The Equal Credit Opportunity Act:
a. regulates the reporting and use of credit information; limits consumer liability for stolen credit cards to $50.
b. prohibits discrimination in credit transactions because of gender, marital status, race, national origin, religion, age, or receipt of public assistance.
c. empowers the FTC to determine rules concerning consumer warranties and provides for consumer access to means of redress, such as the "class action" suit.
d. makes it a federal crime to defraud consumers through use of the mail.
e. requires lenders to state the true costs of a credit transaction; established a National Commission on Consumer Finance.
Answer: B
Learn More :
Retailing Chapter 6
- Which of the following statements is FALSE?
- Which of the following is NOT an ethical dilemma that a retailer faces when buying merchandise?
- The specific content of these laws varies, but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.
- ____ restrict the sale of certain products on Sundays.
- Green River Ordinances restrict selling:
- ____ is an unwritten but well understood set of rules or standards of moral responsibility.
- A tying agreement:
- When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control, it is:
- ____ regulate the importing and exporting activities of American firms.
- Which of the following laws prohibit retailers from operating in certain locations and require building and sign specifications to be met?
- Which of the following statements about dual distribution is incorrect?
- Which of the following statements about one-way exclusive-dealing arrangements is true?
- As a rule, truly one-way exclusive dealing arrangements between vendors and retailers are:
- A _____ agreement exists when the supplier offers the retailer the exclusive distribution of a merchandise line or product, and in return the retailer agrees not to handle competing brands.
- When the customer relies on the retailer to make a selection of goods to serve a particular purpose, it is termed a(n):
- The Magnuson-Moss Warranty Act only applies to written warranties on:
- Attempts by a manufacturer to limit the geographical area in which a retailer may resell its products are called _____ restrictions.
- Nike engaged in dual distribution when it began:
- Identify the incorrect statement about expressed warranties.
- A salesperson tells a customer, "Ninety percent of the people we've sold these tires to over the past five years have gotten at least 25,000 miles of use out of them without any problems. Therefore, I can assume that you should get no less than 30,000 miles with them given the way you drive." The salesperson:
- The Sports Barn sells football helmets for PeeWee football, and a customer buys one for his son. The helmet cracks in several places as the son makes a tackle during a game later that fall, leaving the boy seriously injured. The _____ makes the retailer potentially liable.
- Identify the incorrect statement about an implied warranty of merchantability.
- Entertainment City advertised, in its Christmas circular, a portable compact disc player on sale for $45. Sales clerks were informed that they were to attempt to persuade customers interested in the "on-sale" CD player to purchase the higher quality, $115 model. In addition, no commission will be paid on the lower priced CD player. Entertainment City is engaged in the practice of:
- Three product constraints that influence a retailer's product decisions are:
- This new law was the aftermath of a public outcry over imports of tainted toothpaste and pet food, as well as the infamous importation of lead-laden toys from Asia, especially China.