Linda Enters into a Contract for a Credit Card Sponsored

question 3

Multiple Choice

Linda enters into a contract for a credit card sponsored by Max'dOut Inc. The sponsor provides the contract, which contains an arbitration clause. This clause requires that any dispute must be submitted to private arbitration and prohibits class-action litigation. Under new rules sought by the Consumer Financial Protection Bureau, such clauses would be​

• A) ​prohibited.
• B) ​favored in contracts for credit cards and other financial products.
• C) ​favored in all consumer contracts.
• D) ​favored for all disputes involving relatively small sums.

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Definitions:

Rat

A small rodent, often used in scientific research, that can be either a wild pest or a domesticated pet.

Punishment

A consequence applied with the intention of reducing or eliminating an unwanted behavior by causing discomfort or taking away a desired stimulus.

Guidelines

Instructions or principles that direct actions or decisions.

Families

Social units consisting of parents and their children, extended to include other relatives, characterized by shared living arrangements and economic ties.