Question 1

The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the
A) Lanham Act.
B) Federal Trade Commission Act.
C) Robinson-Patman Act.
D) Sherman Antitrust Act.
E) Clayton Act.

Accepted Answer

The Sherman Antitrust Act was the first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States.

Question 2

Which of the following laws has the purpose of protecting competition?
A) Lanham Act
B) Federal Trade Commission Act
C) Fair Trade Act
D) Unfair Practices Act
E) Sherman Antitrust Act

Accepted Answer

The purpose of the Sherman Antitrust Act is to protect competition and prevent monopolies or anti-competitive practices in the marketplace. The other options either have different purposes, such as trademark protection (Lanham Act), or are focused on regulating specific types of business practices rather than promoting competition overall.

Question 3

The purpose of the Robinson-Patman Act is to
A) outlaw price discrimination for purchasers of the same product.
B) establish regulated monopolies for utilities.
C) protect inventors from having their intellectual property stolen.
D) repeal the Sherman Antitrust Act.
E) provide incentives for interstate commerce.

Accepted Answer

The Robinson-Patman Act is specifically aimed at preventing price discrimination where sellers charge different prices to different buyers for the same product. Its purpose is to ensure fair competition among businesses and prevent monopolies from forming.

Question 4

The Child Protection Act (1966) and the Nutritional Labeling and Education Act (1990) are examples of
A) pricing-related legislation.
B) laws specifying product requirements.
C) fair trade legislation.
D) distribution-related legislation.
E) government contracts with private firms.

Accepted Answer

The Child Protection Act of 1966 and the Nutritional Labeling and Education Act of 1990 both specify product requirements, as they regulate the content and labeling of products to protect children and consumers.

Question 5

The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as
A) jurisprudence.
B) competitive constraints.
C) barriers to entry.
D) restraints of trade.
E) regulation.

Accepted Answer

The term that best defines the restrictions placed on businesses by state and federal laws is "regulation." Regulations are laws that govern how a business can operate and conduct its activities. Some examples of regulations include workplace safety standards, environmental protections, and consumer protection laws. These regulations are intended to promote fairness, safety, and accountability in the marketplace, and to prevent businesses from engaging in practices that are harmful to individuals or society as a whole.

Question 6

All of the following federal laws are designed to protect consumers except which?
A) Consumer Product Safety Act.
B) FTC Act of 1914.
C) Telephone Consumer Protection Act.
D) Digital Millennium Copyright Act.
E) Child Protection Act.

Accepted Answer

The Digital Millennium Copyright Act is primarily focused on copyright protection and digital rights management, not consumer protection.

Question 7

The purpose of patent law is to
A) provide incentives for increased competition and lower prices by limiting the granting of patents.
B) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.
C) give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention.
D) guarantee the quality and safety of any product produced or distributed in the United States.
E) level the playing field between inventors who work for large corporations and those who work on their own.

Accepted Answer

Patent law gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention. This encourages innovation and rewards inventors for their efforts, while also protecting their intellectual property rights.

Question 8

Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of ________ forces that affect the marketing environment.
A) economic
B) ecological
C) technological
D) regulatory
E) social

Accepted Answer

The legislation that prohibits price-fixing is a regulatory force that affects the marketing environment.

Question 9

Small businesses account for ________ of the gross domestic product (GDP).
A) 21 percent
B) 32 percent
C) 46 percent
D) 68 percent
E) 82 percent

Accepted Answer

The answer of Small businesses account for ________ of the...

Question 10

The ________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.
A) Fair Trade Act
B) Clayton Act
C) Lanham Act
D) Robinson-Patman Act
E) Unfair Practices Act

Accepted Answer

The Robinson-Patman Act, also known as the Anti-Price Discrimination Act, makes it illegal to discriminate in prices charged to different buyers of the same product if the effect of the discrimination may substantially lessen competition or aid in the creation of a monopoly. The act was passed in 1936 to amend the Clayton Antitrust Act and is enforced by the Federal Trade Commission.

Question 11

The purpose of the Clayton Act is to
A) provide incentives for interstate commerce.
B) forbid actions that are likely to lessen competition, although no actual harm has yet occurred.
C) exact compensation from firms found guilty of violating fair trade practices.
D) repeal provisions of the Sherman Antitrust Act that stifled innovation.
E) strengthen the Robinson-Patman Act.

Accepted Answer

The Clayton Act is a federal law that seeks to prevent anticompetitive business practices, such as monopolies, mergers that lead to decreased competition, and unfair trade practices. It seeks to forbid actions that are likely to lessen competition, even if no actual harm has yet occurred.

Question 12

An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible, which drew complaints for failing to protect health information of consumers. HIPAA rules are an example of ________ forces in the marketing environment.
A) economic
B) ecological
C) technological
D) social
E) regulatory

Accepted Answer

The case described involves a settlement paid due to a potential HIPAA violation, which is a regulatory force in the marketing environment.

Question 13

Protecting competition is the primary aim of which of these?
A) Prevention and Enforcement Act
B) Clayton Act
C) Federal Trade Commission Act
D) Fair Trade Act
E) Unfair Practices Act

Accepted Answer

The Clayton Act's primary aim is to protect competition by prohibiting anticompetitive mergers, price discrimination, exclusive dealing, and other unfair practices. The other options also aim to protect competition, but they are not the primary purpose of those acts.

Question 14

The first major federal legislation passed to forbid contracts, combinations, or conspiracies in restraint of trade in the United States was the
A) Lanham Act.
B) Sherman Antitrust Act.
C) Federal Trade Commission Act.
D) Robinson-Patman Act.
E) Clayton Act.

Accepted Answer

The Sherman Antitrust Act, passed in 1890, was the first major federal legislation to prohibit contracts, combinations, or conspiracies in restraint of trade in the United States. The act aimed to promote competition and prevent monopolies by prohibiting anti-competitive behavior, such as price fixing and market allocation.

Question 15

A company can protect its competitive position under ________, which gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention.
A) copyright law
B) patent law
C) trademark law
D) commercial law
E) antitrust law

Accepted Answer

Patent law gives inventors the right to exclude others from making, using, or selling products that infringe on the patented invention. This helps the company protect its competitive position by preventing others from copying its unique product or technology. Copyright law applies to original works of authorship, trademark law protects branding and logos, commercial law regulates business transactions and contracts, and antitrust law promotes fair competition and prevents monopolies.

Question 16

The purpose of the ________ is to forbid certain actions that are likely to lessen competition, although no actual harm has yet occurred.
A) Federal Trade Commission Act
B) Lanham Act
C) Clayton Act
D) Sherman Antitrust Act
E) Robinson-Patman Act

Accepted Answer

The Clayton Act is designed to prevent anti-competitive practices before they can occur, by forbidding actions that are likely to lead to reduced competition in a specific market or industry. Its purpose is to promote fair competition and protect consumers from monopolies and other types of anti-competitive behavior. The other acts listed also deal with antitrust issues, but they are not specifically focused on preventing harm before it occurs.

Question 17

The Digital Millennium Copyright Act, signed in 1998,
A) limits access of children to online material considered to be inappropriate or harmful.
B) improves protection of copyrighted digital products.
C) allows the government to collect taxes if printed materials are sold online.
D) prevents the pirating of digital products that do not have a registered trademark.
E) allows anyone with access to a computer to publish original materials online and seek remuneration (pay).

Accepted Answer

The Digital Millennium Copyright Act (DMCA) improves protection of copyrighted digital products by criminalizing the act of circumventing digital rights management measures used to protect copyrighted material. It also provides a safe harbor provision for online service providers who remove infringing content upon notice from copyright owners.

Question 18

The purpose of copyright law is to
A) provide incentives for increased competition.
B) give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention.
C) level the playing field between inventors who work for large corporations and those who work on their own.
D) guarantee the quality and safety of any product produced or distributed in the United States.
E) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

Accepted Answer

Copyright law grants the creator of an original work of authorship exclusive rights to control the production and distribution of that work. This includes the right to make copies, distribute, perform, and display the work publicly. The purpose of copyright law is to protect and incentivize creators to continue producing innovative works by ensuring they have the exclusive right to benefit financially and control how their work is used.

Question 19

The purpose of ________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.
A) copyright law
B) patent law
C) trademark law
D) commercial law
E) antitrust law

Accepted Answer

Copyright law grants the creator of an artistic work the exclusive right to use, reproduce, and distribute their work. This includes the right to adapt, translate, and perform the work, as well as to prevent others from making unauthorized use of it. Patent law applies to inventions, while trademark law deals with symbols, names, and other identifiers used to distinguish products or services. Commercial law deals with the regulations surrounding business and commerce. Antitrust law is designed to prevent monopolies and promote competition.

Question 20

Regulation refers to
A) the restrictions that state and federal laws place on business with regard to the conduct of its activities.
B) constraints placed on businesses for activities that are legal but unethical.
C) society's values and standards that are enforceable in the courts.
D) requirements concerning which customers a firm may serve or not serve.
E) the moral principles and values that govern the actions and decisions of an individual or group.

Accepted Answer

Regulation refers to the official rules or laws that are set by a government or regulatory agency to control and govern the behavior of businesses. These regulations can restrict or dictate how a business conducts its activities in order to protect consumers, the environment, and other relevant stakeholders.

Quiz 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the

Which of the following laws has the purpose of protecting competition?

The purpose of the Robinson-Patman Act is to

The Child Protection Act (1966) and the Nutritional Labeling and Education Act (1990) are examples of

The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as

All of the following federal laws are designed to protect consumers except which?

The purpose of patent law is to

Small businesses account for ________ of the gross domestic product (GDP) .

The ________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.

The purpose of the Clayton Act is to

Protecting competition is the primary aim of which of these?

The first major federal legislation passed to forbid contracts, combinations, or conspiracies in restraint of trade in the United States was the

A company can protect its competitive position under ________, which gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention.

The purpose of the ________ is to forbid certain actions that are likely to lessen competition, although no actual harm has yet occurred.

The Digital Millennium Copyright Act, signed in 1998,

The purpose of copyright law is to

The purpose of ________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

Regulation refers to