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A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.

A) True
B) False

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Verna makes a living by commercial fishing in a river allegedly polluted by Wall Paint Company. To bring a suit against Wall Paint on the ground of private nuisance, Verna must allege that she suffers from


A) a distinct harm separate from that affecting the general public.
B) a lesser harm than an injunction would impose on Wall Paint.
C) Wall Paint's failure to use reasonable care to avert herm to Verna.
D) the same harm as that affecting the general public.

E) A) and B)
F) A) and C)

Correct Answer

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Public water system operators must meet the Environmental Protection Agency's standards regardless of the economic and technological feasibility.

A) True
B) False

Correct Answer

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Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is


A) a restaurant chain with twenty or more locations.
B) a food distributor with twenty or more customers.
C) a food processor with twenty or more products.
D) a food producer with twenty or more acres.

E) C) and D)
F) None of the above

Correct Answer

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Vending Products Company operates a vending machine manufacturing plant on Wandering River. Discharging pollutants from the plant into the river can re?sult in


A) civil penalties and criminal penalties.
B) civil penalties only.
C) criminal penalties only.
D) no penalties.

E) A) and D)
F) B) and C)

Correct Answer

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When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.

A) True
B) False

Correct Answer

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Creditworthy Loan Company extends credit in the ordinary course of its busi?ness. Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of


A) credit terms offered by other lenders.
B) comparative prices for goods to be bought with the borrowed funds.
C) Creditworthy's credit terms.
D) the borrowers' credit scores.

E) A) and C)
F) C) and D)

Correct Answer

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Those who knowingly violate the Clean Air Act are exempt from criminal penalties.

A) True
B) False

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There are no plans to develop national standards regulating the fuel economy and emissions for medium- and heavy-duty trucks.

A) True
B) False

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Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue


A) a cease-and-desist order.
B) a counteradvertising order.
C) a multiple product order.
D) none of the choices.

E) A) and C)
F) A) and B)

Correct Answer

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Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

A) True
B) False

Correct Answer

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Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates


A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

E) A) and D)
F) B) and D)

Correct Answer

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The key federal statute regulating the credit and credit-card industries is basically a disclosure law.

A) True
B) False

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New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is


A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

E) B) and C)
F) All of the above

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The courts have considerably scaled back the Clean Water Act's protection of wetlands.

A) True
B) False

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Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law.

A) True
B) False

Correct Answer

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Rural Electric Company submits a bid to build a dam on federal land as part of a federal project. For this action, an environmental impact state?ment is most likely


A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

E) None of the above
F) A) and B)

Correct Answer

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Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is


A) prohibited.
B) required.
C) unnecessary.
D) voluntary.

E) A) and B)
F) A) and C)

Correct Answer

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A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

A) True
B) False

Correct Answer

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Orange Company makes cellphones. The company's ad states that "if you aren't usin' an Orange, you aren't gettin' any 'C.' " The Federal Trade Com?mission would consider this ad


A) false and misleading.
B) impermissibly vague and general.
C) a deceptive half-truth.
D) none of the choices.

E) C) and D)
F) B) and C)

Correct Answer

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