True/False
Indicate whether the sentence or statement is true
or false.
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1.
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A
deceptive advertisement is one that is false or misleading.
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2.
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Advertising that appears to be based on factual evidence, even if it is not, will
not be deemed deceptive.
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3.
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The
Federal Trade Commission is charged with preventing unfair and deceptive trade
practices.
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4.
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It is
generally illegal to send an ad via fax without the recipient's permission.
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5.
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Telephone solicitation using an automatic dialing system is prohibited.
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6.
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Package labels must use words that the ordinary consumer understands.
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7.
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Every
food product label must include a warning of the possible effects of the product on consumer
health.
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8.
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Under
federal law, persons who receive unsolicited merchandise can use it but must pay for
it.
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9.
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Under
the Truth-in-Lending Act, credit terms must be clearly and conspicuously disclosed.
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10.
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Regulation Z applies to any installment sales contract.
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11.
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An
individual who loses a credit card is limited to liability of $500 per card for unauthorized charges
made before the issuer is notified.
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12.
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Those
who lease consumer goods in the ordinary course of their business are not subject to the
Truth-in-Lending Act.
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13.
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A
credit agency may not issue a credit report to any creditor without first obtaining the borrower's
permission.
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14.
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A
business that reports information to credit agencies and does not respond adequately to a customer
complaint may be liable for damages.
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15.
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The
Fair Debt Collection Practices Act applies to anyone who tries to collect a debt.
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16.
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If a
debt is unpaid for more than thirty days, a creditor can use any means to collect.
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17.
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The
major credit reporting agencies must provide consumers with free copies of their own credit reports
every twelve months.
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18.
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Drugs
must be shown to be effective and safe before they can be marketed.
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19.
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The
Consumer Product Safety Commission prohibits manufacturers from marketing products that are not
marked with its "seal of approval."
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20.
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State
laws often provide more significant protections for the consumer than do federal laws.
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