Question 1

Which of the following is true regarding the 2011 Food Safety Modernization Act?

Accepted Answer

A)  It developed an electronic tracking system to follow food from the farm to the dinner table. 
B)  It is one of several major overhauls of the FDA in the last several years. 
C)  It recognizes that importers are not required to verify food safety in regard to food from other countries. 
D)  It is one of several major overhauls of the FDA in the last several years, and it recognizes that importers are not required to verify food safety in regard to food from other countries. 
A)  It developed an electronic tracking system to follow food from the farm to the dinner table. 
B)  It is one of several major overhauls of the FDA in the last several years. 
C)  It recognizes that importers are not required to verify food safety in regard to food from other countries. 
D)  It is one of several major overhauls of the FDA in the last several years, and it recognizes that importers are not required to verify food safety in regard to food from other countries.

Question 2

What is the purpose of the Truth-in-Lending Act? What does it provide regarding the liability of credit cardholders for unauthorized charges when a card is lost or stolen?

Accepted Answer

The Truth-in-Lending Act (TILA)is intend

Question 3

Under theFTC's __________,"all or virtually all" of theproduct must be made in the fifty states,the District ofColumbia,or the U.S.territories and possessions.

Accepted Answer

A)  Made in USA policy 
B)  Made within USA policy 
C)  Wood Products Labeling Act 
D)  Labeling Preemption Act 
A)  Made in USA policy 
B)  Made within USA policy 
C)  Wood Products Labeling Act 
D)  Labeling Preemption Act

Question 4

Which of the following is true regarding USDA standards for organic food?

Accepted Answer

A)  Neither pesticides, genetic engineering, growth hormones, nor irradiation may be used. 
B)  Pesticides may be used, but genetic engineering and the use of growth hormones is disallowed. 
C)  Pesticides and irradiation may not be used, but genetic engineering and the use of growth hormones is allowed. 
D)  The USDA has no standards for organic food. 
A)  Neither pesticides, genetic engineering, growth hormones, nor irradiation may be used. 
B)  Pesticides may be used, but genetic engineering and the use of growth hormones is disallowed. 
C)  Pesticides and irradiation may not be used, but genetic engineering and the use of growth hormones is allowed. 
D)  The USDA has no standards for organic food.

Question 5

Under the Magnuson-Moss Warranty Act,a seller who offers a written warranty on goods must provide a full warranty.

Accepted Answer

A) True 
 B)False

Question 6

Fact Pattern 17-2
Janie is a pharmacist in Small City. At the direction of several physicians in Small City, she begins mixing up a treatment for indigestion that is prescribed by the physicians. She advertises the mixture, and she and prescribing physicians see a large increase in business. Other pharmacists who do not want to bother with mixing begin to complain. Janie takes the position that it is a free country, and she can do as she pleases since there is no evidence that the mixture is harmful; and it is particularly helpful for those individuals who have had reactions to other indigestion medication.
-Refer to Fact Pattern 17-2.Which of the following is the term that best describes the process Janie uses in preparing the drug?

Accepted Answer

A)  Combining 
B)  Compounding 
C)  Integrating 
D)  Servicing 
A)  Combining 
B)  Compounding 
C)  Integrating 
D)  Servicing

Question 7

When does an advertiser violate the Federal Trade Commission bait and switch advertising rules?

Accepted Answer

If the advertiser refuses to show an adv

Question 8

Which of the following is true regarding the labeling of food imported into the U.S.?

Accepted Answer

A)  Labeling of food imports is not required on the part of grocery stores or restaurants. 
B)  All grocery stores must label certain products, including unprocessed beef and pork, with the country of origin; but restaurants are exempt. 
C)  Grocery stores and restaurants, with no exceptions, must inform customers of the country of origin of certain products including beef and pork. 
D)  Grocery stores must label certain products, including unprocessed beef and pork, with the country of origin; but restaurants and some retail grocery stores with sales under a certain amount are exempt. 
A)  Labeling of food imports is not required on the part of grocery stores or restaurants. 
B)  All grocery stores must label certain products, including unprocessed beef and pork, with the country of origin; but restaurants are exempt. 
C)  Grocery stores and restaurants, with no exceptions, must inform customers of the country of origin of certain products including beef and pork. 
D)  Grocery stores must label certain products, including unprocessed beef and pork, with the country of origin; but restaurants and some retail grocery stores with sales under a certain amount are exempt.

Question 9

Congress has made it a federal crime to engage in the extortionate extension of credit.

Accepted Answer

A) True 
 B)False

Question 10

Set forth the four main provisions of the CAN-SPAM Act.

Accepted Answer

The four main provisions of the CAN-SPAM

Question 11

In CASE 17.1 Federal Communications Commission v.Fox Television Stations,Inc.(2012),the U.S.Supreme Court held that the FCC had given adequate notice to broadcasters required bythe Fifth Amendmentconcerning fleeting expletives and brief nudity.

Accepted Answer

A) True 
 B)False

Question 12

Fact Pattern 17-1
Cream X has been approved by the Food and Drug Administration for the treatment of eczema. Dr. Glover discovers, however, that it is also great for a number of other things including the removal of wrinkles and cellulite. The cream is applied to the skin, not ingested. He starts prescribing it for those purposes and has a great increase in patients. Dr. Smith starts to lose a number of patients to Dr. Glover and becomes grumpy when she hears why Dr. Glover is gaining in popularity. Dr. Smith decides to complain about the practice but does not know quite what to do about it.
-Refer to Fact Pattern 17-1.Which of the following is true regarding the legality of Dr.Glover prescribing Cream X for the elimination of wrinkles and cellulite?

Accepted Answer

A)  It is legal, and the Food and Drug Administration would take no action against him. 
B)  It is legal only because the cream is not ingested. 
C)  It is legal only because Dr.Glover is using it for cosmetic reasons. 
D)  It is illegal. 
A)  It is legal, and the Food and Drug Administration would take no action against him. 
B)  It is legal only because the cream is not ingested. 
C)  It is legal only because Dr.Glover is using it for cosmetic reasons. 
D)  It is illegal.

Question 13

Before implementing a mandatory safety standard,the Consumer Product Safety Commission must find that __________ are inadequate.

Accepted Answer

A)  voluntary standards 
B)  safety guidelines 
C)  product designs 
D)  warnings 
A)  voluntary standards 
B)  safety guidelines 
C)  product designs 
D)  warnings

Question 14

The U.S.Department of Agriculture inspects facilities engaged in egg production.

Accepted Answer

A) True 
 B)False

Question 15

A car loan is an example of a closed-end credit transaction.

Accepted Answer

A) True 
 B)False

Question 16

The Fair Debt Collection Practices Act applies only to third-party debt collectors.

Accepted Answer

A) True 
 B)False

Question 17

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage.

Accepted Answer

A)  10%; 30 
B)  25%; 30 
C)  30%; 25 
D)  35%; 40 
A)  10%; 30 
B)  25%; 30 
C)  30%; 25 
D)  35%; 40

Question 18

The __________ has the primary responsibility for regulating the packaging and labeling of commodities other than food,drugs,medical devices,and cosmetics.

Accepted Answer

A)  Federal Commerce Commission 
B)  Federal Interstate Regulating Commission 
C)  Federal Trade Commission 
D)  Uniform Commodity Commission 
A)  Federal Commerce Commission 
B)  Federal Interstate Regulating Commission 
C)  Federal Trade Commission 
D)  Uniform Commodity Commission

Question 19

In the Thompson v.W.States Medical Centercase referenced in the text,the U.S.Supreme Court ruled that compounded drugs are illegal.

Accepted Answer

A) True 
 B)False

Question 20

State may regulate odometer tampering,but there is no federal law that does so.

Accepted Answer

A) True 
 B)False

Exam 17: Consumer Protection.

Which of the following is true regarding the 2011 Food Safety Modernization Act?

What is the purpose of the Truth-in-Lending Act? What does it provide regarding the liability of credit cardholders for unauthorized charges when a card is lost or stolen?

Under theFTC's __________,"all or virtually all" of theproduct must be made in the fifty states,the District ofColumbia,or the U.S.territories and possessions.

Which of the following is true regarding USDA standards for organic food?

Under the Magnuson-Moss Warranty Act,a seller who offers a written warranty on goods must provide a full warranty.

When does an advertiser violate the Federal Trade Commission bait and switch advertising rules?

Which of the following is true regarding the labeling of food imported into the U.S.?

Congress has made it a federal crime to engage in the extortionate extension of credit.

Set forth the four main provisions of the CAN-SPAM Act.

In CASE 17.1 Federal Communications Commission v.Fox Television Stations,Inc.(2012),the U.S.Supreme Court held that the FCC had given adequate notice to broadcasters required bythe Fifth Amendmentconcerning fleeting expletives and brief nudity.

Before implementing a mandatory safety standard,the Consumer Product Safety Commission must find that __________ are inadequate.

The U.S.Department of Agriculture inspects facilities engaged in egg production.

A car loan is an example of a closed-end credit transaction.

The Fair Debt Collection Practices Act applies only to third-party debt collectors.

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage.

The __________ has the primary responsibility for regulating the packaging and labeling of commodities other than food,drugs,medical devices,and cosmetics.

In the Thompson v.W.States Medical Centercase referenced in the text,the U.S.Supreme Court ruled that compounded drugs are illegal.

State may regulate odometer tampering,but there is no federal law that does so.

Law, Value Creation, and Risk Management.

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Agency.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Real Property and Land Use.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

Filters

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _ times the current federal minimum hourly wage.