Deck 5: Government Protection, Nongovernmental Proconsumer Groups, and Media

Question 1

When one grocery store distribution company buys another, increasing the area to which they distribute, it is called a merger.

A)horizontal
B)market extension
C)product extension
D)vertical

Answer 1

B

Question 2

If consumers were misled into buying intravenous aloe vera, a dangerous, unapproved, and ineffective alternative treatment for AIDS, what agency would handle the issue?

A)FTC
B)FDA
C)USDA
D)SEC

Answer 2

B

Question 3

Under whose jurisdiction does deceptive advertising come?

A)CPSC
B)FCIC
C)FTC
D)FCC

Answer 3

C

Question 4

To be the most effective when writing to elected officials, you should do all of the following EXCEPT

A)request a specific action.
B)use insulting words.
C)focus on one subject per letter.
D)use your own paper and your own words.

Question 5

Who publishes Consumer Reports?

A)Consumers League
B)Consumers Federation of America
C)Consumers Union
D)Consumers Group

Question 6

Marketing strategies and tactics that are applied to alter or create behaviors that have a positive effect or try to reverse negative outcomes for individuals, society, and the environment are called

A)social marketing.
B)corrective marketing.
C)applied marketing.
D)better business strategies.

Question 7

All of the following are types of mergers EXCEPT

A)diagonal.
B)horizontal.
C)conglomerate.
D)vertical.

Question 8

When a producer of a raw material also manufactures and wholesales it, it is a merger.

A)product extension
B)horizontal
C)vertical
D)market

Question 9

The FDA oversees all of the following EXCEPT

A)meat.
B)cosmetics.
C)fruit.
D)vegetables.

Question 10

The FTC is divided into which divisions?

A)Credit and Enforcement
B)Service Industries
C)Advertising and Marketing
D)All of the above

Question 11

What type of economy has those who produce, who have access to, and influence the spread of information and have power in the global society?

A)information
B)consumer
C)price
D)power

Question 12

If deregulation works as it is intended, it should lead to all of the following EXCEPT

A)product and service innovation.
B)more options for consumers.
C)customer confusion.
D)more competitive pricing.

Question 13

Under which act does defrauding through the mail become a federal crime?

A)Wilson Tariff Act
B)Sherman Antitrust Act of 1890
C)Mail Fraud Act of 1872
D)Clayton Act of 1914

Question 14

Injurious consumption occurs

A)when consumers are conscience of what they are eating and drinking.
B)when banks are on the look out for any unusual moving around of large amounts of money or suspicious activity.
C)when individuals or groups make consumption decisions that have negative consequences.
D)when government decides through its policies how to handle faulty products.

Question 15

Competition leads to all of the following EXCEPT

A)greater choice.
B)an uneven playing field.
C)lower prices.
D)better quality.

Question 16

What agency is responsible for the safety of poultry and eggs?

A)FDA
B)FCIC
C)USDA
D)FTC

Question 17

What group has as its basic function to protect consumers against injuries and deaths associated with consumer products?

A)Justice Department
B)SEC
C)CPSC
D)FCIC

Question 18

What agencyʹs mission is to protect investors and maintain the integrity of the securities market?

A)FCC
B)FCIC
C)SEC
D)CPSC

Question 19

Whose mission is to promote and protect the public health by helping safe and effective products reach the market, as well as monitoring products for continued safety after they are in use?

A)FCC
B)SEC
C)FDA
D)FCIC

Question 20

Consumer groups are concerned with all of the following EXCEPT

A)whether products are environmentally sound.
B)whether their product is highly ranked in the marketplace.
C)whether products are safe.
D)whether consumers have full knowledge of what they are buying.

Question 21

The FDA is within the Department of Agriculture.

Question 22

If the Coca-Cola Company were to acquire the Frito -Lay snack company, this would be an example of a market extension merger.

Question 23

Monopolies occur when there is only one producer that controls or dominates an industry and the consumer has no alternative choice.

Question 24

The combining of Wachovia and First Union, two banks, is an example of a vertical merger.

Question 25

Under what agency does seat belt regulation fall?

A)FCC
B)NHTSA
C)CPSC
D)FCIC

Question 26

The CPSC recommends certain brands of products.

Question 27

A product is recalled by the CPSC if it presents a significant risk to consumers either because the product may be defective or violates a mandatory standard.

Question 28

Cities and small towns do NOT have their own consumer affairs departments that investigate consumer complaints.

Question 29

Corrective advertising disclaims previously false advertising claims.

Question 30

A common term for the antitrust function is ʺtrust busting.ʺ

Question 31

In addition to developing mandatory standards, the CPSC develops voluntary standards with industry cooperation.

Question 32

A bunko refers to swindles in which an unsuspecting person or group of people are cheated.

Question 33

An example of a conglomerate merger would be the joining of a beer manufacturer with a furniture company.

Question 34

The USDA began during a time when nearly half of the population was farmers who needed good seeds and information to grow their crops.

Question 35

In 1938, the Wheeler Lea Amendments clarified the FTCʹs role in regard to including ʺunfair or deceptive acts or practices.ʺ

Question 36

What agency publishes a consumer information catalog four times a year that contains useful consumer information that consumers can order by mail or online?

A)CPSC
B)FDA
C)CIC
D)FCIC

Question 37

The CPSC was created in 1972 by Congress under the Consumer Product Safety Act.

Question 38

You can email the President of the United States by sending a message to ? HYPERLINK "mailto:[e-mail]" ?[e-mail].

Question 39

In 1977, the Magnuson- Moss Warranty Act added warranties and other trade- regulation rules to the FCCʹs jurisdiction.

Question 40

What is one of the main reasons Florida is attractive to unscrupulous sellers?

A)There are fewer consumer units looking out for the public.
B)Con artists love the great weather and tourist attractions.
C)There are fewer laws against fraud there.
D)There is a higher concentration of elderly consumers in Florida.

Question 41

Lobbyists represent special interest groups.

Question 42

Consumer Reports receives money from advertising in its monthly magazine.

Question 43

The term Con Man comes from ʺConvict Man.ʺ

Question 44

A code of ethics is a set of guidelines for standards of behavior and accountability.

Question 45

The word ʺConʺ in Con Man is short for .

Question 46

Extortion is the legal use of oneʹs position, power, or knowledge to obtain money, goods, funds, or favors.

Question 47

The is the combination of media vehicles, nontraditional media, and marketing communication tools intended to reach the targeted audience.

Question 48

A regulation is an attempt by the government to control the workings of the marketplace.

Question 49

The is responsible for the safety of meat, poultry, and eggs.

Question 50

Explain how to contact an elected official.

Question 51

Deceptive advertising falls under the jurisdiction.

Question 52

Explain the mission of the consumer media.

Question 53

Privatizing means turning over some of the functions of business to government.

Question 54

A grafter is someone who uses his position to derive profit from his/her advantages by unscrupulous means.

Question 55

A(n)merger combines supplier and company or customer and company.

Question 56

Deregulation inflates the amount of government regulation.

Question 57

Define injurious consumption and give one example.