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Multiple Choice Quiz
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1
__________ advertising consists of advertising claims that mislead or could mislead a reasonable consumer.
A)Negligent
B)Reckless
C)Deceptive
D)Subversive
2
When sellers advertise a low price for an item generally unavailable to the consumer and then push the consumer to buy a more expensive item, they are engaging in __________ advertising.
A)Competitive
B)Attract-and-convert
C)Bait-and-switch
D)Lure-and-change
3
The Federal Trade Commission (FTC) may require that a company engage in __________ advertising, or __________, running advertisements in which the company explicitly states that formerly-advertised claims were untrue.
A)Remedial; counter-advertising
B)Remedial; retroactive
C)Corrective; counter-advertising
D)Corrective; retroactive
4
Because consumers are particularly vulnerable during a door-to-door sale, the government provides the "__________," where consumers have __________ days to cancel a purchase made during a door-to-door sale.
A)Rule of Reason; three (3)
B)Rule of Reason; five (5)
C)Cooling-Off Rule; three (3)
D)Cooling-Off Rule; five (5)
5
A(n) ___________ credit line permits repeated transactions and assesses a finance charge on unpaid balances.
A)Open-end
B)Closed-end
C)Cyclical
D)Renewable
6
Congress passed the __________ to ensure accurate credit reporting.
A)Fair Credit Reporting Act of 1970
B)Fair Credit Reporting Act of 1980
C)Truth-in-Lending Act of 1970
D)Truth-in-Lending Act of 1980
7
Which of the following collection behaviors is not expressly prohibited by the Fair Debt Collection Practices Act?
A)Contacting a debtor at work if the debtor's employer objects
B)Contacting the debtor between 8 a.m. and 9 p.m.
C)Using obscene or threatening language when communicating with the debtor
D)Misrepresenting the collection agency as a lawyer or a police officer
8
The __________ was passed in response to the growing number of identity theft cases.
A)Fair and Balanced Credit Transactions Act of 1993
B)Fair and Balanced Credit Transactions Act of 2003
C)Fair and Accurate Credit Transactions Act of 1993
D)Fair and Accurate Credit Transactions Act of 2003
9
The __________ Commission issues and enforces mandatory standards regarding product safety.
A)Interstate Commerce
B)Consumer Product Safety
C)Federal Trade
D)Commercial Product Safety
10
A(n) __________ order is a form of cease-and-desist order issued by the Federal Trade Commission applying not only to the product that was the subject of the action, but also to other products produced by the same firm.
A)Blanket
B)Multiple-product
C)Comprehensive general liability
D)Cross-representational product





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