Business Test 4 (Part 2)

Which of the four general factors that bear upon whether a master-servant relationship exists is determinative:​

Power of control.​

A drug that may only be used with the permission of a physician is designated by the FDA as a:​

Prescription Drug

The intent of the Nutrition Labeling and Education Act is primarily to:​

Prevent misleading product claims.​

Through an agency relationship, the agency becomes a representative of the:​

Principal. ​

The Fair Credit Billing Act that governs credit card issuers:​

Prohibits mailing unsolicited credit cards and establishes procedures for lost or stolen credit cards.​

To carry out their duties, universal agents are typically granted:​

A general power of attorney.​

An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a:​

A special agent

The Fair Debt Collection Practices Act restricts:​

Abusive techniques used by debt collection agencies.​

Most states have statutes that:​

Allow consumers or the attorney general to sue for deceptive business practices​

A noteworthy change in the FDA in recent years is its:​

Allowing quicker approval for use of drugs that show promise in treating life-threatening diseases.​

The R-value Rule is:​

An FTC trade regulation rule regarding insulation.​

If an employer and an employee agree on employment of a certain time, or that job security will be provided, then there is likely:​

An express contract.​

When a principal creates an impression of authority in an agent that leads a third part to conclude that the agent has authority to act for the principal, the agent is said to have:​

Apparent authority​

The Consumer Leasing Act?​

Applies to most car leases, but not car rentals​

For a complaint proposed to the five commissioners by an FTC staff member to be officially issued:​

At least 3 commissioners must vote for it.​

The power to change the principal's legal obligations is an agent's:​

Authority

How might a private party take actions against false advertising claims?​

By bringing a suit under the Lanham Act​

The category of medical devices are things presenting minimal potential for harm to the user and are usually of simple design, such as bandages and gloves?​

Class 1

The most heavily controlled medical devices are:​

Class 3 (ex. heart valves)

When an FTC trade regulation rule is finalized, it becomes part of the:​

Code of Federal Regulations.​

Under the Consumer Credit Protection Act?​

Creditors may not charge interest rates that exceed the federal maximum rates.​

An agency may not be ended by:​

Decision of a third party opposed to the agency.​

The FTC rule that states that the information received in consumer reports must be properly destroyed after it has been used for its proper purpose? ​

Disposal Rule​

Making regular phone calls to remind the debtor of the debt owed to the collector.​

Does NOT violate the Fair Debt Collection Practices Act.​

Which duty relates to keeping track of the funds and property of the principal that have been entrusted to the agent or have come into the agent's possession?​

Duty to account​

The principal has what type of duty with an agent by performing responsibilities defined in the agreement forming the agency?​

Duty to cooperate​

The principal is under what type of duty for damages to cover the agent's loses (such as from litigation) suffered while undertaking authorized transactions for the principal?​

Duty to indemnify​

Regulation E was written by the Federal Reserve Board to implement the:​

Electronic Fund Transfer Act.​

The legislation which requires credit reporting services to allow consumers to see their credit reports annually for free?​

Fair and Accurate Credit Transactions Act​

A person who volunteers to act as an agent with no expectation of being paid for the services is a(n):​

Gratuitous agent.​

What takes place when the principal behaves as if the principal has the intent of ratifying an unauthorized agreement?​

Implied ratification​

The following does NOT conform to FDA standards for food labeling?​

"Light" means the product has less than one-half the calories of a comparable product serving per 100 grams.​

About how many new potential drug compounds initially tested in the lab make it to the market?​

1 in 50,000

The principal's duty to reimburse does not cover expenses:​

Incurred due to the agent's misconduct or negligence.​

The Fair Credit Reporting Act?​

Regulates consumer credit bureaus​

An undisclosed principal is:​

Unknown to third parties to contracts entered into with the agent.​

A material deception is one that:​

Is likely to be misleading to the detriment of consumers.​

A disclosed principal is a principal whose identity is:​

Known to third parties to contracts entered into with the agent.​

What doctrine shields drug manufacturers from liability in cases where doctors misuse drugs?​

Learned intermediary doctrine​

An at-will employee​

May be dismissed at any time without reason or cause.​

Before a FTC regulation rule can be finalized it:​

Must be published in the Federal Register.​

Truth in lending refers to the requirement that creditors:​

Must disclose all relevant terms in credit transactions.​

The scope of an agent's authority is determined from what?​

Oral or written expressions of the principal or the principal's conduct.​

The principal's duty to indemnify the agent means the principal must:​

Pay for loses suffered while undertaking authorized transactions.​

Federal regulation of the relationship between consumers and creditors is based on what umbrella law that contains many credit laws?​

The Consumer Credit Protection Act​

Credit discrimination based on 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:​

The Equal Credit Opportunity Act.​

Which of the following is an example of an FTC regulation trade rule?​

The Mail-Order Rule.​

Most deceptive advertising cases are settled by:​

The advertiser agreeing to stop making false claims.​

If an agent competes with the agent's principal without the principal's consent:​

The agent is violating the duty of loyalty.​

The law of agency places its primary emphasis on the duties:​

The agent owes to the principal.​

When an agency is terminated:​

The agent's authority to act for the principal ends.​

Actual authority.​

The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as:​

An accountant is hired to prepare an income tax return who fails to take advantage of a legitimate tax deduction would violate which duty?​

The duty of reasonable care​

An independent contractor is distinguished by:​

The extent of control the employer retains over work performance.​

To ratify an agreement a principal must know:​

The important facts of the agreement.​

Implied authority consists of:​

The power to do whatever is reasonable and customary to carry out the agency's purpose.​

To establish an agency relationship:​

The principal must show a desire for the agent to act on her behalf, and the agent must consent:​

Which of the following can determine the scope of authority given to an agent?​

The trade customs in business​

Express authority consists of the agent's:​

Written or oral instructions from a principal to agent.​

A person authorized to execute all regular transactions connected with a business is called?​

general agent​

The duty of an agent to let the principal know of facts relevant to the agency purpose is called the duty:​

to inform

Was written by the Federal Reserve Board specifying items that must be listed as part of consumer finance charges under the Truth-in-Lending Act?​

Regulation Z​

Garnishing the wages of a debtor refers to the practice of:​

Setting aside a portion of a debtor's wages to pay a creditor.​

Persons appointed by an agent delegated some authority are known as:​

Sub-agents.​