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Test 3 Questions and Correct Answers (elaborations) with 100% Accurate , Verified , Latest fully Updated , 2024/2025 ,Already Passed , Graded A+, Complete solutions guarantee distinctions Rationales

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Test 3 Questions and Correct Answers (elaborations) with 100% Accurate , Verified , Latest fully Updated , 2024/2025 ,Already Passed , Graded A+, Complete solutions guarantee distinctions Rationales

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  • 3 août 2024
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Test 3
False - ✔✔State consumer protection agencies are charged by Congress with the
broadly
stated goal of preventing unfair and deceptive trade practices

False - ✔✔Advertising that appears to be based on factual evidence will not be
deemed
deceptive even if it is not reasonably supported by evidence

True - ✔✔A sanction known as counteradvertising requires a company to advertise
anew
to inform the public about earlier misinformation.

False - ✔✔Advertising that contains an endorsement by a celebrity will not be deemed
deceptive.

False - ✔✔Deceptive advertising does not occur in the online environment.
%

False - ✔✔Puffery constitutes deceptive advertising.

False - ✔✔The Consumer Product Safety Commission is the primary agency that
issues
regulations on food labeling.

False - ✔✔Labels on fresh meats are not required to indicate where the food
originated.

True - ✔✔Restaurants must post guidelines on the number of calories that an average
person requires daily.

True - ✔✔The Federal Reserve Board of Governors has issued a regulation that
governs
credit provisions associated with sales contracts—Regulation Z.

,True - ✔✔Merchants must issue a refund within a specified period of time when a
consumer cancels an order.

True - ✔✔The Food and Drug Administration must ensure the safety of new
medications.

True - ✔✔The Consumer Product Safety Commission conducts research on the
safety of
individual consumer products and maintains a clearinghouse on the risks
associated with various products.

False - ✔✔The Food and Drug Administration does not have the authority to directly
recall
any food products that it suspects are tainted but must rely on the producers to
recall items.

True - ✔✔Insurance companies must spend at least 85 percent of all premium dollars
from
%

large employers on benefits and quality improvements.

False - ✔✔Credit can be denied solely on the basis of race.

True - ✔✔Account numbers on credit-card receipts must be truncated (shortened).

True - ✔✔A credit-card company must send monthly bills to cardholders twenty-one
days
before the due date.

False - ✔✔Major credit reporting agencies must provide consumers with free copies
of their
own credit reports every six months.

True - ✔✔A debt-collection agency is someone who regularly attempts to collect debts
on
behalf of someone else, usually for a percentage of the amount owed.

,a. federal and state law. - ✔✔Through careless manufacturing practices, Metalworks
Company makes and
distributes unsafe products that are sold to Nabi and other consumers. This may
be subject to sanctions under

d. none of the choices. - ✔✔Slow-Brew Coffee Company sells coffee and related
beverages. The company's
ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' "
The Federal Trade Commission would consider this ad to be

d. none of the choices. - ✔✔SmartPhone Company's ad states that its product is "The
Best that Money Can
Buy." Because of this ad, the Federal Trade Commission is most likely to issue

b. a multiple product order - ✔✔Mouth & Gums, Inc. (CSI), engages in deceptive
advertising when it markets its
product Oral Rinse as able to kill germs over long periods of time. In an action
%

against Mouth & Gums, the firm is ordered to stop its false advertising of Oral
Rinse and other products. This is

b. draft a formal complaint. - ✔✔Spicy Salsa, Inc., complains to the Federal Trade
Commission (FTC) about an
ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The
FTC investigates and concludes that the ad is deceptive. The FTC's next step is
to

c. possible fines by the Federal Communications Commission. - ✔✔Medi-Insurance
Company faxes ads to Nancy and other individual consumers
without the recipients' permission. This is subject to

d. warranted by the nature of the food. - ✔✔Sweet Treats, Inc., wants to market a new
snack food. On the product's label,
standard nutrition facts are

, a. a restaurant chain with twenty or more locations. - ✔✔Under federal law, the calorie
content of the food on a menu must be posted by
Organic Mix, LLC, if Organic Mix is

d. the Food and Drug Administration. - ✔✔Nature's Food Market sells groceries.
Metro Snacks & Drug Store sells groceries
and fills prescriptions. The party with the chief responsibility to prevent unsafe
food and drugs from being sold is

d. remove the tool from the market. - ✔✔Grid Tool Company makes and sells tools.
One of the tools is believed to be
hazardous. The appropriate government agency may require Grid to

d. the Truth-in-Lending Act. - ✔✔Grover signs an installment contract with Home
Appliance Store to finance the
purchase of new kitchen appliances—stove, refrigerator, dishwasher,
microwave, and toasteroven—for $3,999. This transaction is subject to
%

d. the Truth-in-Lending Act. - ✔✔Tory borrows $10,000 from USA National Bank to
remodel a room in her home.
This transaction is subject to

d. the car loan, the home repair loan, and the retail installment sale. - ✔✔Cecilia
borrows $20,000 from Debit & Credit Union to repair her home and to buy
a car. She buys a laptop from eStuf Store in a transaction financed by the seller.
If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

d. race. - ✔✔. QuikPay Inc. extends credit to consumers. QuikPay is subject to the
Equal Credit
Opportunity Act, which prohibits credit discrimination based on

d. not liable for any amount. - ✔✔Jasmine receives an unsolicited credit card in the
mail and tosses it on her desk.
Without Jasmine's permission, her roommate Ilene uses the card to buy a new tablet
for $500. Jasmine is

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