19 tf
The FTC has held that if an automobile is advertised to get 35 miles per gallon in highway driving, that must be the average mileage that ordinary drivers will get in ordinary driving, otherwise it is deceptive advertising.
False
The FTC is required by law to sue all advertisers that publish deceptive ads.
False
The FTC may not bring an action against a company for an unfair act; the act must be unfair and deceptive.
False
The FTC may not prosecute companies that sell investment scams; that responsibility falls with the Securities and Exchange Commission.
False
The FTC may not regulate products sold by telemarketing; those are controlled by the Federal Communications Commission.
False
The FTC's advertising substantiation program requires media ads to be registered with the FTC for review before being used to prevent deception.
False
The Food Quality Protection Act of 1996 states that food should have a "de minimus" chance of harming consumers.
False
The Food, Drug and Cosmetic Act of 1938 allowed the FD to impose pure food standards for the first time.
False
The Kefauver amendment of 1962 requires the FD to approve drugs based on their proven safety .
False
To the FDA "low fat" means less than 10 grams of fat per serving.
False
Under the FTC's advertising substantiation program, if an consumers will be misled by an advertisement, it must be modified.
False
Under the Lanham Act, Ford was able to sue General Motors for false advertising that hurt Ford pickup sales, and collected over $100 million in damages.
False
Under the Lanham Act, the FTC may sue advertisers for damages for deceptive ads.
False
The FDA requires nutrition labels only on canned or bottled foods sold to the public.
False
The FDA uses a food purity standard that says that an additive should have no more than a one- in-a-million chance of causing cancer.
False
The FDA was created in 1914.
False
The FTC deception policy is applied equally to all products regardless of the sex, age, race or financial condition of the consumers in the relevant market.
False
The FTC deception policy is the same, in effect, as common law fraud.
False
The FTC deception policy states that an deceptive practice likely to mislead an consumer will be challenged b Congress.
False
The FTC determines the legal meaning of terms like "light" and "low fat" when used to advertise food products.
False
The FTC's advertising substantiation program allows the FTC to ensure that retailers have a reasonable basis for claims made about products the are selling.
True
The Food Quality Protection act states that food should ha e a "reasonable certainty of no harm."
True
The Food, Drug and Cosmetic Act of 1938 gave the FD broad powers to regulate food production and prohibit false advertising of drugs.
True
The Kefauver amendment of 1962 requires the FD to approve drugs based on proven effectiveness, not Just safety .
True
The Mail Order Rule attempts to reduce the incidence of deceptive practices in the first-class postal business.
True
The Mail Order Rule requires goods to be delivered by mail to arrive within clearly set time or allow the customer out of the deal.
True
The Used-Car rule issued b the FTC has increased the price of used cars about five percent.
True
The Used-Car rule issued b the FTC requires used car sellers to give consumers clear warrant information.
True
Trade regulation rules tend to be issued in areas where the FTC thinks there are particular problems with deception.
True
Under the FTC's advertising substantiation program, if the FTC attacks an ad the usual result is that the advertiser agrees to stop running the ad.
True
Under the Lanham Act, U-Haul was able to sue a competitor for false advertising and was awarded $40 million in damages
True
Under the Lanham Act, a private part injured by the false ads of a competitor may sue the competitor for double value of lost profits.
True
When the FTC proposes a trade regulation rule, it must be published in the Federal Register for public inspection before it becomes effective.
True
The Department of agriculture has primary responsibility for sanitation of foods; the FD focuses on food additives.
False
The FDA does not regulate health claims made on food products.
False
Advertising controls are extremely strict in Europe compared to the US
False
Dietary supplements, unlike drugs, are not regulated.
False
If a product is labeled "fresh" it may either be raw, unprocessed food or frozen food, so long as it was frozen fresh.
False
In Schuchmann v. Air Services Heating and Air Conditioning, where a company refused to provide air conditioning service after five years on a product with a "lifetime warranty", the court held that lifetime does not mean that; it is commonly understood to mean a "reasonable" length of time
False
In Schuchmann v. Air Services Heating and Air Conditioning, where a company refused to provide air conditioning service after five years on a product with a "lifetime warranty", the court held that the warranty was not part of the purchase contract, so was not enforceable.
False
In Wyeth v. Levine, the Supreme Court held that FDA approval of the warning label on a drug set the federal safety standard that preclude a safety claim brought under state law.
False
In Wyveth v. Levine, In the Supreme Court held that FDA approval of the warning label on a drug set the federal standard that was not subject to change without FDA approval.
False
It costs about $25 million and takes an average of 3 years to develop one new drug and clear all FDA rules before marketing the product.
False
It costs an average of about a billion dollars to develop one new drug and clear all FD rules. If a drug is not approved for marketing, the FDA pays the company for the costs of the tests.
False
Maximum judgment in an FTC deception cases is $1 million.
False
Most advanced European nations have substantially stronger regulations of drugs than exist in the U.S.
False
Once the FDA approves a drug for the market, it has no further power to control the sale of that drug except to issue public warnings.
False
Once the FDA has approved a drug for sale there may be no liability imposed on the drug manufacturers for side-effects that were revealed during the testing process.
False
The "R- value Rule" states that refrigerator makers must clearly explain to consumers what kind of insulation is used in their products.
False
Before passage of the 1938 Food, Drug and Cosmetic Act there were no such things as prescription drugs. That is, people could bu an legal drug.
True
Common vitamins-niacin and ribofla in-do not have to be listed on nutrition labels.
True
Drugs must complete three phases of trials before considered b the FDA for release to the public.
True
If a person is injured by a drug because a physician gives an improper dose, the maker may be protected from liability under the "learned intermediary " doctrine.
True
In Wyeth v. Levine, Supreme Court held that FDA approval of the warning label on a drug did not mean the drug maker could not be sued for having an inadequate warning label on the drug.
True
In Wyeth v. Levine, Supreme Court held that FDA approval of the warning label on a drug did not mean the drug maker was not responsible for updating the label to include new relevant safety information.
True
In recent years, the FD has allowed drugs that show some promise for life-threatening diseases such as IDS to be used more quickly than normally .
True
It costs an average of about a billion dollars to develop one new drug and clear all FD rules before marketing the product.
True
It takes about $1 billion for a drug company to develop a new drug to market.
True
Making illegal copies of patented drugs is a serious problem for public health around the world.
True
Many FTC complaints are settled by consent decree rather than a trial.
True
Medical devices approved by the FDA before being sold and then monitored for problems
True
Medical devices are subject to FD regulation.
True
No drug may be marketed for sale until the FDA has approved the drug for sale as safe for intended use.
True
One reason for passage of the Pure Food and Drug Act is the high death rate of soldiers during the Spanish- american War due to impure food.
True
State attorney generals usually have the authority to attack deceptive business practices.
True
States have laws similar to the FTC's powers to attack deceptive business practices.
True
The 1906 Pure Food and Drug ct provided primarily for protection against adulteration and misbranding of food and drugs.
True
The 1906 Pure Food and Drug ct was the first step b the federal government to regulate food safety .
True
The British Office of Fair Trading operates somewhat like the FTC in the US
True
The Delaney Clause (the Food additives amendment) allows the FDA to regulate food additives.
True
The Department of agriculture has primary responsibility for sanitation of meats and poultry ; the FDA has responsibility for most other foods.
True
The FDA decides what drugs may be sold as well as what drugs may be sold over the counter and what drugs may be sold only by prescription.
True
The FDA determines the legal meaning of terms like "light" and "low fat" when used on food products.
True
The FDA issues standards for nutrition labels on food.
True
The FDA may seize shipments of products that are falsely labeled.
True
The FDA seized shipments of orange juice that were not properly labeled.
True
The FTC deception policy holds that failure to reveal certain information may be found to be deceptive.
True
The FTC has the authority to attack deceptive sales practices via the Internet just like any other sale.
True
The FTC investigates a wide range of practices suspected to be unfair and deceptive.
True
The FTC may prosecute companies that solicit investments for things such as phony oil and gas wells.
True
The FTC may sue a company for an unfair act that is not deceptive.
True
The FTC was created by Congress to help enforce antitrust laws and deal with deceptive business practices.
True
