Question 1

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?

Accepted Answer

The answer of Which of the following is part of...

Question 2

Which of the following is often contained in consent decrees agreed upon by the parties charged in an FTC complaint:

Accepted Answer

Consent decrees agreed upon by the parties charged in an FTC complaint often contain all of the options listed in the specific choices. They typically include terms of a settlement, redress for consumers, payment of civil penalties, and prohibition of certain practices.

Question 3

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?

Accepted Answer

All of the choices except for C are part of the FTC policy statement for determining if a practice is deceptive. Choice C deals with the causation between the deception and the losses suffered by consumers, which is not explicitly stated in the policy statement.

Question 4

The Federal Trade Commission investigates:

Accepted Answer

The Federal Trade Commission is responsible for investigating and stopping unfair and deceptive practices in the marketplace.

Question 5

The Federal Trade Commission regulates:

Accepted Answer

The Federal Trade Commission regulates both deceptive business practices and false advertising claims but not highly risky stock deals, which are typically overseen by the Securities and Exchange Commission.

Question 6

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

Accepted Answer

The answer of A noteworthy change at the FDA in...

Question 7

The _______________ shields drug manufacturers from liability in cases where doctors misuse drugs.

Accepted Answer

The answer of The _______________ shields drug manufacturers from liability...

Question 8

Advertisements directed at children or ill people:

Accepted Answer

Advertisements directed at children or ill people are held to a tougher standard than other ads because they are seen as more vulnerable audiences. Advertisements aimed at children must comply with additional regulations to ensure that the information is age-appropriate and does not exploit their innocence or lack of experience. Similarly, advertisements aimed at ill people must be truthful and not exaggerate the benefits of the product.

Question 9

In addition to having the power to decide when foods and drugs will be allowed to be marketed,the FDA can remove products from the market.An example of the FDA's use of its power to remove products from the market is the:

Accepted Answer

The removal of certain orange juice from the market refers to the 2010 recall of several brands of orange juice due to concerns about contamination with the harmful bacteria, Listeria monocytogenes. The FDA has the authority to remove products from the market if they pose a risk to public health or if they are misbranded or adulterated.

Question 10

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

Accepted Answer

In recent years, the FDA has implemented the Expedited Programs for Serious Conditions, which allows for quicker approval processes for drugs that show promise in treating life-threatening diseases. This has resulted in a notable change in the FDA's approach to drug approval.

Question 11

The Federal Trade Commission regulates:

Accepted Answer

The Federal Trade Commission regulates deceptive business practices, false advertising claims, and unfair business practices. Therefore, the best choice is E.

Question 12

FTC staff members propose complaints to:

Accepted Answer

The FTC staff members propose complaints to the five commissioners of the FTC. The commissioners then review the complaints and decide whether or not to take action. The other options, such as district courts and the U.S. Supreme Court, are venues for appeals or legal proceedings after the FTC takes action.

Question 13

A material deception is one that:

Accepted Answer

A material deception is one that is likely to mislead consumers to their detriment, meaning it could result in harm, financial loss, or other negative consequences for the consumer. This could include false advertising or misrepresentations about the product's quality, ingredients, or benefits.

Question 14

FTC consent decrees agreed to by firms accused of illegal trade practices:

Accepted Answer

FTC consent decrees are legal settlements that contain the terms agreed upon by firms accused of illegal trade practices. These terms may include redress for consumers who were impacted by the illegal practices. However, they do not typically involve prison time for individuals involved in the scam. Therefore, the best choice is D, which states that consent decrees contain the terms of a settlement and may include redress for consumers.

Question 15

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

Accepted Answer

According to the FTC Act, at least three out of the five commissioners must vote in favor of a complaint being issued for it to be officially issued.

Question 16

FTC consent decrees agreed to by firms accused of illegal trade practices:

Accepted Answer

FTC consent decrees contain the terms of a settlement and are often used to require firms to pay redress to consumers who were harmed by the illegal practices. The decrees may also include civil penalties for the firm as a punishment for the illegal practices. Therefore, option E is the most appropriate answer.

Question 17

Which of the following is part of the FTC's three part test for deciding whether a particular act or practice is deceptive:

Accepted Answer

The three parts of the FTC's test for deciding whether an act or practice is deceptive are all listed as specific choices: misrepresentation or omission of information (A), likelihood of misleading a reasonable consumer (B), and materiality of the deception (C). Therefore, choice D, "all of the other specific choices are correct," is the best answer.

Question 18

The Federal Trade Commission was established in:

Accepted Answer

The Federal Trade Commission was established on September 26, 1914, by the Federal Trade Commission Act. It began operating on March 16, 1915.

Question 19

In addition to having the power to decide when drugs and certain food products will be marketed,the FDA can remove products from the market.An example of the FDA's use of its power to remove products from the market is the:

Accepted Answer

The FDA's power to remove products from the market is not represented by any of the options listed, as they are all examples of actions taken by other agencies or organizations.

Question 20

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?

Accepted Answer

The FTC policy statement for determining if a practice is deceptive includes all three elements: a representation or omission of information in a communication to consumers, the deception is likely to mislead a reasonable consumer, and the deception is material-likely to mislead the consumer to their detriment. Therefore, the best choice would be E.

Quiz 19: Consumer Protection

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?

Which of the following is often contained in consent decrees agreed upon by the parties charged in an FTC complaint:

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?

The Federal Trade Commission investigates:

The Federal Trade Commission regulates:

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

The _______________ shields drug manufacturers from liability in cases where doctors misuse drugs.

Advertisements directed at children or ill people:

In addition to having the power to decide when foods and drugs will be allowed to be marketed,the FDA can remove products from the market.An example of the FDA's use of its power to remove products from the market is the:

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

The Federal Trade Commission regulates:

FTC staff members propose complaints to:

A material deception is one that:

FTC consent decrees agreed to by firms accused of illegal trade practices:

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

FTC consent decrees agreed to by firms accused of illegal trade practices:

Which of the following is part of the FTC's three part test for deciding whether a particular act or practice is deceptive:

The Federal Trade Commission was established in:

In addition to having the power to decide when drugs and certain food products will be marketed,the FDA can remove products from the market.An example of the FDA's use of its power to remove products from the market is the:

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?