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A series of questions and answers related to consumer law, covering topics such as unsolicited merchandise, unfair business practices, debt collection, truth in lending act, warranties, and credit card fraud. It provides insights into consumer rights and responsibilities, offering practical examples and explanations of legal principles.
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Chase received a magazine in the mail that he did not order. He was surprised, but read and enjoyed the magazine. A month later, another copy arrived, along with a bill for $ to cover the subscription. Which of the following applies to this situation? - ANSWER Chase does not have to pay for the magazine, even if the company continues to send it to him
Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free. Janet had Ron's come to inspect her furnace. The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250. The FTC considers such a practice to be:
a.) an unfair practice
b.) a deceptive practice
c.) an act that violates public policy
d.) all of these are correct - ANSWER d.) all of these are correct
Under the Fair Debt Collection Practices Act, a collection company is legally permitted to - ANSWER visit the debtor at work if the consumer's employer permits such contact
Under the TILA, a qualified mortgage (QM): - ANSWER limits all of a borrower's debt to 43 percent of his or her income.
Under FTC rules, when a customer legally cancels a door-to-door sales contract, the seller must return the buyer's money within - ANSWER 10 days
"Bait and Switch" is - ANSWER advertising certain goods and then pressuring the customer to buy different, more expensive goods
Under the Truth in Lending Act, a lender must disclose all of the following except:
a.) the average percentage rate charged by customers
b.) the finance charge
c.) the amount financed
d.) the annual percentage rate (APR) - ANSWER the average percentage rate charged by customers
The Magnuson-Moss Warranty Act requires manufacturers to provide a warranty on their products regardless of cost. (T or F) - ANSWER False
The maximum rate of interest for credit transactions is established by: - ANSWER state law
Consumers may keep as a gift any unordered merchandise that they receive in the mail (T or F) - ANSWER True
With regard to mortgages, the Consumer Finance Protection Bureau (CFPB) requires mortgage servicers - ANSWER to contact borrowers who are 36 days late in making a payment
Suppose Bill's credit card is stolen and he notifies his credit card company of this fact. Which of the following is true regarding the amount of unauthorized charges made before Bill notified his credit card company? - ANSWER Bill is responsible for the first $50 of unauthorized charges
Consumers have a right to - ANSWER have their own version of a disputed credit situation included in their credit file.