Question 1

In general,when will the FDA require prescription use of a drug?

Accepted Answer

A)  If the drug is toxic,requires a physician's supervision for safe use,or is addictive 
B)  Only if the drug is toxic 
C)  Only if the drug is either toxic or requires a physician's supervision for safe use 
D)  Only if the drug is addictive or requires a physician's supervision for safe use 
A)  If the drug is toxic,requires a physician's supervision for safe use,or is addictive 
B)  Only if the drug is toxic 
C)  Only if the drug is either toxic or requires a physician's supervision for safe use 
D)  Only if the drug is addictive or requires a physician's supervision for safe use

Question 2

The Truth-in-Lending Act (TILA)is intended to assure a truthful loan application by the consumer.

Accepted Answer

A) True 
 B)False

Question 3

The Truth-in-Lending Act provides consumers a right of __________ whenever their home is used as collateral for credit except for original construction or acquisition.

Accepted Answer

A)  rescission 
B)  redemption 
C)  new mortgage 
D)  refinance 
A)  rescission 
B)  redemption 
C)  new mortgage 
D)  refinance

Question 4

The FDA sets _____ standards for what is considered adulterated natural foods.

Accepted Answer

A)  mislabeling 
B)  unavoidable 
C)  zero tolerance 
D)  minimum tolerance 
A)  mislabeling 
B)  unavoidable 
C)  zero tolerance 
D)  minimum tolerance

Question 5

Point-of-purchase nutrition information labeling is voluntary for:

Accepted Answer

A)  many raw foods. 
B)  vending machine products. 
C)  packages containing more than one serving. 
D)  food supplements that qualify as medicinal. 
A)  many raw foods. 
B)  vending machine products. 
C)  packages containing more than one serving. 
D)  food supplements that qualify as medicinal.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Fair Credit Reporting Act gives consumers a right to have corrected copies of their credit reports sent to creditors.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

Rules regarding the sale of e-cigarettes include all of the following EXCEPT:

Accepted Answer

A)  purchaser must be 18 or older. 
B)  anyone under the age of 27 must show photo identification before being allowed to purchase tobacco products. 
C)  free samples are allowed to those over 18 showing photo identification. 
D)  vending machine sales are generally prohibited. 
A)  purchaser must be 18 or older. 
B)  anyone under the age of 27 must show photo identification before being allowed to purchase tobacco products. 
C)  free samples are allowed to those over 18 showing photo identification. 
D)  vending machine sales are generally prohibited.

Question 11

Which of the following are protected categories under the Equal Credit Opportunity Act?

Accepted Answer

A)  Gender,race,color,religion,and national origin 
B)  Gender,race,color,religion,national origin,and age 
C)  Gender,marital status,race,color,religion,national origin,and age 
D)  Gender,marital status,race,color,religion,national origin,age,and residents of disadvantaged neighborhoods 
A)  Gender,race,color,religion,and national origin 
B)  Gender,race,color,religion,national origin,and age 
C)  Gender,marital status,race,color,religion,national origin,and age 
D)  Gender,marital status,race,color,religion,national origin,age,and residents of disadvantaged neighborhoods

Question 12

Explain the Federal Trade Commission's current stand on ownership of broadcasting stations and why some consider it controversial.

Accepted Answer

In April 2017,the FCC voted to relax rul

Question 13

Which of the following is true regarding the use of irradiated foods in the United States?

Accepted Answer

A)  Irradiated foods are outlawed. 
B)  Irradiation is allowed only for fruits and vegetables,and no notice is required. 
C)  Irradiation is allowed for fresh and frozen red meat,and no notice is required. 
D)  Irradiation is allowed for a variety of fresh and frozen meat,fruits,and vegetables,but must be labeled as treated. 
A)  Irradiated foods are outlawed. 
B)  Irradiation is allowed only for fruits and vegetables,and no notice is required. 
C)  Irradiation is allowed for fresh and frozen red meat,and no notice is required. 
D)  Irradiation is allowed for a variety of fresh and frozen meat,fruits,and vegetables,but must be labeled as treated.

Question 14

Which of the following is true regarding FDA approval of medical devices in relation to state law claims for failure to warn?

Accepted Answer

A)  FDA approval of medical devices does not preempt state failure-to-warn claims arising out of injuries caused by the device. 
B)  FDA approval of medical devices preempts state failure-to-warn claims arising out of injuries caused by the device,regardless of whether the device was exempted from full review. 
C)  FDA approval of medical devices preempts state failure-to-warn claims arising out of injuries caused by the device,unless the device was exempted from full review. 
D)  FDA approval of certain medical devices does not preempt state failure-to-warn claims arising out of injuries caused by the device,but federal law preempts state failure-to-warn claims related to nonapproved devices. 
A)  FDA approval of medical devices does not preempt state failure-to-warn claims arising out of injuries caused by the device. 
B)  FDA approval of medical devices preempts state failure-to-warn claims arising out of injuries caused by the device,regardless of whether the device was exempted from full review. 
C)  FDA approval of medical devices preempts state failure-to-warn claims arising out of injuries caused by the device,unless the device was exempted from full review. 
D)  FDA approval of certain medical devices does not preempt state failure-to-warn claims arising out of injuries caused by the device,but federal law preempts state failure-to-warn claims related to nonapproved devices.

Question 15

The Truth-in-Lending Act limits credit card liability to $50 per card for unauthorized charges made before a card issuer is notified of a lost or stolen card.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Trade Commission's "Guides for the Use of Environmental Marketing Claims" include all of the following EXCEPT:

Accepted Answer

A)  the requirement of scientific testing necessary to substantiate environmental claims. 
B)  the application of the scientific validity of a consumer's belief as the standard for reasonableness. 
C)  the requirement of the marketer to specify whether the claim applies to the entire product,its packaging,a service,or a portion of those components. 
D)  a prohibition against the overstatement of any benefits claimed. 
A)  the requirement of scientific testing necessary to substantiate environmental claims. 
B)  the application of the scientific validity of a consumer's belief as the standard for reasonableness. 
C)  the requirement of the marketer to specify whether the claim applies to the entire product,its packaging,a service,or a portion of those components. 
D)  a prohibition against the overstatement of any benefits claimed.

Question 17

In CASE 17.2,XYZ Two Way Radio Service,Inc.v.Uber Technologies,Inc.(2016),the court analyzed whether Uber's claims regarding background checks and safety constituted false advertising in violation of the Lanham Act,among other claims.How did the court rule?

Accepted Answer

A)  The court held that Uber's statements were subjective claims that "cannot be proven true or false" and are actionable under the Lanham Act. 
B)  The court held that Uber's statements that were challenged in the suit were nonactionable puffery under the Lanham Act. 
C)  The court held that Uber's statements regarding its background checks were false or misleading. 
D)  The court agreed with XYZ Two Way Radio Service,Inc.'s claims that certain Uber statements constituted false advertising in violation of the Lanham Act. 
A)  The court held that Uber's statements were subjective claims that "cannot be proven true or false" and are actionable under the Lanham Act. 
B)  The court held that Uber's statements that were challenged in the suit were nonactionable puffery under the Lanham Act. 
C)  The court held that Uber's statements regarding its background checks were false or misleading. 
D)  The court agreed with XYZ Two Way Radio Service,Inc.'s claims that certain Uber statements constituted false advertising in violation of the Lanham Act.

Question 18

The Federal Commerce Commission has adopted guidelines specifying when manufacturers and marketers can label their products "Made in USA."

Accepted Answer

A) True 
 B)False

Question 19

Generic drugs can be approved for use on a showing that they are identical to approved brand-name drugs.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

If the advertiser refuses to show an adv

Exam 17: Consumer-Protection

In general,when will the FDA require prescription use of a drug?

The Truth-in-Lending Act (TILA)is intended to assure a truthful loan application by the consumer.

The Truth-in-Lending Act provides consumers a right of __________ whenever their home is used as collateral for credit except for original construction or acquisition.

The FDA sets _____ standards for what is considered adulterated natural foods.

Point-of-purchase nutrition information labeling is voluntary for:

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

The Fair Credit Reporting Act gives consumers a right to have corrected copies of their credit reports sent to creditors.

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

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

Rules regarding the sale of e-cigarettes include all of the following EXCEPT:

Which of the following are protected categories under the Equal Credit Opportunity Act?

Explain the Federal Trade Commission's current stand on ownership of broadcasting stations and why some consider it controversial.

Which of the following is true regarding the use of irradiated foods in the United States?

Which of the following is true regarding FDA approval of medical devices in relation to state law claims for failure to warn?

The Truth-in-Lending Act limits credit card liability to $50 per card for unauthorized charges made before a card issuer is notified of a lost or stolen card.

The Federal Trade Commission's "Guides for the Use of Environmental Marketing Claims" include all of the following EXCEPT:

In CASE 17.2,XYZ Two Way Radio Service,Inc.v.Uber Technologies,Inc.(2016),the court analyzed whether Uber's claims regarding background checks and safety constituted false advertising in violation of the Lanham Act,among other claims.How did the court rule?

The Federal Commerce Commission has adopted guidelines specifying when manufacturers and marketers can label their products "Made in USA."

Generic drugs can be approved for use on a showing that they are identical to approved brand-name drugs.

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

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