Multiply Choice

1. Dell advertised that a computer came with particular software. In fact, the software was not available for several months. Instead, Dell sent customers a coupon for the software “when available.” What did Dell do wrong?

I. Failed to offer buyers the opportunity to cancel their orders

II. Did not automatically cancel the orders

III. Did not ship the software within 30 days

(a) I and II

(b) I, II, and III

(c) I and III

(d) II and III

2.

When customers called the number provided, New Rapids Carpet Center, Inc., sent salespeople to visit them at home to sell them carpet that was not as advertised—it was not continuous filament nylon pile broadloom, and the price was not $77. What set of rules has New Rapids violated?

(a) Unordered merchandise

(b) Consumer Product Safety Act

(c) Bait and switch

(d) Fair Credit Reporting Act

3. Which of the following laws set limits on interest rates?

(a) State usury laws

(b) TILA and state usury laws

(c) TILA

(d) None; there are no limits on interest rates

4. Companies must obtain permission from a consumer before charging for overdrafts on:

(a) Debit cards

(b) Credit cards

(c) Neither

(d) Both

5. You notice a charge on your credit card bill of $149.99 for a kayak. This seems very strange to you because you have not purchased a kayak. What do you need to do to avoid having to pay this charge?

(a) Call the store

(b) Call the credit card company

(c) Write the store

(d) Write the credit card company

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