Question 1

If a used car is sold without a warranty,the label must state that the car is being sold "as is" as part of the FTC-required Buyer's Guide label.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

The four main provisions of the CAN-SPAM Act are as follows: (1)it bans false and misleading header information and subject lines; (2)it requires the sender to include a response mechanism whereby the receiver can opt out of any future commercial messages from the sender; (3)the sender must clearly identify the message as an advertisement and include a valid physical mail address; and (4)any messages that contain sexually explicit material must include the warning "SEXUALLY-EXPLICIT" in the subject line.

Question 3

Discuss the purpose of the purpose of the Consumer Product Safety Commission and the process by which it sets mandatory safety standards.Discuss fully.

Accepted Answer

The purposes of the Consumer Product Safety Commission (CPSC)include protection of the public against unreasonable risks of injury associated with consumer products and assistance to consumers in evaluating the comparative safety of such products.Before implementing a mandatory safety standard,the CPSC must find that voluntary standards are inadequate.Standards issued by the CPSC must be reasonably necessary to eliminate any unreasonable risk of injury that the regulated product presents.To determine whether a standard is reasonably necessary,the Commission weighs the standard's effectiveness in preventing injury against its effect on the cost of the product.Any interested person may petition the CPSC to adopt a standard and may resort to judicial remedies if the CPSC denies the petition.The CPSC itself can begin a proceeding to develop a standard by publishing a notice in the Federal Register inviting any person to submit an offer to do the development.Within a specified time limit,the CPSC can then accept such an offer,evaluate the suggestions submitted,and publish a proposed rule.The issuance of the final standard is subject to notice and comment by interested persons.

Question 4

The FDA has authority to regulate certain manufacturing aspects of tobacco,but it cannot regulate marketing of cigarettes or nicotine.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding the placement of health claims for foods on labels?

Accepted Answer

A)  The FDA permits health food claims on labels without FDA approval as a new drug or the risk of sanctions for issuing a misbranded product,as long as the claim has been certified by the FDA as being supported by significant scientific agreement. 
B)  The FDA disallows health food claims on labels unless the food has been approved by the FDA as a type of new drug for the health concern involved. 
C)  The FDA allows health food claims on labels so long as the claim has not been certified by the FDA as false and misleading. 
D)  The FDA allows health food claims on labels without prior approval of the FDA only for organically grown foods. 
A)  The FDA permits health food claims on labels without FDA approval as a new drug or the risk of sanctions for issuing a misbranded product,as long as the claim has been certified by the FDA as being supported by significant scientific agreement. 
B)  The FDA disallows health food claims on labels unless the food has been approved by the FDA as a type of new drug for the health concern involved. 
C)  The FDA allows health food claims on labels so long as the claim has not been certified by the FDA as false and misleading. 
D)  The FDA allows health food claims on labels without prior approval of the FDA only for organically grown foods.

Question 6

The ______ controls the disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available and avoid the uninformed use of credit.

Accepted Answer

A)  Fair Credit Billing Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit Reporting Act 
D)  Truth in Lending Act 
A)  Fair Credit Billing Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit Reporting Act 
D)  Truth in Lending Act

Question 7

Under the FTC's __________,"all or virtually all" of the product must be made in the fifty states,the District of Columbia,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 8

The Federal Trade Commission has _____ commissioners who serve for _____-year terms.

Accepted Answer

A)  seven; four 
B)  ten; five 
C)  six; six 
D)  five; seven 
A)  seven; four 
B)  ten; five 
C)  six; six 
D)  five; seven

Question 9

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

Accepted Answer

A)  Pesticides,genetic engineering,growth hormones,or irradiation may not 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)  Pesticides,genetic engineering,growth hormones,or irradiation may not 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 10

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 11

Under the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (the CAN-SPAM Act),online merchants cannot transfer a customer's payment information to a third-party merchant for a separate online sale without first obtaining the customer's consent to the transfer.

Accepted Answer

A) True 
 B)False

Question 12

Drug Company X has a prescription drug that will make people look younger and lose weight.The problem is that it causes significant stomach problems.Arden,an executive of Drug Company X,wants to advertise the drug's benefits on television and radio but leave out the stomach problems.Arden's secretary,Beck,warns that Arden could run into problems and is not sure the drug can even be advertised.Arden disagrees,stating that it is up to physicians to warn patients of possible complications.Arden decides not to provide any information regarding contacting Company X so that no one at Company X will be annoyed by receiving numerous inquiries about obtaining the drug's benefits.What would an FDA representative likely say in regard to Arden's plan? Provide your response in detail.

Accepted Answer

The FDA representative would say that th

Question 13

The FTC now requires used car sellers to affix a __________ to the cars that they sell.

Accepted Answer

A)  fixed price 
B)  buyer's guide 
C)  base price 
D)  discount price 
A)  fixed price 
B)  buyer's guide 
C)  base price 
D)  discount price

Question 14

The labeling of medical devices is under the jurisdiction of the Food and Drug Administration.

Accepted Answer

A) True 
 B)False

Question 15

The Drug Quality and Security Act,enacted in 2013,made the compounding of drugs illegal.

Accepted Answer

A) True 
 B)False

Question 16

The first step in the FDA approval process for new drugs is their classification by the __________ based on currently accepted medical use and potential for abuse.

Accepted Answer

A)  National Institute of Health 
B)  The Consumer Product Safety Commission 
C)  Drug Enforcement Administration 
D)  Congress 
A)  National Institute of Health 
B)  The Consumer Product Safety Commission 
C)  Drug Enforcement Administration 
D)  Congress

Question 17

The Food and Drug Administration shares responsibility with the __________ for regulating pesticide residues on food.

Accepted Answer

A)  Department of Agriculture 
B)  Department of Insecticide 
C)  Federal Trade Commission 
D)  Environmental Protection Agency 
A)  Department of Agriculture 
B)  Department of Insecticide 
C)  Federal Trade Commission 
D)  Environmental Protection Agency

Question 18

Courts usually consider advertisements to be only an offer to deal.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Bitcoin gift cards are highly regulated currency and can be used with Amazon,Best Buy,and iTunes.

Accepted Answer

A) True 
 B)False

Exam 17: Consumer-Protection

If a used car is sold without a warranty,the label must state that the car is being sold "as is" as part of the FTC-required Buyer's Guide label.

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

Discuss the purpose of the purpose of the Consumer Product Safety Commission and the process by which it sets mandatory safety standards.Discuss fully.

The FDA has authority to regulate certain manufacturing aspects of tobacco,but it cannot regulate marketing of cigarettes or nicotine.

Which of the following is true regarding the placement of health claims for foods on labels?

The ______ controls the disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available and avoid the uninformed use of credit.

Under the FTC's __________,"all or virtually all" of the product must be made in the fifty states,the District of Columbia,or the U.S.territories and possessions.​

The Federal Trade Commission has _____ commissioners who serve for _____-year terms.

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.

Under the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (the CAN-SPAM Act),online merchants cannot transfer a customer's payment information to a third-party merchant for a separate online sale without first obtaining the customer's consent to the transfer.

The FTC now requires used car sellers to affix a __________ to the cars that they sell.

The labeling of medical devices is under the jurisdiction of the Food and Drug Administration.

The Drug Quality and Security Act,enacted in 2013,made the compounding of drugs illegal.

The first step in the FDA approval process for new drugs is their classification by the __________ based on currently accepted medical use and potential for abuse.

The Food and Drug Administration shares responsibility with the __________ for regulating pesticide residues on food.

Courts usually consider advertisements to be only an offer to deal.

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?

Bitcoin gift cards are highly regulated currency and can be used with Amazon,Best Buy,and iTunes.

Law-Value-Creation-And-Risk-Management

Ethics-And-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

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

The Federal Trade Commission has _ commissioners who serve for _-year terms.