Quiz 7

Question 1

Consumer Products Safety Commission

Answer 1

Sets safety standards for consumer products

Bans manufacture/sale of risky products
Removes hazardous products from market

Requires manufacturers to report of any products already sold/intended for sale if they’re hazardous

Distributors of a product must notify CPSC immediately if they find out a product is defective

Question 2

Food and Drug Administration

Answer 2

Ensures the safety of food

Makes sure drugs are safe and effective

Question 3

Types of Deceptive Advertising

Answer 3

Claims that appear to be based on facts but aren’t reasonably supported by evidence

Claims based of half-truths (true but incomplete info may lead consumers to a false conclusion)
(Soups example)

Question 4

Types of Deceptive Advertising: Bait-and-Switch

Answer 4

Advertise at a lower price to lure customers in to buy more expensive items

The seller:
Refuses to show advertised item
Fails to have reasonable quantity in stock
Won’t promise to deliver the item within a reasonable time
Discourages employees from selling product

Question 5

Types of Deceptive Advertising: Online

Answer 5

Ads must disclose relevant limitations and qualifying info concerning the claims advertisers make

Disclosers must be clear and conspicuous

Question 6

FTC orders when advertising is deceptive

Answer 6

Cease-and-Desist: company must stop the challenged advertising

Counter-Advertising: company must inform public about the armies misinformation

Multiple product order: company must stop false advertising for all its products, not just the one involved in the original action

If a consumer’s injured from deceptive advertising, FTC may seek damages or restitution

Question 7

Door-to-Door Sales

Answer 7

“Cooling-off” laws allow buyers of goods sold door to door or at trade shows to cancel their contracts within 3 business days

Question 8

Mail-Order Sales and Sales via Fax

Answer 8

Protects consumers who purchase goods via mail, internet, phone, or fax

Merchants are required to ship orders within the promised time and notify customers when orders can’t be shipped in time

30 days if no estimated shipping time

Merchants must also issue a refund within a specified period of time when a consumer cancels an order

Question 9

Truth in Lending Act (TILA)

Answer 9

Applies to people who, in the ordinary course of business:

Lend funds
Sell on credit, or
Arrange an extension of credit

If 4+ payment installments, Regulation Z applies, all credit terms must be clear and conspicuous

Credit Protection: TILA limits consumer liability for credit card debts in cases of stolen cards to $50
Credit card company must intervene if consumer and seller can’t resolve a billing dispute

Question 10

Fair Debt Collection Practices Act

FDCPA

Answer 10

Creditor attempting to collect debt isn’t covered by act

Collection Agency can’t:

Contact debtor in place of employment

Contact debtor during inconvenient/unusual times or when debtor is being represented by an attorney

Contact third parties other than debtor’s parents, spouse, or financial advisor

Harass/ intimidate debtor or make false statements

Communicate with debtor at any time after receiving notice that they’re refusing to pay the debt

Question 11

Ownership interest in real property: Free Simple

Answer 11

(Fee simple absolute)

Owner has greatest aggregation of rights, privilege, and power possible

Owner has indefinite right to exclusive possession and use of land, can give it away by deed or will

Question 12

Ownership interest in real property: Life Estate

Answer 12

Last the life of some specified person

Transfer by owner “to A for his life, then to B” creates a life estate in A (present interest)

When A dies, property passes to B (future interest, remainder)

If it’s just “to A for his life”, property reverts back to owner (future interest)

Question 13

Concurrent Ownership: Tenancy in Common

Answer 13

Each owns an undivided interest in the property

On the death of one, interest passes to their heirs

Question 14

Concurrent Ownership: Joint Tenancy

Answer 14

Each owns an undivided interest in property, but a deceased joint tenant’s interest passes to the surviving joint tenant (Right of Survivorship)

Joint tenant can transfer ownership to someone else with the consent of the other joint tenants, in which case joint tenancy and right of survivorship is terminated and it becomes a tenancy in common

Question 15

Concurrent Ownership: Tenancy by Entirety

Answer 15

Ownership by married persons in which each spouse has a right of survivorship

Divorce or mutual agreement will terminate this ownership

Question 16

Concurrent Ownership: community property

Answer 16

Property acquired during marriage in which each spouse technically owns an undivided one-half interest in the property, even if the property is only in one of their names

Question 17

Easement

Answer 17

Right of a person to make limited use of another’s property without taking anything away (like walking across someone’s land)

Question 18

Profit

Answer 18

Right to go onto land owned by another and take away some part of it (trees, oil, etc)

Question 19

License

Answer 19

Revocable right of a person to come onto another’s land that arises from consent of the property owner (like parking a car in someone’s driveway)

License doesn’t obtain a permanent interest in the land

Question 20

Leasehold Estate: Fixed term tenancy

Answer 20

(Tenancy for years)

Express contract/lease for a specified period of time

At the end of the period, lease ends without notice

Question 21

Leasehold Estate: Periodic Tenancy

Answer 21

Created by a lease with no definite duration but with specification that rent must be paid at certain intervals

A party must give at least one period’s notice to terminate this

Question 22

Leasehold Estate: Tenancy at Will

Answer 22

Occurs when either party can terminate the tenancy without notice (rare)

Question 23

Leasehold Estate: Tenancy at Sufferance

Answer 23

Possession of property without a right that is created when a tenant wrongfully retains possession of property

Question 24

Eminent Domain

Answer 24

Government has ultimate ownership right in all land in the US and can take (condemn) private property for public use

Must pay compensation to owner

The taking: first phase of condemnation, the government must prove that it needs the land for public use