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Q1: In October, Renie Guimond discovered that her credit report at TransUnion Credit Information Co. incorrectly stated that she was married, used the name “Ruth Guimond,” and had a credit card from Saks Fifth Avenue. After she reported the errors, TransUnion wrote her in November to say that it had removed this information. However, in March, TransUnion again published the erroneous information. The following October, TransUnion finally removed the incorrect information from her file. Guimond was never denied credit because of these mistakes. Is TransUnion liable for violating the Fair Credit Reporting Act?
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Q2: Sears, Roebuck & Co. adopted a new program to boost of its Lady Kenmore dishwashers. The new ads claimed that these dishwashers “completely eliminated” the need for rinsing dishes before placing them in the dishwasher. The owner’s manuals accompanying the machines, however, recommended pre-rinsing. Interviews with consumers indicated that pre-rinsing was still required for truly clean dishes. In an action against Sears, the Federal Trade Commission (FTC) held that the advertising was misleading. The FTC’s remedial order required that Sears keep records to support all future advertising claims for all “major home appliances” and submit them to the FTC. Sears conceded that its dishwasher advertising was misleading but argued that the remedial order, which covered other appliances as well as Lady Kenmore dishwashers, was overly broad and unfair. Discuss fully whether the FTC’s broad order is legal.
Q3: Please discuss administrative and the delegation doctrine
