?

	a.	The $1 million in profits that Mill's Coffee made in its first year
	b.	50 percent of the profits that Mill's Coffee made in its first year
	c.	Five times the actual damages that Mills Coffee suffered
	d.	No damages as Mills does not have a trademark claim because Ernie was unaware of the mark

4 points

QUESTION 10

Under the TILA, a qualified mortgage (QM)

	a.	limits upfront points and fees to 5 percent.
	b.	limits all of a borrower's debt to 43 percent of their income.
	c.	allows balloon payments only if the borrower agrees up front.
	d.	must allow for interest only periods.

4 points

QUESTION 11

In 2002, Chamberlain Sweets created a new recipe for a chocolate candy that led to blockbuster sales. Chamberlain made sure that the recipe was kept on a secure server, but in 2020, its server was hacked and the recipe was leaked to Chamberlain's competitors. Which of the following statements is true?

	a.	Recipes cannot be patented, so Chamberlain has no legal options available to protect its work.
	b.	This recipe constitutes a trade secret and is subject to protection under the Uniform Trade Secrets Act.
	c.	The recipe is subject to copyright protections.
	d.	The recipe is subject to trademark protections.

4 points

QUESTION 12

In 1969, the federal government estimated that consumer products caused 30,000 deaths, 110,000 disabling injuries, and 20 million trips to the doctor. The product category causing the majority of harm was

	a.	automobiles.
	b.	children's toys.
	c.	power tools.
	d.	food products.

4 points

QUESTION 13

Under FTC rules, when a customer legally cancels a door-to-door sales contract, the seller must return the buyer's money within

	a.	three days.
	b.	five days.
	c.	ten days.
	d.	a reasonable time after the sale was made.

4 points

QUESTION 14

Tiago and his friends head to Las Vegas for a bachelor's party. In order to keep his spending down, Tiago decides to only bring his debit card with him and to leave his credit card at home. While at a dance club, Tiago leaves his card on the table. When the group returns home three days later, Tiago reports his missing card. What is Tiago's liability?

	a.	The bank will reimburse Tiago for all losses above $50.
	b.	The bank will reimburse Tiago for all losses.
	c.	The bank will reimburse Tiago for losses above $500.
	d.	The bank will not reimburse Tiago for any losses.

4 points

QUESTION 15

Alicia was tired of receiving telemarketing calls on her cell phone, so she added her number to the DoNotCall.gov registry. For the next two weeks, Alicia received even more calls than usual. Frustrated, Alicia wants to file a complaint. Which of the following statements is true?

	a.	Alicia can file a complaint with the Federal Trade Commission (FTC), and the telemarketers could be fined up to $40,000 for each call.
	b.	Alicia can file a complaint with the FTC, and the telemarketers could be fined up to $4,000 for each call.
	c.	Alicia can file a complaint only if the telemarketers blocked their names and numbers from appearing on caller ID systems.
	d.	Alicia currently cannot file a complaint.

4 points

QUESTION 16

BBQ Supply sells barbecue and barbecue accessories online through various platforms. Its products and customer service have always have been rated high on various review sites. Recently, during a dispute with a particularly irate and irrational customer, BBQ had begun to see multiple negative reviews of its products online. Management suspected that it was a result of the dispute and the work of the disgruntled customer. To fight back, BBQ began running a promotion-"Give our products a 5 Star review, and we will send you a discount code for your next purchase!" Is what BBQ did legal?

	a.	Yes, it is legal to try to counter fraudulent negative reviews in any way necessary in order to rightfully restore your brand's reputation.
	b.	Yes, it may be unethical, but it is not illegal to pay for reviews.
	c.	No, the Federal Trade Commission (FTC) prohibits companies from buying fake reviews.
	d.	No, BBQ could offer other incentives but can't offer cash discounts or rewards in return for positive reviews.

4 points

QUESTION 17

The Magnuson-Moss Warranty Act applies to

	a.	written or oral warranties on goods and services sold to consumers but does not require manufacturers or sellers to provide a warranty on their products.
	b.	written or oral warranties on goods and services sold to consumers and requires manufacturers or sellers to provide a warranty on their products.
	c.	written warranties on goods sold to consumers but does not require manufacturers or sellers to provide a warranty on their products.
	d.	written warranties only on goods sold to consumers and requires manufacturers or sellers to provide a warranty on their products.

4 points

QUESTION 18

Kieran Thompson wrote a book called Left Alone in 1929, at the height of the Great Depression, and it was published in 1932. Thompson died in 1939. In 2020, Alex Jordan discovered the book and published it as an e-book. Alex made sure that the author, Kieran Thompson, was appropriately listed as the author. The book became very popular, and Alex made significant sales profits. Thompson's family wants to bring a claim against Alex for copyright infringement. Which of the following statements is true?

	a.	The Thompson family has a valid copyright until 2027, or 95 years from publication of the work.
	b.	The Thompson family has a valid copyright until 2049, or 120 years from creation of the work.
	c.	The Thompson family's copyright claim expired in 2009, 70 years after the death of the author.
	d.	The Thompson family's copyright claim expired in 1953, 14 years after the death of the author.

4 points

QUESTION 19

Nosek DNA Consulting Services works with patients with genetic diseases. They have isolated a particular gene that they believe is responsible for Alzheimer's Disease. Nosek quickly synthesizes a variant of the gene that it hopes could be used in genetic therapies and applies for a patent for the synthetic gene. What should the patent office do?

	a.	The patent office should grant the patent application.
	b.	The patent office should deny the patent application, as this is derived from human DNA, which cannot be patented.
	c.	The patent office should deny the patent application as anything related to living organisms, including DNA, cannot be patented.
	d.	The patent office should grant the application on the condition that Nosek donate all proceeds from its findings to a charity, as it is illegal to profit from the use of human DNA.

4 points

QUESTION 20

Fun Tyme Toy Company discovers that one of its products can easily break, exposing children to potential injury from the sharp parts. Under the Consumer Product Safety Act of 1972, how long does Fun Tyme have to report this defect to the Consumer Product Safety Commission?

	a.	24 hours
	b.	3 days
	c.	7 days
	d.	30 days