Which of the Following Was the Result in Federal Trade

question 59

Multiple Choice

Which of the following was the result in Federal Trade Commission v.Check Investors Inc.,the case in the text involving whether,in an effort to collect bad check charges,the defendant violated the Fair Debt Collections Act through tactics such as telling check writers that they would be arrested and prosecuted?

• A) That the defendant did not violate the act because only truthful statements were made in that the check writers were subject to arrest and prosecution.
• B) That the defendant did not violate the act because the check writers committed theft and were not, therefore, classified as consumers protected by the act.
• C) That the defendant did not violate the act because the act specifically exempts collection of bad checks.
• D) That the defendant violated the act because it could only legally collect payments on checks, not determine whether check writers were criminals and then employ law enforcement tactics to collect.
• E) That the defendant violated the act because it failed to inform the check writers that they were constitutionally entitled to a jury trial before incarceration.

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Definitions:

Anchoring

The tendency people have to unconsciously base, or “anchor,” the valuation of an item they are currently thinking about on recently considered but logically irrelevant information.

Decision Making

The process of selecting the best course of action from several alternatives to achieve a desired goal.

Irrelevant Information

Data or facts that do not influence decision-making processes in a given context, lacking value for the question or decision at hand.

Prospect Theory

A psychological theory that describes how people choose between probabilistic alternatives that involve risk.