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The Regulation of Consumer Protection

Description: This quiz covers the key concepts, laws, and regulations related to consumer protection.
Number of Questions: 15
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Tags: consumer protection consumer rights consumer law economic regulation
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Which federal agency is responsible for enforcing consumer protection laws in the United States?

  1. Federal Trade Commission (FTC)

  2. Consumer Financial Protection Bureau (CFPB)

  3. Food and Drug Administration (FDA)

  4. Securities and Exchange Commission (SEC)


Correct Option: A
Explanation:

The Federal Trade Commission (FTC) is an independent agency of the United States government that enforces consumer protection laws and promotes competition in the marketplace.

What is the primary goal of consumer protection laws?

  1. To protect consumers from unfair or deceptive business practices

  2. To ensure the safety and quality of products and services

  3. To promote competition in the marketplace

  4. To regulate the prices of goods and services


Correct Option: A
Explanation:

Consumer protection laws aim to protect consumers from unfair or deceptive business practices, such as false advertising, deceptive pricing, and predatory lending.

Which law prohibits unfair or deceptive acts or practices in commerce?

  1. The Sherman Antitrust Act

  2. The Clayton Act

  3. The Federal Trade Commission Act

  4. The Consumer Product Safety Act


Correct Option: C
Explanation:

The Federal Trade Commission Act prohibits unfair or deceptive acts or practices in commerce. It gives the FTC the authority to investigate and take action against companies that engage in such practices.

What is the purpose of the Consumer Product Safety Act?

  1. To protect consumers from unsafe products

  2. To regulate the prices of consumer products

  3. To promote competition in the consumer product market

  4. To provide financial assistance to consumers who have been harmed by unsafe products


Correct Option: A
Explanation:

The Consumer Product Safety Act aims to protect consumers from unsafe products by setting safety standards for consumer products and giving the Consumer Product Safety Commission (CPSC) the authority to recall unsafe products from the market.

Which law regulates the advertising of food and drugs?

  1. The Federal Food, Drug, and Cosmetic Act

  2. The Fair Packaging and Labeling Act

  3. The Magnuson-Moss Warranty Act

  4. The Truth-in-Lending Act


Correct Option: A
Explanation:

The Federal Food, Drug, and Cosmetic Act regulates the advertising of food and drugs to ensure that they are safe and accurately labeled.

What is the purpose of the Fair Credit Reporting Act?

  1. To protect consumers from inaccurate or misleading credit reports

  2. To regulate the interest rates that lenders can charge

  3. To provide financial assistance to consumers who have been denied credit

  4. To promote competition in the credit reporting industry


Correct Option: A
Explanation:

The Fair Credit Reporting Act aims to protect consumers from inaccurate or misleading credit reports by giving them the right to access their credit reports, dispute any errors, and limit the use of their credit information.

Which law regulates the sale of used cars?

  1. The Magnuson-Moss Warranty Act

  2. The Used Car Rule

  3. The Truth-in-Lending Act

  4. The Fair Debt Collection Practices Act


Correct Option: B
Explanation:

The Used Car Rule regulates the sale of used cars by requiring dealers to disclose certain information to consumers, such as the car's mileage, history, and warranty coverage.

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

  1. To regulate the interest rates that lenders can charge

  2. To provide financial assistance to consumers who have been denied credit

  3. To promote competition in the credit industry

  4. To protect consumers from inaccurate or misleading credit reports


Correct Option: A
Explanation:

The Truth-in-Lending Act regulates the interest rates that lenders can charge by requiring them to disclose the annual percentage rate (APR) and other credit terms to consumers before they sign a loan agreement.

Which law regulates the collection of debts?

  1. The Fair Debt Collection Practices Act

  2. The Magnuson-Moss Warranty Act

  3. The Used Car Rule

  4. The Truth-in-Lending Act


Correct Option: A
Explanation:

The Fair Debt Collection Practices Act regulates the collection of debts by prohibiting debt collectors from engaging in unfair or deceptive practices, such as harassment, threats, and false statements.

What is the purpose of the Magnuson-Moss Warranty Act?

  1. To protect consumers from inaccurate or misleading credit reports

  2. To regulate the interest rates that lenders can charge

  3. To provide financial assistance to consumers who have been denied credit

  4. To protect consumers from unfair or deceptive warranty practices


Correct Option: D
Explanation:

The Magnuson-Moss Warranty Act protects consumers from unfair or deceptive warranty practices by requiring sellers to provide written warranties for certain products and giving consumers the right to sue for breach of warranty.

Which law regulates the safety of toys?

  1. The Consumer Product Safety Act

  2. The Federal Food, Drug, and Cosmetic Act

  3. The Fair Packaging and Labeling Act

  4. The Magnuson-Moss Warranty Act


Correct Option: A
Explanation:

The Consumer Product Safety Act regulates the safety of toys by setting safety standards and giving the Consumer Product Safety Commission (CPSC) the authority to recall unsafe toys from the market.

What is the purpose of the Fair Packaging and Labeling Act?

  1. To protect consumers from unsafe products

  2. To regulate the prices of consumer products

  3. To promote competition in the consumer product market

  4. To ensure the accuracy and clarity of product labels


Correct Option: D
Explanation:

The Fair Packaging and Labeling Act aims to ensure the accuracy and clarity of product labels by requiring manufacturers to provide consumers with information about the product's contents, quantity, and other important details.

Which law regulates the sale of electronic products?

  1. The Consumer Product Safety Act

  2. The Federal Food, Drug, and Cosmetic Act

  3. The Fair Packaging and Labeling Act

  4. The Electronic Products Radiation Control Act


Correct Option: D
Explanation:

The Electronic Products Radiation Control Act regulates the sale of electronic products by setting radiation safety standards and giving the Food and Drug Administration (FDA) the authority to recall unsafe electronic products from the market.

What is the purpose of the Telephone Consumer Protection Act?

  1. To protect consumers from unwanted telemarketing calls

  2. To regulate the prices of telecommunications services

  3. To promote competition in the telecommunications industry

  4. To ensure the privacy of consumers' telephone records


Correct Option: A
Explanation:

The Telephone Consumer Protection Act aims to protect consumers from unwanted telemarketing calls by giving them the right to opt out of receiving such calls and by prohibiting telemarketers from calling consumers at certain times of day.

Which law regulates the sale of hazardous substances?

  1. The Consumer Product Safety Act

  2. The Federal Food, Drug, and Cosmetic Act

  3. The Fair Packaging and Labeling Act

  4. The Poison Prevention Packaging Act


Correct Option: D
Explanation:

The Poison Prevention Packaging Act regulates the sale of hazardous substances by requiring manufacturers to use child-resistant packaging for certain products, such as medicines, household cleaners, and pesticides.

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