TJ_Comp 20_TB_Ch33

TJ_Comp 20_TB_Ch33 - Chapter 33—CONSUMER PROTECTION...

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Unformatted text preview: Chapter 33—CONSUMER PROTECTION TRUE/FALSE 1. The aim of consumer-protection legislation is to protect persons of limited means and limited know- ledge. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 2. The category of protected consumers has been expanded by the social forces of protecting the person and protecting from fraud, exploitation, and oppression. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. Consumer-protection statutes apply only in situations in which the statute is intentionally violated. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 4. A consumer claiming that there has been a violation of the consumer-protection statute has the burden of proving that the statutory definition of "consumer" has been satisfied. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. A defendant in consumer-protection cases is a person or enterprise that regularly enters into the kind of transaction in which the injured consumer was harmed. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. Consumer protection even protects a consumer from the consumer's own negligence. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. Consumer-protection law often requires those dealing with consumers to make certain mandated dis- closures. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. A consumer need show only that a defendant has broken a contract to recover under a fair-business practices or deceptive-trade-practices act. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 9. The FTC requires that an advertiser maintain a file containing the data claimed to support statements relevant to the safety, performance, efficacy, quality, or comparative price of an advertised product. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 10. Corrective advertising required by the FTC also is called retractive advertising. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 11. Where a business is charged with deceptive advertising, the good faith of the advertiser and the lack of fraudulent motives are defenses. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 12. Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. The FTC insists that only such descriptive and well-understood terms as jumbo, giant, or full be used in product labeling. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 14. To be found guilty of violating a consumer-protection statute or a deceptive-trade-practice act, a de- fendant must be proven guilty of fraud. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 15. Consumer-protection statutes designed to prohibit the use of improper and deceptive selling methods are liberally construed to protect consumers....
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch33 - Chapter 33—CONSUMER PROTECTION...

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