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Product Liability and Consumer Protection Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Mary's three-year old daughter Megan competes in pageants. Mary buys a new curling iron to style Megan's hair. The first time she uses it, Megan's hair is melted and her skin is burned. Mary calls the company to complain and they tell her the curling iron is designed only for use on adult hair. This is an example of _____.

Question 2 2. How does the Uniform Deceptive Trade Practices Act differ from the Lanham Act?

Question 3 3. The theory of product liability which assumes the existence of a contract between the parties is called _____.

Question 4 4. This law prevents discrimination by creditors in all decisions involving credit:

Question 5 5. Molly was excited to use her tax refund to purchase a brand new dining room set. To her dismay, when the new furniture was delivered to her home, she detected several nicks in the table and some snags and dirt marks on the chair cushions. Molly called the store to reject her order and demand that her deposit be immediately returned. The manager of the store refused, and Molly was forced to take legal action. The laws that safeguard Molly's rights as a customer are called _____.

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Question 6 6. The Federal Trade Commission is made up of several different bureaus. Which bureau handles credit protection?

Question 7 7. Sally received a copy of her credit report and noticed an error. The report lists a credit card she has never owned. She wants to dispute this error. What law contains information about how to do this?

Question 8 8. Steve's new motor scooter leaked gas on his way to work. Now he's out of gas and stranded. While complaining to a friend, he finds out that this is apparently a common problem with these scooters. What is this an example of?

Question 9 9.

Consumer protection is based on consumer rights, or the idea that consumers have an inherent right to basic health and safety. The FTC protects these rights by:

1. Enforcing product safety

2. Distributing consumer-related information

3. Encouraging deceptive marketing

Question 10 10. Because of this, the company must tell the individual what type of non-public financial information they collect and explain how they use and share that information.

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Question 11 11. Wilma used to work for me and recently started her own business. I never gave Wilma permission to use my logo, yet her new business logo looks just like mine! Since Wilma used to work for me, I know she copied my logo on purpose. This is an example of a:

Question 12 12. Emily missed a few payments on her credit card while she was out of work. Now she has a debt collector calling her, sometimes up to 20 times a day. Which act is the debt collector violating?

Question 13 13. A business advertises a low cost item to bait a customer into a store, and then switches the item for something higher priced. This is called:

Question 14 14. McDonald's was held liable for injuries to customers caused by its coffee being too hot. Why was the liability based on the theory of negligence?

Question 15 15. The section of the Gramm-Leach-Bliley Act that requires companies to give individuals the right to opt-out of some information sharing is known as:

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Question 16 16. Of the following statements, which one BEST explains how the theory of negligence differs from the theory of strict liability?

Question 17 17. 'Greener grass in 30 days' is an warranty, whether or not the word 'guaranteed' is actually used.

Question 18 18.

According to product liability, businesses will be found liable to consumers when a court finds:

1. Design flaws

2. Manufacturing defects

3. A failure to warn consumers of a possible danger

Question 19 19. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 20 20. Maria answered an ad offering two tickets to a movie for just $10. When she went to the box office to buy the tickets, she was told those were matinee tickets and were sold out. She was offered only evening tickets for $10 each. Why is this an example of bait and switch?

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Question 21 21. A lawnmower is normally used for cutting grass. If the lawnmower doesn't come with a blade or the blade is too dull, then the lawnmower won't be fit for its ordinary purpose. This is an example of:

Question 22 22. The Gramm-Leach-Bliley Act is the main law governing:

Question 23 23. The 'Exploding Coca-Cola Case' is based on which of the following types of product liability?

Question 24 24. This required lenders to more fully disclose loan terms:

Question 25 25. The organization that enforces consumer protection laws and regulations and conducts investigations and litigation regarding fraudulent, unfair, or deceptive business practices is known as:

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Question 26 26. Which section of the Gramm-Leach-Bliley Act requires companies to give individuals privacy notices?

Question 27 27. Product liability laws are:

Question 28 28. Unlike the other two sections of GLBA, these provisions don't apply to financial institutions. Rather, they prohibit individuals and companies from obtaining customer information from financial institutions under false pretenses

Question 29 29. Identify which of the following is a profile in which the Federal Trade Commission should MOST aim to protect:

Question 30 30. Jane was injured when a hair dryer that she purchased from ABC Corporation caught on fire. She was using it normally. Why would ABC be held liable for the defective hair dryer according to the strict liability theory of product liability?

Product Liability and Consumer Protection Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!