Deck 23: Consumer Protection

Question 1

The ________ requires food manufacturers and processors to disclose uniform information about the serving sizes and nutrients contained in the food,and establishes standard definitions for terms like "low fat," "lean," and "organic," which are indiscriminately used by food processors.

A)Consumer Product Safety Act
B)Nutrition Labeling and Education Act
C)Patient Protection and Affordable Care Act
D)Health Care Reform Act

Answer 1

B

Question 2

Section 4205 of the Patient Protection and Affordable Health Care Act requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items and supply information on how many calories a healthy person should eat in a day.The provisions of this legislation are enforced by the ________.

A)U.S.Food and Drug Administration
B)United Nations
C)Federal Trade Commission
D)Consumer Product Safety Commission

Answer 2

A

Question 3

Ajax,a pharmaceutical company,has designed a new medicine for morning sickness among pregnant women.Testing at their R&D center showed the drug to be highly reliable.Ajax has to approach a U.S.federal administrative agency called the ________ for the drug to be deemed legal for sale to the public.

A)Medicines and Healthcare Products Regulatory Agency
B)Consumer Product Safety Commission
C)Federal Trade Commission
D)Food and Drug Administration

Answer 3

D

Question 4

________ laws are federal and state statutes and regulations that promote product safety and prohibit abusive,unfair,and deceptive business practices.

A)Profit-à-prendre
B)Canon
C)Consumer protection
D)Caveat emptor

Question 5

The Food and Drug Administration is empowered to ________.

A)recall unsafe toys,appliances,and other consumer products which are harmful to users
B)regulate the safety of meat,poultry,and other food products
C)prosecute violators directly by imposing fines and pronouncing sentences
D)obtain orders for the seizure,recall,and condemnation of harmful products

Question 6

The U.S.Department of Agriculture places mandatory and consistent labeling requirements on ________.

A)ready-to-eat meals
B)raw fruits and vegetables
C)raw seafood
D)meat and poultry products

Question 7

The ________ is a federal statute passed in 1990 that requires food manufacturers and processors to provide nutrition information on many foods and prohibits them from making scientifically unsubstantiated health claims.

A)Food,Drug,and Cosmetic Act
B)Health Care and Education Reconciliation Act
C)Nutrition Labeling and Education Act
D)Patient Protection and Affordable Care Act

Question 8

Jones & Hilton Co.owned a large cold storage warehouse where they stored and processed meat and meat products.An insider revealed to the media that the facility failed to meet numerous safety standards,encountered rodent infestation,and sold potentially harmful and infected meat in the market without notifying authorities.The ________ has the authority to conduct inspections of the cold storage warehouse and initiate legal proceedings against the owners for endangering the health of consumers.

A)Food and Drug Administration
B)Consumer Product Safety Commission
C)Federal Healthcare Commission
D)U.S.Department of Agriculture

Question 9

At the food processing company where Mika works,his primary job responsibility is to review the quality of preservatives that are used in the food products being made.A new and highly recommended preservative that has the potential to preserve food longer without refrigeration was approved by Mika.However,Mika failed to identify that the substance used to make the particular preservative was banned.If the food product is released with this new preservative,which of the following provisions of the Nutrition Labeling and Education Act (NLEA)would help consumers identify the banned preservative prior to consumption?

A)condemnation of unfit food products
B)disclosure of information on food labels
C)inspection of the storage facilities
D)initiation of legal proceedings against violators

Question 10

The U.S.Food and Drug Administration promotes the principle of caveat emptor in sales transactions involving food and drugs.

Question 11

Which of the following is true of the Nutrition Labeling and Education Act (NLEA)?

A)The NLEA is a state law and its implementation is not federally regulated.
B)The NLEA applies to packaged foods and other foods regulated by the Food and Drug Administration.
C)The NLEA mandates compulsory labeling for all kinds of raw and processed food with any exceptions.
D)The NLEA specifically eliminates the practice of providing point-of-purchase nutrition information by sellers.

Question 12

The ________ is a federal law that gives the FDA broad powers to license new drugs in the United States.

A)Drug Amendment to the FDCA
B)Food Labeling and Education Act
C)Health Care Reform Act
D)Patient Protection and Affordable Health Care Act

Question 13

At the food processing company where Mika works,his primary job responsibility is to review the quality of preservatives that are used in the food products being made.A new and highly recommended preservative that has the potential to preserve food longer without refrigeration was approved by Mika.However,Mika failed to identify that the substance used to make the particular preservative was banned.The food product was released into the market with the preservative containing the banned substance.Which of the following agencies has the power to enact the statutes that govern such violations?

A)the Medicines and Healthcare Products Regulatory Agency
B)the U.S.Department of Agriculture
C)the Federal Trade Commission
D)the Food and Drug Administration

Question 14

In the United States,the ________ is the federal administrative agency that is primarily responsible for regulating meat,poultry,and other food products.

Question 15

The ________ is a federal administrative agency that is primarily responsible for regulating the safety of meat,poultry,and other food products.

A)U.S.Department of Agriculture
B)Consumer Product Safety Commission
C)Food and Drug Administration
D)Federal Trade Commission

Question 16

The Nutrition Labeling and Education Act (NLEA)applies to packaged foods and other foods regulated by the ________.

A)U.S.Department of Agriculture
B)Consumer Product Safety Commission
C)Patient Protection and Affordable Care Act
D)Food and Drug Administration

Question 17

The Food,Drug,and Cosmetic Act is a federal statute that ________.

A)covers all food products including poultry and processed meat
B)regulates the sale of food additives,drugs,cosmetics,and medicinal devices
C)implements the Federal Meat Inspection Act,enacted in 1906
D)protects the public by providing greater medical coverage from food-related illnesses

Question 18

The U.S.Department of Agriculture is the federal administrative agency that is primarily responsible for regulating meat,poultry,and other food products.

Question 19

In which of the following cases of consumer safety violations will the U.S.Department of Agriculture be required to take action?

A)A new drug was released into the market without adequate testing and this lead to adverse side effects among users.
B)A brand of soft toys for infants was produced with low grade foam and fabrics that are harmful for children when ingested.
C)A batch of sausages and cold cuts from a particular vendor was found to have high levels of salmonella and other pathogenic organisms.
D)A fleet of cars released into the market by a famous company was found to have a defective braking system which could prove fatal for owners.

Question 20

Rapid Rise is a health drink targeted at teenagers.Their advertisement campaign claims that regular consumption of the drink over a two-month period leads to a four-inch increase in height.However,this claim is not substantiated by laboratory research and has not been proven in most of its users.This act of making scientifically unsubstantiated health claims about one's product is likely to be a violation of the ________.

A)Health Care Reform Act
B)Nutrition Labeling and Education Act
C)Consumer Product Safety Act
D)Patient Protection and Affordable Care Act

Question 21

Which of the following is a function that the Consumer Product Safety Commission is empowered to execute?

A)collecting data regarding injuries caused by consumer products
B)regulating the distribution of genetically modified food products
C)recalling drugs that have been found to be harmful from the market
D)accepting petitions from consumers on wrongly labeled food products

Question 22

The FDA labels ordinary household soap as a cosmetic product.

Question 23

The ________ prohibits health insurance companies from terminating health insurance coverage when a person gets sick.

A)Health Care Reform Act
B)Drug Amendment of the FDCA Act
C)Medicinal Device Amendment Act
D)Food,Drug,and Cosmetic Act

Question 24

The Consumer Product Safety Commission (CPSC)is ________.

A)a communion of two state-funded regulatory bodies working together to ensure consumer safety
B)a federal body created to ensure the safety of few consumer products like motor vehicles,boats,aircraft,and firearms
C)an independent federal administrative agency that regulates potentially dangerous consumer products
D)a federal agency working to ensure product safety standards for food,poultry,medicines,and medicinal devices

Question 25

The Consumer Product Safety Commission,created in 1972,has the authority to require a manufacturer to recall unsafe toys.

Question 26

Section 4205 of the Patient Protection and Affordable Health Care Act of 2010 requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items.

Question 27

The Nutrition Labeling and Education Act (NLEA)applies to packaged foods and other foods regulated by the Food and Drug Administration.

Question 28

The FDA cannot withdraw approval of any previously licensed drug.

Question 29

The new line of fairness-enhancing products marketed by Radiance has allegedly been developed using large-scale animal testing procedures.Insiders reveal that the high levels of lead present in the cosmetics have proven to be fatal for many of the animals used in the laboratories.Radiance is likely to be inspected for suspected criminal violations of the ________.

A)Food,Drug,and Cosmetic Act
B)Consumer Product Safety Act
C)Health Care Reform Act
D)Federal Trade Commission Act

Question 30

Sellers of raw fruits and vegetables can adopt a voluntary approach when it comes to labeling requirements.

Question 31

In which of the following ways does the FDA regulate cosmetics?

A)by adding warnings for potential carcinogens
B)by regulating the sale of cosmetics through exclusive FDA approved stores
C)by placing a complete ban on animal testing in the cosmetic industry
D)by autonomously undertaking criminal proceedings against nonconforming cosmetic companies

Question 32

A manufacturer can be held liable for deceptive labeling or packaging under the Health Care Reform Act.

Question 33

Which of the following is true of the FDA's role in the introduction of a new drug in the market?

A)The FDA bases its approval of a new drug on the rule of caveat emptor.
B)The FDA limits itself to providing relevant suggestions to improve the drug.
C)The FDA has the power to implement a complete ban on a questionable drug.
D)The FDA prosecutes producers of questionable medicines directly by the powers vested in it by the U.S.Department of Justice.

Question 34

The Drug Amendment to the FDCA gives the FDA broad powers to license new drugs in the United States.

Question 35

The Consumer Product Safety Commission is the federal administrative agency empowered to enforce the FDCA.

Question 36

Which of the following would come under the purview of the Medicinal Device Amendment to the FDCA?

A)a new oral medication for depression
B)a new range of cosmetics to reduce signs of aging
C)a new and compact heart pacemaker
D)a revolutionary drug therapy for cancer

Question 37

Which of the following is true of the Health Care Reform Act?

A)Excise taxes for pharmaceuticals are reduced.
B)Employers of large corporations are given subsidies for providing health insurance to their employees.
C)All employers are required to provide health insurance coverage to their employees.
D)Persons who do not obtain coverage are required to pay a tax penalty to the federal government.

Question 38

Which of the following is true of seeking injunctions on consumer products that violate the Consumer Product Safety Act (CPSA)or Consumer Product Safety Commission (CPSC)rules?

A)Only the CPSC can seek an injunction once a private party has lodged a complaint with it.
B)Only the CPSC can sue for an injunction when CPSC rules are violated.
C)A private party can sue for an injunction to prevent violations of the act or of CPSC rules and regulations.
D)Injunctions cannot be pursued on products that have not yet been sold or marketed.

Question 39

FDA approval is not mandatory for medicinal devices to be legally sold in the United States.

Question 40

Which of the following consumer products comes under the purview of the Consumer Product Safety Commission (CPSC)?

A)aircrafts
B)motor vehicles
C)firearms
D)children's toys

Question 41

The ________ is an independent federal administrative agency empowered to conduct research on the safety of consumer products.

Question 42

The ________ is the federal administrative agency empowered to enforce the FDCA.

Question 43

Firearms represent an example of consumer products that do not come under the Consumer Product Safety Commission (CPSC)rules.

Question 44

The goal of the Health Care Reform Act is to increase the number of persons who have health care insurance in the United States.

Question 45

Give an account of the regulation of medicinal devices in the United States.

Question 46

What are the powers of the Consumer Product Safety Commission (CPSC)? Name some consumer products excluded from the purview of the CPSC.

Question 47

The ________,enacted in 1962,gives the FDA power to withdraw approval of any previously licensed drug.

Question 48

Which of the following is true of the Federal Trade Commission (FTC)?

A)The FTC can only sue in state courts.
B)The FTC's decision can be appealed in a state court.
C)The FTC can sue to obtain compensation on behalf of the consumer.
D)The FTC is not allowed to directly disclose its findings to the public.

Question 49

________ requires restaurants and retail food establishments with twenty or more locations to disclose calorie counts of their food items on menus and menu boards.

Question 50

Under the Health Care Reform Act,persons who do not obtain health coverage will be provided free health insurance by the government.

Question 51

If a consumer product is found to be imminently hazardous,the Consumer Product Safety Commission (CPSC)has the power to require the manufacturer to recall the product.

Question 52

The mislabeling of medicinal devices is prohibited under the Nutrition Labeling and Education Act.

Question 53

The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments.

Question 54

Kidney dialysis machines are scrutinized for attainment of quality standards under the Drug Amendment to the FDCA.

Question 55

Under the Consumer Product Safety Act,a private party can sue for an injunction to prevent violations of the act or of Consumer Product Safety Commission (CPSC)rules and regulations.

Question 56

Which of the following would constitute false advertising under the FTC Act?

A)sales talk
B)unsubstantiated claims
C)minimal commercial speech
D)statements of opinion

Question 57

The FDA cannot recall any cosmetics that contain unsubstantiated claims of preserving youth or increasing virility from the market.

Question 58

The Consumer Product Safety Commission (CPSC)is an independent federal administrative agency empowered to regulate potentially dangerous consumer products and issue product safety standards.

Question 59

List the new protections for insured persons under the Health Care Reform Act of 2010.

Question 60

The Patient Protection and Affordable Care Act (PPACA)was amended by the Health Care and Education Reconciliation Act.The amended act is commonly referred to as the ________ Act of 2010.The goal of this act was to increase the number of persons who have health care insurance in the United States.

Question 61

The Biosafety Protocol label is used to identify certain food products that have been genetically modified.

Question 62

Melissa owes money to her bank for her credit card bills.For the past two weeks,debt collectors have been harassing her for bill payment by sending people to her workplace.Her boss expressly asks her to avoid such meetings,but despite Melissa's repeated requests that the collection agency stop,the collectors continue to visit her workplace.Which of the following Acts has provisions that would help protect Melissa from such harassment?

A)Fair and Accurate Credit Transactions Act
B)Fair Credit Reporting Act
C)Fair Debt Collection Practices Act
D)Fair Credit and Charge Card Disclosure Act

Question 63

Proof of actual deception is required for an advertising to be considered false under Section 5 of the FTC.

Question 64

What is the United Nation's Biosafety Protocol for genetically altered food?

Question 65

Which of the following legislation protects consumers in challenging information contained in a credit file?

A)Fair Credit Billing Act
B)Equal Credit Opportunity Act
C)Fair Debt Collection Practices Act
D)Fair Credit Reporting Act

Question 66

Tim has been approached by Kent,his best friend,regarding Tim's credit card debt with 1st Security One.1st Security One previously informed Kent that Tim was in default on his credit card debt,and encouraged Kent to tell his friend to "do the right thing." Kent says he has come to get assurance that Tim will make the required payment.Which of the following legislation has 1st Security One violated by informing Kent of Tim's debt?

A)Fair Credit Reporting Act
B)Fair and Accurate Credit Transactions Act
C)Fair Credit and Charge Card Disclosure Act
D)Fair Debt Collection Practices Act

Question 67

The Federal Trade Commission (FTC)created and administers the ________,on which consumers can place their telephone numbers and free themselves from most unsolicited telemarketing and commercial telephone calls.

Question 68

The ________ Act of 2003 permits consumers to place fraud alerts on their credit files.

A)Fair Debt Collection Practices
B)Fair Credit Billing
C)Fair and Accurate Credit Transactions
D)Fair Credit Reporting

Question 69

The ________ Act of 2010 is a federal statute that requires increased disclosure of credit information and terms to consumers and regulates consumer credit providers and others.

A)Fair Credit Billing
B)Consumer Leasing
C)Mortgage Reform and Anti-Predatory Lending
D)Consumer Financial Protection

Question 70

Regulation Z is an administrative agency regulation that sets forth detailed rules for compliance with the ________ Act.

A)Fair Credit Reporting
B)Truth-in-Lending
C)Fair Credit Billing
D)Fair Debt Collection Practices

Question 71

Biosafety Protocol is a United Nations-sponsored protocol that requires signatory countries to place the label ________ on all genetically engineered foods.

A)"Warning-unnatural food particles"
B)"May contain living modified organisms"
C)"FDA tested and approved food"
D)"WHO tested and approved food"

Question 72

Which of the following federal statutes requires creditors to disclose finance charges,including interest,points,and other fees paid for the extension of credit to debtors?

A)Fair Debt Collection Practices Act
B)Consumer Financial Protection Act of 2010
C)Mortgage Reform and Anti-Predatory Lending Act of 2010
D)Truth-in-Lending Act

Question 73

The FTC can sue in either the state or federal courts to obtain compensation on behalf of consumers.

Question 74

Which of the following acts is particularly designed to regulate the home loan market and put the burden on lenders to verify that a borrower can afford to repay the loan for which he or she has applied?

A)Fair Credit Reporting Act
B)Consumer Financial Protection Act of 2010
C)Truth-in-Lending Act
D)Mortgage Reform and Anti-Predatory Lending Act

Question 75

Creditors that violate the Consumer Lease Act are subject to the civil and criminal penalties provided in the ________ Act.

A)Truth-in-Lending
B)Fair Credit Billing
C)Fair Credit and Charge Card Disclosure
D)Fair Debt Collection Practices

Question 76

Which of the following is true of the Do-not-Call Registry for consumers?

A)The registration is valid for the lifetime of the customer who opted for it.
B)Telemarketers have three days to remove the customer's name upon registry.
C)Charitable and political organizations are exempt from the registry.
D)Customers cannot choose the companies from which they do not wish to receive calls.

Question 77

What is the importance of the Biosafety Protocol prescribed by the United Nations?

A)It dictates the terms and conditions for the production of genetically modified food.
B)It prevents people from differentiating between normal and organic food.
C)It notifies people of the presence of genetically modified food in the market.
D)It assures people of the quality of the food by providing details of its testing process.

Question 78

The U.S.Supreme Court has deemed the Do-Not-Call Registry service as an unconstitutional violation of commercial speech.

Question 79

The Do-Not-Call Registry was provided by the ________ to protect consumers from unsolicited commercial telephone calls.

A)Federal Trade Commission
B)Food and Drug Administration
C)Consumer Product Safety Commission
D)Federal Communications Commission

Question 80

The Do-Not-Call Registry allows consumers to designate specific companies not to call them.