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:

Larynx

Often referred to as the voice box, an organ in the top of the neck involved in breathing, sound production, and protecting the trachea against food aspiration.

Cartilage

A flexible, semi-rigid connective tissue found in various parts of the body, including the joints, ears, and nose, which provides support and cushioning.

Thoracic Cavity

The part of the body located between the neck and the abdomen, enclosed by the ribs and containing the heart and lungs.

Alveolar Sac

The tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide occurs.