Question 1

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 C

Question 2

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage.

Accepted Answer

A)  10%, 30 
B)  25%, 30 
C)  30%, 25 
D)  35%, 40 
A)  10%, 30 
B)  25%, 30 
C)  30%, 25 
D)  35%, 40 B

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

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 5

Congress has made it a federal crime to engage in the extortionate extension of credit.

Accepted Answer

A) True 
 B)False

Question 6

In general,the FDA will require prescription use only when a drug is _______.

Accepted Answer

A)  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)  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 7

The Fair Debt Collection Practices Act applies only to third-party debt collectors.

Accepted Answer

A) True 
 B)False

Question 8

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. Ann,an executive of Drug Company X,wants to advertise the drug's benefits on television and radio but leave out the stomach problems. Her secretary,Bob,tells her that she could run into problems,and that he is not sure the drug can even be advertised. Ann disagrees stating that it is up to physicians to warn patients of possible complications. She tells Bob that she will not 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 Ann's plan? Set forth your response in detail.

Accepted Answer

The FDA representative would say that th

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

Which of the following is true regarding bioengineered insects and pathogens?

Accepted Answer

A)  They are outlawed. 
B)  The Environmental Protection agency issues permits for bioengineered insects but 	bioengineered pathogens are outlawed. 
C)  The Environmental Protection agency issues permits for bioengineered pathogens but 	bioengineered insects are outlawed. 
D)  The Environmental Protection Agency issues permits for the use of bioengineered insects and 	pathogens. 
A)  They are outlawed. 
B)  The Environmental Protection agency issues permits for bioengineered insects but 	bioengineered pathogens are outlawed. 
C)  The Environmental Protection agency issues permits for bioengineered pathogens but 	bioengineered insects are outlawed. 
D)  The Environmental Protection Agency issues permits for the use of bioengineered insects and 	pathogens.

Question 15

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

Accepted Answer

If the advertiser refuses to show an adv

Question 16

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

Accepted Answer

A)  FDA approval of the label on a brand-name prescription drug does not preempt state failure-to-warn claims arising out of injuries caused by the drug nor does FDA approval of the label preempt state failure-to-warn claims related to approved generic drugs bearing the FDA-mandated label. 
B)  FDA approval of the label on a brand-name prescription drug preempts state failure-to-warn claims arising out of injuries caused by the drug, and federal law also preempts state failure-to-warn claims related to approved generic drugs as long as they bear the FDA-mandated label. 
C)  FDA approval of the label on a brand-name prescription drug preempts state failure-to-warn claims arising out of injuries caused by the drug, but federal law does not preempt state failure-to-warn claims related to approved generic drugs bearing the FDA-mandated label. 
D)  FDA approval of the label on a brand-name prescription drug does not preempt state failure-to-warn claims arising out of injuries caused by the drug, but federal law preempts state failure-to-warn claims related to approved generic drugs as long as they bear the FDA-mandated label. 
A)  FDA approval of the label on a brand-name prescription drug does not preempt state failure-to-warn claims arising out of injuries caused by the drug nor does FDA approval of the label preempt state failure-to-warn claims related to approved generic drugs bearing the FDA-mandated label. 
B)  FDA approval of the label on a brand-name prescription drug preempts state failure-to-warn claims arising out of injuries caused by the drug, and federal law also preempts state failure-to-warn claims related to approved generic drugs as long as they bear the FDA-mandated label. 
C)  FDA approval of the label on a brand-name prescription drug preempts state failure-to-warn claims arising out of injuries caused by the drug, but federal law does not preempt state failure-to-warn claims related to approved generic drugs bearing the FDA-mandated label. 
D)  FDA approval of the label on a brand-name prescription drug does not preempt state failure-to-warn claims arising out of injuries caused by the drug, but federal law preempts state failure-to-warn claims related to approved generic drugs as long as they bear the FDA-mandated label.

Question 17

If a used car is sold without a warranty,the label must state that the car is being sold "as is."

Accepted Answer

A) True 
 B)False

Question 18

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 19

Caveat emptor means,

Accepted Answer

A)  "let the buyer beware." 
B)  "let the buyer prevail." 
C)  "let the market decide." 
D)  "let the seller beware." 
A)  "let the buyer beware." 
B)  "let the buyer prevail." 
C)  "let the market decide." 
D)  "let the seller beware."

Question 20

Fact Pattern 17-2
Janie is a pharmacist in Small City. At the direction of several physicians in Small City, she begins mixing up a treatment for indigestion that is prescribed by the 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 17-2. 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

Exam 17: Consumer Protection

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

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage.

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

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?

Congress has made it a federal crime to engage in the extortionate extension of credit.

In general,the FDA will require prescription use only when a drug is _______.

The Fair Debt Collection Practices Act applies only to third-party debt collectors.

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

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

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 ________ 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.

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.

Which of the following is true regarding bioengineered insects and pathogens?

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

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

If a used car is sold without a warranty,the label must state that the car is being sold "as is."

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.

Caveat emptor means,

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

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

The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _ times the current federal minimum hourly wage.