Question 1

What are the provisions of the Right to Financial Privacy Act of 1978?

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Question 2

What remedies are used by the Federal Trade Commission,apart from penalty fines and corrective advertising,to protect consumers in trade regulation cases?

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Question 3

The creditors who file an involuntary petition to the court to begin a bankruptcy proceeding must be owed at least ______ by the debtor.

Accepted Answer

The creditors who file an involuntary petition to the court to begin a bankruptcy proceeding must be owed at least $2,300 by a debtor. If the court finds in an involuntary proceeding that the debtor is on the table to pay his or her debts as they mature, the court will order relief against the debtor. Relief may be also ordered if someone has been appointed to control the debtor's property for the purpose of satisfying a judgment or other lien.

Question 4

The Consumer Financial Protection Bureau's authority applies to

Accepted Answer

The Consumer Financial Protection Bureau's (CFPB's) authority applies to banks and other financial businesses that extend credit or service loans, take deposits, cash or guarantee checks, provide consumer report information such as credit bureaus, and collect debts. It does not apply to insurance companies, Internet service providers, real estate agents and brokers, or businesses regulated by the Securities and Exchange Commission.

Question 5

The Magnuson-Moss Warranty Act,administered by the Federal Trade Commission,applies to all product warranties on consumer products costing more than ______.

Accepted Answer

The Magnuson-Moss Warranty Act, administered by the Federal Trade Commission, applies to all product warranties on consumer products costing more than $15. These warranties must be identified as full or limited.
Short Answer Questions

Question 6

In a bankruptcy proceeding,which of the following classes of bankruptcy creditors will receive the lowest priority?

Accepted Answer

One who is injured from a motor vehicle operated by a debtor while intoxicated will receive the lowest priority. Secured creditors who hold mortgages or Article 9 security interests in the debtor's property usually have priority over the bankruptcy creditor classes.

Question 7

Shauna defaults on her car loan payment.The debt collector hired by the bank visits Shauna and verbally abuses her using offensive language.In this scenario,which of the following statements is true under the Fair Debt Collection Practices Act (FDPCA)?

Accepted Answer

In this scenario, the court can order the debt collector to pay up to $1,000 for using obscene language. Once a debtor is located, the collector will seek to get payment on the overdue account. However, the Fair Debt Collection Practices Act restricts methods that can be used in the collection process. The collector cannot physically threaten the debtor or use obscene language. In the absence of actual damages, the court may still order the collector to pay the debtor up to $1,000 for violations.

Question 8

When will federal courts assess civil fines related to trade practice violations under the Federal Trade Commission Act?

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Question 9

How does the Federal Trade Commission determine deception in an advertisement?

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Question 10

What is the purpose of the Video Privacy Protection Act of 1988 and why was the Act amended by Congress in 2012?

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Question 11

What are industry guides and who issues industry guides?

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Question 12

What is the purpose of the Health Insurance Portability and Accountability Act of 1996?

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Question 13

The Electronic Fund Transfer Act,administered by the Consumer Financial Protection Bureau,limits liability on lost,stolen,or misused automatic teller and check cards (debit cards)to

Accepted Answer

The Electronic Fund Transfer Act limits liability on lost, stolen, or misused automatic teller and check cards (debit cards) to $50 if reported within two business days of consumers' learning of a misuse. After two business days consumer's responsibility is up to $500, except that after 60 days without reporting, responsibility becomes unlimited.

Question 14

Which of the following types of debts are nondischargeable in bankruptcy?

Accepted Answer

Debts arising from intentional torts (including fraud) are nondischargeable. Education loans, which become due within five years of the filing of the bankruptcy petition, are also nondischargeable.

Question 15

What is the purpose of the Privacy Act of 1974?

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Question 16

In a bankruptcy proceeding,which of the following classes of bankruptcy creditors will receive highest priority?

Accepted Answer

In a bankruptcy proceeding, spouse, former spouse, child, or guardian with claims for domestic support will receive the highest priority. Secured creditors who hold mortgages or
Article 9 security interests in the debtor's property usually have priority over the bankruptcy creditor classes.

Question 17

For violations of the Fair Debt Collection Practices Act,in the absence of actual damages,the court may still order a collector to pay a debtor up to ______.

Accepted Answer

Violations of the Fair Debt Collection Practices Act entitle the debtor to sue the debt collector for actual damages, including damages for invasion of privacy and infliction of mental distress, plus court costs and attorney's fees. In the absence of actual damages, the court may still order the collector to pay the debtor up to $1,000 for violations.

Question 18

What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

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Question 19

Briefly explain the concept of corrective advertising.

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Question 20

What are the two related ways in which the Federal Trade Commission (FTC)prosecutes businesses for committing unfair or deceptive trade practices?

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Quiz 18: Regulations Protecting Consumer Purchases, privacy, and Financial Activities