Question 1

The Clean Water Act is administered by the:

Accepted Answer

A)  Food and Drug Administration. 
B)  Environmental Protection Agency. 
C)  Federal Trade Commission. 
D)  United States Department of Justice. 
E)  United States Department of Homeland Security. 
A)  Food and Drug Administration. 
B)  Environmental Protection Agency. 
C)  Federal Trade Commission. 
D)  United States Department of Justice. 
E)  United States Department of Homeland Security.

Question 2

A decision of the Federal Trade Commission may be appealed to the applicable state supreme court.

Accepted Answer

A) True 
 B)False

Question 3

In order for a party to be liable for false and deceptive advertising,it must be shown that:

Accepted Answer

A)  the advertisement has deceived a majority of the persons who have seen it. 
B)  at least some persons have been deceived by it. 
C)  the plaintiff in the lawsuit was deceived by it. 
D)  the advertisement is likely to mislead a reasonable consumer. 
E)  the advertisement could possibly mislead some consumers. 
A)  the advertisement has deceived a majority of the persons who have seen it. 
B)  at least some persons have been deceived by it. 
C)  the plaintiff in the lawsuit was deceived by it. 
D)  the advertisement is likely to mislead a reasonable consumer. 
E)  the advertisement could possibly mislead some consumers.

Question 4

The agency that enforces the federal Food,Drug and Cosmetic Act is the:

Accepted Answer

A)  Federal Trade Commission. 
B)  Department of Agriculture. 
C)  Consumer Product Safety Commission. 
D)  Food and Drug Administration. 
E)  Interstate Commerce Commission. 
A)  Federal Trade Commission. 
B)  Department of Agriculture. 
C)  Consumer Product Safety Commission. 
D)  Food and Drug Administration. 
E)  Interstate Commerce Commission.

Question 5

Ordinary household soap is an example of a cosmetic subject to Food and Drug Administration regulation.

Accepted Answer

A) True 
 B)False

Question 6

Because the Consumer Product Safety Commission (CPSC)regulates potentially dangerous products,it issues product safety standards for consumer products that pose unreasonable risk of injury.

Accepted Answer

A) True 
 B)False

Question 7

The National Environmental Policy Act requires the Environmental Protection Agency to prohibit any private or public project that will have an adverse impact on the environment.

Accepted Answer

A) True 
 B)False

Question 8

The Resource Conservation and Recovery Act addresses:

Accepted Answer

A)  energy-efficiency standards for specified products. 
B)  mandatory recycling programs for certain specified substances. 
C)  the transportation, storage and disposal of hazardous wastes. 
D)  export limitations on products that cause significant pollution in their production. 
E)  the cleanup of hazardous waste sites. 
A)  energy-efficiency standards for specified products. 
B)  mandatory recycling programs for certain specified substances. 
C)  the transportation, storage and disposal of hazardous wastes. 
D)  export limitations on products that cause significant pollution in their production. 
E)  the cleanup of hazardous waste sites.

Question 9

Under the "Superfund" legislation,who may be held liable for the cleanup costs of a hazardous waste site?

Accepted Answer

A)  the generator of the waste 
B)  the generator and the transporter of the waste 
C)  the generator, the transporter, and the owner of the land at the time of the waste disposal 
D)  the generator, the transporter, the owner of the land at the time of disposal, and the current owner and operator of the site 
E)  the transporter of the waste, and the owner of the land at the time of disposal 
A)  the generator of the waste 
B)  the generator and the transporter of the waste 
C)  the generator, the transporter, and the owner of the land at the time of the waste disposal 
D)  the generator, the transporter, the owner of the land at the time of disposal, and the current owner and operator of the site 
E)  the transporter of the waste, and the owner of the land at the time of disposal

Question 10

Regulation ________ sets forth detailed rules for compliance with the Truth in Lending Act.

Accepted Answer

A)  A 
B)  B 
C)  X 
D)  Y 
E)  Z 
A)  A 
B)  B 
C)  X 
D)  Y 
E)  Z

Question 11

Food is deemed ameliorated if it consists in whole or in part of any "filthy,putrid,or decomposed substance" or if it is otherwise "unfit for food."

Accepted Answer

A) True 
 B)False

Question 12

Advertising is false and deceptive under Section 5 of the FTC Act if it contains misinformation or omits important information that is likely to mislead a "reasonable consumer."

Accepted Answer

A) True 
 B)False

Question 13

A dog food manufacturer advertises that its large package of dog food is the "largest container of dog food available for home use." This claim is technically correct because the container itself is the largest sold,but the container is only about two-thirds full of food.Thus,the quantity of dog food is not the largest available in a consumer package.The package does,however,clearly indicate the actual weight of food inside it.Which of the following is true?

Accepted Answer

A)  There is no false and deceptive advertising in this case, because every statement made by the manufacturer is true. 
B)  There is no violation in this case, until it can be proven that someone has been misled. 
C)  The representation made by the manufacturer constitutes mere "sales talk," and is therefore not a violation of law. 
D)  Assuming that the manufacturer's representation is likely to mislead a reasonable consumer, the claim is false and misleading. 
E)  There is no violation here, because products for animal consumption are not covered by the Act. 
A)  There is no false and deceptive advertising in this case, because every statement made by the manufacturer is true. 
B)  There is no violation in this case, until it can be proven that someone has been misled. 
C)  The representation made by the manufacturer constitutes mere "sales talk," and is therefore not a violation of law. 
D)  Assuming that the manufacturer's representation is likely to mislead a reasonable consumer, the claim is false and misleading. 
E)  There is no violation here, because products for animal consumption are not covered by the Act.

Question 14

The Food and Drug Administration may remove from commerce any cosmetics that contain unsubstantiated claims of preserving youth.

Accepted Answer

A) True 
 B)False

Question 15

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was the most extensive financial reform law enacted by the United States Congress since the Great Depression of the 1930s.

Accepted Answer

A) True 
 B)False

Question 16

The Consumer Product Safety Commission is empowered to perform all of the following actions except:

Accepted Answer

A)  adopt rules and regulations to interpret and enforce the Consumer Product Safety Act. 
B)  conduct research on the safety of consumer products. 
C)  issue comparative safety ratings of competing products. 
D)  order a manufacturer to recall, repair or replace a dangerous product, or take other corrective action. 
E)  the Consumer Product Safety Commission can perform all of the above actions. 
A)  adopt rules and regulations to interpret and enforce the Consumer Product Safety Act. 
B)  conduct research on the safety of consumer products. 
C)  issue comparative safety ratings of competing products. 
D)  order a manufacturer to recall, repair or replace a dangerous product, or take other corrective action. 
E)  the Consumer Product Safety Commission can perform all of the above actions.

Question 17

Would it be better if proof of actual deception was required in order to prove a "false and deceptive" advertising claim under Section 5 of the Federal Trade Commission Act? Is it unfair to penalize advertisers when no actual deception can be shown?

Accepted Answer

A problem with requiring proof of actual

Question 18

Under the Resource Conservation and Recovery Act (RCRA,)the Environmental Protection Agency is authorized to regulate underground storage facilities,such as underground gasoline tanks.

Accepted Answer

A) True 
 B)False

Question 19

The United States Congress created the Consumer Product Safety Commission (CPSC)in 1972,through its enactment of the Consumer Product Safety Act (CPSA).

Accepted Answer

A) True 
 B)False

Question 20

"Bait and switch" is a type of deceptive advertising found in the fishing industry.

Accepted Answer

A) True 
 B)False

Exam 34: Consumer Safety, Consumer Financial Protection, and Environmental Protection

The Clean Water Act is administered by the:

A decision of the Federal Trade Commission may be appealed to the applicable state supreme court.

In order for a party to be liable for false and deceptive advertising,it must be shown that:

The agency that enforces the federal Food,Drug and Cosmetic Act is the:

Ordinary household soap is an example of a cosmetic subject to Food and Drug Administration regulation.

Because the Consumer Product Safety Commission (CPSC)regulates potentially dangerous products,it issues product safety standards for consumer products that pose unreasonable risk of injury.

The National Environmental Policy Act requires the Environmental Protection Agency to prohibit any private or public project that will have an adverse impact on the environment.

The Resource Conservation and Recovery Act addresses:

Under the "Superfund" legislation,who may be held liable for the cleanup costs of a hazardous waste site?

Regulation ________ sets forth detailed rules for compliance with the Truth in Lending Act.

Food is deemed ameliorated if it consists in whole or in part of any "filthy,putrid,or decomposed substance" or if it is otherwise "unfit for food."

Advertising is false and deceptive under Section 5 of the FTC Act if it contains misinformation or omits important information that is likely to mislead a "reasonable consumer."

The Food and Drug Administration may remove from commerce any cosmetics that contain unsubstantiated claims of preserving youth.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was the most extensive financial reform law enacted by the United States Congress since the Great Depression of the 1930s.

The Consumer Product Safety Commission is empowered to perform all of the following actions except:

Would it be better if proof of actual deception was required in order to prove a "false and deceptive" advertising claim under Section 5 of the Federal Trade Commission Act? Is it unfair to penalize advertisers when no actual deception can be shown?

Under the Resource Conservation and Recovery Act (RCRA,)the Environmental Protection Agency is authorized to regulate underground storage facilities,such as underground gasoline tanks.

The United States Congress created the Consumer Product Safety Commission (CPSC)in 1972,through its enactment of the Consumer Product Safety Act (CPSA).

"Bait and switch" is a type of deceptive advertising found in the fishing industry.

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