1) The major duty of the Magnuson-Moss Warranty Act is to require the FTC to iss

Question

1) The major duty of the Magnuson-Moss Warranty Act is to require the FTC to issue rules regarding consumer product warranties true or false

2) Using zip codes as a factor in denying credit has been determined to be illegal by the FTC due to possible discrimination that could result. true or false

3)

The Insider Trading and Securities Fraud Enforcement Act of 1988 provides that suits alleging illegal use of nonpublic information may be filed up to a maximum period of _____ years after the wrongful transaction.

4)

According to the Sarbanes-Oxley Act, the accuracy of the company's financial records is certified by the:

5)

Under the 1934 Act, a business organization found guilty of filing false or misleading documents with the SEC may be fined up to:

6)

Sarbanes-Oxley provides protections for whistleblowers so that individuals are more willing to report the corruption that can lead to major scandals.

true or false

Explanation / Answer

1. True The Magnuson–Moss Warranty Act was enacted in 1975. It is the federal statute that governs warranties on consumer products. It provide the Federal Trade Commission with means to better protect consumers by issuing rules regarding consumer product warranties 2. True The Federal Trade Commission (FTC) enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or any other discriminating factor. Factors like income, expenses, debts, and credit history are considered by lenders to determine creditworthiness. 3. Option D - Five Years The Insider Trading and Securities Fraud Enforcement Act of 1988 allows suits alleging the illegal use of nonpublic information may be filed within a five year period after the wrongful transaction 4. Option C - CEO and CFO According to Sarbanes - Oxley Act, corporate officials namely Chief Executive Officer and Chief Financial Officer need to sign financial records to certify them 5. The correct answer is Option C - $25,000,000 As per 1934 Act any individual found guilty of filing false or misleading document with the SEC may be fined up to $5,000,000 and imprisoned for up to 20 years. A business organization found guilty can be fined up to $25,000,000. An individual found guilty of securities fraud may be imprisoned up to 25 years. 6. True Sarbanes-Oxley provides protections for whistleblowers so that individuals are more willing to report the corruption that can lead to major scandals. Audit committees are required to adopt procedures ensuring that whistle-blowers’ reports are taken seriously. Whistleblowers that suffer are able to recover civil damages and can be reinstated, if terminated improperly.

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