Question 1

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

Accepted Answer

If the advertiser refuses to show an advertised item,fails to have a reasonable quantity of the item in stock,fails to promise to deliver the item within a reasonable time,or discourages employees from selling the advertised item.

Question 2

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 D

Question 3

Facto markets a prescription drug for depression called New Life.In a television advertisement they claim that the product will make a person "feel like a kid again." At the close of the advertisement,a disclaimer runs at the bottom of the screen in small print stating "use only as directed by a physician," and "call for details." The product has effectiveness disclaimers and warnings printed on the product package,such as "may cause weight gain" and "may cause heart valve problems," but these don't appear in any of the media advertising.No further information regarding the company or ways to provide information regarding the drug was given.What are the restrictions placed on prescription advertising by the FDA? Did Facto comply with those restrictions? What are the ethical considerations? Discuss fully.

Accepted Answer

The FDA eased restrictions on the advertising of prescription drugs on television and radio.Drug companies can now tout a drug's benefits without listing all of the side effects.Television ads must,however,warn of major risks and provide a quick way (such as a toll-free telephone number,Web address,or magazine advertisement)for consumers to obtain full information about the drug.It does not appear that Facto adequately warned of the potential heart valve problems which would be considered a major risk.Also,the company probably failed to provide sufficient means by which further information could be obtained.

Question 4

Fact pattern 18-2
Janie is a pharmacist in Small City.She begins mixing up a mixture to treat indigestion that is ordered by several of the local 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 18-2.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 5

In some cases,even if a manufacturer provides warnings as mandated by the Food and Drug Administration,it may still be fund liable under state product liability law for failure to warn if reasonable manufacturers would have done more.

Accepted Answer

A) True 
 B)False

Question 6

When Congress passed the Food and Drug Administration Modernization Act,it did not

Accepted Answer

A) affect the testing of new drugs on humans. 
B) speed up the approval of new drugs and medical devices. 
C) permit the FDA to use outside reviewers to evaluate medical devices. 
D) include protections for distribution of some information concerning off-label uses of drugs. 
A) affect the testing of new drugs on humans. 
B) speed up the approval of new drugs and medical devices. 
C) permit the FDA to use outside reviewers to evaluate medical devices. 
D) include protections for distribution of some information concerning off-label uses of drugs.

Question 7

Which of the following categories of drugs cannot be approved by the Food and Drug Administration?

Accepted Answer

A) Schedule 1 
B) Schedule C 
C) Schedule 2 
D) ScheduleD. 
A) Schedule 1 
B) Schedule C 
C) Schedule 2 
D) ScheduleD.

Question 8

Fact pattern 18-1
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 loose a number of patients to Dr.Glover and becomes grumpy when she hears why Dr.Smith 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 18-1.Which of the following is the appropriate term for Dr.Glover's prescribing of Cream X for the elimination of wrinkles and cellulite?

Accepted Answer

A) Compounding use 
B) Non-acknowledged use 
C) Derivative use 
D) Off-label use 
A) Compounding use 
B) Non-acknowledged use 
C) Derivative use 
D) Off-label use

Question 9

In general,consumer protection law at the state level is more stringent than federal law.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The Wool Products Labeling Act is an example of a federal law regulating the labeling of clothing.

Accepted Answer

A) True 
 B)False

Question 12

There is much controversy regarding genetically modified food.What potential problems are involved with the use of genetically modified food? Discuss the pros and cons.What laws have been proposed in this country regarding genetically modified food? What action has the European Parliament taken regarding generically modified food?

Accepted Answer

Students will vary on opinions regarding

Question 13

The ________ has the power to issue cease and desist orders to advertisers.

Accepted Answer

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

Question 14

The ________ has primary responsibility for regulating the labeling of food

Accepted Answer

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

Question 15

The Food and Drug Administration shares with the _________ the responsibility 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 16

Drug companies provide financial support to academic researchers in the form of employment or consulting fees,research funds,Money to attend symposiums,and speaking honoraria.Do you believe that this is ethical? Why or why not? What standards to you believe should be in place?

Accepted Answer

Students w

Question 17

The _________ requires financial institutions to provide privacy protections to consumers.

Accepted Answer

A) Privacy Protection Act 
B) Smith-Davis Financial Institutions Act 
C) Glover Privacy in Action Act 
D) None of the responses are correct. 
A) Privacy Protection Act 
B) Smith-Davis Financial Institutions Act 
C) Glover Privacy in Action Act 
D) None of the responses are correct.

Question 18

The Fair Credit Reporting Act protects the consumer by limiting the amount of interest charged on credit card accounts.

Accepted Answer

A) True 
 B)False

Question 19

Bobby develops a way to clone catfish.He finds that this is a very economical way to run his fish business.He begins selling the catfish to grocers in the area.Other fish producers,who do not know how to clone the fish,are very annoyed with Bobby and start to complain.They tell Bobby that he is violating federal law by not placing a label on his fish notifying consumes that the fish are cloned.Is Bobby in violation of the law?

Accepted Answer

A) Bobby is not in violation of federal law,but he should check to see if his state has such a requirement because labeling legislation has been introduce in some states. 
B) Bobby is not in violation of federal law nor have any states made any effort to require notification of cloned products. 
C) Bobby is in violation of federal law by not notifying consumers through labeling of the cloning. 
D) Bobby is in violation of federal law by not notifying consumers through labeling of the cloning only if there is evidence that the nutritional value of the fish is less than that of noncloned fish. 
A) Bobby is not in violation of federal law,but he should check to see if his state has such a requirement because labeling legislation has been introduce in some states. 
B) Bobby is not in violation of federal law nor have any states made any effort to require notification of cloned products. 
C) Bobby is in violation of federal law by not notifying consumers through labeling of the cloning. 
D) Bobby is in violation of federal law by not notifying consumers through labeling of the cloning only if there is evidence that the nutritional value of the fish is less than that of noncloned fish.

Question 20

The U.S.Supreme Court has ruled that compounded drugs are illegal.

Accepted Answer

A) True 
 B)False

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

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.

In some cases,even if a manufacturer provides warnings as mandated by the Food and Drug Administration,it may still be fund liable under state product liability law for failure to warn if reasonable manufacturers would have done more.

When Congress passed the Food and Drug Administration Modernization Act,it did not

Which of the following categories of drugs cannot be approved by the Food and Drug Administration?

In general,consumer protection law at the state level is more stringent than federal law.

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

The Wool Products Labeling Act is an example of a federal law regulating the labeling of clothing.

The ________ has the power to issue cease and desist orders to advertisers.

The ________ has primary responsibility for regulating the labeling of food

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

Drug companies provide financial support to academic researchers in the form of employment or consulting fees,research funds,Money to attend symposiums,and speaking honoraria.Do you believe that this is ethical? Why or why not? What standards to you believe should be in place?

The _________ requires financial institutions to provide privacy protections to consumers.

The Fair Credit Reporting Act protects the consumer by limiting the amount of interest charged on credit card accounts.

The U.S.Supreme Court has ruled that compounded drugs are illegal.

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, 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

executive compensation and employee benefits

Criminal law

Environmental law

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 Business

Filters

Exam 18: Consumer Protection

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

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.

In some cases,even if a manufacturer provides warnings as mandated by the Food and Drug Administration,it may still be fund liable under state product liability law for failure to warn if reasonable manufacturers would have done more.

When Congress passed the Food and Drug Administration Modernization Act,it did not

Which of the following categories of drugs cannot be approved by the Food and Drug Administration?

In general,consumer protection law at the state level is more stringent than federal law.

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

The Wool Products Labeling Act is an example of a federal law regulating the labeling of clothing.

The ________ has the power to issue cease and desist orders to advertisers.

The ________ has primary responsibility for regulating the labeling of food

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

Drug companies provide financial support to academic researchers in the form of employment or consulting fees,research funds,Money to attend symposiums,and speaking honoraria.Do you believe that this is ethical? Why or why not? What standards to you believe should be in place?

The _________ requires financial institutions to provide privacy protections to consumers.

The Fair Credit Reporting Act protects the consumer by limiting the amount of interest charged on credit card accounts.

The U.S.Supreme Court has ruled that compounded drugs are illegal.

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, 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

executive compensation and employee benefits

Criminal law

Environmental law

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 Business

Filters