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Ch. 11 Consumer Rights Review

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

Which consumer protection law includes the Patient’s Bill of Rights?

a)

Health Insurance Portability and Accountability Act

b)

Federal Coverage Act

c)

Patient Protection and Affordable Care Act

d)

Truth-in-Insuring Act

2.

An example of a governmental program that helps satisfy basic needs is _____.

a)

The Department of Motor Vehicles

b)

sewer and sanitation systems

c)

voting

d)

city parks

3.

Which agency’s mission is to promote consumer protection and eliminate anticompetitive business practices?

a)

Federal Trade Commission

b)

Federal Competition Organization

c)

Free-Market Coalition

d)

Consumer Protection Alliance

4.

Of the following, which best represents a private consumer advocacy group?

a)

Consumer Products Safety Commission

b)

Bureau of Consumer Protection

c)

Federal Trade Commission

d)

Consumers Union

5.

Warning signs of a pyramid scheme include which of the following?

a)

An unknown promoter making the offer with no detailed information.

b)

Receiving a letter asking for an investment

c)

Receipt of a certificate congratulating you on your investment.

d)

Dividends.

6.

Who is responsible for speaking out and expressing concerns to appropriate business and governmental representatives?

a)

competitors

b)

governmental officials

c)

police

d)

consumers

7.

Consumer self-defense strategies include which of the following?

a)

bait and switch

b)

sending threatening or harassing letters

c)

seeking compensation

d)

seeking resolution

8.

On whom is the responsibility for reading and following directions for the safe use of products?

a)

the business

b)

the consumer

c)

the government

d)

the shareholders

9.

Which of the following is true regarding consumer fraud?

a)

It is illegal to bundle products together.

b)

It is unethical to charge higher prices when stock in low.

c)

It is illegal to advertise sale items that are not actually on sale.

d)

It is unethical, though not illegal, to advertise one item and sell a different, more expensive item in its place.

10.

When looking at promotions and sales alerts from a company, it is important to be _____.

a)

skeptical

b)

eager

c)

carefree

d)

uninterested

11.

Fraudulent investment plan in which each participant signs up a certain number of additional participants.

a)

pyramid scheme

b)

redress

c)

skepticism

12.

Having a degree of doubt.

a)

skepticism

b)

small claims court

c)

sweepstakes

13.

Promotional offer in which prizes are awarded to participants by chance in exchange for some form of payment.

a)

lottery

b)

Ponzi scheme

c)

pyramid scheme

14.

Investment operation in which money from new investors is used to pay earlier investors.

a)

Ponzi scheme

b)

pyramid scheme

c)

redress

15.

Misrepresentation of information to consumers.

a)

consumer fraud

b)

consumer protection laws

c)

Lawsuit

16.

Method of settling disagreements through an objective third party.

a)

bait and switch

b)

binding arbitration

c)

caveat emptor

17.

Promotional offer that gives participants the chance to win items of value or prizes.

a)

skepticism

b)

small claims court

c)

sweepstakes

18.

To set right or make up for a mistake.

a)

redress

b)

small claims court

c)

skepticism

19.

Offers a simple, prompt, and inexpensive way to settle minor differences involving small amounts of money.

a)

small claims court

b)

Ponzi scheme

c)

pyramid scheme

20.

Group or individual who promotes consumer rights.

a)

consumer fraud

b)

consumer advocate

c)

class-action lawsuit

21.

Governs sales and credit practices involving consumer goods and services.

a)

consumer advocate

b)

consumer fraud

c)

consumer protection laws

22.

Civil action brought by a person against another party.

a)

consumer protection laws

b)

lawsuit

c)

lottery

23.

Latin phrase meaning let the buyer beware.

a)

binding arbitration

b)

caveat emptor

c)

skepticism

24.

Advertising one item and then substituting another item.

a)

bait and switch

b)

Ponzi scheme

c)

pyramid scheme

25.

Legal court action brought by a group of individuals who have been similarly wronged.

a)

class action-lawsuit

b)

consumer advocate

c)

consumer fraud

26.

A US letter or e-mail that promises a big return for a small investment is a(n) ______________________________.

a)

chain letter

b)

letter of the law

c)

link letter

27.

______________________________ offer the opportunity to win prizes by skill instead of chance.

a)

game of chance

b)

skill contests

c)

lottery

28.

The ______________________________ deals with health and safety issues related to food, drug, and cosmetic products.

a)

FDA

b)

ADA

c)

BADA

29.

Problems involving hazardous products are handled by the ______________________________.

a)

consumer products safety commission

b)

consumer safety commission

c)

consumer products commission

30.

he ______________________________ outline the rights of those who fly frequently.

a)

airline passenger bill of rights

b)

passenger bill of rights

c)

airline bill of rights

31.

It is important to be ______________________________ when looking at promotions and sales alerts from a company.

a)

skeptical

b)

leery

c)

careful

32.

Most states run ______________________________ to help fund governmental operations.

a)

lotteries

b)

power ball

c)

mega power ball

33.

claim amounts in ______________________________ are limited to a maximum of $1,200 in some states and up to $5,000 in others.

a)

small claims court

b)

claims court

c)

legal court

34.

The ______________________________ means that no one can make you buy what you do not need or want.

a)

right of refusal

b)

refusal

c)

refusal rights

35.

______________________________ promote ethical business practices, and in some cases, offer dispute resolution programs.

a)

better business bureaus

b)

better trust business bureaus

c)

business bureaus

36.

In a lawsuit, the ______________________________ is the person or company who claims to have been negatively impacted and brings legal action to the other party.

a)

plaintiff

b)

defendant

c)

plaintiff rights

37.

Governmental programs, such as ______________________________, help satisfy basic needs.

a)

public housing

Medicare

Medicaid

Social Security

schools

b)

education

hospitals

health care

healthcare

c)

sewer and sanitation systems

fire protection

police protection

d)

none of the above

e)

or a, b and c

38.

Consumers are responsible for choosing goods and services that will best meet their needs at prices they can pay.

a)

true

b)

false

39.

In a lawsuit, the ______________________________ is the person or company against whom the legal action is brought.

a)

consumers

b)

defendant

c)

plaintiff

40.

Pyramid and Ponzi schemes are illegal and should be reported to the Federal Trade Commission and the ______________________________.

a)

securities exchange commission

b)

exchange commission

c)

securities commission