Question 1

The Food and Drug Administration (FDA)is empowered to ________.

Accepted Answer

A)  recall unsafe toys, appliances, and other consumer products which are harmful to users 
B)  regulate the safety of meat, poultry, and other food products 
C)  prosecute violators directly by imposing fines and pronouncing sentences 
D)  obtain orders for the seizure, recall, and condemnation of harmful products 
A)  recall unsafe toys, appliances, and other consumer products which are harmful to users 
B)  regulate the safety of meat, poultry, and other food products 
C)  prosecute violators directly by imposing fines and pronouncing sentences 
D)  obtain orders for the seizure, recall, and condemnation of harmful products

Question 2

The Food,Drug,and Cosmetic Act is a federal statute that ________.

Accepted Answer

A)  covers all food products including poultry and processed meat 
B)  grants approval for food additives, drugs, cosmetics, and medicinal devices 
C)  implements the Federal Meat Inspection Act enacted in 1906 
D)  protects the public by providing greater medical coverage from food-related illnesses 
A)  covers all food products including poultry and processed meat 
B)  grants approval for food additives, drugs, cosmetics, and medicinal devices 
C)  implements the Federal Meat Inspection Act enacted in 1906 
D)  protects the public by providing greater medical coverage from food-related illnesses

Question 3

In which of the following ways does the FDA regulate cosmetics?

Accepted Answer

A)  by adding warnings for potential carcinogens 
B)  by regulating the sale of cosmetics through exclusive FDA-approved stores 
C)  by placing a complete ban on animal testing in the cosmetic industry 
D)  by autonomously undertaking criminal proceedings against nonconforming cosmetic companies 
A)  by adding warnings for potential carcinogens 
B)  by regulating the sale of cosmetics through exclusive FDA-approved stores 
C)  by placing a complete ban on animal testing in the cosmetic industry 
D)  by autonomously undertaking criminal proceedings against nonconforming cosmetic companies

Question 4

A decision of the FTC cannot be appealed to federal court.

Accepted Answer

A) True 
 B)False

Question 5

The U.S.Department of Agriculture (USDA)is the federal administrative agency that is primarily responsible for regulating food products.

Accepted Answer

A) True 
 B)False

Question 6

A geographical area that does not meet established air quality standards is designated as a ________.

Accepted Answer

A)  limited pollution area 
B)  nonattainment area 
C)  zoned ordinance area 
D)  federal regulation area 
A)  limited pollution area 
B)  nonattainment area 
C)  zoned ordinance area 
D)  federal regulation area

Question 7

Which of the following is a federal statute that extends limited environmental protection to the oceans?

Accepted Answer

A)  the Safe Drinking Water Act 
B)  the Marine Protection, Research, and Sanctuaries Act 
C)  the Federal Water Pollution Control Act 
D)  the Comprehensive Environmental Response, Compensation, and Liability Act 
A)  the Safe Drinking Water Act 
B)  the Marine Protection, Research, and Sanctuaries Act 
C)  the Federal Water Pollution Control Act 
D)  the Comprehensive Environmental Response, Compensation, and Liability Act

Question 8

The Clean Water Act,which is administered by the U.S.Coast Guard,requires the oil industry to adopt procedures and contingency plans to readily respond to and clean up oil spills.

Accepted Answer

A) True 
 B)False

Question 9

"Growth+," a health drink for teenagers,was advertised with the claim that regular consumption of the drink over a two-month period would lead to a four-inch rise in height.This claim was not grounded in laboratory research or even seen in most of its users.This act of making scientifically unsubstantiated health claims about a product is a violation of the ________.

Accepted Answer

A)  Health Care Reform Act 
B)  Nutrition Labeling and Education Act 
C)  Consumer Product Safety Act 
D)  Patient Protection and Affordable Care Act 
A)  Health Care Reform Act 
B)  Nutrition Labeling and Education Act 
C)  Consumer Product Safety Act 
D)  Patient Protection and Affordable Care Act

Question 10

Under the ________,if the creditor takes an adverse action,the creditor must provide the applicant with a statement containing the specific reasons for the action.

Accepted Answer

A)  Fair Debt Collection Practices Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit Billing Act 
D)  Fair Credit Reporting Act 
A)  Fair Debt Collection Practices Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit Billing Act 
D)  Fair Credit Reporting Act

Question 11

The Clean Air Act authorizes the EPA to regulate air pollution caused by fuel and fuel additives.

Accepted Answer

A) True 
 B)False

Question 12

________ laws are federal and state statutes and regulations that promote product safety and prohibit abusive,unfair,and deceptive business practices.

Accepted Answer

A)  Profit-à-prendre 
B)  Canon 
C)  Consumer protection 
D)  Caveat emptor 
A)  Profit-à-prendre 
B)  Canon 
C)  Consumer protection 
D)  Caveat emptor

Question 13

The FDA is authorized to issue permits for discharge of dredged or fill material into navigable waters and qualified wetlands in the United States.

Accepted Answer

A) True 
 B)False

Question 14

The FTC may sue in a state or federal court to obtain compensation on behalf of consumers.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following cases of consumer safety violations will the U.S.Department of Agriculture be required to take action?

Accepted Answer

A)  A new drug was released into the market without adequate testing and this lead to adverse side effects among users. 
B)  A brand of soft toys for infants was produced with low grade foam and fabrics that could prove harmful when ingested. 
C)  A batch of sausages and cold cuts from a particular vendor was found to have high levels of salmonella and other pathogenic organisms. 
D)  A fleet of cars released into the market by a popular automobile manufacturer was found to have a defective braking system which could prove fatal for owners. 
A)  A new drug was released into the market without adequate testing and this lead to adverse side effects among users. 
B)  A brand of soft toys for infants was produced with low grade foam and fabrics that could prove harmful when ingested. 
C)  A batch of sausages and cold cuts from a particular vendor was found to have high levels of salmonella and other pathogenic organisms. 
D)  A fleet of cars released into the market by a popular automobile manufacturer was found to have a defective braking system which could prove fatal for owners.

Question 16

What is the difference between the Fair Credit Billing Act and the Fair Credit Reporting Act?

Accepted Answer

The Fair Credit Billing Act (FCBA)is a f

Question 17

Which of the following steps immediately follows the publication of the Environmental Impact Statement (EIS)for a proposed project?

Accepted Answer

A)  Congress has to pass a bill adopting the EIS. 
B)  Non-profit agencies are allowed access to the EIS. 
C)  The government issues an order to proceed with a federal action on the project. 
D)  Interested parties submit comments to the EPA. 
A)  Congress has to pass a bill adopting the EIS. 
B)  Non-profit agencies are allowed access to the EIS. 
C)  The government issues an order to proceed with a federal action on the project. 
D)  Interested parties submit comments to the EPA.

Question 18

Which of the following statements is true of the Bureau of Consumer Financial Protection?

Accepted Answer

A)  It does not have the authority to supervise debt collectors and debt buyers. 
B)  It has a special wing that only supervises the automobile industry. 
C)  It lacks investigative and subpoena powers. 
D)  It supervises depository institutions such as commercial and savings banks. 
A)  It does not have the authority to supervise debt collectors and debt buyers. 
B)  It has a special wing that only supervises the automobile industry. 
C)  It lacks investigative and subpoena powers. 
D)  It supervises depository institutions such as commercial and savings banks.

Question 19

Identify and discuss the act that requires the EPA to identify and regulate toxic air pollutants.

Accepted Answer

In 1976,Congress enacted the Toxic Subst

Question 20

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

Exam 34: Consumer Safety and Environmental Protection

The Food and Drug Administration (FDA)is empowered to ________.

The Food,Drug,and Cosmetic Act is a federal statute that ________.

In which of the following ways does the FDA regulate cosmetics?

A decision of the FTC cannot be appealed to federal court.

The U.S.Department of Agriculture (USDA)is the federal administrative agency that is primarily responsible for regulating food products.

A geographical area that does not meet established air quality standards is designated as a ________.

Which of the following is a federal statute that extends limited environmental protection to the oceans?

The Clean Water Act,which is administered by the U.S.Coast Guard,requires the oil industry to adopt procedures and contingency plans to readily respond to and clean up oil spills.

Under the ________,if the creditor takes an adverse action,the creditor must provide the applicant with a statement containing the specific reasons for the action.

The Clean Air Act authorizes the EPA to regulate air pollution caused by fuel and fuel additives.

________ laws are federal and state statutes and regulations that promote product safety and prohibit abusive,unfair,and deceptive business practices.

The FDA is authorized to issue permits for discharge of dredged or fill material into navigable waters and qualified wetlands in the United States.

The FTC may sue in a state or federal court to obtain compensation on behalf of consumers.

In which of the following cases of consumer safety violations will the U.S.Department of Agriculture be required to take action?

What is the difference between the Fair Credit Billing Act and the Fair Credit Reporting Act?

Which of the following steps immediately follows the publication of the Environmental Impact Statement (EIS)for a proposed project?

Which of the following statements is true of the Bureau of Consumer Financial Protection?

Identify and discuss the act that requires the EPA to identify and regulate toxic air pollutants.

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

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

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