Reference no: EM132245032
1. All but which of the following statements is true of the Federal Trade Commission and consumer privacy?
A. It enforces its "Red Flags Rule," under which all "financial institutions" and "creditors" must establish a written program to prevent identity theft in their organizations.
B. Courts have confirmed the Commission’s authority to sue firms whose lax security policies result in compromised consumer privacy.
C. It may require companies who do not protect consumer privacy to mitigate whatever losses may come from identity theft.
D. It is solely responsible for enforcing Consumer Privacy Protection Act.
2. Andrew sold a painting to Henry claiming it was an original Matisse. However, Andrew had recently bought the painting from an artist who specializes in reproducing original masters. When Henry showed the painting to an arts dealer, the dealer pointed out that it was a fake. Thus, Henry was a victim of _____.
A. unconscionability
B. fraud
C. negligent misrepresentation
D. slander
3. Under the Fair Credit Billing Act (FCBA) where a "reasonable investigation" determines the credit card statement was correct and the consumer continues to contest it, which of the following is false?
A. The consumer must be told who received the credit report which contains the delinquency information.
B. The wronged consumers do not have the right to sue for damages.
C. The creditor must give the consumer 10 days to pay the disputed amount before beginning collection procedures.
D. The creditor may report the bill to the credit bureau as being delinquent.