Question 1

The Health Care Reform Act provides special subsidies to "Cadillac" health insurance programs that provide health care benefits that cost above a certain level.

Accepted Answer

A) True 
 B)False  False

Question 2

What is the United Nation's Biosafety Protocol for genetically altered food?

Accepted Answer

In many countries, the food is not genetically altered. However, many food processors in the United States and elsewhere around the world genetically modify some foods by adding genes from other organisms to help crops grow faster or ward off pests. Although the companies insist that genetically altered foods are safe, consumers and many countries began to demand that such foods be clearly labeled so that buyers could decide for themselves. In 2000, more than 150 countries, including the United States, agreed to the United Nations-sponsored Biosafety Protocol for genetically altered foods. The countries agreed that all genetically engineered foods would be clearly labeled with the phrase "May contain living modified organisms." This allows consumers to decide on their own whether to purchase such altered food products.

Question 3

The mislabeling of medicinal devices is prohibited under the Nutrition Labeling and Education Act.

Accepted Answer

A) True 
 B)False  False

Question 4

The food product was released into the market with the banned preservative being one of the ingredients. Which of the following agencies has the power to enact the statutes that govern such a violation?

Accepted Answer

A)  the Medicines and Healthcare products Regulatory Agency 
B)  the U.S. Department of Agriculture 
C)  the Federal Trade Commission 
D)  the Food and Drug Administration 
A)  the Medicines and Healthcare products Regulatory Agency 
B)  the U.S. Department of Agriculture 
C)  the Federal Trade Commission 
D)  the Food and Drug Administration

Question 5

The ________ requires food manufacturers and processors to disclosure uniform information about serving sizes and nutrients, and establishes standard definitions for the various terms like "low fat," "lean" or "organic" which are indiscriminately used by food processors.

Accepted Answer

A)  Consumer Product Safety Act 
B)  Nutrition Labeling and Education Act 
C)  Patient Protection and Affordable Care Act 
D)  Health Care Reform Act 
A)  Consumer Product Safety Act 
B)  Nutrition Labeling and Education Act 
C)  Patient Protection and Affordable Care Act 
D)  Health Care Reform Act

Question 6

The ________ is a federal statute passed in 1990 that requires food manufacturers and processors to provide nutrition information on many foods and prohibits them from making scientifically unsubstantiated health claims.

Accepted Answer

A)  Food, Drug, and Cosmetic Act 
B)  Health Care and Education Reconciliation Act 
C)  Nutrition Labeling and Education Act 
D)  Patient Protection and Affordable Care Act 
A)  Food, Drug, and Cosmetic Act 
B)  Health Care and Education Reconciliation Act 
C)  Nutrition Labeling and Education Act 
D)  Patient Protection and Affordable Care Act

Question 7

The FDA places a complete ban on the use of animal testing in the production of cosmetic goods.

Accepted Answer

A) True 
 B)False

Question 8

The ________ is a federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor's principal dwelling and covers only creditors that regularly extend credit for goods or services to consumers.

Accepted Answer

Truth-in-L

Question 9

The CPSC is an independent federal administrative agency empowered to regulate potentially dangerous consumer products and issue product safety standards.

Accepted Answer

A) True 
 B)False

Question 10

The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following consumer products comes under the purview of the CPSC?

Accepted Answer

A)  aircrafts 
B)  motor vehicles 
C)  firearms 
D)  children's toys 
A)  aircrafts 
B)  motor vehicles 
C)  firearms 
D)  children's toys

Question 12

The Fair and Accurate Credit Transactions Act of 2003 permits credit reporting companies to place fraud alerts in their credit files.

Accepted Answer

A) True 
 B)False

Question 13

In which of the following ways does the FDA regulate cosmetics?

Accepted Answer

A)  by adding warnings for potential carcinogens 
B)  by regulating the sale of cosmetics through exclusive FDA-approved stores 
C)  by placing a complete ban on animal testing in the cosmetic industry 
D)  by autonomously undertaking criminal proceedings against nonconforming cosmetic companies 
A)  by adding warnings for potential carcinogens 
B)  by regulating the sale of cosmetics through exclusive FDA-approved stores 
C)  by placing a complete ban on animal testing in the cosmetic industry 
D)  by autonomously undertaking criminal proceedings against nonconforming cosmetic companies

Question 14

Which of the following is a function that the Consumer Product Safety Commission is empowered to execute?

Accepted Answer

A)  collecting data regarding injuries caused by consumer products 
B)  regulating the distribution of genetically modified food products 
C)  recalling drugs that have been found to be harmful from the market 
D)  accepting petitions from consumers on wrongly labeled food products 
A)  collecting data regarding injuries caused by consumer products 
B)  regulating the distribution of genetically modified food products 
C)  recalling drugs that have been found to be harmful from the market 
D)  accepting petitions from consumers on wrongly labeled food products

Question 15

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 16

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 17

The U.S. Food and Drug Administration promotes the principle of caveat emptor in sale transactions involving food and drugs.

Accepted Answer

A) True 
 B)False

Question 18

Creditors that violate the Consumer Lease Act are subject to the civil and criminal penalties provided in the ________ Act.

Accepted Answer

A)  Truth-in-Lending 
B)  Fair Credit Billing 
C)  Fair Credit and Charge Card Disclosure 
D)  Fair Debt Collection Practices 
A)  Truth-in-Lending 
B)  Fair Credit Billing 
C)  Fair Credit and Charge Card Disclosure 
D)  Fair Debt Collection Practices

Question 19

Which of the following is a new protection provided by the Health Care Reform Act for people seeking health coverage?

Accepted Answer

A)  imposition upon the insurers to provide a lifetime limit on health benefits to all legal citizens 
B)  continuation of medical insurance for people who have developed a terminal disease 
C)  prevention of insurance companies from providing health care insurance to individuals with preexisting health conditions 
D)  provision of mandatory medical insurance for health coverage for illegal immigrants 
A)  imposition upon the insurers to provide a lifetime limit on health benefits to all legal citizens 
B)  continuation of medical insurance for people who have developed a terminal disease 
C)  prevention of insurance companies from providing health care insurance to individuals with preexisting health conditions 
D)  provision of mandatory medical insurance for health coverage for illegal immigrants

Question 20

In the bait and switch advertising model, the bait involves pressuring customers in a store into buying unadvertised or more expensive products.

Accepted Answer

A) True 
 B)False

Exam 23: Consumer Protection

The Health Care Reform Act provides special subsidies to "Cadillac" health insurance programs that provide health care benefits that cost above a certain level.

What is the United Nation's Biosafety Protocol for genetically altered food?

The mislabeling of medicinal devices is prohibited under the Nutrition Labeling and Education Act.

The food product was released into the market with the banned preservative being one of the ingredients. Which of the following agencies has the power to enact the statutes that govern such a violation?

The ________ requires food manufacturers and processors to disclosure uniform information about serving sizes and nutrients, and establishes standard definitions for the various terms like "low fat," "lean" or "organic" which are indiscriminately used by food processors.

The ________ is a federal statute passed in 1990 that requires food manufacturers and processors to provide nutrition information on many foods and prohibits them from making scientifically unsubstantiated health claims.

The FDA places a complete ban on the use of animal testing in the production of cosmetic goods.

The ________ is a federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor's principal dwelling and covers only creditors that regularly extend credit for goods or services to consumers.

The CPSC is an independent federal administrative agency empowered to regulate potentially dangerous consumer products and issue product safety standards.

The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments.

Which of the following consumer products comes under the purview of the CPSC?

The Fair and Accurate Credit Transactions Act of 2003 permits credit reporting companies to place fraud alerts in their credit files.

In which of the following ways does the FDA regulate cosmetics?

Which of the following is a function that the Consumer Product Safety Commission is empowered to execute?

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

The U.S. Food and Drug Administration promotes the principle of caveat emptor in sale transactions involving food and drugs.

Creditors that violate the Consumer Lease Act are subject to the civil and criminal penalties provided in the ________ Act.

Which of the following is a new protection provided by the Health Care Reform Act for people seeking health coverage?

In the bait and switch advertising model, the bait involves pressuring customers in a store into buying unadvertised or more expensive products.

Legal Heritage and the Digital Age

Ethics and Social Responsibility of Business

Courts, Jurisdiction, and Administrative Agencies

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Torts and Strict Liability

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Formation of Traditional and E-Contracts

Performance and Breach of Traditional and E-Contracts

E-Commerce and Digital Law

UCC Sales and Lease Contracts and Warranties

Credit, Secured Transactions, and Bankruptcy

Small Business and General and Limited Partnerships

Limited Liability Companies, Limited Liability Partnerships, and Special Forms of Business

Corporations and the Sarbanes-Oxley Act

Investor Protection, E-Securities, and Wall Street Reform

Agency Law

Equal Opportunity in Employment

Employment Law and Worker Protection

Labor Law and Immigration Law

Antitrust Law and Unfair Trade Practices

Environmental Protection

Land Use Regulation and Real Property

International and World Trade Law

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