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Exam 39: Consumer and Environmental Law

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Question 1

Multiple Choice

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Mello's Mattress Company advertises a special sale on mattresses on its Web site. The mattresses are normally sold for $1,000,but are advertised on the site for $499. The sale price does not include the shipping cost. Mello's charges $250 for shipping. To avoid claims of Advertising,Marketing,and Sales,Mello's should

A) clearly and conspicuously disclose the shipping cost in its ads.
B) display the shipping cost in small print on Mello's Web page.
C) include the shipping cost on the last page of Mello's Web site.
D) not reveal the shipping cost.

E) A) and C)
F) None of the above

Correct Answer

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A

Question 2

Multiple Choice

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Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent,an Ultrahazard employee,is diagnosed with radiation sickness after exposure to the materials. Vincent's suit against Ultrahazard to recover for the injury is known as

A) an environmental impact statement.
B) a nuisance.
C) a toxic tort.
D) a hazardous substance response.

E) A) and C)
F) C) and D)

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Question 3

Multiple Choice

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Spicy Salsa,Inc.,complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company,Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

Soundbites Corporation makes and markets cellphones. Soundbites's ad states that on its phones voices and text come through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

Puffery constitutes Advertising,Marketing,and Sales.

The Food and Drug Administration must ensure the safety of new drugs.

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to

Smelting & Refining Company generates solid waste considered hazardous. The company labels and packages properly all waste to be transported to a disposal site. Under the Resource Conservation and Recovery Act,this is most likely

An environmental impact statement must be prepared for every major federal or state action that significantly affects the quality of the environment.

Those who knowingly violate the Clean Air Act may be subject to criminal liability.

Dina takes out a student loan from Earnest Bank. When she fails to make the scheduled payments for six months,Earnest advises her of further action that it will take. This is a violation of

In a transaction subject to the Truth-in-Lending Act,the terms of a credit instrument must be fully disclosed.

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites,Jill,the salesperson,tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. This is

Wellness Insurance Company offers health and medical insurance to consumers. Under current federal health-care laws,Wellness is prohibited from

Bertha owns land located outside Centre City. Bertha sells the land to Disposal & Recycling,Inc.,which establishes a hazardous waste disposal facility at the site. Disposal & Recycling accepts only waste transported by Eco Trucking Inc. exclusively from Federated Industries,Inc. Several years later,Disposal & Recycling closes its facility and sells the land to Garden Variety Retail Corporation,which builds a Home & Yard store on the site. Meanwhile,some of Centre City's citizens complain to the Environmental Protection Agency (EPA)that the city's municipal water supply is polluted. The EPA investigates and discovers that the sources of the pollution are leaks of hazardous waste from what is now the Home & Yard site. The EPA cleans up the site. Who can be held liable for the cost of cleaning up the site? What standards must Centre City meet regarding the water?

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad,the Federal Trade Commission is most likely to issue

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.

Public water systems operators must come as close as possible to meeting the Environmental Protection Agency's standards by using any available technology.

Creditors attempting to collect debts are generally considered to be debt-collection agencies.

Bagels n' Pastries,Inc.,makes and sells a variety of bread products. Bagels n' Pastries's product packages must include