Suggested Additional Assignments s2

Chapter 39 CONSUMER AND ENVIRONMENTAL LAW

Practice Test True/False Questions Circle true or false: 1. T F If a store advertises a product, it must have enough stock on hand to fill every order. 3. T F Under usury laws, lenders are limited in the amount of interest they can charge. 5. T F A consumer reporting agency has the right to keep information in its files secret. 7. T F The Clean Water Act requires anyone discharging pollution into water to obtain a permit from the EPA.

Multiple-Choice Questions

9. If you receive a product in the mail that you did not order: (a) You must pay for it or return it. (b) You must pay for it only if you use it. (c) You must throw it away. (d) It is a gift to you. (e) You must pay for it but the company must reimburse you for postage.

11. Depending on state law, if a lender violates the usury laws, the borrower could possibly be allowed to keep: I. The interest that exceeds the usury limit. II. All the interest. III. All of the loan and the interest. (a) I, II, and III. (b) Only I. (c) Only II. (d) Only III. (e) Neither I, II, nor III.

13. Which of the following statements is true of Superfund? I. Anyone who has ever owned a site is liable for clean-up costs. II. Anyone who has ever transported waste to a site is liable for clean-up costs. III. Anyone who has ever disposed of waste at a site is liable for clean-up costs. (a) Neither I, II, nor III. (b) I, II, and III. (c) I and II. (d) II and III. (e) I and III.

160 161 Unit 6 Property and Consumer Law

Short-Answer Questions 15. The court held that Collections' letter violated the Fair Debt Collection Practices Act. The tone of the letter was intimidating and it also threatened an action that would be illegal if carried out– embarrassing contacts with Rutyna's employer and neighbors. Rutyna v. Collection Accounts Termi- nal, Inc., 478 F. Supp. 980 (D. Ill. 1979). 17. This practice was a bait and switch, in violation of the FTC Act. The company made an alluring offer that was too good to be true. It then tried to switch customers to a different product. IN RE New Rapids Carpet Center, Inc., 90 FTC 64, 1977 FTC LEXIS 148 (1977). 19. Both FMC and the U.S. government were liable for cleanup under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). FMC Corp. v. Department of Commerce, 29 F.3d 833, 1994 U.S. App. LEXIS 16514 (3d Cir. 1994).