Exam 19: Consumer Protection

The ____ provides standard terms for leases.

The Food, Drug and Cosmetic Act of 1938 expanded the FDA's powers to include the power to allow it to do which of the following:

No drug may be marketed for sale until the FDA has approved the drug for sale as safe for intended use.

A drug that may only be used with the permission of a physician is designated as a:

Which of these does not violate the Fair Debt Collection Practices Act? The debt collector:

Which of the following is something the Food and Drug Administration devotes part of its annual budget to:

Fact Pattern 19-2 Jayme's Best produced a new line of pasta sauce (Herbal Health), intending for it to have extra nutritional benefits. Using the freshest ingredients, Jayme's added special herbs to the tomato paste and spices, as the herbs are believed by some Tibetan monks to have the power to prevent cancer. Jayme's marketed the sauce in grocery stores and health food stores. Jayme's advertisements said that Herbal Health may help prevent cancer and taste a lot better than the competition. Based on these facts, answer the following questions. -Refer to Fact Pattern 19-2. Suppose the herbs end up being allowed to be sold as a cancer preventative, because the FDA determines that they do have such a beneficial effect. Bob, who eats the sauce every day, gets cancer. He believes the cancer was caused by the sauce and its herbs and sues Jayme in tort. It is up to the jury to decide if Jayme is liable:

According to FDA standards, food that is labeled as "low calorie" must:

A consumer buys furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest:

Under the Electronic Fund Transfer Act, if you fail to tell your bank that your bank card has been stolen, you may be responsible for all losses incurred due to unauthorized use.

The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) imposes restriction on how often interest rates on cards may be changed.

Every year millions of children are vaccinated against polio. For reasons that are unclear, some children contract polio from the vaccine, even though their dose was no different than the others. Assume that child who contracts polio after receiving a vaccine sues the vaccine maker for damages. The likely result of the case will be that:

The intent of the Nutrition Labeling and Education Act is to:

Which of the following is an example of a class I medical device:

FTC consent decrees agreed to by firms accused of illegal trade practices:

Fact Pattern 19-1 In 1999, the Drugs-R-Us began testing its new drug, Reduceo, a medicine to help people lose weight. Tests looked promising and, in 2006, the company applied to the FDA for approval to market Reduceo as a prescription drug. In March 2009, the FDA granted Drug-R-Us approval to market Reduceo. Reduceo was sold with some "diet enhancing" cookies that contained no drugs but were claimed to help dieting with Reduceo. Frank saw an ad for the new drug. The Reduceo ad stated that it was a "wonder drug" and "tests prove it is the safest weight reduction drug on the market today!" Frank was interested and made an appointment to see his doctor. Frank's physician prescribed the new drug for his patient. Frank had no success using other weight-loss drugs, and dieting and exercise seemed ineffective. Frank took Reduceo from June until the end of August and lost 25 lbs. He also ate Reduceo's cookies. He was delighted with his weight loss, but was concerned because dots appeared before his eyes, causing disorientation. One day, the dots appeared before Frank's eyes while he was driving. He became disoriented and hit a tree and was seriously injured. He sued Drugs-R-Us, alleging negligence in manufacturing and inadequate warning of possible effects, as well as for deceptive advertising. -Refer to Fact Pattern 19-1. When Reduceo was submitted for FDA approval, what other standard did the FDA apply in its approval process besides the one listed in the last question?

The Fair Credit Billing Act holds that when consumers think there is a mistake in a credit card bill they have six months in which to notify the creditor in writing.

The FTC determines the legal meaning of terms like "light" and "low fat" when used to advertise food products.

Which of the following is NOT an example of deceptive advertising targeted by the FTC:

The R-value Rule is: