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:

Duty Of Loyalty

A legal obligation of individuals in certain positions to act in the best interests of another party or entity, often seen in corporate governance and employment.

Duty Of Care

A legal obligation to avoid causing harm and to act with a standard of reasonable care towards others.

Violation

An act of breaking or failing to comply with a set of rules or laws.

Profit Maximization

The process or strategy aimed at increasing a business's net profits to the highest possible level, often by increasing revenue, reducing costs, or both.