Question 1

What is the name of the legislation enacted in response to injuries and death from products being sold to consumers?

Accepted Answer

The Consumer Product Safety Act (CPSA) was enacted in response to injuries and deaths from products sold to consumers. The legislation created the Consumer Product Safety Commission (CPSC) to develop and enforce safety standards for consumer products.

Question 2

George runs a baseball equipment supply store.He specializes in supplying batting cages with new and used pitching machines.George sold Joan a used pitching machine for her softball team.Joan signs a lengthy contract where George disclaims all liability and sells the machine to her "as is." These terms are in the same font as the rest of the text and not bolded,underlined or otherwise highlighted.When Joan gets the machine to her house,it catches fires and burns down her garage.Is George potentially liable for the damage?

Accepted Answer

The answer of George runs a baseball equipment supply store.He...

Question 3

What is puffery? Provide an example.

Accepted Answer

The answer of What is puffery? Provide an example....

Question 4

A manufacturer of cars advertises that the windshield is shatter proof and would not break even when hit with a strong impact.While an owner was driving home one day,a small rock hit the windshield and the windshield broke,cutting the driver.What type of warranty was breached?

Accepted Answer

The manufacturer made an express warranty by advertising that the windshield is shatterproof and would not break even when hit with a strong impact. The windshield breaking due to a small rock hitting it means that the express warranty was breached.

Question 5

In Vagias v.Woodmont Properties,Vagias wanted to buy a house in Montville.He told his real estate agent that he wanted to buy there because of the school district's reputation.The agent showed him a house in an edition called "Woodmont Courts at Montville." Vagias asked if the house was within the jurisdictional limits of Montville.The agent and a representative for the builder,who both knew the township boundaries,assured him it was in the city limits.Vagias bought the house but was unable to enroll his son in the school district because the property was outside the city limits.Vagias sued,claiming he paid a premium for the house based on the school district's reputation.The homebuilder argued that the misrepresentations were unintentional and that Vagias did not suffer a loss in the value of his home.The court held that;

Accepted Answer

The court held that Woodmont was liable because the location of the house was the basis of the bargain and the misrepresentation was affirmative which met the requirements of the New Jersey Consumer Fraud Act. The misrepresentation led Vagias to believe that the property was within the boundaries of the desired school district, which influenced his decision to purchase the property. Therefore, Woodmont was held accountable for the misrepresentation of the property's location.

Question 6

Regarding business owners and managers,what is generally considered the most important part of the Truth in Lending Act? Why?

Accepted Answer

The answer of Regarding business owners and managers,what is generally...

Question 7

Which part of the Truth in Lending Act requires that certain disclosures be made before a credit transaction is consummated?

Accepted Answer

Regulation Z, also known as the Truth in Lending Act (TILA), requires that certain disclosures be made before a credit transaction is consummated, such as the annual percentage rate (APR), finance charges, and terms of repayment.

Question 8

Seller lists his car on Craigslist "as is" and "with all faults" in bold,conspicuous letters in the advertisement.Seller knows that the brakes are faulty.Buyer purchases the car and is later injured when the brakes fail and the car is wrecked.Did Seller limit his liability against Buyer in a lawsuit by using the term "as is"?

Accepted Answer

The answer of Seller lists his car on Craigslist "as...

Question 9

Describe how the federal government is protecting consumers online regarding spam.

Accepted Answer

The answer of Describe how the federal government is protecting...

Question 10

Which agency had their oversight power over credit card issuers increased by the Credit Card Accountability Responsibility and Disclosure Act of 2009?

Accepted Answer

The Federal Trade Commission had their oversight power increased over credit card issuers by the Credit Card Accountability Responsibility and Disclosure Act of 2009.

Question 11

The Fair Credit Reporting Act (FCRA)requires that credit bureaus remove bankruptcy filings from credit reports.A bankruptcy filing is considered to be obsolete after how many years?

Accepted Answer

The answer of The Fair Credit Reporting Act (FCRA)requires that...

Question 12

What are some of the ways that the Credit Card Accountability Responsibility and Disclosure Act attempts to protect college students from deceptive practices by credit card companies?

Accepted Answer

The answer of What are some of the ways that...

Question 13

Which of the following must be approved by the FDA before it can be sold to the general public?

Accepted Answer

Food ingredients must be approved by the FDA before they can be sold to the general public. Eggs, produce, and products made from animals are regulated by the USDA, not the FDA.

Question 14

In Hauter v.Zogarts Hauter received a "Golfing Gizmo" that was made by Zogarts as a present.The device was a golf ball attached to string that a user could hit with club.The box that it came in stated,"completely safe,ball will not hit player." Hauter had read the safety manual and used the product a dozen times when he hit the ball too low and was struck in the head with the ball,causing serious injury.Hauter sued for breach of warranty.Zogarts argued that the photos of the man using it properly were a disclaimer and that it was only "completely safe" when used like the photo.The court held that:

Accepted Answer

The court held that Zogarts breached the implied warranty of merchantability because the product was not suitable for its intended purpose of practicing golf safely. The fact that the box stated it was "completely safe" created an express warranty that was not fulfilled. The photos were not considered a disclaimer of the warranty. Hauter's proper use of the product and the lack of an age restriction were not relevant factors in the court's decision.

Question 15

What is the primary purpose of the Truth in Lending Act?

Accepted Answer

The answer of What is the primary purpose of the...

Question 16

Gus owes a lot of money to his creditors.Recently one of the creditors turned over his account to a collection agency.The agency continually calls Gus to try to recover the debt he owes.They have started calling him at work several times a day.May the collection agency do this?

Accepted Answer

The answer of Gus owes a lot of money to...

Question 17

Regarding finance charges and APR,Regulation Z requires that their disclosure:

Accepted Answer

Regulation Z, which implements the Truth in Lending Act, requires that finance charges and the annual percentage rate (APR) be disclosed more conspicuously than other terms to ensure consumers are fully informed about the cost of credit.

Question 18

Casey's identity was stolen.The thieves stole lots of money and took out a loan in Casey's name.She notified all the necessary banks and agencies as soon as she discovered the identity theft.Is Casey's credit protected in this situation?

Accepted Answer

The answer of Casey's identity was stolen.The thieves stole lots...

Question 19

Name and discuss the two categories of warranties.

Accepted Answer

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Question 20

A car dealership advertises a small used car for a great price and a low interest rate loan in the local paper.When Patty comes in to look at that car,the salesman steers her away from the advertised car.Instead the salesman tries to convince her to buy a different used car with a much higher interest rate loan.What unfair sales practice might this be an example of?

Accepted Answer

This is an example of a bait and switch tactic, where the dealership advertises a low-priced car to attract customers but then tries to persuade them to buy a different, more expensive car with less favorable terms.

Quiz 21: Consumer Protection Law