#1
Which organization is responsible for protecting consumer rights in the United States?
Federal Trade Commission (FTC)
ExplanationFTC safeguards consumer rights in the U.S. by enforcing fair trade practices and combating deceptive business.
#2
Which of the following is NOT a consumer right?
Right to unlimited refunds
ExplanationUnlimited refunds are not a consumer right; rights typically include fair treatment, safety, and accurate product information.
#3
Which of the following agencies oversees food safety regulations in the United States?
Food and Drug Administration (FDA)
ExplanationFDA is responsible for enforcing food safety regulations, ensuring public health and product integrity.
#4
What is the purpose of a warranty?
To protect consumers from faulty products
ExplanationWarranties aim to shield consumers from defects or malfunctions in products, ensuring satisfaction.
#5
What is the purpose of the Consumer Product Safety Commission (CPSC) in the United States?
To enforce consumer product safety standards
ExplanationCPSC works to ensure products meet safety standards, protecting consumers from hazards.
#6
What does 'caveat emptor' mean?
Let the buyer beware
Explanation'Caveat emptor' advises buyers to be cautious, emphasizing their responsibility to assess purchases for flaws or risks.
#7
Which of the following is NOT a responsibility of consumers?
Seeking legal advice for every purchase
ExplanationWhile informed choices are encouraged, seeking legal advice for every purchase is not a standard consumer responsibility.
#8
Which of the following is an example of an unfair trade practice?
Using false advertising to deceive consumers
ExplanationFalse advertising, deceiving consumers, constitutes an unfair trade practice.
#9
Which of the following is NOT covered under the Fair Credit Reporting Act (FCRA)?
Credit card fraud
ExplanationFCRA primarily addresses credit reporting and consumer rights, not credit card fraud specifically.
#10
Which organization is responsible for enforcing consumer protection laws in the European Union?
European Consumer Centre (ECC)
ExplanationECC oversees consumer protection laws in the EU, promoting fair practices and cross-border dispute resolution.
#11
What is the purpose of the Better Business Bureau (BBB) in the United States?
To resolve disputes between consumers and businesses
ExplanationBBB facilitates resolution of consumer-business disputes, promoting trust and ethical business practices.
#12
What is the purpose of the Consumer Financial Protection Bureau (CFPB) in the United States?
To ensure fair lending practices
ExplanationCFPB safeguards consumers by promoting fair and transparent lending practices in the financial sector.
#13
What is the purpose of a cooling-off period in consumer rights?
To give consumers time to reconsider a purchase
ExplanationA cooling-off period allows consumers to rethink purchases, promoting informed decision-making.
#14
What does the Magnuson-Moss Warranty Act regulate?
Product warranties
ExplanationThe Magnuson-Moss Warranty Act regulates warranties, ensuring clarity and fairness for consumers.
#15
Which of the following is NOT a right guaranteed under the GDPR (General Data Protection Regulation)?
Right to unlimited data sharing
ExplanationGDPR focuses on data protection; unlimited data sharing is not a guaranteed right under this regulation.
#16
Which of the following is an example of a pyramid scheme?
A scheme where participants are paid primarily for recruiting others rather than for selling products or services
ExplanationPyramid schemes focus on recruitment rewards over product sales, posing financial risks.
#17
Which of the following is NOT a right protected by the United Nations Guidelines for Consumer Protection?
Right to unlimited advertising
ExplanationUN Guidelines prioritize consumer rights, but an unlimited right to advertising is not included.
#18
What is the purpose of the Lemon Law in the United States?
To protect consumers who purchase defective vehicles
ExplanationLemon Law safeguards consumers by providing recourse when purchasing defective vehicles.
#19
What is the purpose of the Consumer Rights Directive in the European Union?
To harmonize consumer rights across EU member states
ExplanationThe Consumer Rights Directive aims to create consistency in consumer rights protection across EU member states.