The FTC Rule, Which Provides That a Notice Provision Must

question 32

Multiple Choice

The FTC rule, which provides that a notice provision must be included in all consumer credit contracts, requires that the notice:

• A) limit recovery under the contract to amounts paid by the debtor plus a reasonable charge for incidental damages.
• B) be in italic type.
• C) be at least 20 points in size.
• D) has the effect that no subsequent person can be a holder in due course of the instrument.

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Definitions:

Western Individualism

A cultural value commonly found in Western societies that emphasizes individual freedom, self-expression, and personal independence over collective goals.

Disruptive Mood Dysregulation Disorder

A psychological disorder characterized by severe and recurrent temper outbursts that are disproportionate to the situation and developmentally inappropriate.

State-dependent Memory

The phenomenon whereby information learned in a particular state of mind or environment is more easily recalled when in the same state.

Pessimistic Explanatory Style

A tendency to explain negative events as permanent, personal, and pervasive, which is linked to higher risk of depression.