Kip Opens an Account at Lotsa Goodies, and Buys a Digital

question 49

Multiple Choice

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

• A)no federal law.
• B)the Fair and Accurate Credit Transactions Act.
• C)the Fair Debt Collection Practices Act.
• D)the Truth-in-Lending Act.

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Definitions:

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or resource.

Quantity Demanded

The total amount of a goods or services consumers are willing and able to purchase at a specific price point.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period of time.

Nonprice Rationing

Methods of distributing goods or services using criteria other than price, such as queues or rationing cards.