Chapter 2

Question 1

List the 6 categories of consumer crimes

Answer 1

crimes of consumer fraud, false advertising, and price-fixing ,crimes of adulterated goods, dangerous drugs and devices, and quackery

Question 2

Define Consumer Fraud

Answer 2

Consumer fraud entails the use of deceit, lies, or misrepresentations to entice customers to buy goods or services

Question 3

List some types of consumer fraud

Answer 3

s overcharging and unnecessary repairs.

Question 4

What department enforces both civil and criminal consumer protection at the federal level

Answer 4

Department of Justice (DOJ)

Question 5

What charged does the DOJ typically bring?

Answer 5

wire fraud, mail fraud, conspiracy to engage in fraud, and money laundering

Question 6

Who prosecutes consumer fraud at the state level?

Answer 6

Attorneys General

Question 7

What are reload scams?

Answer 7

scams that Con artists often go after consumers who have already been victimized

Question 8

What is a rip and tear” swindler?

Answer 8

Someone posing as a law enforcement official, convinces consumers who have been victimized to pay a fee to recover some of their losses.

Question 9

What does false advertising involve?

Answer 9

False advertising involves false, misleading, and deceptive representations about goods and services

Question 10

What act provides for a private civil claim for false advertising

Answer 10

The federal Lanham Act

Question 11

What must a claimant show and what is their reward?

Answer 11

must show that the advertisement is false or likely to mislead and confuse consumers. The successful claimant can receive monetary damages and an injunction to stop the advertisement.

Question 12

Who is charged with monitoring false advertisement complaints, usually filed by consumers or competitors at the federal level?

Answer 12

FTC

Question 13

Who regulates “bait and switch”

Answer 13

FTC

Question 14

What tools can the state and federal use to stop false advertising?

Answer 14

including voluntary compliance, cease-and-desist orders, injunctions, collection of damages for injured consumers, requiring a corrective advertisement with admission of the deception, and criminal penalties.

Question 15

To prove false advertisement, what do they need to show?

Answer 15

the advertisement was deceptive or false.

Question 16

What does the gov’t need to prove to show that false advertising was criminal?

Answer 16

prove an intention to defraud

Question 17

What is the purpose of antitrust laws?

Answer 17

to keep the prices of goods and services down, but quality up.

Question 18

How do anti-trust laws protect consumers?

Answer 18

regulating practices such as price fixing, bid rigging, price gouging, predatory pricing, and forming monopolies.

Question 19

To prove common-law fraud what must the gov’t show

Answer 19

false statement concerning a material fact the intent is knowingly

Question 20

Name the elements of consumer fraud

Answer 20

The existence of a scheme to defraud

The use of the mail or interstate wire to further the scheme to defraud

Question 21

Name some defenses to consumer fraud

Answer 21

claiming there was no scheme, the required vehicle (wire or mail) for delivery of a communication was not used, or no communication was transmitted. Entrapment and no false statement made knowingly

Question 22

What is the punishment for telemarketing fraud?

Answer 22

Up to 5 years in prison, unless the person is over 55 and then it up to 10 years in prison in addition to

Question 23

Who are the most frequent anti-trust violators?

Answer 23

The pharmaceutical, oil, airline, and dairy industries

Question 24

What is the purpose of the the purpose of antitrust legislation

Answer 24

to keep prices down and quality up,