Deck 34: Consumer Safety, Consumer Financial Protection, and Environmental Protection

Question 1

The Food and Drug Administration may not withdraw approval of any previously-licensed drug.

Answer 1

False

Question 2

Ordinary household soap is an example of a cosmetic subject to Food and Drug Administration regulation.

Answer 2

False

Question 3

The Food,Drug,and Cosmetic Act gives the Federal Trade Commission the authority to regulate the testing,manufacture,distribution,and sale of drugs.

Answer 3

False

Question 4

In 2010,the United States Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Question 5

The Food,Drug,and Cosmetic Act (FDCA)prohibits the shipment,distribution,or sale of ameliorated food.

Question 6

The process of licensing new drugs by the Food and Drug Administration may take many years.

Question 7

The Food and Drug Administration may remove from commerce any cosmetics that contain unsubstantiated claims of preserving youth.

Question 8

The Food and Drug Administration's definition of cosmetics includes substances and preparations for cleansing,altering the appearance of,and promoting the attractiveness of a person.

Question 9

Originally,sales transactions in the United States were guided by the principle of caveat emptor.

Question 10

The Food and Drug Administration has no authority to regulate medicinal devices such as heart pacemakers.

Question 11

Under the Food,Drug,and Cosmetic Act (FDCA),food does not have to be entirely pure to be distributed or sold; instead,it only has to be unadulterated.

Question 12

The Federal Trade Commission (FTC)is the federal trade administrative agency that is primarily responsible for regulating meat,poultry and other food products.

Question 13

The Drug Amendment to the Food,Drug,and Cosmetic Act,enacted in 1962,gives the Food and Drug Administration broad powers to license new drugs in the United States.

Question 14

Food is deemed ameliorated if it consists in whole or in part of any "filthy,putrid,or decomposed substance" or if it is otherwise "unfit for food."

Question 15

The term caveat emptor means "to the winner goes the spoils."

Question 16

The United States is not a signatory nation to the "Biosafety Protocol."

Question 17

The Dodd-Frank Wall Street Reform and Consumer Protection Act grants state governments substantial new powers to regulate consumer finance and lending.

Question 18

The "Biosafety Protocol" allows consumers to decide on their own whether to purchase genetically altered foods.

Question 19

The United States Department of Agriculture (USDA)conducts inspections of food processing and storage facilities.

Question 20

The Nutrition Labeling and Education Act sets standards regarding how much saturated fat may be contained in foods.

Question 21

A private party cannot sue for an injunction to prevent violations of the Consumer Product Safety Act (CPSA)or of Consumer Product Safety Commission (CPSC)rules and regulations.

Question 22

A decision of the Federal Trade Commission may be appealed to the applicable state supreme court.

Question 23

The Consumer Product Safety Commission (CPSC)is an independent federal administrative agency.

Question 24

The Federal Trade Commission Act (FTC Act)was enacted in 1970.

Question 25

If,after a public administrative hearing,the FTC finds a violation of Section 5 of the FTC Act,it may issue corrective advertising.

Question 26

The Federal Trade Commission has the authority to bring an administrative proceeding to address a deceptive or unfair practice.

Question 27

The Consumer Product Safety Commission (CPSC)is empowered to conduct research on the safety of consumer products.

Question 28

Advertising is false and deceptive under Section 5 of the FTC Act if it contains misinformation or omits important information that is likely to mislead a "reasonable consumer."

Question 29

The Consumer Product Safety Commission is part of the Food and Drug Administration.

Question 30

The United States Congress created the Consumer Product Safety Commission (CPSC)in 1972,through its enactment of the Consumer Product Safety Act (CPSA).

Question 31

Because the Consumer Product Safety Commission (CPSC)regulates potentially dangerous products,it issues product safety standards for consumer products that pose unreasonable risk of injury.

Question 32

If,after a public administrative hearing,the FTC finds a violation of Section 5 of the FTC Act,it may issue an affirmative disclosure to consumers.

Question 33

Advertising may be found false and deceptive under the Federal Trade Commission Act,even without proof of actual deception.

Question 34

The Consumer Product Safety Commission (CPSC)is empowered to collect data regarding injuries caused by consumer products.

Question 35

If a consumer product is found to be potentially hazardous,the manufacturer can be required to recall,repair,or replace the product or take other corrective action.

Question 36

The Consumer Product Safety Commission (CPSC)can seek injunctions,bring actions to seize hazardous consumer products,seek civil penalties for knowing violations of the act or of CPSC rules,and seek criminal penalties for knowing and willful violations of the act or of CPSC rules.

Question 37

If,after a public administrative hearing,the FTC finds a violation of Section 5 of the FTC Act,it may issue a cease-and-desist order.

Question 38

The Interstate Commerce Commission (ICC)is empowered to enforce the FTC Act,as well as other federal consumer protection statutes.

Question 39

Section 1 of the FTC Act,as amended,prohibits unfair and deceptive practices.

Question 40

The Consumer Product Safety Commission (CPSC)is empowered to adopt rules and regulations to interpret and enforce the Consumer Product Safety Act (CPSA).

Question 41

The United States Congress created the Environmental Protection Agency (EPA)in 1950.

Question 42

The Environmental Protection Agency has rule-making powers,but not adjudicative powers.

Question 43

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was the most extensive financial reform law enacted by the United States Congress since the Great Depression of the 1930s.

Question 44

The Federal Reserve Board's Regulation X sets forth detailed rules from compliance with the Truth in Lending Act.

Question 45

The Truth in Lending Act is administered by the Federal Trade Commission (FTC).

Question 46

The United States Congress enacted the Truth-in-Lending Act (TILA)in 1968 as part of the Consumer Credit Protection Act (CCPA).

Question 47

The federal government began enacting environmental statutes in the 1950s.

Question 48

Statements of opinion and "sales talk" do not constitute false and deceptive advertising.

Question 49

Under the Fair Credit Reporting Act,a consumer may request the following information from a credit bureau at any time: (1)the nature and substance of all the information in his or her credit file; (2)the sources of this information; and (3)the names of recipients of his or her credit report.

Question 50

The Fair Credit Billing Act requires that creditors promptly acknowledge in writing consumer billing complaints and investigate billing errors.

Question 51

The National Environmental Policy Act (NEPA)mandates that the federal government consider the "adverse impact" of proposed legislation,rule-making,or other federal government action on the environment after the action is implemented.

Question 52

The uniform disclosures required by the Truth in Lending Act and Regulation Z are intended to help consumers shop for the best credit terms.

Question 53

The Consumer Leasing Act (CLA)replaces the Truth in Lending Act's coverage of lease terms in consumer leases.

Question 54

In addition to federal laws,there are many state statutes that address environmental protection.

Question 55

For those states that allow a consumer to rescind a "door-to-door" sales contract,the typical cancellation period is seven business days.

Question 56

"Bait and switch" occurs when a seller advertises the availability of a low-cost discounted item to attract customers to its store; once the customers are in the store,however,the seller pressures them to purchase more expensive merchandise.

Question 57

Advertising is false and deceptive under Section 5 of the FTC Act if it makes an unsubstantiated claim.

Question 58

"Bait and switch" is a type of deceptive advertising found in the fishing industry.

Question 59

The National Environmental Policy Act and Environmental Protection Agency regulations require that an environmental destruction proclamation (EDP)be prepared by the federal government for any proposed legislation or major federal action that significantly affects the quality of the natural and human environment.

Question 60

Once an environmental impact statement is prepared,it is subject to public review,and the public has ninety days to submit comments to the Environmental Protection Agency.

Question 61

The National Environmental Policy Act requires the Environmental Protection Agency to prohibit any private or public project that will have an adverse impact on the environment.

Question 62

The Environmental Protection Agency regulates thermal pollution from nuclear power plants.

Question 63

The two general classifications of air pollution sources are "mobile sources" and "stationary sources."

Question 64

Under the Resource Conservation and Recovery Act (RCRA,)the Environmental Protection Agency is authorized to regulate underground storage facilities,such as underground gasoline tanks.

Question 65

Regions that do not meet air quality standards are designated nonattainment areas.

Question 66

Under federal law,new pesticides that are hazardous may be prohibited from sale,but old pesticides that that have already been registered may not be prohibited from sale.

Question 67

The Federal Water Pollution Control Act,as amended,is known as the Clean Water Act.

Question 68

Under the Clean Air Act,states have the option to prepare a state implementation plan if the state does not want the Environmental Protection Agency to prepare the plan.

Question 69

The public has the right to review an environmental impact statement,although there is no formal process for the public to comment on it.

Question 70

Under the "Superfund" legislation,persons are liable for the costs of cleaning up hazardous waste only if they were negligent.

Question 71

The Superfund requires the Environmental Protection Agency to rank hazardous waste sites according to the severity of the risk.

Question 72

The Safe Drinking Water Act does not regulate dumping into wells used for human consumption.

Question 73

The Toxic Substances Control Act requires manufacturers and processors to test new chemicals to determine the effect on human health and the environment,and to report the results to the Environmental Protection Agency before they can be marketed.

Question 74

The Insecticide,Fungicide,and Rodenticide Act empowers the federal government to regulate pesticides and related chemicals,and is administered by the Food and Drug Administration.

Question 75

The Clean Water Act forbids the filling or dredging of wetlands,unless a permit has been obtained from the United States Army Corps of Engineers.

Question 76

The Clean Water Act regulates the temperature of water discharged into public waterways.

Question 77

A party is subject to the provisions of the Resource Conservation and Recovery Act (RCRA,)even if the party merely transports a hazardous waste.

Question 78

An environmental impact statement must contain "cost-benefit" analysis of the proposed action and alternatives.

Question 79

The Nuclear Regulatory Commission and the Environmental Protection Agency share authority over regulation of nuclear energy.

Question 80

The Clean Air Act directs the Environmental Protection Agency to establish national ambient air quality standards (NAAQS)for certain pollutants.These standards are set at three (3)different levels: primary,secondary,and tertiary.