Deck 23: Consumer Protection

Question 1

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

Answer 1

U.S. Department of Agriculture

Question 2

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 led 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.

Answer 2

A batch of sausages and cold cuts from a particular vendor was found to have high levels of salmonella and other pathogenic organisms.

Question 3

In the United States, the U.S. Department of Agriculture (USDA) is the federal administrative agency that is primarily responsible for regulating ________.

A) meat, poultry, and other food products
B) cosmetics
C) prescription drugs
D) children's toys

Answer 3

meat, poultry, and other food products

Question 4

What are the three major federal statutes for regulating meat, poultry, and eggs? What federal department has the authority to act under these laws and promulgate regulations to enforce these statutes?

Question 5

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 6

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 7

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 8

The Menu Labeling Rule 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. This rule was adopted by the ________.

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

Question 9

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

A) Drug Amendment to the FDCA
B) Food, Drug, and Cosmetic Act
C) Consumer Product Safety Act
D) Federal Trade Commission Act

Question 10

The Menu Labeling Rule requires restaurants and retail food establishments with ________ locations to disclose calorie counts of their food items on menus and menu boards.

A) any public
B) 20 or more
C) two or more
D) 100 or more

Question 11

The FDA's Menu Labeling Rule requires restaurants that come under the rule to post on its menus and menu boards the ________ in its food items.

A) calories
B) amount of sodium
C) amount of protein
D) total calories from fat

Question 12

The FDA's Menu Labeling Rule requires restaurants that come under the rule to post on its menus and menu boards the ________.

A) number of servings in each food item listed
B) number of calories a healthy person should eat in a day
C) presence of nuts or dairy in any of its items
D) total dietary fiber in each food item

Question 13

Besides traditional menus in a sit-down restaurant setting, the FDA's Menu Labeling Rule can also apply to ________.

A) roadside produce stands and vending machines
B) drive-thru menu boards and garage sales
C) farmers' markets and roadside produce stands
D) vending machines and drive-thru menu boards

Question 14

The Family Smoking Prevention and Tobacco Control Act gives the ________ the authority to regulate the tobacco industry.

A) Food and Drug Administration
B) U.S. Department of Agriculture
C) Bureau of Alcohol, Tobacco, Firearms and Explosives
D) U.S. Attorney General

Question 15

The Family Smoking Prevention and Tobacco Control Act includes specific restrictions on the marketing of tobacco products to young people, including ________.

A) a ban on the sale of tobacco products to persons under 21 years old
B) a ban on the sale of candy cigarettes
C) prohibition of tobacco-brand sponsorships of sporting events
D) prohibition of all cigarette vending machines

Question 16

In 2016, the FDA adopted a rule that extended its regulatory authority over tobacco-related products. This rule did NOT extend to ________.

A) cigars
B) cigarette lighters
C) pipe tobacco
D) e-cigarettes

Question 17

Beginning in 1965, federal law has required all cigarette packages to contain ________.

A) a toll-free telephone number to a nicotine addiction help line
B) tax stamps
C) health warnings
D) FDA contact information

Question 18

The Menu Labeling Rule requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items.

Question 19

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 20

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

A) Congressional
B) state
C) nonprofit
D) independent federal administrative

Question 21

Which of these is NOT regulated by the National Traffic and Motor Vehicle Safety Act?

A) segways
B) electric-powered vehicles
C) self-driving vehicles
D) school buses

Question 22

The National Highway Traffic Safety Administration (NHTSA) is part of ________.

A) the U.S. Department of Commerce
B) the U.S. Department of Transportation
C) the U.S. Department of Energy
D) the U.S. Department of Housing and Urban Development

Question 23

The Federal Motor Vehicle Safety Standards (FMVSS) are divided into three categories. Which of these is NOT one of those categories?

A) crash avoidance
B) repair costliness
C) crashworthiness
D) post-crash survivability

Question 24

More than 90 percent of serious vehicle crashes are caused by ________.

A) defective suspension systems
B) faulty brakes
C) tire failure
D) human error

Question 25

The safest vehicles on the road are ________.

A) passenger automobiles
B) motorcycles
C) school buses
D) SUVs

Question 26

What agency was created by the National Traffic and Motor Vehicle Safety Act, and what is that agency empowered to do?

Question 27

When was the Federal Trade Commission formed, and what are its powers under Section 5 of the Federal Trade Commission Act?

Question 28

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 29

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 30

The Fair and Accurate Credit Transactions Act permits consumers to place ________ in their credit files.

A) reference letters from friends
B) mobile phone numbers
C) fraud alerts
D) email messages

Question 31

The ________ is a federal statute that requires disclosure of credit terms on credit card and charge card solicitations and applications.

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 32

The ________ limits the contact that a debt collector may have with third persons other than the debtor's spouse or parents.

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 33

The ________ applies to lessors who engage in leasing or arranging leases for consumer goods in the ordinary course of their business.

A) Consumer Leasing Act
B) Equal Credit Opportunity Act
C) Fair Credit Billing Act
D) Truth-in-Lending Act

Question 34

________ is defined as credit extended to natural persons for personal, family, or household purposes.

A) Wholesale credit
B) Retail credit
C) Natural person credit
D) Consumer credit

Question 35

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) ________.

A) requires that payments above the minimum payment be applied to pay lower-interest balances first
B) requires credit card companies to place a notice on each billing statement that notifies the cardholder how long it would take to pay off the existing balance plus interest if the cardholder were to make minimum payments on the card
C) sets limits on how high an interest rate can be charged on a credit card
D) applies to both consumer and business credit cards

Question 36

The Fair and Accurate Credit Transactions Act gives consumers the right to ________.

A) obtain one free credit report once every 6 months from the three nationwide credit reporting agencies
B) obtain their credit score for free once a year
C) learn how their credit score was calculated
D) place fraud alerts on their creditors' credit files

Question 37

In accordance with the Fair Debt Collection Practices Act (FDCPA), a debt collector can contact a debtor ________.

A) after 9 p.m. if the debtor works an overnight shift
B) at church
C) even if the debtor is represented by an attorney
D) at work, regardless of the employer's objections

Question 38

Under the Fair Credit Reporting Act (FCRA), what information can consumers request from credit bureaus, and what recourse do consumers have if they find inaccurate information in their credit report?

Question 39

State data breach notification laws generally ________.

A) apply only to private entities and not to governmental entities
B) require entities that have suffered a data breach to conduct a secret data system audit
C) require entities that have suffered a data breach to notify customers or other affected parties of the security breach
D) require entities that have suffered a data breach to confidentially notify the state auditor general

Question 40

Personal information is usually defined as a person's name combined with some other information, such as ________.

A) social security number
B) office location
C) business telephone number
D) business email address

Question 41

Many states have enacted state consumer protection laws that prohibit fraudulent, deceptive, and unfair trade practices that harm consumers. Which of these is NOT a usual feature of these laws?

A) creation of a state administrative agency to enforce state consumer protection laws
B) the ability to conduct inspections
C) expelling from the state those who have conducted unfair trade practices
D) the ability to hold administrative hearings

Question 42

What are security breach notification laws, and what do they require?