Topic 8 Consumer and Environmental Law Protections

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True or false: The CPSC has created a public database where consumers may report dangerous products.

True

True or false: The FDA does not have as much authority to regulate cosmetic products as it does food and drugs.

True

Following the completion of an environmental impact statement, the NEPA allows a comment period for _________________ days. 10 40 30 20

30

True or false: Sellers of goods are required by law to offer an express warranty for goods.

False

True or false: The FDA does not allow any level of animal contaminants in food.

False

A(n) _________________ is a method to assess potential and existing environmental risks for major federal action. Environmental Impact Statement Clean Environmental Statement National Environmental Policy Statement Environmental Protection Statement

A(n) _________________ is a method to assess potential and existing environmental risks for major federal action. Environmental Impact Statement Clean Environmental Statement National Environmental Policy Statement Environmental Protection Statement

Created in 1972, the _________________ was designed to protect the public from unreasonable injury from consumer products. Consumer Product Safety Commission Consumer Product Safety Improvement Act National Electronic Injury Surveillance System Consumer Product Safety Act

Consumer Product Safety Act

The _________________ Act prohibits creditors from discriminating in the offer of services to any person on the basis of race, color, religion, national origin, sex, marital status, or age. Fair Credit and Charge Card Disclosure Fair Credit Reporting Fair Debt Collection Practices Equal Credit Opportunity Act

Equal Credit Opportunity Act

The _________________ Act protects consumers in the collection and reporting of their personal financial credit information. Fair Credit and Charge Card Disclosure Fair Debt Collection Practices Equal Credit Opportunity Fair Credit Reporting

Fair Credit Reporting

The _________________ Act provides for disclosure of information in the issuance and regulation of consumer credit cards by banks and other credit companies. Fair Credit and Charge Card Disclosure Fair Debt Collection Practices Fair Credit Reporting Equal Credit Opportunity

Fair Credit and Charge Card Disclosure

The _________________ Act protects a consumer's right by making some collection practices unlawful, such as using false information, harassing the debtor, or making threats. Fair Debt Collection Practices Fair Credit and Charge Card Disclosure Fair Credit Reporting Equal Credit Opportunity

Fair Debt Collection Practices

The _________________ is responsible for protecting and promoting public health by regulating and supervising labeling, food safety, drugs, tobacco, medical devices, and cosmetics. Food and Drug Administration Department of Health and Human Services Federal Food, Drug, and Cosmetic Act Environmental Protection Agency

Food and Drug Administration "was created" = Act "responsible for" = group

Which of the following is not true of the Food and Drug Administration? It supervises and regulates the medical device industry. It conducts premarket safety assessments for new cosmetics. It seeks to eliminate adulterated food from the marketplace. It relies on drug manufacturers to submit evidence that their drugs are safe and effective.

It conducts premarket safety assessments for new cosmetics.

Which of the following is not true of the Magnuson-Moss Act? It was designed to make product warranties more easily understood by consumers. It was enacted in response to widespread deceptive warranty practices by merchants. It gave the Federal Trade Commission power to enforce warranties. It established that an express warranty is present if the seller promises that the goods conform to an express promise.

It established that an express warranty is present if the seller promises that the goods conform to an express promise.

Which of the following is not true of the Consumer Product Safety Commission? It has broad power to enjoin companies from producing and selling dangerous products. It carries out the functions of the Consumer Product Safety Act. It seeks civil and even criminal penalties against offending companies. It is managed under the U.S. Department of Health and Human Services.

It is managed under the U.S. Department of Health and Human Services. The CPSC is an independent agency that does not operate under any other department of the federal government

Which of the following is not true of an implied warranty? It is an unwritten promise by the seller. It is inherent in the nature of the sales transaction. It may be later disclaimed by the seller. It includes a seller's promise that he or she is the rightful owner of the goods being sold.

It may be later disclaimed by the seller.

Which of the following is not true of the CPSC? It may issue recalls for dangerous products, but it may not ban dangerous products that are in the marketplace. It is presided over by three commissioners who are appointed by the president. It is an independent agency that does not operate under any other department of the federal government. It operates a hotline and a website where consumers may report dangerous products.

It may issue recalls for dangerous products, but it may not ban dangerous products that are in the marketplace.

Which of the following is not true of a full warranty? It may repair a product that was damaged by a consumer's improper use. It may cover the repair of the product. It may cover the replacement of the product. It may refund the price of the product to the consumer.

It may repair a product that was damaged by a consumer's improper use.

Which of the following is not true of the Food and Drug Administration? It conducts premarket safety assessments for new drugs. It tests all drugs for safety and efficacy. It inspects manufacturing facilities to check for adulteration. It aims to prevent adulterated food from entering the marketplace.

It tests all drugs for safety and efficacy.

The _________________ Act was enacted by Congress in response to widespread deceptive warranty practices. Magnuson-Moss Landrum-Griffin Lanham Mahaffie

Magnuson-Moss The M &M act has warranty rules

The CPSC uses the _________________ to gather injury data from hospital emergency rooms around the nation. National Electronic Injury Surveillance System Child Safety Protection Act Children's Gasoline Burn Prevention Act Consumer Product Safety Improvement Act

National Electronic Injury Surveillance System

The most important federal law protecting the environment is the _________________. Natural Resources Conservation Service National Environment Policy Act Endangered Species Program Environmental Impact Statement

National Environment Policy Act

_________________ is the unlawful use of property in a manner that unreasonably and substantially interferes with the enjoyment or use of another individual's property. Tenancy Nuisance Possession Disparagement

Nuisance

Which of the following is not an example of a cosmetic product? Pain reliever pills Mascara Baby shampoo Skin moisturizer

Pain reliever pills

In order to make a claim of deceptive advertising, a party must show all but which of the following elements? The false claim is likely to produce economic injury. The false claim is likely to deceive a buyer. The false claim is made about a product or service. The false claim does not affect the purchasing decision.

The false claim does not affect the purchasing decision.

Which of the following is not a major consumer reporting agency in the United States? Equifax Experian TransUnion Transperian

Transperian

True or false: The Fair Credit Reporting Act limits the time negative information may remain on a consumer's credit report.

True

True or false: Under common law, a landowner had to show specific harm to his or her property from nuisance. TrueFalse

True

True or false: With the exception of color additives, cosmetic products are not subject to FDA premarket approval.

True

Which of the following is not an act enforced by the CPSC? Labeling of Hazardous Art Materials Act Women's Health Protection Act Child Safety Protection Act Refrigerator Safety Act

Women's Health Protection Act

An infringement on a product may include all but which of the following? a liability claim a patent claim a trademark claim a copyright claim

a liability claim

Which of the following is not a required element of an environmental impact statement? a supportive petition of signatures proportional to the area's population negative effects to the environment from the proposed action a consideration of less adverse alternatives a cost-benefit analysis of the project

a supportive petition of signatures proportional to the area's population

A car dealership offers extremely low prices on cars for which they have a very limited number in stock. When Robert arrives at the dealership to buy a car at the low price, the dealer informs him that those cars are gone and instead shows him other more expensive cars he might be interested in. The dealership is guilty of _________________. flawed and insignificant research advertisements failure to disclose disparagement bait and switch

bait and switch

A _________________ accompanies a product without a warranty and denies the seller's liability. guarantee warranty lien disclaimer

disclaimer

La Mejor Mexicana is right down the street from Tito's Taco Stand. Tito begins an advertising campaign that untruthfully states that tacos from La Mejor Mexicana are made with rat meat. Tito is guilty of _________________. disparagement bait and switch failure to disclose flawed and insignificant research advertisements

disparagement

A telephone company offers calls at "5 cents per minute" but does not clearly inform the customer that the offer is good only for the first 60 days. This company is guilty of _________________. disparagement failure to disclose bait and switch flawed and insignificant research advertisements

failure to disclose

An implied warranty of _________________ exists when a merchant who possesses certain judgment and skill in a particular area promises a buyer that the goods will work for a specific purpose. product dependability title merchantability fitness for a particular purpose

fitness for a particular purpose

A skin care company makes unsupported claims that a certain face wash will permanently get rid of acne. This company is guilty of _________________. bait and switch flawed and insignificant research advertisements disparagements failure to disclose

flawed and insignificant research advertisements

Which of the following is not a corrective measure required by the FTC of businesses that commit deceptive advertising? money damages giving the injured customer the product for free a cease and desist order corrective advertising

giving the injured customer the product for free

Which of the following is not a form that an express warranty may take? descriptions of a product oral and written representations of a product representative samples and models of a product hyperbole about the nature or quality of a product

hyperbole about the nature or quality of a product

Which of the following is not an illegal practice by a debt collector? calling the debtor's home before 8:00 a.m. informing the debtor that it is a debt collector implying to the debtor that it is associated with a governmental agency contacting the debtor's family, friends, or employer

informing the debtor that it is a debt collector

A copyright claim is an example of a(n) _________________ on a product. infringement lien title implied warranty

infringement

A _________________ warranty is any promise that falls short of a full warranty. limited full satisfaction guaranteed partial

limited

An implied warranty of _________________ is an inherent promise that the product sold conforms to ordinary standards and that it is of the same average grade, quality, and value as similar products. title fitness for a particular purpose merchantability product dependability

merchantability

A company specializes in repairing iPhones. Without permission from Apple, they use the iPhone logo in their advertising. This company is guilty of _________________. reproduction, counterfeit, or imitation of the trademark flawed and insignificant research advertisements bait and switch failure to disclose

reproduction, counterfeit, or imitation of the trademark

Which of the following is not an example of an express warranty? an express promise package labeling providing a sample of the product sales talk

sales talk NOT express warranty A salesperson's hyperbole about the nature and quality of a product (for example, "This is the best used car money can buy")

An implied warranty of _________________ is an implied promise that the product has no liens or infringements upon it. product dependability fitness for a particular purpose merchantability title

title

Which of the following is not a goal of the NEPA? to conserve energy and endangered animals to prevent damage to the environment and biosphere to encourage productive and enjoyable harmony between humans and their environment to enrich understanding of ecological systems and natural resources

to conserve energy and endangered animals

Which of the following was not a goal of the 1972 Consumer Product Safety Act? to develop minimum safety standards to conduct research and investigation on certain products to assist consumers in weighing the advantages and disadvantages of certain products to create a public database where consumers could make complaints

to create a public database where consumers could make complaints Consumer Product Safety Improvement Act Enacted in 2008, this act required testing and certification of some products and created a public database for consumers to make complaints.


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