BLAW 6.01

1. A door-to-door salesman intimidated Brittany into buying encyclopedias costing $300. Brittany did not want the books and decided to cancel the order. What law allows Brittany to cancel the order?

• A. Cooling-Off Rule

• B. Delaney Amendment

• C. Lemon Law

• D. Magnuson-Moss Act

2. Dewey Auto Sales is a car dealership. The dealership runs a weekly ad in the local newspaper. Brad and Jennifer, wanting to test-drive a car they see described in today’s ad, go to the car lot. The salesman says that the last one of those cars was just sold. The salesman says he can show them other available vehicles. What term identifies this deceptive practice?

• A. Bait and switch

• B. Lottery scams

• C. Price-fixing

• D. Telemarketing fraud

3. Will saw an advertisement where he could quit commuting to his job and make $2,500 a month more. When he called the toll-free number, the job required a $5,000 up-front investment for “equipment and customer lists.” Will was deceived by the ad and called a fraud hotline. What type of fraud did Will report?

• A. Lottery scam

• B. Price-fixing

• C. Spamming

• D. Work-at-home scheme

4. Carmen opens a retail clothing store, Carmen’s Chick Clothing. Estelle is one of Carmen’s best customers who buys a new wardrobe for each season and has the merchandise shipped to her home. Carmen has seasonal merchandise stored in an off-premises facility. When goods are delivered to the storage facility, what document does Carmen get?

• A. Binder

• B. Delivery tender

• C. Document of title

• D. Warehouse receipt

5. When a consumer complaint is not resolved, the last resort for a consumer to contact with the complaint is:

• A. an appropriate regulatory agency.

• B. an attorney to file a lawsuit.

• C. a dispute resolution organization.

• D. small claims court.

6. Carmen opens a retail clothing store, Carmen’s Chick Clothing. When Carmen makes a sale, what collection of federal laws deal with the sale, transfer, and purchase of goods?

• A. American Sales Act

• B. Federal Trade Act

• C. Statute of Limitations

• D. Uniform Commercial Code

7. Tony received goods COD. What does the term COD mean in a sales contract?

• A. Cash on delivery

• B. Cease or desist

• C. Collect on delivery

• D. Credit on delivery

8. Jennifer and Brad are shopping for a car at Dewey Auto Sales. Brad found a used car he liked. On the car window was a sign that said “AS IS”. What type of warranty did the car have?

• A. Full warranty

• B. Implied warranty

• C. Limited warranty

• D. No warranty

9. Carmen opens a retail clothing store, Carmen’s Chick Clothing. Estelle is one of Carmen’s best customers who buys a new wardrobe for each season and has the merchandise shipped to her home. Estelle purchased $750 in clothing. The contract is required to be in writing in accordance with what law?

• A. Commerce Clause

• B. Federal Trade Act

• C. Magnuson–Moss Act

• D. Statute of Frauds

10. Polly purchased a vacuum cleaner but was very displeased with the performance of the product. The first resource for Polly to get the complaint resolved is what?

• A. Better Business Bureau

• B. Consumer Product Safety Commission

• C. Small claims court

• D. Store’s customer service department