Under Which of the Following Circumstances May a Credit Card

question 49

Multiple Choice

Under which of the following circumstances may a credit card company not bill a consumer for a damaged item that is unknowingly purchased with the card?

• A) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home.
• B) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home, and the item cost more than $50.
• C) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; and the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund.
• D) The consumer purchased the item in the same state as the consumer's home or within 100 miles of the consumer's home; the item cost more than $50; the consumer made a good-faith effort to resolve the dispute, such as asking the store for a refund; and the seller had a history of providing defective merchandise.
• E) The credit card company may always charge the consumer, and it is up to the consumer to get a refund from the merchant.

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Definitions:

Concentration Ratio

A measure of the total market share that is controlled by a specified number of the largest firms in the industry.

Market Share

The portion of total industry revenue attributed to a specific company over a predetermined time frame.

Concentration Ratio

A measure of the market share controlled by the largest firms within an industry, used to indicate the degree of market competition.

Market Share

The percentage of an industry's sales that a particular company controls.