QUESTION 1

Under the Fair Debt Collection Practices Act, a collection company is legally permitted to

a.call the debtor at any time of the day.

b.call acquaintances of the debtor to tell them that the consumer is in debt.

c.call the debtor even if the debtor has requested in writing that he or she wishes no further contact.

d.visit the debtor at work if the consumer's employer permits such contact.

QUESTION 2

Blogs and social media ads must clearly indicate that they are, in fact, ads by including some equivalent of "ad" or "sponsored."

True

False

QUESTION 3

Sandy noticed an unauthorized electronic funds withdrawal on her bank statement. In order for her tonotbe liable for the withdrawal, she must notify her bank within _______ of the date of the bank statement.

a.10 days

b.30 days

c.60 days

d.90 days

QUESTION 4

A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesperson leaves, Mary begins to have second thoughts about the transaction. Which statement about the situation is correct?

a.Mary agreed to purchase the vacuum, so she must honor the agreement.

b.Mary can keep the vacuum without paying when it is delivered, as it was purchased in her home.

c.Mary can cancel the transaction at any time before midnight of the third business day thereafter.

d.Mary must pay for the vacuum, but she can get a refund if she returns it to the manufacturer within 30 days.

QUESTION 5

Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was incorporated, Sara signed a contract in the name of Gomo, Inc. to lease a store front. Sara did not tell the other party that Gomo was not yet formed. Sara is personally liable on the lease.

True

False

QUESTION 6

The Fun Tyme Toy Company discovers that one of its products can easily break, exposing children to potential injury from the sharp parts. Under the Consumer Product Safety Act of 1972, how long does Fun Tyme have to report this defect to the Consumer Product Safety Commission?

a.3 days

b.30 days

c.24 hours

d.7 days

QUESTION 7

Terminating a corporation is a three-step process: dissolution, winding up, and termination.

True

False

QUESTION 8

MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children. Because of MoneyMaker's actions

a.the CPSC can impose civil penalties on the company.

b.the CPSC can impose criminal penalties on the company.

c.users can sue for damages, including attorney's fees, if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns.

d.All of these are correct.

QUESTION 9

A proxy is a vote that is mailed in, like an absentee ballot.

True

False

QUESTION 10

The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited.

True

False