Question 1

From the cardholder's point of view there are no differences in the statutory protections available between credit cards and debit cards. ​

Accepted Answer

There are actually some differences in the statutory protections available for credit cards and debit cards. Credit cards are covered under the Fair Credit Billing Act, which provides protections for unauthorized charges, billing errors, and disputes with merchants. Debit cards, on the other hand, are covered under the Electronic Fund Transfer Act, which has similar protections but with some variations and limitations. Additionally, credit cards may offer additional benefits and fraud protection that debit cards may not have.

Question 2

A can of Alpo cat food states on its label, "Tastes Better than 9-Lives." Ruby's cat "Tom," in fact, prefers 9 Lives to the Alpo brand. Which warranties have been breached?​

Accepted Answer

The statement "Tastes Better than 9-Lives" is considered puffery, which is an opinion rather than a factual claim or promise about the product's performance. Therefore, it does not constitute an express warranty or an implied warranty of merchantability.

Question 3

Chapter 7 bankruptcy involves total liquidation, whereas Chapter 11 bankruptcy involves debt reorganization. ​

Accepted Answer

Chapter 7 bankruptcy is a liquidation process where a debtor's non-exempt assets are sold to pay creditors, while Chapter 11 bankruptcy allows a business to continue operating while reorganizing its debts under a court-approved plan.

Question 4

A manufacturer of tomato sauce stated on the can that the sauce was "100% natural--No artificial flavors or preservatives" when in fact the sauce contained MSG and preservatives. Have any warranties been breached?

Accepted Answer

The statement "100% natural--No artificial flavors or preservatives" directly creates an express warranty that the sauce does not contain artificial ingredients or preservatives. The presence of MSG and preservatives breaches this express warranty.

Question 5

The implied warranty of merchantability arises only in the sale by a merchant. ​

Accepted Answer

The implied warranty of merchantability only applies to sales made by merchants, who are defined as "a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction." (UCC 2-104(1))

Question 6

Which statement based on textbook discussion is true about debit or credit cards?​

Accepted Answer

As per the textbook discussion, a debit card draws against either an account the user has with a financial institution or a prior payment of money made to the card issuer. This means that the funds are deducted directly from the user's account at the time of the transaction. Credit cards, on the other hand, provide a line of credit which the user can borrow against, and the financial institutions earn interest from the outstanding balance. Debit cards also offer some protection to the consumer in case of fraud, but this may vary depending on the specific terms and conditions of the card issuer.

Question 7

Ruby is the owner of Bistro 24, a popular eatery located in Wilmington. Her chef informed her that the latest shipment of beef, supposedly prime grade, valued at $5,000 is actually choice steak grade valued much less. What UCC warranties have been breached?​

Accepted Answer

The shipment was described as prime grade beef, which is an express warranty. Since the beef did not meet this description, the express warranty was breached.

Question 8

Which of the following could be considered an express warranty under the UCC?

Accepted Answer

Under the Uniform Commercial Code (UCC), an express warranty can be created by any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain. This includes specific claims about the product, such as the number of items in a package, durability claims like "shatterproof" or "chew proof," which directly relate to the quality or performance of the goods. Therefore, all the examples provided (A, B, and C) could be considered express warranties.

Question 9

Under the federal Magnuson-Moss Warranty Act no seller is required to give a written warranty, but the seller who elects to do so must label it as either full or limited. ​

Accepted Answer

The statement accurately reflects the requirements of the Magnuson-Moss Warranty Act. Sellers are not required to provide a written warranty, but if they do, they must indicate whether it is a full or limited warranty.

Question 10

A deli advertises that a certain sandwich platter "Feeds 25." If the platter fails provide sufficient food to feed 25 ordinary persons a reasonable portion under the circumstances, have any warranties been breached?

Accepted Answer

An express warranty is created when a seller makes a factual claim about a product, such as stating that a sandwich platter "Feeds 25." If the product fails to meet this claim, the express warranty has been breached.

Question 11

The FDA cannot require that nutritional information be provided on labels on canned and packaged foods because forced speech violates the federal Constitution.

Accepted Answer

The FDA can and does require nutritional information on labels of most canned and packaged foods as part of its regulatory functions to ensure consumer safety and informed choices, which is not considered a violation of the federal Constitution.

Question 12

Which statement based on textbook discussion is true about debit or credit cards?

Accepted Answer

A debit card draws directly from the user's bank account or a prepaid balance, whereas credit cards allow users to borrow funds up to a certain limit.

Question 13

It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee." ​

Accepted Answer

An express warranty can be created by any statement of fact or promise by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain, without the need for formal words like "warrant" or "guarantee."

Question 14

The UCC establishes certain warranties in the sale of goods and requires the government to recall defective products. ​

Accepted Answer

The UCC (Uniform Commercial Code) establishes certain warranties in the sale of goods, but it does not require the government to recall defective products; recalls are typically managed by regulatory agencies.

Question 15

The Fair Debt Collections Practices Act protects consumers from abusive debt collection practices, while the Fair Credit Reporting Act regulates the conditions under which disclosure of personal information may be made to third parties by consumer reporting agencies. ​

Accepted Answer

The Fair Debt Collections Practices Act (FDCPA) indeed aims to eliminate abusive debt collection practices by debt collectors, while the Fair Credit Reporting Act (FCRA) governs the collection, dissemination, and use of consumer information, including consumer credit information, by consumer reporting agencies.

Question 16

The federal statute which requires a full disclosure of the comparative costs of buying goods for cash or on credit is called the​

Accepted Answer

The Consumer Credit Protection Act of 1968 requires full disclosure of the terms and conditions of finance charges in transactions, ensuring consumers are informed about the costs of credit.

Question 17

Even though a sale by a merchant, an implied warranty of merchantability does not arise if the goods are sold used​

Accepted Answer

The implied warranty of merchantability can still apply to used goods sold by a merchant, as it guarantees that the goods are of average acceptable quality and generally fit for the purpose for which they are sold, unless the warranty is disclaimed in a specific manner.

Question 18

A label on a jar containing a product states "Kosher Dill Pickles." What express warranty is created by that statement on the label?

Accepted Answer

The label "Kosher Dill Pickles" creates an express warranty that the items inside the jar are kosher, are pickles, and are flavored with dill, as it directly states these characteristics on the product label.

Question 19

Because the right to privacy is considered a fundamental human right, it is expressly guaranteed by the U.S. Constitution. ​

Accepted Answer

The U.S. Constitution does not expressly guarantee the right to privacy. However, the Supreme Court has interpreted certain amendments, such as the First, Third, Fourth, Fifth, and Fourteenth Amendments, to imply a right to privacy in various contexts.

Question 20

Bill needs some hiking boots that will protect his feet from sub-zero temperatures for extended periods because he will be traveling to the Arctic Circle. He visits a local Outdoors shop and asks the salesperson to recommend the best boots for these conditions. The sales
Person selects a specific brand and hands it to Bill, who purchased the boots. Unfortunately, on his expedition, his feet were badly frostbitten. Which warranty was breached?​

Accepted Answer

The implied warranty of fitness for a particular purpose was breached because Bill relied on the salesperson's expertise to select boots suitable for sub-zero temperatures, and the boots failed to protect his feet as expected in those specific conditions.

Quiz 13: Consumer Rights, Privacy, and Protection

From the cardholder's point of view there are no differences in the statutory protections available between credit cards and debit cards. ​

A can of Alpo cat food states on its label, "Tastes Better than 9-Lives." Ruby's cat "Tom," in fact, prefers 9 Lives to the Alpo brand. Which warranties have been breached?​

Chapter 7 bankruptcy involves total liquidation, whereas Chapter 11 bankruptcy involves debt reorganization. ​

A manufacturer of tomato sauce stated on the can that the sauce was "100% natural--No artificial flavors or preservatives" when in fact the sauce contained MSG and preservatives. Have any warranties been breached?

The implied warranty of merchantability arises only in the sale by a merchant. ​

Which statement based on textbook discussion is true about debit or credit cards?​

Ruby is the owner of Bistro 24, a popular eatery located in Wilmington. Her chef informed her that the latest shipment of beef, supposedly prime grade, valued at $5,000 is actually choice steak grade valued much less. What UCC warranties have been breached?​

Which of the following could be considered an express warranty under the UCC?

Under the federal Magnuson-Moss Warranty Act no seller is required to give a written warranty, but the seller who elects to do so must label it as either full or limited. ​

A deli advertises that a certain sandwich platter "Feeds 25." If the platter fails provide sufficient food to feed 25 ordinary persons a reasonable portion under the circumstances, have any warranties been breached?

The FDA cannot require that nutritional information be provided on labels on canned and packaged foods because forced speech violates the federal Constitution.

Which statement based on textbook discussion is true about debit or credit cards?

It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee." ​

The UCC establishes certain warranties in the sale of goods and requires the government to recall defective products. ​

The Fair Debt Collections Practices Act protects consumers from abusive debt collection practices, while the Fair Credit Reporting Act regulates the conditions under which disclosure of personal information may be made to third parties by consumer reporting agencies. ​

The federal statute which requires a full disclosure of the comparative costs of buying goods for cash or on credit is called the​

Even though a sale by a merchant, an implied warranty of merchantability does not arise if the goods are sold used​

A label on a jar containing a product states "Kosher Dill Pickles." What express warranty is created by that statement on the label?

Because the right to privacy is considered a fundamental human right, it is expressly guaranteed by the U.S. Constitution. ​

From the cardholder's point of view there are no differences in the statutory protections available between credit cards and debit cards.

A can of Alpo cat food states on its label, "Tastes Better than 9-Lives." Ruby's cat "Tom," in fact, prefers 9 Lives to the Alpo brand. Which warranties have been breached?

Chapter 7 bankruptcy involves total liquidation, whereas Chapter 11 bankruptcy involves debt reorganization.

The implied warranty of merchantability arises only in the sale by a merchant.

Which statement based on textbook discussion is true about debit or credit cards?

Ruby is the owner of Bistro 24, a popular eatery located in Wilmington. Her chef informed her that the latest shipment of beef, supposedly prime grade, valued at $5,000 is actually choice steak grade valued much less. What UCC warranties have been breached?

Under the federal Magnuson-Moss Warranty Act no seller is required to give a written warranty, but the seller who elects to do so must label it as either full or limited.

It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee."

The UCC establishes certain warranties in the sale of goods and requires the government to recall defective products.

The Fair Debt Collections Practices Act protects consumers from abusive debt collection practices, while the Fair Credit Reporting Act regulates the conditions under which disclosure of personal information may be made to third parties by consumer reporting agencies.

The federal statute which requires a full disclosure of the comparative costs of buying goods for cash or on credit is called the

Even though a sale by a merchant, an implied warranty of merchantability does not arise if the goods are sold used

Because the right to privacy is considered a fundamental human right, it is expressly guaranteed by the U.S. Constitution.