Chapter 19 BLAW

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Which of the following would be a "red flag" under the FTC's Red Flag Rule: a. an alert from a consumer reporting agency b. a suspicious document related to credit accounts c. a notice from a customer about possible identity theft d. a peculiar address e. all of the other specific choices are correct

A is an instrument, machine, implant, or other article used in the diagnosis or treatment of a disease in humans or animals. a. medical device b. medical instrument c. surgical tool d. drug device e. none of the other choices are correct

A company advertises that test driving a car from New York to Los Angeles got 35 miles per gallon. That is true, but the mileage was achieved by carefully driving at the speed limit, which resulted in better mileage than the ordinary driver gets. Under the FTC deception policy, this ad is: a. not deceptive; because most consumers understand that test mileage is not the same as regular highway driving b. not deceptive by definition if the company can provide documents that show that the tests were accurate c. deceptive because the ad omits important facts and fails to provide full information d. deceptive because the ad will mislead consumers who do not know how such mileage tests are conducted e. none of the other choices

A company mails consumers cards telling them they have won valuable prizes. When a consumer attempts to collect her prize, she discovers that she must pay $500 to collect the goods. In this case the FTC is likely to: a. seek a consent decree to end the practice b. only allow consumers to use credit cards, not cash, to purchase the goods c. have nothing to do with this case, it falls with the jurisdiction of the FBI d. any of the other choices e. none of the other choices are correct

A material deception is one that: a. is likely to be misleading to the detriment of consumers b. involves the material used to make the product c. involves the production process d. leads the consumer to believe the product is cheaper than it is e. none of the other choices are correct

Applicants who want to sell a drug in the U.S. market must: a. submit evidence that the drug is safe for its intended use b. pay a fee c. submit evidence that the drug is reasonable for its intended use d. make the drug affordable for everyone who needs it e. none of the other choices are correct

Buffo will cure your headache" the ad reads. Buffo, like other pain relievers, helps most people feel better, but it does not cure headaches, it just helps hide the pain, and it does not prevent future headaches. Under the FTC deceptive advertising standard, this ad is: a. not deceptive because most people understand how medicine like Buffo works b. not deceptive only if the company can document that Buffo in fact does cure headaches c. deceptive because products involving medicines must have very accurate ads d. deceptive because it will mislead reasonable consumers as to the true nature of the product e. none of the other choices

Congress enacted a major financial reform bill in 2010, popularly known as: a. the Dodd-Frank Act b. the Wall Street Act c. the Financial Crisis Act d. the Business Regulation Act e. the Patriot Act

Credit bureaus are regulated by: a. the Fair Credit Reporting Act b. the Legitimate Credit Reporting Act c. the Credit CARD Act d. Congress e. none of the other choices are correct

Credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age is prohibited by: a. the Equal Credit Opportunity Act b. the Fair and Just Credit Opportunity Act c. the Fair Credit Opportunity Act d. the Justified Credit Opportunity Act e. the Good-faith Credit Act

False advertising cases brought by private parties under the Lanham Act: a. often yield far more expensive results than most FTC advertising cases b. rarely yield more expensive results than most FTC advertising cases c. are processed more quickly and cheaply than most FTC advertising cases d. are rare in the United States e. are held to a different standard than FTC cases

Garnishing the wages of a debtor refers to the practice of: a. setting aside a portion of a debtor's wages to pay a creditor b. supplementing the wages of a debtor on welfare c. illegally increasing a debtor's earning so he can pay a creditor d. temporarily increasing a debtor's wage so he can pay a creditor e. none of the other choices are correct

In Chuway v. National Action Financial Services, where Chuway received a letter from debt collector National that requested payment of the amount she owed on a debt, the appeals court held that the debt collector used: a. inaccurate terms about the balance due, and so violated the FDCPA b. abusive language in the letter, and so violated the FDCPA c. technical terms that an ordinary consumer could not understand, a violation of the FDCPA d. language that was a bit technical, but the meaning was clear to a reasonable person, so there was no violation of the FDCPA e. none of the other choices

Most deceptive advertising cases are settled by: a. the advertiser agreeing to stop making false claims b. the advertiser paying a fine and continuing to make false claims c. lengthy and expensive court cases d. the advertiser going to jail e. none of the other choices are correct

Most states have statutes that: a. allow consumers or the attorney general to sue for deceptive business practices b. allow consumers to sue for deceptive business practices c. allow the attorney general to sue to deceptive business practices d. automatically incorporate Trade Regulations Rules into state law e. none of the other choices

One reason foreign countries adopt FDA standards for drug production is that they want to: a. export their products to the U.S. b. export their products to the EU countries c. import drugs from the U.S. d. maintain a reputation for low-cost drugs e. export their products to the EU countries and import drugs from the U.S.

Prescription drugs can only be bought at: a. a pharmacy, with a physician's permission b. a pharmacy, if the consumer is over 18 c. a pharmacy, if the consumer is over 21 d. a licensed dealer e. an herbal remedies shop

Prior to the Food and Drug Administration's creation in 1927, the administered the Food and Drug Act. a. Bureau of Chemistry of the Department of Agriculture b. Bureau of Land Management c. Bureau of Food and Drug Regulation d. Bureau of Consumables of the Department of Agriculture e. Bureau of Food of the Department of Agriculture

Regulation E was written by the Federal Reserve Board to implement the: a. Electronic Fund Transfer Act b. Electronic Money Act c. Electronic Banking Act d. Wire Transfer Act e. ATM and Debit Card Act

The to the Food and Drug Act gave the FDA authority for the first time to approve drugs based on their proven effectiveness. a. Kefauver Amendment of 1962 b. Food, Drug and Cosmetics Amendment of 1964 c. Effectiveness Amendment of 1962 d. Madison Amendment of 1962 e. Drug Efficacy Amendment of 1964

The 1962 Kefauver Amendment to the Food and Drug Act gave the FDA authority for the first time to: a. approve drugs based on their proven effectiveness b. license the use of drugs in physician offices c. determine which drugs are to be prescription drugs d. approve drugs based on their safety e. none of the other choices

The Consumer Leasing Act applies to consumer leases for all of the following except a lease: a. of living room furniture for two months b. of a car for two years c. of a computer for a year d. of a big-screen television for six months e. all of the other choices are covered if for personal use

The Electronic Fund Transfer Act concerns liability limits for stolen ATM cards. Which statement is correct about maximum consumer liability: a. $50 if the financial institution is notified within 2 days b. $100 if the financial institution is notified within 3 business days c. $250 if the financial institution is notified within 5 days d. $500 if the financial institution is notified within 7 business days e. none of the other choices

The FTC sued the company that produces "Hooked on Phonics." The company claimed its products could teach users, even learning disabled users, how to read. In this case: a. the company had to stop making such unsubstantiated claims b. the company proved that its products did what they claimed, so the ads were allowed c. the company won a cease-and-desist order against government harassment d. the company proved that its products did what they claimed, so the ads were allowed and the company won a cease-and-desist order against government harassment e. none of the other choices

The FTC's Disposal Rule: a. applies to both electronic and paper documents b. applies to electronic, but not paper documents c. applies to paper, but not electronic documents d. cannot apply to electronic documents because there is really no way to destroy an electronic document e. none of the other choices are correct

The Fair Credit Billing Act: a. prohibits the mailing of unsolicited credit cards b. holds that if a consumer notifies a credit card company in a timely fashion that a card has been stolen there is no liability for unauthorized charges c. holds that a consumer must pay credit card companies the disputed amount but disputes must be resolved in 180 days d. prohibits the mailing of unsolicited credit cards and holds that if a consumer notifies a credit card company in a timely fashion that a card has been stolen there is no liability for unauthorized charges e. none of the other choices

The Federal Trade Commission investigates: a. unfair and deceptive practices b. tax evasion practices c. profitable practices d. legal practices e. drug development

The Food Additives Amendment to the Food, Drug and Cosmetic Act is known as: a. the Delaney Clause b. the Harrison Clause c. the Additive Clause d. the Preservative Clause e. the Additive Substances Clause

The Food Quality Protection Act expanded FDA jurisdiction to: a. pesticides used in food production b. veterinary products c. pesticides used in textile material production d. dog food e. all of the other specific choices are correct

The Food Quality Protection Act's definition of "reasonable certainty of no harm" means that there is any source that affects foods, raw or processed. a. no more than a one-in-a-million lifetime chance of cancer b. no more than a one-in-ten lifetime chance of cancer c. no chance of cancer under any circumstances d. a minimal chance of cancer for otherwise healthy people e. none of the other choices are correct

The Food, Drug and Cosmetic Act of 1938 expanded the FDA's powers to include the power to allow it to do which of the following: a. classify unsafe foods b. regulate costs of essential food items c. require quotas of essential food items to be produced d. require quotas of essential drugs to be produced e. all of the other specific choices are correct

The Food, Drug and Cosmetic Act of 1938 expanded the FDA's powers to include the power to allow it to do which of the following: a. prohibit false advertising of drugs b. regulate costs of essential food items c. require quotas of essential food items to be produced d. require quotas of essential drugs to be produced e. all of the other specific choices are correct

The Food, Drug and Cosmetic Act of 1938 expanded the FDA's powers to include the power to allow it to do which of the following: a. set the safe levels of additives in foods b. regulate costs of essential food items c. require quotas of essential food items to be produced d. require quotas of essential drugs to be produced e. all of the other specific choices are correct

The Nutrition Labeling and Education Act applies: a. to more than 250,000 products b. only to nutritional supplements such as herbal remedies c. primarily to foods with a high-fat content d. only to "inorganic" produce e. only to nutritional supplements such as vitamins

The R-value Rule is: a. a FTC trade regulation rule regarding insulation b. a FTC standard for measuring a business's profits c. a FTC standard for advertising carpet thickness d. a FTC standard regarding vitamin levels in cereals e. none of the other choices are correct

The Truth-in-Lending Act applies to which of the following transactions? a. a department store gives you $3,000 credit for furniture purchases b. you purchase and get an $85,500 loan for a condo c. your friend loans you $4,000 d. none of the other choices e. all of the other specific choices

The first law under the Consumer Credit Protection Act was: a. Truth-in-Lending Act (TILA) b. Fair Credit Reporting Act c. Equal Credit Opportunity Act d. Electronic Funds Transfer Act e. none of the other choices

The government agency charged with monitoring food and drug safety is the: a. Food and Drug Administration b. Food Safety Administration c. Food and Drug Regulation Agency d. Food and Dangerous Drug Administration e. Consumable Products Administration

The primary concern of the Fair and Accurate Credit Transaction Act is to: a. help deal with identity theft b. help deal with low credit scores c. help minority groups get credit cards d. help students improve their credit ratings e. none of the other choices are correct

The shields drug manufacturers from liability in cases where doctors misuse drugs. a. learned intermediary doctrine b. medical intermediary doctrine c. misuse doctrine d. professional intermediary doctrine e. physician intermediary doctrine

To address the issues of consumers being unable to get creditors to correct inaccurate or unauthorized charges that appeared on their bills and credit cards being sent to people who did not request them the FTC passed the: a. Fair Credit Billing Act b. Legitimate Credit Billing Act c. Real Credit Billing Act d. Fair Credit Regulation Act e. Consumer Credit Protection Act

Truth in lending refers to the requirement that creditors: a. must disclose all relevant terms in credit transactions b. must not use sex or race to determine a person's creditworthiness c. must not use abusive debt collection techniques d. all of the other specific choices are correct e. none of the other specific choices are correct

Under the Consumer Leasing Act, which of the following must be given before a consumer becomes obligated under a lease? a. the identity of the party responsible for maintaining the property b. the name of the leaser's agent who is authorized to sign the lease c. the name of the leaser's bank d. the address and relation of the leaser's credit agency e. all of the other choices must be provided

Under the Equal Credit Opportunity Act, lenders can: a. not discriminate on religion even if people of that religion frequently default on their loans b. discriminate against persons who receive welfare c. discriminate against persons because of race d. not discriminate against persons with low income e. not discriminate by charging different debtors different interest rates

Under the FTC's Mail-Order Rule: a. shipping dates must be stated on offers b. shipment date is entirely up to the seller c. if goods cannot be shipped on time, the price must be lowered d. if goods cannot be shipped on time, the company must pay the customer a fee e. none of the other choices are correct

Under the FTC's Used Car Rule the Buyer's Guide must contain: a. prominent statement of whether the dealer is selling the car "as is" and, if so, that the consumer must pay for any repairs needed after buying the car b. the color of the car c. a statement that the consumer need not ask for an independent inspection of the car d. all of the other specific choices are required e. none of the other specific choices are required

Under the Fair and Accurate Credit Transaction Act, credit reporting services must: a. allow consumers to see their credit reports annually for free b. allow consumers to see their credit reports upon request for free c. allow consumers to see their credit reports for $10 d. notify consumers any time their credit reports have been accessed by an outside party e. none of the other choices

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations: a. that credit card receipts may not show more than the last five numbers of a card b. that credit card receipts must show the expiration date of a card c. that credit card receipts must show the name of the holder of a card d. that credit transaction records must be maintained for at least two years e. all of the other choices

When private cases claiming misleading advertising are brought under the Lanham Act: a. the courts generally consider the meaning of "deceptive" the same as does the FTC b. the courts generally do not consider the meaning of "deceptive" the same as does the FTC c. the courts are not as harsh in their consideration of the meaning of "deceptive" as the FTC d. the courts are much harsher in their consideration of the meaning of "deceptive" compared to the FTC e. none of the other choices are correct

When the Consumer Credit Protection Act was passed in 1968 there was about outstanding. a. $100 billion b. $300 billion c. $1 trillion d. $2.5 trillion e. $5 trillion

When the FTC tried to sue a company for scams advertised on the Internet: a. it was treated the same as other deceptive sales; fines were paid b. the appeals court held that there could be no suit because of First Amendment rights c. the appeals court held that there could be no suit because jurisdiction over the Internet belongs to the Federal Communications Commission, not the FTC d. the appeals court held that there could be no suit because this exceeded the powers of the agency; Congress would have to amend the FTC Act e. none of the other choices

Which of the following food health claims may be made on labels: a. the connection between calcium and the prevention of osteoporosis b. the connection between fiber and reduced risk of heart disease c. the connection between calcium and the ability to run fast d. the connection between sodium and strong teeth e. the connection between fiber and reduced risk of cancer

Which of the following is NOT an example of deceptive advertising targeted by the FTC: a. describing pastries made in America as Danish pastries b. claiming that "Hooked on Phonics" can teach people with learning disabilities to read c. claiming that Frosted Mini-Wheats improve children's attentiveness d. claiming that Rice Krispies increase immunity to disease e. all of the other specific choices are correct

Which of the following is an example of a class I medical device: a. bandages b. wheelchairs c. x-ray machines d. surgical materials e. heart valves

Which of the following is an example of a class I medical device: a. gloves b. wheelchairs c. x-ray machines d. surgical materials e. heart valves

Which of the following is not a function of the Food and Drug Administration? a. restaurant sanitation inspections b. drug evaluation studies c. food additives studies d. study of veterinary products e. all of the other choices are functions of the FDA

Which of the following was a factor in triggering the passage of the Pure Food and Drug Act: a. deaths in the Spanish-American War from impure food b. publication of Rachel Carson's book Silent Spring c. deaths in the Civil War from impure food d. deaths in WWII from impure drugs e. all of the other specific choices are correct

Which of the following was a factor in triggering the passage of the Pure Food and Drug Act: a. publication of Upton Sinclair's book The Jungle b. publication of Rachel Carson's book Silent Spring c. deaths WWI from impure food d. deaths in WWII from impure drugs e. all of the other specific choices are correct

Which of the following was a factor in triggering the passage of the Pure Food and Drug Act: a. studies by a government chemist showed some food preservatives were harmful to humans b. publication of Rachel Carson's book Silent Spring c. deaths WWI from impure food d. deaths in WWII from impure drugs e. all of the other specific choices are correct

Which type of advertisement would be held to a tougher standard than the others: a. ads directed at children b. ads directed at middle aged consumers c. ads directed at doctors d. ads directed at "reasonable" persons e. ads directed at professors

medical devices are things presenting minimal potential for harm to the user and are usually of simple design, such as bandages and gloves. a. Class I b. Class II c. Class III d. Generic e. Common

"Old South" potato chips claim to have "that old-fashioned, deep-down satisfyin' taste." They also claim to be low- fat and low-calorie. According to standards created by the FDA, these chips must: a. have less fat and fewer calories than their nearest competitor b. contain fewer than 40 calories per serving c. contain fewer than 10 grams of fat per serving d. all of the other specific choices must be met e. none of the other choices; such rules do not apply to snack foods

. Equal credit opportunity refers to the requirement that creditors: a. must disclose all relevant terms in credit transactions b. must not use sex or race to determine a person's creditworthiness c. must not use abusive debt collection techniques d. all of the other specific choices are correct e. none of the other specific choices are correct

A "trade regulation rule" issued by the FTC that applies to a specific business practice sets a standard: a. that everyone in the industry must follow or be subject to criminal conviction b. for certain practices that are thought to be especially susceptible to deceptive acts c. after a violation is proven the FTC can close down the violator's business d. is voluntary but provides quality guidance for the industry e. must be agreed upon by a majority of the members of the industry to become law

According to FDA standards, food that is labeled as "low fat" must: a. have fewer than 2 grams of fat per serving b. have 3 or fewer grams of fat per serving c. not have been processed in more than one way d. not contain trans fats e. have fewer than 40 calories per serving

Advertisements directed at children or ill people: a. are held to a lower standard than other ads b. are held to a tougher standard than other ads c. are less common than other ads d. are unregulated e. may not contain bad language

Before being finalized, a FTC trade regulation rule must be published in the Federal Register so that: a. the President can read it b. interested parties may comment on it c. the House of Representatives can review it d. the Supreme Court can make sure it is legal e. none of the other specific choices are correct

Debt collection agencies handle in claims each year. a. about $100 billion b. more than $40 billion c. less than $5 billion d. about $20 billion e. about $500 million

Drug regulation in China can be problematic because: a. the Chinese FDA is too strict b. the Chinese FDA is known to take bribes c. the Chinese FDA is overstaffed d. no one in China cares about drug safety e. none of the other choices are correct

Federal regulation of the relationship between consumers and creditors is based on an umbrella law that contains many credit laws: a. the Truth-in-Lending Act b. the Consumer Credit Protection Act c. the Equal Credit Opportunity Act d. the Fair Consumer Credit Act e. none of the other choices

Gold Hair shampoo advertises that it is the best for bringing out golden highlights of people with blond hair. Gold Hair ads state: "Tests prove that our shampoo is superior to other shampoos in making blond hair shine like gold." What FTC program monitors such claims? a. the product purity program b. the advertising substantiation program c. the proof of product program d. the consent decree program e. the deceptive acts program

If you lose the bank card you use to withdraw cash from your bank by machine, and you report it to the bank within two days, you are liable for how much in losses? a. $0 b. $50 c. $500 d. $5,000 e. however much is in your account

In Federal Trade Commission v. John Beck Amazing Profits, where Beck was sued by the FTC for deception in the sale of his "wealth creation" products, the court held that: a. Beck's actions were "neutral" in that they did not make false statements; consumers may have inferred wrong things, but that is not a violation b. the FTC was correct that Beck's infomercials contain misleading information that is material, so the sales would be stsopped c. the FTC showed that the information presented by Beck was misleading, but failed to show that any harm had been inflicted on consumers d. since Beck was only presenting information, that is protected by the First Amendment; so long as he did not actually make investments on behalf of investor/consumers, there was no actionable violation e. Beck operated an internet-based company not regulated by the Telecommunications Act

In addition to having the power to decide when foods and drugs will be allowed to be marketed, the FDA can remove products from the market. An example of the FDA's use of its power to remove products from the market is the: a. recall of GM trucks from the market b. removal of certain orange juice from the market c. removal of high-fat pork products from the market d. removal of low-SPF tanning products from the market e. removal of animal-tested cosmetics from the market

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except: a. the race of the applicant b. if the applicant has a checking account c. if the applicant receives public assistance d. the marital status of the applicant e. all of the other choices are legitimate concerns

The Fair Debt Collection Practices Act prohibits the following by debt collectors except: a. harassing, late-night phone calls b. sending repeated letters demanding payment c. publication of a list of debts owed d. threatening violence if a debt is not paid e. all of the other choices are prohibited

The Federal Reserve Board has written a regulation to implement the Equal Credit Opportunity Act, it is: a. Regulation Z b. Regulation B c. Regulation A d. Regulation J e. none of the other choices

The Federal Trade Commission was established in: a. 1909 b. 1915 c. 1920 d. 1937 e. 1950

The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act was replaced by the Food Quality Protection Act in 1996 because the Delaney Clause: a. was not strict enough b. was too strict c. only applied to food and drug producers contracting with the government d. did not apply to food and drug producers contracting with the government e. did not bring about the economic growth it was expected to spark

The Food and Drug Administration was created in: a. 1906 b. 1927 c. 1938 d. 1958 e. 1967

The Food, Drug and Cosmetic Act of 1938 did not expand the powers of the FDA to include: a. the ability to set safe levels of additives in foods b. require nutrition labels on food c. prohibiting false advertising of drugs d. inspection of drug producers e. new enforcement powers

The Pure Food and Drug Act was passed in: a. 1806 b. 1906 c. 1960 d. 1986 e. 1999

The Used Car Rule requires dealers to give consumers the following information except: a. a statement about any warranty terms offered with the vehicle b. a statement about known defects with the vehicle c. a warning that oral promises may not be enforceable d. a suggestion that the consumer get an independent inspection of the vehicle e. all of the other choices are required

The current time frame for developing a new drug and clearing all the FDA hurdles to market it is about: a. 5 to 10 years b. 12 to 15 years c. 15 to 20 years d. 1 to 5 years e. 30 years

The prohibits the sale of any drug until the FDA approves the application submitted by the manufacturer. a. Food and Medicine Act b. Food, Drug, and Cosmetic Act c. Food and Drug Regulation Act d. Regulation of Food and Drug Act e. Drug Control Act

The provides standard terms for leases. a. Truth-in-Lending Act b. Consumer Leasing Act c. Consumer Buying Act d. Consumer Renting Act e. Consumer Lease Regulation Act

Under the , credit reporting services must allow consumers to see their credit reports annually for free. a. Free Trade Act b. Fair and Accurate Credit Transactions Act c. Fair and Open Credit Act d. Fair Credit Reporting Act e. True and Fair Credit Transactions Act

Under the Fair Credit Reporting Act, a consumer reporting agency (credit bureau) must: a. allow consumers to see credit ratings of businesses b. allow consumers to see information about them that results in their being denied credit c. allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person d. allow consumers to see credit ratings of businesses and allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person e. allow consumers to see information about them that results in their being denied credit and allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person

Under the Fair Debt Collection Practices Act, which of the following information does not have to be provided to the debtor in writing by a debt collector within five days of the initial communication? a. the amount of the debt b. if the creditor will sue if the debtor refuses to pay c. a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid d. the name of the creditor to whom the debt is owed e. all of the other choices must be stated

Which of the following does not conform to FDA standards for food labels: a. "fresh" means the food is raw or unprocessed b. "light" means the product has less than one-half the calories of a comparable product per serving per 100 grams c. "low calorie" means the product has less than 40 calories per serving per 100 grams d. "low fat" means the product has 3 grams or less of fat per 100 gram serving e. all of the other choices are correct

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act: a. race b. sexual orientation c. age d. religion e. all of the other specific choices are prohibited bases

Which of the following is not required to be listed on nutrition labels by the FDA because there is no shortage of it in American diets: a. sodium b. riboflavin c. vitamin A d. vitamin C e. none of the other choices are correct

Which of the following is not required to be listed on nutrition labels by the FDA because there is no shortage of it in American diets: a. sodium b. niacin c. vitamin A d. vitamin C e. none of the other choices are correct

Which of the following is not required to be listed on nutrition labels by the FDA because there is no shortage of it in American diets: a. sodium b. thiamin c. vitamin A d. vitamin C e. none of the other choices are correct

. A drug that may only be used with the permission of a physician is designated as a: a. special drug b. regulated drug c. prescription drug d. formulated drug e. regulated drug

A financial institution (such as a bank) that issues electronic fund-transfer cards must provide consumers: a. a yearly statement of account b. a weekly statement of account c. a monthly statement of account d. a bi-annual statement of account e. the institution is under no obligation to provide consumers with statements of account

A soup company once a television ad for a soup in which marbles were put in the bottom of the soup bowl to make the chunky stuff in the soup be near the top. This ad was: a. illegal in the U.S. and probably illegal in most advanced European nations and in Japan b. legal in the U.S., but probably illegal as being deceptive in much of Europe and in Japan c. illegal in the U.S., but would probably be legal in most of Europe and in Japan d. legal in the U.S. and would probably be legal in most of Europe and in Japan since it does not injure consumers e. none of the other choices

About new compounds make it to Phase I of the tests required to earn FDA approval for the market. a. 1 in 2,000 b. 1 in 50 c. 1 in 60,000 d. 1 in a million e. 1 in 450

About of new compounds initially tested in the lab make it to the market. a. 1 in 2,000 b. 1 in 50 c. 1 in 60,000 d. 1 in a million e. 1 in 100

An extermination company promised customers who had their houses treated for termites that they had a life-time guarantee for free re-treatment if they paid a small fixed annual fee. The company lost money on the guarantee and so it raised the fee. If the FTC sued the company, it would claim the practice was: a. unfair and deceptive b. deceptive only c. unfair only d. a violation of the Cooling-Off Rule e. none of the other choices

Before a FTC trade regulation rule can be finalized it: a. must be published in several national newspapers b. must be registered with the World Trade Organization c. must be published in the Federal Register d. must be shown to the President e. must be voted on by Congress

FTC staff members propose complaints to: a. five executives b. ten commissioners c. five commissioners d. district courts e. the U.S. Supreme Court

For a complaint proposed to the five commissioners by an FTC staff member to be officially issued: a. there must be unanimous agreement b. at least 2 commissioners must vote for it c. at least 3 commissioners must vote for it d. at least 1 commissioner must vote for it e. 4 out of 5 commissioners must vote for it

If company A engages in false advertising that lures customers away from company B, and company B sues, under the Lanham Act it may collect: a. the value of damage to its trademark reputation b. the value of profits lost due to the false advertising c. double the value of profits lost due to the false adverting d. treble the value of profits lost due to false advertising e. none of the other choices; the Lanham Act does not apply in such cases

Katherine loses her ATM card while visiting her boyfriend in Boston. She doesn't realize it until she gets home to New Jersey after a week in Boston. She immediately notifies the bank that she lost her card 7 days ago. How much is Katherine liable for in losses? a. $0 b. $50 c. $500 d. $1000 e. $10,000

Nutritional supplements are: a. subject to the same regulations as drugs b. subject to stricter regulations than drugs c. subject to fewer regulations than drugs d. more expensive than drugs e. illegal in many states

One of the best-known trade regulation rules is the: a. the Deodorant Rule b. the Office Furniture Rule c. the Mail-Order Rule d. the R-value Rule e. none of the other choices

Private parties may initiate civil actions for false advertising claims under: a. the Moss-Magnuson Act b. the Cooper-Dewitt Act c. the Lanham Act d. Article 2 of the Constitution e. the Truth-in-Advertising Act

The "Mail Order Rule" states that if a company: a. buys products through the mail it must use the U.S. Postal Service, and not a private courier system b. buys products through the mail from a foreign country, it must register with the FTC c. sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised d. sells products through the mail is must provide toll-free 800 phone numbers for its customers to use so that they do not spend additional money placing an order e. none of the other choices are correct

The "learned intermediary" doctrine: a. shields a physician from liability because of a drug company's mistake in dosage instructions b. is invoked by regulatory agencies in their arguments in court arguments in support of new regulations c. shields a drug manufacturer from liability when the doctor is liable for misuse of the drug d. holds that the FDA has gone too far in preventing new, effective drugs from reaching the market in less time e. holds federal regulatory agencies supreme in all matters regarding control of product safety

The Consumer Leasing Act does not apply to leases for: a. automobiles b. televisions and other home electronics c. furniture for a dentist's office d. automobiles and furniture for a dentist's office e. all of the other specific choices are not covered by the Act

The Electronic Fund Transfer Act is implemented by: a. Regulation Z b. Regulation B c. Regulation E d. Regulation X e. Regulation F

The FTC test for unfairness does not include which of the following elements, as applied to business practice? a. it causes substantial harm to consumers b. consumers cannot reasonably avoid the injury c. consumers cannot sue the business because the losses per person are too small d. the injury is harmful in its net effects e. all of the other choices are required elements

The FTC uses the to put its policy about advertising into effect: a. advertising monitoring program b. advertising regulation program c. advertising substantiation program d. advertising decree program e. legitimate advertising program

The FTC's states that the information received in consumer reports must be properly destroyed after it has been used for its proper purpose. a. Fairness Rule b. R-value Rule c. Disposal Rule d. Destruction Rule e. Shredded Documents Rule

The Fair Credit Reporting Act: a. applies to anyone giving financial information about another person b. provides a statutory right for anyone to obtain a credit report about another person, so long as all parties involved are notified c. regulates consumer credit bureaus d. applies to anyone giving financial information about another person and provides a statutory right for anyone to obtain a credit report about another person, so long as all parties involved are notified e. applies to anyone giving financial information about another person and provides a statutory right for anyone to obtain a credit report about another person, so long as all parties involved are notified and regulates consumer credit bureaus

The Fair Debt Collection Practices Act applies to: a. all creditors attempting to collect debts b. merchants attempting to collect debts from their customers, but not to financial institutions c. debt collection agencies d. merchants attempting to collect debts from their customers, but not to financial institutions, and to debt collection agencies e. all creditors attempting to collect debts and merchants attempting to collect debts from their customers, but not to financial institutions, and to debt collection agencies

The Fair Debt Collection Practices Act restricts: a. creditors attempting to sell credit card services b. to ten the number of times a debt collector may contact a consumer in a 60 day period when attempting to collect a debt c. abusive techniques used by debt collection agencies d. the use of 800 number phone lines by collection agencies e. all of the other choices

The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act: a. prohibited the use of food additives in food sold for consumption by humans b. gave the U.S. Department of Agriculture the authority to study food additives and make the findings public c. gave the FDA authority to set safe use levels of food additives d. prohibited the FDA from regulating food additives e. did none of the other choices

The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect plants where drugs are manufactured c. to decide which drug company will develop which kinds of new drugs d. to seize drugs that have been approved to be on the market e. all of the other choices are FDA powers

The Food, Drug and Cosmetics Act was passed in 1938 after: a. a large outbreak of food poisoning b. a large numbers of women suffered adverse reactions to a particular face cream c. many people were poisoned by a non-prescription medicine d. several people in Ohio died after eating an infected batch of ground beef e. the drug companies requested an increase of regulation

The Food, Drug and Cosmetics Act was passed in: a. 1906 b. 1927 c. 1938 d. 1940 e. 1950

The Food, Drug, and Cosmetic Act as passed in 1938: a. repealed the 1906 Pure Food and Drug Act b. gave the FDA responsibility to restrict the levels of food additives used c. allowed the FDA to approve drugs for sale as prescription or non-prescription drugs d. allowed the FDA to prohibit drugs not demonstrated to be effective e. all of the other choices

The Truth-in-Lending Act covers only certain classes of consumer credit transactions. For example, the: a. debtor must be a business organization b. creditor may not be a business organization c. creditor must be in the business of regularly granting credit d. debtor must be a business organization and the creditor must be in the business of regularly granting credit e. creditor may not be a business organization and the creditor must be in the business of regularly granting credit

The Truth-in-Lending Act: a. is intended to help married women establish credit history b. is intended to eliminate credit discrimination on the basis of sex, race, color, religion, and other characteristics set forth in the Act c. encourages competition in financing consumer credit d. restricts interest rates creditors may charge consumers e. all of the other choices

The has primary responsibility for sanitation of meat, poultry, and eggs: a. U.S. Chemistry Bureau b. U.S. Food Bureau c. U.S. Department of Agriculture d. U.S. Department of Food and Drugs e. U.S. Department of Meat

The intent of the Nutrition Labeling and Education Act is to: a. make people eat healthier food b. make people buy more packaged food c. help consumers make informed purchases d. prevent consumers from making informed purchases e. help companies sell their food products

The intent of the Nutrition Labeling and Education Act is to: a. make people eat healthier food b. make people buy more packaged food c. prevent misleading product claims d. prevent consumers from making informed purchases e. help companies sell their food products

The main reason that drug companies today produce only about half as many new drugs each year compared to previous decades is: a. there are fewer diseases that drugs can be made for b. people are turning to natural medicine rather than drugs c. the high cost and long time frame involved in clearing all the FDA hurdles to market a new drug d. the lack of science majors graduating in the United States e. the economic downturn

The most heavily controlled medical devices are: a. class I b. class II c. class III d. restricted class e. high class

U-Haul sued a competitor, Jartran, for making false claims about the two companies in its ads. The lawsuit, which was successful, was brought under the: a. FTC Act b. Magnuson-Moss Act c. Lanham Act d. False Advertising Act e. Advertising Substantiation Act

Under FDA regulations, vitamins such as thiamin, riboflavin and niacin: a. may not occur in more than trace amounts in packaged food b. may not be present even in trace amounts in packaged food c. need not be listed on nutrition labels d. must be listed on nutrition labels e. must be clearly advertised on the package of any commercially available food

Under the Electronic Fund Transfer Act, consumers have financial institutions. a. 7 days b. 30 days c. 60 days d. 120 days e. 6 months to report errors in their monthly statements from

Under the Electronic Fund Transfer Act, financial institutions have statements. a. 7 days b. 30 days c. 45 days d. 120 days e. 6 months to resolve disputes in customers' monthly

Under the Equal Credit Opportunity Act, a creditor is permitted to: a. request any information they think necessary to make a decision about a credit applicant b. discriminate against an applicant based on marital status c. consider information about indirect credit history of an applicant d. ask questions about applicant's plans to have children in order to calculate impact on future income e. none of the other choices

Under the FTC's Used Car Rule the Buyer's Guide must contain: a. a promise to pay for all repairs required in the next 30 days b. the color of the car c. warning that oral promises are difficult to enforce, with a suggestion to get all promises in writing d. all of the other specific choices are required e. none of the other specific choices are required

Under the FTC's Used Car Rule the Buyer's Guide must contain: a. a promise to pay for all repairs required in the next 30 days b. the color of the car c. a suggestion that the consumer ask for an independent inspection of the car d. all of the other specific choices are required e. none of the other specific choices are required

Under the Fair Credit Billing Act, a consumer must notify the creditor within charge. a. 1 week b. 30 days c. 60 days d. 90 days e. 6 months

When a FTC trade regulation rule is finalized it becomes part of the: a. Federal Register b. Code of Trade Regulations c. Code of Federal Regulations d. Code of State Regulations e. Federal Trade Regulation Code

Which of the following is an example of an FTC trade regulation rule? a. The Deodorant Rule b. The Office Furniture Rule c. The Used-Car Rule d. all of the other choices e. none of the other choices

Which of the following is not a feature of the Fair Credit Billing Act: a. restricts the mailing of unsolicited credit cards b. creditors must follow specific procedures in case a bill is disputed c. maximum liability for unauthorized charges is $100 if the creditor is notified d. procedures exist for reporting stolen or lost credit cards e. all of the other choices are features of the Act

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive? a. there is a misrepresentation or omission of information in a communication to consumers b. the deception is likely to mislead a reasonable consumer c. there is proximate cause between the deception and the losses suffered by consumers who are misled d. the deception is material⎯likely to mislead the consumer to his or her detriment e. all of the other choices are a part of the deception standard

Which of the following items is not required to be disclosed by a creditor as a part of the statement given a debtor? a. service, activity, carrying and transaction charges b. loan fees and points c. portion of interest charges to cover creditor expenses d. charges for credit life and credit accident and health insurance e. fees for credit reports and appraisals in non-real estate transactions

Which of the following statements about the Truth-in-Lending Act is (are) true? a. it limits the interest rates that may be charged b. it prohibits the use of appraisal fees c. it does not apply to many loans over $25,000 d. it requires all consumers be offered identical credit terms e. all of the other choices are true

Which of these is most likely to be attacked by the FTC as a deceptive business practice? a. selling stock to investors in a company for three times its true value b. charging 25% interest on consumer loans when the market rate of interest is 10% c. mailing office supplies to corporations that did not order them, but then pay the bill because they thought they did order them d. telling consumers that a brand of jeans is special and selling them for double what other jeans sell for, when they are the same as other jeans except for the name e. all of the other choices

. A consumer buys furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest: a. but the customer agreed to it, so there is no violation b. but the consumer's only recourse is to cancel the contract c. and must give the consumer the goods for free as a result d. and may have to pay the consumer up to $1,000 (civil damages) plus attorney fees e. there is no violation here

. Comparing regulation of drugs to other countries, the U.S. is: a. not very strict compared to nations of Europe b. not very strict compared to most underdeveloped nations c. one of the strictest nations but has little impact on the world market d. one of the strictest nations and has great impact on the world market e. none of the other choices

. Under the Fair Credit Reporting Act, consumer bureaus may sell consumer credit reports to: a. anyone willing to pay for one b. any person or business who signs an affidavit attesting to legitimate use of the information c. any person or business who signs an affidavit attesting to legitimate use of the information, knowing that the fact of the purchase is public record d. those needing reports for legitimate business needs e. firms that comply with the Truth-in-Lending Act's disclosure rules

A major enforcement agency of the Fair Credit Billing Act is: a. the Department of Justice b. the Office of the Attorney General c. the Treasury Department d. the Federal Trade Commission e. there is no government enforcement; all suits are private

A noteworthy change at the FDA in recent years is its: a. greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs b. regulation of the sale of fish and shellfish c. increased inspection of foreign fruit shipments d. allowing quicker approval for use of drugs that show promise in treating life-threatening diseases e. dropping the quarantine requirements that apply to animals brought into the U.S.

A prescription drug is one that: a. has serious side effects b. is expensive c. requires insurance to purchase d. may only be used with the permission of a physician e. may be purchased by anyone

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit? a. that her former husband ran up a large unpaid bills b. that she is pregnant c. that she receives Food Stamps d. that she had six credit cards canceled for non-payment e. all of the other choices are illegal to consider

According to FDA standards, food that is labeled as "fresh" must NOT have been: a. processed b. frozen c. preserved d. all of the other specific choices are correct e. none of the other specific choices are correct

According to the FTC, which of the following things would indicate a unfair act or practice: a. the act or practice causes substantial harm to consumers b. consumers cannot reasonably avoid injury c. the injury from the act or practice is harmful in its net effects d. all of the other specific choices are correct e. none of the other specific choices are correct

An art gallery sells fake "authorized" Vincent Van Gogh prints to clients for $50,000 each, telling buyers their purchases are good investments. If the FTC sues, the gallery will: a. win because purchasing the prints did not harm the clients b. win because the doctrine of caveat emptor applies to art c. win because the purchasers are sophisticated art investors d. lose because its actions meet the FTC test for deception e. lose because Van Gogh is currently out of vogue

Before passage of the 1938 Food, Drug, and Cosmetic Act, drugs were: a. all prescribed by physician only b. all prescribed by pharmacists and physicians c. regulated by the FDA only if they posed "serious risks" to human health d. either legal or illegal e. completely unregulated, you could buy anything

Every year millions of children are vaccinated against polio. For reasons that are unclear, some children contract polio from the vaccine, even though their dose was no different than the others. Assume that child who contracts polio after receiving a vaccine sues the vaccine maker for damages. The likely result of the case will be that: a. no liability will be imposed because of the public health benefits from the polio vaccine campaign b. no liability will be imposed because the FDA Act prohibits liability from being imposed on drug producers who sell FDA approved drugs c. if the FDA has approved the vaccine, liability may not be imposed due to the learned intermediary doctrine d. it is uncertain if liability will be imposed; FDA approval is not a shield against liability e. even if the FDA has approved the vaccine, the rule of strict liability makes the producer legally liable for all damages

FTC consent decrees agreed to by firms accused of illegal trade practices: a. contain the terms of a settlement b. may include redress for consumers c. may include prison time for scam operators d. contain the terms of a settlement and may include redress for consumers e. contain the terms of a settlement and may include redress for consumers and may include prison time for scam operators

Fair credit reporting refers to the requirement that creditors: a. must disclose all relevant terms in credit transactions b. must not use sex or race to determine a person's creditworthiness c. must not use abusive debt collection techniques d. credit reporting agencies must provide accurate information in consumer reports e. none of the other specific choices are correct

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information? a. the name and address of the federal agency regulating compliance by the creditor b. a list of other possible sources of credit c. either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons d. the name and address of the federal agency regulating compliance by the creditor and either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons e. the name and address of the federal agency regulating compliance by the creditor and either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons and a list of other possible sources of credit

If there is an error in a consumer's file at a consumer reporting agency, the person should: a. hire a "credit repair" company to correct the error b. request a hearing by an FTC Administrative Law Judge c. notify the FTC about the error, which will have it investigated and corrected, if the loss to the consumer is "significant" d. notify the consumer reporting agency, which changes the information or puts a statement from the consumer in the file e. do none of the other choices

Making a new substance that might one day become a marketable drug takes an average of: a. 2 years b. 3 years c. 5 years d. 7 years e. 10 years

Nutrition labeling does not require which of the following to be listed per serving portion: a. total fat b. fiber c. calcium d. riboflavin e. carbohydrates

Suppose a debt collector has been calling and sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must: a. obtain an injunction against further contact b. pay the debt in full within 30 days c. contact the Federal Trade Commission to request limits to notification d. send the debt collector a letter requesting they stop contact e. none of the other choices

Telemarketers are subject to which of the following: a. the Telephone Consumer Protection Act b. the Telemarketing and Consumer Fraud and Abuse Prevention Act c. the Telemarketing Protocol Act d. both choices a and b are correct e. both choices b and c are correct

The Consumer Financial Protection Bureau has been instructed by Congress to focus on which of the following areas: a. cracking down on financial scams aimed at ordinary consumers b. ensuring that the terms of financial documents are transparent c. focusing on the practices of non-bank institutions to limit practices deemed particularly unfair d. all of the other specific choices are correct e. none of the other specific choices are correct

The Consumer Leasing Act would apply to which of the following leases: a. living room furniture for three months b. an apartment for a year c. a car for a week d. a big-screen television for a year e. all of the other choices would be covered if for personal, not business, use

The Consumer Leasing Act: a. applies to most apartment leases b. only applies to leases for less than $25,000 c. only applies to leases lasting longer than four months d. applies to leases for less than $25,000 and applies to leases lasting longer than four months e. applies to leases for less than $25,000 and applies to leases lasting longer than four months and applies to most apartment leases

The Electronic Fund Transfer Act: a. makes financial institutions liable to the consumer for damages caused by its failure to make an electronic transfer of funds b. limits liability of the erring financial institution to actual damages proved c. limits liability of an erring financial institution to the lesser of $500 or the amount of the incorrect transfer d. makes financial institutions liable to the consumer for damages caused by its failure to make an electronic transfer of funds and limits liability of the erring financial institution to actual damages proved e. makes financial institutions liable to the consumer for damages caused by its failure to make an electronic transfer of funds and limits liability of an erring financial institution to the lesser of $500 or the amount of the incorrect transfer

The FDA began issuing regulations for nutrition labeling in: a. 1909 b. 1940 c. 1970 d. 1973 e. 1990

The Fair Credit Billing Act that governs credit card issuers: a. prohibits mailing unsolicited credit cards b. applies only to credit cards that charge interest on existing balances c. establishes procedures for lost or stolen credit cards d. prohibits mailing unsolicited credit cards and establishes procedures for lost or stolen credit cards e. prohibits mailing unsolicited credit cards and establishes procedures for lost or stolen credit cards and establishes procedures for lost or stolen credit cards

The Fair Debt Collection Practices Act applies to: a. all creditors attempting to collect debts b. all corporations attempting to collect debts c. merchants attempting to collect debts from their customers, but not to financial institutions d. debt collection agencies e. all of the other choices

The Federal Trade Commission regulates: a. deceptive business practices b. false advertising claims c. highly risky stock deals d. deceptive business practices and false advertising claims e. deceptive business practices and false advertising claims and highly risky stock deals

The Food Quality Protection Act holds that a substance may be approved for use in food if: a. there is "no risk" b. there is "no risk" it could induce cancer in humans c. there is a "de minimus risk" of cancer in man or animals d. there is a "reasonable certainty of no harm" e. none of the other choices

The Food Quality Protection Act requires that the FDA ensure a processed. a. total certainty of no harm b. complete certainty of no harm c. relative certainty of no harm d. reasonable certainty of no harm e. possible certainty of no harm

The Food and Drug Administration has a annual budget. a. $100 million b. $40 million c. $4 million d. $4 billion e. $400 billion

The Food and Drug Administration is NOT involved in: a. food sanitation and processing b. studying biological products c. studying veterinary products d. cleaning environmental contaminants from food processing plants e. all of the other specific choices are correct

The Food and Drug Administration: a. inspects drug manufacturing facilities b. prohibits the sale of drugs without FDA approval c. prohibits the sale of prescription drugs to anyone under age 19 without parental consent d. inspects drug manufacturing facilities and prohibits the sale of drugs without FDA approval e. inspects drug manufacturing facilities and prohibits the sale of drugs without FDA approval and prohibits the sale of prescription drugs to anyone under age 19 without parental consent

The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are about a billion dollars and are: a. paid by the FDA only if the drug is approved b. paid by the FDA only if the drug is not approved c. paid by the FDA whether or not the drug is approved d. paid by the drug companies e. paid by the National Institute of Health

What is not a feature of the Consumer Credit Protection Act: a. abusive debt collection tactics are limited b. credit reporting agencies must follow certain rules about accuracy in consumer reports c. creditors must follow certain procedures for handling charges disputed by consumers d. creditors may not charge interest rates that exceed the federal maximum rates e. all of the other choices are features of the Act

What regulation, written by the Federal Reserve Board to implement the Truth-in-Lending Act, specifies items that must be listed as part of consumer finance charges? a. Regulation C b. Regulation X c. Regulation T d. Regulation Z e. none of the other choices

When the Consumer Credit Protection Act was passed in 1968 there was about $100 billion worth of consumer credit outstanding; not the figure is about: a. $200 billion b. $300 billion c. $1 trillion d. $2.5 trillion e. $5 trillion

Which of the following can be sued for by consumers under the TILA: a. twice the amount of the finance charge (up to $1000) b. court costs c. attorney's fees d. all of the other specific choices are correct e. none of the other choices are correct

Which of the following is NOT a required disclosure under the Consumer Leasing Act: a. number, amount, and period of the payments and the payment total b. express warranties offered by the leasing party or the manufacturer of the leased property c. identification of the party responsible for maintaining the leased property d. all of the other specific choices are required e. none of the other specific choices are required

Which of the following is NOT a required disclosure under the Consumer Leasing Act: a. number, amount, and period of the payments and the payment total b. express warranties offered by the leasing party or the manufacturer of the leased property c. identification of the party responsible for maintaining the leased property d. the number of leases both parties are involved in e. all of the other specific choices are required

Which of the following is a part of the FTC's policy about advertising: a. advertising must be truthful and non-deceptive b. advertisers must have evidence to back up their claims c. advertisements cannot be unfair d. all of the other specific choices are correct e. none of the other specific choices are correct

Which of the following is an example of a class II medical device: a. surgical materials b. wheelchairs c. x-ray machines d. all of the other specific choices are correct e. none of the other specific choices are correct

Which of the following is an example of a class III medical device: a. heart valves b. pacemakers c. bone implants d. all of the other specific choices are correct e. none of the other specific choices are correct

Which of the following is an example of an FTC trade regulation rule? a. The Mail Order Rule b. The R-value Rule c. The Used-Car Rule d. all of the other choices e. none of the other choices

Which of the following is considered harassing, deceptive or unfair under the Fair Debt Collection Practice Act: a. threats of violence b. threats of arrest c. obscene language d. all of the other specific choices are correct e. none of the other specific choices are correct

Which of the following is part of the FTC's three part test for deciding whether a particular act or practice is deceptive: a. there is a misrepresentation or omission of information in a communication to consumers b. the deception is likely to mislead a reasonable consumer c. the deception is material d. all of the other specific choices are correct e. none of the other specific choices are correct

Which of the following was NOT a factor in triggering the passage of the Pure Food and Drug Act: a. studies by a government chemist showed some food preservatives were harmful to humans b. publication of Upton Sinclair's book The Jungle c. deaths in the Spanish-American War from impure food d. deaths in WWII from impure drugs e. all of the other specific choices are correct

Which of these does not violate the Fair Debt Collection Practices Act? The debt collector: a. claims to be an attorney when talking to the debtor b. publishes a list of actual debtors in the newspaper c. threatens to beat up the debtor d. calls every day to remind the debtor of the debt it owes to the collector e. all of the other choices are illegal

is a regulation written by the Federal Reserve Board specifying items that must be listed as part of consumer finance charges under the Truth-in-Lending Act. a. Regulation C b. Regulation X c. Regulation T d. Regulation Z e. none of the other choices

A possible benefit of drug regulations in place in many European nations is that: a. new drugs are introduced to the market more quickly b. many more drugs may be purchased without a prescription c. companies wishing to sell in Europe do not need be licensed in each individual country d. pharmaceutical may be less expensive because companies spend less time getting through administrative hurdles e. all of the other choices may be benefits of the European system

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit? a. that her former husband ran up a large unpaid bills b. that she is pregnant c. that she receives Food Stamps d. that she is Hispanic e. all of the other choices are illegal to consider

About of the drugs that make it to Phase III of the tests required to earn FDA approval for the market do not then get final FDA approval. a. 10% b. 20% c. 50% d. 80% e. 90%

According to FDA standards, food that is labeled as "low calorie" must: a. never have been frozen b. have 3 or fewer grams of fat per serving c. not have been processed in more than one way d. not contain trans fats e. have fewer than 40 calories per serving

FTC consent decrees agreed to by firms accused of illegal trade practices: a. contain the terms of a settlement b. may include redress for consumers c. include possible payment of civil penalties d. contain the terms of a settlement and may include redress for consumers e. contain the terms of a settlement and may include redress for consumers and include possible payment of civil penalties

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information? a. the name and address of the federal agency regulating compliance by the creditor b. the basic provisions of the Equal Credit Opportunity Act c. either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons d. the name and address of the federal agency regulating compliance by the creditor and the basic provisions of the Equal Credit Opportunity Act e. the name and address of the federal agency regulating compliance by the creditor and the basic provisions of the Equal Credit Opportunity Act and either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons

If a creditor is found to have violated the Equal Credit Opportunity Act, he is liable for: a. actual damages b. punitive damages up to $10,000 c. attorney's fees d. court costs e. all of the other specific choices are correct

If a violation of the Equal Credit Opportunity Act occurs the consumer can sue the creditor for: a. actual damages b. punitive damages up to $10,000 c. attorney's fees d. court costs e. all of the other specific choices are correct

Nutrition labeling does not require which of the following to be listed per serving portion: a. total fat b. fiber c. calcium d. carbohydrates e. all of the other choices must be listed

The Consumer Credit Protection Act was passed in: a. 1909 b. 1928 c. 1948 d. 1958 e. 1968

The Consumer Leasing Act applies to consumer leases for all of the following except a lease: a. of living room furniture for 18 months b. of a car for two years c. of a computer for a year d. of a big-screen television for six months e. all of the other choices are covered if for personal use

The Electronic Fund Transfer Act concerns liability limits for stolen ATM cards. Which statement is correct about maximum consumer liability: a. $100 if the financial institution is notified within 3 business days b. $250 if the financial institution is notified within 3 business days c. $250 if the financial institution is notified within 5 business days d. $500 if the financial institution is notified within 7 business days e. none of the other choices

The FTC test for unfairness does not include which of the following elements, as applied to business practice? a. it causes substantial harm to consumers b. consumers cannot reasonably avoid the injury c. the injury is harmful in its net effects d. it causes substantial harm to consumers and consumers cannot reasonably avoid the injury e. it causes substantial harm to consumers and consumers cannot reasonably avoid the injury and the injury is harmful in its net effects

The Fair Debt Collection Practices Act does NOT apply to: a. creditors attempting to collect their own debts b. attorneys who regularly engage in debt collection activity c. friends collecting debts from friends d. both a and b are correct e. both a and c are correct

The Fair Debt Collection Practices Act prohibits the following by debt collectors except: a. harassing, late-night phone calls b. discussing a debt with neighbors c. publication of a list of debts owed d. threatening violence if a debt is not paid e. all of the other choices are prohibited

The Federal Trade Commission regulates: a. deceptive business practices b. false advertising claims c. unfair business practices d. deceptive business practices and false advertising claims e. deceptive business practices and false advertising claims and unfair business practices

The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act: a. prohibited the use of food additives in food sold for consumption by humans b. gave the U.S. Department of Agriculture the authority to study food additives and make the findings public c. prohibited the FDA from regulating "natural foods" d. prohibited the FDA from regulating food additives e. did none of the other choices

The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect factories where drugs are manufactured c. to prosecute physicians who violate the learned intermediary rule d. to seize drugs that have been approved to be on the market e. all of the other choices are FDA powers

The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect factories where drugs are manufactured c. to set the levels of additives that may be used in food d. to seize drugs that have been approved to be on the market e. all of the other choices are FDA powers

The Pure Food and Drug Act of 1906 was the first regulation of food and drugs. What sparked interest in this concern? a. studies by a government chemist showed some food preservatives were harmful to humans b. publication of Upton Sinclair's book The Jungle c. deaths in the Spanish-American War from impure food d. publication of Upton Sinclair's book The Jungle and deaths in the Spanish-American War from impure food e. publication of Upton Sinclair's book The Jungle and deaths in the Spanish-American War from impure food and studies by a government chemist showed some food preservatives were harmful to humans

The Truth-in-Lending Act does NOT apply to which of the following: a. a $5,000 loan to a friend b. a $25,000 loan to a friend c. a transaction with no finance charge and fewer than 4 installment payments d. a consumer credit transaction of $30,000 that does not involve real estate e. all of the other choices are correct

The current cost of developing a new drug and clearing all the FDA hurdles to market it is about: a. $100,000 b. $1 million c. $5 million d. $10 billion e. $1 billion

The required the FDA to issue nutrition labels. a. Nutrition Marking Act b. Nutrition Announcement Act c. Nutrition Content Communication Act d. Nutrition Assurance Act e. Nutrition Labeling and Education Act

Under the FTC's Used Car Rule the Buyer's Guide must contain: a. a statement of the terms of any warranty offered with the car b. prominent statement of whether the dealer is selling the car "as is" and, if so, that the consumer must pay for any repairs needed after buying the car c. warning that oral promises are difficult to enforce, with a suggestion to get all promises in writing d. a suggestion that the consumer ask for an independent inspection of the car e. all of the other choices are required

Under the FTC's Used Car Rule the Buyer's Guide need NOT contain: a. a statement of the terms of any warranty offered with the car b. prominent statement of whether the dealer is selling the car "as is" and, if so, that the consumer must pay for any repairs needed after buying the car c. warning that oral promises are difficult to enforce, with a suggestion to get all promises in writing d. a suggestion that the consumer ask for an independent inspection of the car e. the color of the car

Under the Fair Debt Collection Practices Act, which of the following information must be provided to the debtor in writing by a debt collector within 5 days of the initial contact: a. the amount of the debt b. a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid c. the name of the creditor to whom the debt is owed d. the amount of the debt or a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid e. the amount of the debt or a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid or the name of the creditor to whom the debt is owed

Under the Fair Debt Collection Practices Act, which of the following need not be provided to the debtor within five days of the initial communication: a. the amount of the debt b. a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid c. the name of the creditor to whom the debt is owed d. the amount of the debt or a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid e. all of the other specific choices must be provided

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations: a. that credit card receipts may not show more than the last five numbers of a card b. that consumers must be allowed to correct bad information on their credit reports c. that consumer information must be properly disposed of d. that credit card details may not be printed on credit receipts e. all of the other choices

What is not a feature of the Consumer Credit Protection Act: a. abusive debt collection tactics are limited b. credit reporting agencies must follow certain rules about accuracy in consumer reports c. creditors must follow certain procedures for handling charges disputed by consumers d. creditors must disclose all relevant terms in credit transactions e. all of the other choices are features of the Act

Which of the following agencies has primary responsibility for sanitation of meat, poultry, and eggs: a. U.S. Chemistry Bureau b. U.S. Food Bureau c. U.S. Department of Agriculture d. U.S. Department of Food and Drugs e. U.S. Department of Meat

Which of the following does not conform to FDA standards for food labels: a. "fresh" means the food is raw or unprocessed b. "light" means at least one-tenth fewer calories per serving than the regular serving c. "low calorie" means the product has less than 40 calories per serving per 100 grams d. "low fat" means the product has 3 grams or less of fat per 100 gram serving e. all of the other choices are correct

Which of the following health claims may NOT be made on food labels without sufficient documentation by the seller: a. the connection between calcium and the prevention of osteoporosis b. the connection between fat and heart disease c. the connection between fiber and reduced risk of heart disease d. the connection between fat and cancer e. all of the other specific choices may be mentioned on food labels without any extra documentation

Which of the following health claims may NOT be made on food labels without sufficient documentation by the seller: a. the connection between calcium and the prevention of osteoporosis b. the connection between fat and heart disease c. the connection between sodium and high blood pressure d. the connection between fat and cancer e. all of the other specific choices may be mentioned on food labels without any extra documentation

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act: a. marital status b. sex c. age d. religion e. all of the other specific choices are prohibited bases

Which of the following is a prohibited basis under the Equal Credit Opportunity Act: a. marital status b. national origin c. color d. religion e. all of the other specific choices are correct

Which of the following is a prohibited basis under the Equal Credit Opportunity Act: a. race b. sex c. age d. religion e. all of the other specific choices are correct

Which of the following is an example of a class III medical device: a. bandages b. wheelchairs c. x-ray machines d. surgical materials e. bone implants

Which of the following is an example of a class III medical device: a. bandages b. wheelchairs c. x-ray machines d. surgical materials e. heart valves

Which of the following is an example of a class III medical device: a. bandages b. wheelchairs c. x-ray machines d. surgical materials e. pacemakers

Which of the following is an example of an electronic fund transfer: a. an ATM deposit b. a direct deposit of a paycheck c. using a debit card to buy groceries d. an automatic bill paying service e. all of the other choices are correct

Which of the following is not a function of the Food and Drug Administration? a. inspections of food and drug producing establishments b. drug evaluation studies c. food additives studies d. study of veterinary products e. all of the other choices are functions of the FDA

Which of the following is often contained in consent decrees agreed upon by the parties charged in an FTC complaint: a. terms of a settlement b. redress for consumers c. payment of civil penalties d. prohibition of certain practices e. all of the other specific choices are correct

Which of the following is something the Food and Drug Administration devotes part of its annual budget to: a. food sanitation and processing b. studying biological products c. studying veterinary products d. studying the quality of marketed drugs e. all of the other specific choices are correct

Which of the following is true about class I medical devices: a. the makers are registered with the FDA b. the goods must be properly manufactured c. the goods must be properly labeled d. the goods are not subject to extensive controls e. all of the other specific choices are correct

Which of the following items is not required to be disclosed by a creditor as a part of the statement given a debtor? a. service, activity, carrying and transaction charges b. loan fees and points c. fees for credit reports and appraisals in non-real estate transactions d. charges for credit life and credit accident and health insurance e. all of the other choices are required to be disclosed

Which of the following must be listed per serving portion on nutrition labels: a. carbohydrates b. calcium c. fiber d. sodium e. all of the other specific choices must be listed

Which of the following must be listed per serving portion on nutrition labels: a. total calories and calories from fat b. cholesterol c. iron d. protein e. all of the other specific choices must be listed

Which of these does not violate the Fair Debt Collection Practices Act? The debt collector: a. claims to be an attorney when talking to the debtor b. publishes a list of actual debtors in the newspaper c. threatens to beat up the debtor d. calls the debtor's employer to discuss the matter e. all of the other choices are illegal

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