Which of the Following Provisions Regarding the Fair Credit Billing

question 24

Multiple Choice

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

• A) During the time the creditor is replying, the customer is required to pay back the questioned item.
• B) The act allows a customer 90 days to notify the creditor of the nature of the error and the amount.
• C) In case of an error, the creditor has 120 days to respond and 150 days to correct the customer's account.
• D) The act applies only to open-end credit and not to installment sales.
• E) The Congress enacted this act as an amendment to the Fair Credit Reporting Act.

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent, often required to be proven in cases of securities fraud.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a basic assumption on which the contract is based.

Subjective Value

The worth or importance of something based on personal preferences, opinions, or experiences, rather than its objective market value.

Fraudulent Misrepresentation

Occurs when one party deceives another by intentionally providing false information, leading to an agreement or transaction based on that misinformation.