Question 1

Criminal violations of the FDCA are referred to the U.S.Department of Justice for prosecution.

Accepted Answer

A) True 
 B)False

Question 2

Should the Federal Trade Commission take a hands-off approach to regulating deceptive advertising? Should consumers be responsible for verifying the claims in advertisements? Why or why not? In what circumstances might regulation be most appropriate?

Accepted Answer

Some argue that it should be the consume

Question 3

The following are actions that the FDA can take in regulating cosmetics except:

Accepted Answer

A)  prohibiting the distribution of misbranded cosmetics 
B)  requiring proper labeling 
C)  removing from commerce cosmetics that contain unsubstantiated claims of growing hair 
D)  ordering sellers of ineffective products to provide purchasers with an effective substitute 
A)  prohibiting the distribution of misbranded cosmetics 
B)  requiring proper labeling 
C)  removing from commerce cosmetics that contain unsubstantiated claims of growing hair 
D)  ordering sellers of ineffective products to provide purchasers with an effective substitute

Question 4

Food additives need not be approved by the FDA before they can be sold to the public.

Accepted Answer

A) True 
 B)False

Question 5

Under what circumstances should the Food and Drug Administration speed up the approval process for new drugs? What are the risks of this and how might they be minimized?

Accepted Answer

This might be most appropriate for drugs

Question 6

Which of the following is required under the Biosafety Protocol sponsored by the United Nations in the year 2000?

Accepted Answer

A)  Nations are free to prohibit the import of genetically altered foods without violating free-trade agreements. 
B)  Genetically altered foods must be shipped in separate containers from foods that are not genetically altered. 
C)  All genetically altered foods must be clearly labeled as such. 
D)  Whenever genetically altered foods are offered for sale,comparable food that is not genetically altered must be made available at a comparable price. 
A)  Nations are free to prohibit the import of genetically altered foods without violating free-trade agreements. 
B)  Genetically altered foods must be shipped in separate containers from foods that are not genetically altered. 
C)  All genetically altered foods must be clearly labeled as such. 
D)  Whenever genetically altered foods are offered for sale,comparable food that is not genetically altered must be made available at a comparable price.

Question 7

Approval of new drug applications is fairly expedient.

Accepted Answer

A) True 
 B)False

Question 8

The Federal Trade Commission Act was enacted in 1914.

Accepted Answer

A) True 
 B)False

Question 9

Just for fun,Sue took her new jar of peanut butter to a friend who works in a lab and asked him to analyze it.The friend then correctly reported to Sue that he had found 12 insect fragments in the 2-pound jar.Sue is disgusted and mad as she can be.Which of the following is true in these circumstances?

Accepted Answer

A)  The maker of the peanut butter is liable for false and deceptive advertising if the presence of insect fragments was not noted on the label. 
B)  The maker of the peanut butter is liable for selling adulterated food because the insect fragments were present. 
C)  The maker of the peanut butter violated the Nutrition Labeling and Education Act if it did not include the nutrients and other information from the insect parts on the nutrition label. 
D)  The maker of the peanut butter has not violated any food cleanliness or safety standards. 
E)  A and B 
A)  The maker of the peanut butter is liable for false and deceptive advertising if the presence of insect fragments was not noted on the label. 
B)  The maker of the peanut butter is liable for selling adulterated food because the insect fragments were present. 
C)  The maker of the peanut butter violated the Nutrition Labeling and Education Act if it did not include the nutrients and other information from the insect parts on the nutrition label. 
D)  The maker of the peanut butter has not violated any food cleanliness or safety standards. 
E)  A and B

Question 10

Maggie is a homeowner.An unsolicited door-to-door salesperson came to Maggie's house and sold her an encyclopedia set.Maggie decided that she no longer wants the encyclopedia.What can Maggie do?

Accepted Answer

Maggie can probably rescind or

Question 11

Some states allow a 3-day window in which a consumer may cancel door-to-door sales contracts.

Accepted Answer

A) True 
 B)False

Question 12

The Disco Shop sells stereos in all price ranges from inexpensive to very expensive.The sales people work on commission.They earn a 20 percent commission on the expensive items and only 2 percent on the cheaper items,leading the sales people to prefer selling the more expensive items.Disco makes more profit on the more expensive items.Is this an unlawful bait and switch?

Accepted Answer

This is probably not a bait and switch b

Question 13

Unfair and deceptive trade practices are generally regulated by the:

Accepted Answer

A)  Federal Trade Commission 
B)  Food and Drug Administration 
C)  Securities and Exchange Commission 
D)  Consumer Product Safety Commission 
A)  Federal Trade Commission 
B)  Food and Drug Administration 
C)  Securities and Exchange Commission 
D)  Consumer Product Safety Commission

Question 14

Ordinary household soap is included in the Food and Drug Administration's definition of cosmetics.

Accepted Answer

A) True 
 B)False

Question 15

The law is more lax with nonprescription drug manufacturers,as it does not require that the method of use be given to consumers.

Accepted Answer

A) True 
 B)False

Question 16

The Consumer Product Safety Commission is empowered to conduct research on the safety of consumer products.

Accepted Answer

A) True 
 B)False

Question 17

Under the FDCA,some contamination of foods is lawful.

Accepted Answer

A) True 
 B)False

Question 18

The FDA has the power to prevent the sale of cosmetics posing dangers to users,but does not have the power to prohibit their sale solely on the basis that they make unsubstantiated claims,such as claims that they promote virility.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is regulated by the FDA?

Accepted Answer

A)  eye shadow 
B)  lipstick 
C)  facial makeup 
D)  All of these are correct. 
A)  eye shadow 
B)  lipstick 
C)  facial makeup 
D)  All of these are correct.

Question 20

The authority to regulate which of the following was given to the FDA in 1976?

Accepted Answer

A)  organic foods 
B)  Medicinal Devices 
C)  Food Additives 
D)  artificial sweeteners 
E)  nonprescription drugs 
A)  organic foods 
B)  Medicinal Devices 
C)  Food Additives 
D)  artificial sweeteners 
E)  nonprescription drugs

Exam 44: Consumer Protection and Product Safety

Criminal violations of the FDCA are referred to the U.S.Department of Justice for prosecution.

Should the Federal Trade Commission take a hands-off approach to regulating deceptive advertising? Should consumers be responsible for verifying the claims in advertisements? Why or why not? In what circumstances might regulation be most appropriate?

The following are actions that the FDA can take in regulating cosmetics except:

Food additives need not be approved by the FDA before they can be sold to the public.

Under what circumstances should the Food and Drug Administration speed up the approval process for new drugs? What are the risks of this and how might they be minimized?

Which of the following is required under the Biosafety Protocol sponsored by the United Nations in the year 2000?

Approval of new drug applications is fairly expedient.

The Federal Trade Commission Act was enacted in 1914.

Maggie is a homeowner.An unsolicited door-to-door salesperson came to Maggie's house and sold her an encyclopedia set.Maggie decided that she no longer wants the encyclopedia.What can Maggie do?

Some states allow a 3-day window in which a consumer may cancel door-to-door sales contracts.

Unfair and deceptive trade practices are generally regulated by the:

Ordinary household soap is included in the Food and Drug Administration's definition of cosmetics.

The law is more lax with nonprescription drug manufacturers,as it does not require that the method of use be given to consumers.

The Consumer Product Safety Commission is empowered to conduct research on the safety of consumer products.

Under the FDCA,some contamination of foods is lawful.

The FDA has the power to prevent the sale of cosmetics posing dangers to users,but does not have the power to prohibit their sale solely on the basis that they make unsubstantiated claims,such as claims that they promote virility.

Which of the following is regulated by the FDA?

The authority to regulate which of the following was given to the FDA in 1976?

Legal Heritage and the Information Age

Court Systems and Jurisdiction

Judicial, Alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Strict Liability and Product Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Internet 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

Sales and Lease Warranties

Creation of Negotiable Instruments

Transferability and Holder In Due Course

Liability,Defenses and Discharge

Checks, the Banking System, and E-Money

Creditor's and Debtor's Rights

Secured Transactions and Electronic Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment,Worker Protection,and Immigration Laws

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Businesses, Entrepreneurs, and General Partnerships

Limited Partnerships and Limited Liability Limited Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Business

Investor Protection and Online Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Environmental Protection and Global Warming

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord Tenant Law and Land Use Regulation

Insurance

Accountants' Liability

Wills, Trusts, and Elder Law

Family Law

International and World Trade Law

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