Question 1

What is the importance of the Biosafety Protocol prescribed by the United Nations?

Accepted Answer

A)  It dictates the terms and conditions for production of genetically modified food. 
B)  It prevents people from differentiating between normal and organic food. 
C)  It notifies people of the presence of genetically modified food in the market. 
D)  It assures people of the quality of the food by providing details of its testing process. 
A)  It dictates the terms and conditions for production of genetically modified food. 
B)  It prevents people from differentiating between normal and organic food. 
C)  It notifies people of the presence of genetically modified food in the market. 
D)  It assures people of the quality of the food by providing details of its testing process.

Question 2

Which of the following statements is true of the Federal Trade Commission Act (FTC Act)?

Accepted Answer

A)  It can sue only in state courts to obtain compensation on behalf of consumers. 
B)  It usually cannot enforce a cease-and-desist order in any case of violation. 
C)  Section 5 of the FTC Act excludes monitoring of firms indulging in any consumer malpractice. 
D)  It has been used extensively to regulate business conduct. 
A)  It can sue only in state courts to obtain compensation on behalf of consumers. 
B)  It usually cannot enforce a cease-and-desist order in any case of violation. 
C)  Section 5 of the FTC Act excludes monitoring of firms indulging in any consumer malpractice. 
D)  It has been used extensively to regulate business conduct.

Question 3

The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other foods regulated by the Food and Drug Administration.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of seeking injunctions on consumer products under the CPSC?

Accepted Answer

A)  The CPSC can only seek an injunction once a private party has lodged a complaint with it. 
B)  Only the CPSC can sue for an injunction when CPSC rules are violated. 
C)  A private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations. 
D)  Injunctions cannot be pursued on products that have not yet been sold or marketed. 
A)  The CPSC can only seek an injunction once a private party has lodged a complaint with it. 
B)  Only the CPSC can sue for an injunction when CPSC rules are violated. 
C)  A private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations. 
D)  Injunctions cannot be pursued on products that have not yet been sold or marketed.

Question 5

Federal and state government statutes that regulate the safety of food, drugs, cosmetics, toys, vehicles, and other products are collectively referred to as consumer protection laws.

Accepted Answer

A) True 
 B)False

Question 6

The new line of sunscreen products marketed by Radiance has allegedly been developed after using large-scale animal testing procedures. Insiders revealed that the high levels of lead present in the products have proven to be fatal for many of the animals used in the laboratories. Radiance is likely to be inspected for suspected criminal violations of the ________.

Accepted Answer

A)  Food, Drug, and Cosmetic Act 
B)  Consumer Product Safety Act 
C)  Patient Protection and Affordable Care Act 
D)  Federal Trade Commission Act 
A)  Food, Drug, and Cosmetic Act 
B)  Consumer Product Safety Act 
C)  Patient Protection and Affordable Care Act 
D)  Federal Trade Commission Act

Question 7

"Imminently hazardous" in relation to a consumer product regulated by the CPSC can be defined as causing an unreasonable risk of death or serious injury or illness.

Accepted Answer

A) True 
 B)False

Question 8

The Food and Drug Administration 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 9

If a model of a car has faulty airbag deployment, the Consumer Product Safety Commission has the power to recall that model on receiving complaints.

Accepted Answer

A) True 
 B)False

Question 10

The FDA cannot recall any cosmetics that contain unsubstantiated claims of preserving youth or increasing virility from the market.

Accepted Answer

A) True 
 B)False

Question 11

Political organizations are exempt from the Do-Not-Call registry.

Accepted Answer

A) True 
 B)False

Question 12

Proof of actual deception is required for an advertising to be considered false under Section 5 of the Federal Trade Commission (FTC).

Accepted Answer

A) True 
 B)False

Question 13

Section 4205 of the Patient Protection and Affordable Health Care Act requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items and supply information on how many calories a healthy person should eat in a day. The provisions of this legislation are enforced by the ________.

Accepted Answer

A)  Federal Food and Drug Administration 
B)  United Nations 
C)  Federal Trade Commission 
D)  Consumer Product Safety Commission 
A)  Federal Food and Drug Administration 
B)  United Nations 
C)  Federal Trade Commission 
D)  Consumer Product Safety Commission

Question 14

Which of the following is empowered to remove "quack" devices from the market in the United States?

Accepted Answer

A)  The USDA 
B)  The FDA 
C)  The FTC 
D)  The CPSA 
A)  The USDA 
B)  The FDA 
C)  The FTC 
D)  The CPSA

Question 15

Biosafety Protocol is a United Nations-sponsored protocol that requires signatory countries to place the label ________ on all genetically engineered foods.

Accepted Answer

A)  "Warning-unnatural food particles" 
B)  "May contain living modified organisms" 
C)  "FDA tested and approved food" 
D)  "WHO tested and approved food" 
A)  "Warning-unnatural food particles" 
B)  "May contain living modified organisms" 
C)  "FDA tested and approved food" 
D)  "WHO tested and approved food"

Question 16

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 17

The Consumer Product Safety Commission is the federal administrative agency empowered to enforce the Food, Drug, and Cosmetic Act (FDCA).

Accepted Answer

A) True 
 B)False

Question 18

The Drug Amendment to the FDCA gives the FDA broad powers to license new drugs in the United States.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of the Federal Trade Commission (FTC)?

Accepted Answer

A)  The FTC can only sue in state courts. 
B)  The FTC's decision can be appealed in a state court. 
C)  The FTC can sue to obtain compensation on behalf of the consumer. 
D)  The FTC is not allowed to directly disclose its findings to the public. 
A)  The FTC can only sue in state courts. 
B)  The FTC's decision can be appealed in a state court. 
C)  The FTC can sue to obtain compensation on behalf of the consumer. 
D)  The FTC is not allowed to directly disclose its findings to the public.

Question 20

Section 5 of the Federal Trade Commission (FTC) Act can be used to prohibit unfair and deceptive business practices.

Accepted Answer

A) True 
 B)False

Exam 44: Consumer Protection and Product Safety

What is the importance of the Biosafety Protocol prescribed by the United Nations?

Which of the following statements is true of the Federal Trade Commission Act (FTC Act)?

The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other foods regulated by the Food and Drug Administration.

Which of the following is true of seeking injunctions on consumer products under the CPSC?

Federal and state government statutes that regulate the safety of food, drugs, cosmetics, toys, vehicles, and other products are collectively referred to as consumer protection laws.

"Imminently hazardous" in relation to a consumer product regulated by the CPSC can be defined as causing an unreasonable risk of death or serious injury or illness.

The Food and Drug Administration is empowered to ________.

If a model of a car has faulty airbag deployment, the Consumer Product Safety Commission has the power to recall that model on receiving complaints.

The FDA cannot recall any cosmetics that contain unsubstantiated claims of preserving youth or increasing virility from the market.

Political organizations are exempt from the Do-Not-Call registry.

Proof of actual deception is required for an advertising to be considered false under Section 5 of the Federal Trade Commission (FTC).

Which of the following is empowered to remove "quack" devices from the market in the United States?

Biosafety Protocol is a United Nations-sponsored protocol that requires signatory countries to place the label ________ on all genetically engineered foods.

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

The Consumer Product Safety Commission is the federal administrative agency empowered to enforce the Food, Drug, and Cosmetic Act (FDCA).

The Drug Amendment to the FDCA gives the FDA broad powers to license new drugs in the United States.

Which of the following is true of the Federal Trade Commission (FTC)?

Section 5 of the Federal Trade Commission (FTC) Act can be used to prohibit unfair and deceptive business practices.

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