Question 1

The ________ is an independent federal administrative agency empowered to conduct research on the safety of consumer products.

Accepted Answer

Consumer P

Question 2

The new line of fairness-enhancing products marketed by Radiance has allegedly been developed after using large-scale animal testing procedures. Insiders revealed that the high levels of lead present in the cosmetics have proven to be fatal for many of the animals used in the laboratories. Radiance is likely to be inspected for suspected criminal violations of the ________.

Accepted Answer

A)  Food, Drug, and Cosmetic Act 
B)  Consumer Product Safety Act 
C)  Health Care Reform Act 
D)  Federal Trade Commission Act 
A)  Food, Drug, and Cosmetic Act 
B)  Consumer Product Safety Act 
C)  Health Care Reform Act 
D)  Federal Trade Commission Act

Question 3

The FDA cannot withdraw approval of any previously licensed drug.

Accepted Answer

A) True 
 B)False

Question 4

Proof of actual deception is required for an advertising to be considered false under Section 5 of the FTC.

Accepted Answer

A) True 
 B)False

Question 5

The U.S. Department of Agriculture is the federal administrative agency that is primarily responsible for regulating meat, poultry, and other food products.

Accepted Answer

A) True 
 B)False

Question 6

Melissa owes her bank money for her credit card bills. For the past two weeks, debt collectors have been harassing her for bill payment by sending people over to her workplace. Her boss expressly asks her to not have such meetings at the workplace. But despite requesting the collection agency, the collectors continue to visit her at her workplace. Which of the following Acts has provisions that would help protect Melissa from such harassment?

Accepted Answer

A)  Fair and Accurate Credit Transactions Act 
B)  Fair Credit Reporting Act 
C)  Fair Debt Collection Practices Act 
D)  Fair Credit and Charge Card Disclosure Act 
A)  Fair and Accurate Credit Transactions Act 
B)  Fair Credit Reporting Act 
C)  Fair Debt Collection Practices Act 
D)  Fair Credit and Charge Card Disclosure Act

Question 7

What is the importance of the Biosafety Protocol prescribed by the UN?

Accepted Answer

A)  It dictates the terms and conditions for production of genetically modified food. 
B)  It prevents people from differentiating between normal and organic food. 
C)  It notifies people of the presence of genetically modified food in the market. 
D)  It assures people of the quality of the food by providing details of its testing process. 
A)  It dictates the terms and conditions for production of genetically modified food. 
B)  It prevents people from differentiating between normal and organic food. 
C)  It notifies people of the presence of genetically modified food in the market. 
D)  It assures people of the quality of the food by providing details of its testing process.

Question 8

The Family Smoking Prevention and Tobacco Control Act, which requires mandatory warnings to be placed on cigarette packages, is enforced by the Health Care Reform Act.

Accepted Answer

A) True 
 B)False

Question 9

The ________ Act of 2003 permits consumers to place fraud alerts in their credit files.

Accepted Answer

A)  Fair Debt Collection Practices 
B)  Fair Credit Billing 
C)  Fair and Accurate Credit Transactions 
D)  Fair Credit Reporting 
A)  Fair Debt Collection Practices 
B)  Fair Credit Billing 
C)  Fair and Accurate Credit Transactions 
D)  Fair Credit Reporting

Question 10

If the food product is released with this new preservative, which of the following provisions of the NLEA would help consumers identify the banned preservative prior to consumption?

Accepted Answer

A)  condemnation of unfit food products 
B)  disclosure of information on food labels 
C)  inspection of the storage facilities 
D)  initiating legal proceedings against violators 
A)  condemnation of unfit food products 
B)  disclosure of information on food labels 
C)  inspection of the storage facilities 
D)  initiating legal proceedings against violators

Question 11

Which of the following federal agencies is authorized to adopt and enforce the Family Smoking Prevention and Tobacco Control Act?

Accepted Answer

A)  the Consumer Product Safety Commission 
B)  the Federal Trade Commission 
C)  the Food and Drug Administration 
D)  the Agency for Healthcare Research and Quality 
A)  the Consumer Product Safety Commission 
B)  the Federal Trade Commission 
C)  the Food and Drug Administration 
D)  the Agency for Healthcare Research and Quality

Question 12

Which of the following is true of seeking injunctions on consumer products under the CPSC?

Accepted Answer

A)  The CPSC can only seek an injunction once a private party has lodged a complaint with it. 
B)  Only the CPSC can sue for an injunction when CPSC rules are violated. 
C)  A private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations. 
D)  Injunctions cannot be pursued on products that have not yet been sold or marketed. 
A)  The CPSC can only seek an injunction once a private party has lodged a complaint with it. 
B)  Only the CPSC can sue for an injunction when CPSC rules are violated. 
C)  A private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations. 
D)  Injunctions cannot be pursued on products that have not yet been sold or marketed.

Question 13

Firearms represent an example of consumer products which do not come under the CPSC rules.

Accepted Answer

A) True 
 B)False

Question 14

The NLEA applies to packaged foods and other foods regulated by the ________.

Accepted Answer

A)  U.S. Department of Agriculture 
B)  Consumer Product Safety Commission 
C)  Patient Protection and Affordable Care Act 
D)  Food and Drug Administration 
A)  U.S. Department of Agriculture 
B)  Consumer Product Safety Commission 
C)  Patient Protection and Affordable Care Act 
D)  Food and Drug Administration

Question 15

Which of the following statements is true with regard to the FDA?

Accepted Answer

A)  It places a complete ban on animal testing. 
B)  It allows animal testing for only certain kinds of cosmetics like household soaps. 
C)  It provides tax exemptions to companies that avoid animal testing. 
D)  It recommends animal testing only if it increases product safety. 
A)  It places a complete ban on animal testing. 
B)  It allows animal testing for only certain kinds of cosmetics like household soaps. 
C)  It provides tax exemptions to companies that avoid animal testing. 
D)  It recommends animal testing only if it increases product safety.

Question 16

Which of the following is true of the do-not-call registry for consumers?

Accepted Answer

A)  The registration is valid for the lifetime of the customer who opted for it. 
B)  Telemarketers have three days to remove the customer's name upon registry. 
C)  Charitable and political organizations are exempted from the registry. 
D)  Customers cannot choose the companies that they do not wish to receive calls from. 
A)  The registration is valid for the lifetime of the customer who opted for it. 
B)  Telemarketers have three days to remove the customer's name upon registry. 
C)  Charitable and political organizations are exempted from the registry. 
D)  Customers cannot choose the companies that they do not wish to receive calls from.

Question 17

The ________ prohibits health insurance companies from terminating health insurance coverage when a person gets sick.

Accepted Answer

A)  Health Care Reform Act 
B)  Drug Amendment of the FDCA Act 
C)  Medical Device Amendment Act 
D)  Food, Drug, and Cosmetic Act 
A)  Health Care Reform Act 
B)  Drug Amendment of the FDCA Act 
C)  Medical Device Amendment Act 
D)  Food, Drug, and Cosmetic Act

Question 18

Which of the following is true of the FDA's role in the introduction of a new drug in the market?

Accepted Answer

A)  The FDA bases its approval of a new drug on the rule of caveat emptor. 
B)  The FDA limits itself to providing relevant suggestions to improve the drug. 
C)  The FDA possesses the power to implement a complete ban on a questionable drug. 
D)  The FDA prosecutes producers of questionable medicines directly by the powers vested in it by the U.S. Department of Justice. 
A)  The FDA bases its approval of a new drug on the rule of caveat emptor. 
B)  The FDA limits itself to providing relevant suggestions to improve the drug. 
C)  The FDA possesses the power to implement a complete ban on a questionable drug. 
D)  The FDA prosecutes producers of questionable medicines directly by the powers vested in it by the U.S. Department of Justice.

Question 19

The goal of the Health Reform Act is to increase the number of persons who have health care insurance in the United States.

Accepted Answer

A) True 
 B)False

Question 20

Sales made by door-to-door salespersons are not regulated by the FTC.

Accepted Answer

A) True 
 B)False

Exam 23: Consumer Protection

The ________ is an independent federal administrative agency empowered to conduct research on the safety of consumer products.

The FDA cannot withdraw approval of any previously licensed drug.

Proof of actual deception is required for an advertising to be considered false under Section 5 of the FTC.

The U.S. Department of Agriculture is the federal administrative agency that is primarily responsible for regulating meat, poultry, and other food products.

What is the importance of the Biosafety Protocol prescribed by the UN?

The Family Smoking Prevention and Tobacco Control Act, which requires mandatory warnings to be placed on cigarette packages, is enforced by the Health Care Reform Act.

The ________ Act of 2003 permits consumers to place fraud alerts in their credit files.

If the food product is released with this new preservative, which of the following provisions of the NLEA would help consumers identify the banned preservative prior to consumption?

Which of the following federal agencies is authorized to adopt and enforce the Family Smoking Prevention and Tobacco Control Act?

Which of the following is true of seeking injunctions on consumer products under the CPSC?

Firearms represent an example of consumer products which do not come under the CPSC rules.

The NLEA applies to packaged foods and other foods regulated by the ________.

Which of the following statements is true with regard to the FDA?

Which of the following is true of the do-not-call registry for consumers?

The ________ prohibits health insurance companies from terminating health insurance coverage when a person gets sick.

Which of the following is true of the FDA's role in the introduction of a new drug in the market?

The goal of the Health Reform Act is to increase the number of persons who have health care insurance in the United States.

Sales made by door-to-door salespersons are not regulated by the FTC.

Legal Heritage and the Digital Age

Ethics and Social Responsibility of Business

Courts, Jurisdiction, and Administrative Agencies

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Torts and Strict Liability

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Formation of Traditional and E-Contracts

Performance and Breach of Traditional and E-Contracts

E-Commerce and Digital Law

UCC Sales and Lease Contracts and Warranties

Credit, Secured Transactions, and Bankruptcy

Small Business and General and Limited Partnerships

Limited Liability Companies, Limited Liability Partnerships, and Special Forms of Business

Corporations and the Sarbanes-Oxley Act

Investor Protection, E-Securities, and Wall Street Reform

Agency Law

Equal Opportunity in Employment

Employment Law and Worker Protection

Labor Law and Immigration Law

Antitrust Law and Unfair Trade Practices

Environmental Protection

Land Use Regulation and Real Property

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