Consumer Bowl Review

1. Consumer Bowl Review Review Panel 6 Class Version

2. Predatory lending refers to… • A) when a lender targets consumers in an area to increase business. • B) an illegal practice where a lender charges excessive fees or rates • C) an illegal practice where a lender offers loans to low-income customers

3. Answer • B) an illegal practice where a lender charges excessive fees or rates

4. How do predatory lenders usually market their services? • A) by door-to-door sales • B) by phone • C) by email • D) Both A and B

5. How much money do travel scammers make annually? • A) $6 billion • B) $12 billion • C) $20 billion

6. Answer • B) $12 billion

7. FTC Regulations state a telemarketer can only call between what hours?

8. Answer • 8:00 am and 9:00 pm

9. What is the Alternative Dispute Resolution • A) a way to mediate consumer complaints • B) a group that makes recommendations on how to combat senior citizen fraud • C) All of the above

10. Answer • A) a way to mediate consumer complaints

11. For a 1st violation ticket scalping can result in a penalty of up to • A) $1,000 • B) $6,500 • C) $7,500

12. Answer • C) $7,500

13. It is unlawful to resell tickets for more than • A) $3.00 or 20% above face value • B) $3.00 or 30% above face value • C) $4.00 or 40% above face value

14. Answer • A) $3.00 or 20% above face value

15. What is a responsibility of the NHTSA? • A) investigate safety defects in motor vehicles • B) monitor gas prices • C) regulate traffic signs and lights

16. Answer • A) investigate safety defects in motor vehicles

17. What are 2 things a telemarketer must disclose to you?

18. Answer • Their identity • Purpose for the call • Nature of the goods being sold • Return and refund policy

19. ABC Food Market places the following ad in the local Sunday paper 2 weeks before Thanksgiving. “Turkey $.25 per pound. Regular price is $1.69 per pound.” Each store receives 5 turkeys for the sale 30 people arrive at the store the next day. • A) Each customer must receive a rain check • B) The store is in violation of the Consumer Fraud Act because they did not have sufficient quantity • C) The store is within its legal rights

20. Answer • B) The store is in violation of the Consumer Fraud Act because they did not have sufficient quantity

21. Mary Jones ordered children’s books from Amazon. She called the toll free 800 number and paid for the purchase with her VISA. Delivery was promised within 30 days. 90 days later the books hadn’t arrived. Which of the following is NOT correct? • A) the company must send a letter or notice stating the delay • B) The company may send substitute material • C) The company can wait until their shipment arrives and then send the ordered book

22. Answer • C) The company can wait until their shipment arrives and then send the ordered book

23. Which federal agency has jurisdiction over telemarketing fraud? • A) FTC (federal trade commission) • B) FCC (federal communications commission) • C) SEC (securities and exchange commission)

24. Answer • A) FTC (federal trade commission)

25. All of the following commodities use pounds as their approved unit of measurement EXCEPT… • A) cheese • B) bottled beverages • C) flour

26. Answer • B) bottled beverages

27. All lumber sold in the state of New Jersey MUST disclose the… • A) grade of wood • B) date it was milled • C) forest it was cut from

28. Answer • A) grade of wood

29. Lumber that has been treated must disclose all of the following EXCEPT • A) the year of treatment • B) the name and location of the treatment processors • C) the price of lumber yard paid for the lumber

30. Answer • C) the price of lumber yard paid for the lumber