B-194
ALTERNATE CASE PROBLEM ANSWERS
CHAPTER 45
CONSUMER LAW
45-1A. Debt collection
(Chapter 45—Pages 890–891)
Yes. The court held that the letter violated the FDCPA because of the “visual effect” of the warning—
printed in enlarged, boldfaced type—the debt must be paid within ten days. This warning
overshadowed the notice in standard typeface that the consumer had thirty days in which to request
45-2A. Equal credit opportunity
(Chapter 45—Page 888)
The court held that the home improvement contract did not constitute a credit transaction and
therefore was not subject to the antidiscrimination provisions of the Equal Credit Opportunity Act
(ECOA). Under the ECOA, “credit” is defined as “the right granted by a creditor to a debtor to defer
payment of a debt or to incur debts and defer its payment or to purchase property or services and defer
45-3A. Deceptive advertising
APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 45 B-195
the milk was lost during processing—and Kraft had neglected to inform consumers of this fact.
Furthermore, the ALJ found that the vast majority of imitation cheese slices sold in the United States
45-4A. Deceptive advertising
(Chapter 45—Pages 881–882)
45-5A. Fair debt collection
(Chapter 45—Pages 890–891)
The court held that the assessment did not qualify as a “debt” within the meaning of the FDCPA. The
U.S. Court of Appeals for the Tenth Circuit reversed this judgment, however, and remanded the case.
45-6A. Fair debt collection
B-196 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 45
Ninth Circuit, which affirmed the judgment of the lower court. The appellate court explained that
“[h]aving already determined that the Notice required by the FDCPA was sent to the Mahons by the
45-7A. Equal credit opportunity
(Chapter 45—Page 888)
The borrowers argued in part that Riggs violated the ECOA when it required Marcia’s signature on the
45-8A. Debt collection
(Chapter 45—Pages 890–891)
The district court found no violation of the FDCPA. The U.S. Court of Appeals for the Second Circuit
reversed the decision of the lower court and remanded the case. The appellate court concluded in part
45-9A. Fair debt collection
(Chapter 45—Pages 890–891)
CrossCheck argued that it was not a “debt collector” within the meaning of the FDCPA. If the court had
accepted this argument, it might have ruled in CrossCheck’s favor. The court concluded, however, that
45-10A. Deceptive advertising
(Chapter 45—Pages 881–882)
Deceptive advertising occurs if a reasonable consumer would be misled by a claim. In this case, the court
issued a preliminary injunction, concluding in part that “end70 Corporation and its president and owner