Question 1

Which of the following acts outlaws discrimination in prices to different buyers; prohibits tying contracts (which require the buyer of one product to also buy another item in the line); and makes it illegal to combine two or more competing corporations by pooling ownership of their stocks?
A) Clayton Act of 1914
B) Sherman Act of 1890
C) Federal Trade Commission Act of 1914
D) Robinson-Patman Act of 1936

Accepted Answer

The Clayton Act of 1914 addresses issues such as price discrimination, tying contracts, and mergers that may reduce competition, making it the correct choice.

Question 2

Marketers cannot advertise for adulterated and misbranded food or drug products due to the power of:
A) The Association for Prohibition of Adulteration
B) The General Food Regulations
C) The Consumables Protection Bureau
D) The Food and Drug Administration

Accepted Answer

The Food and Drug Administration (FDA) is the regulatory authority responsible for ensuring that food and drug products are safe, effective, and properly labeled, and it prohibits the advertising of adulterated and misbranded products.

Question 3

Which of the following indicates the impact of Patient Protection and Affordable Care Act on marketing?
A) It revamped the U.S.healthcare system and specifically mandated and subsidized health insurance for individuals.
B) It prohibited cigarette advertising on television and radio and revised the health hazard warning on cigarette packages.
C) It requires warning labels on hazardous household chemicals.
D) It required safety packaging for products that could be harmful to children.

Accepted Answer

The Patient Protection and Affordable Care Act (PPACA) primarily focused on reforming the healthcare system by mandating and subsidizing health insurance for individuals, which indirectly impacts marketing strategies for healthcare-related products and services.

Question 4

Which of the following is NOT a key provision of the Patient Protection and Affordable Care Act?
A) Workers cannot be denied coverage.
B) Large employers must offer coverage to full-time workers.
C) A worker can be denied coverage for a preexisting condition.
D) Young adults can stay on their parents' plans until age 26.

Accepted Answer

The Patient Protection and Affordable Care Act prohibits denying coverage based on preexisting conditions, making option C incorrect.

Question 5

Which of the following is NOT an approach companies take to keep innovation strong?
A) Using teams of writers to imagine detailed opportunities and threats for their companies,partners,and collaborators in future markets
B) Creating websites that act as literal marketplaces of ideas where innovators can go to look for help with scientific and business challenges
C) Talking to early adopters and looking for new things or wishing for something better to help in daily tasks at home and work
D) Restricting the degree to which people can follow their entrepreneurial passions

Accepted Answer

Restricting the degree to which people can follow their entrepreneurial passions is not an approach to keep innovation strong; it would likely stifle creativity and innovation.

Question 6

Define innovation and discuss its importance and current approaches that companies use to stimulate it.

Accepted Answer

The answer of Define innovation and discuss its importance and...

Question 7

The difficulty of making profit from applied research discoveries has led businesses to cut their spending on applied research.

Accepted Answer

The answer of The difficulty of making profit from applied...

Question 8

Which congressional act protects consumers against terrorist actions?
A) Robinson-Patman Act of 1936
B) Federal Trade Commission Act of 1914
C) Sherman Act of 1890
D) Homeland Security Act of 2002

Accepted Answer

The Homeland Security Act of 2002 was established to protect the United States from terrorist attacks and enhance national security, indirectly protecting consumers by ensuring their safety.

Question 9

Which federal agency reviews mergers and acquisitions,and challenges those that would likely lead to higher prices,fewer choices,or less innovation?
A) The Bureau of Competition
B) Consumer Product Safety Commission (CPSC)
C) Food and Drug Administration (FDA)
D) The Food and Drug Administration (FDA)

Accepted Answer

The Bureau of Competition, part of the Federal Trade Commission (FTC), reviews mergers and acquisitions to prevent anti-competitive practices that could harm consumers.

Question 10

Hydralicious,a juice outlet,had to close a business because health inspectors found that the storage facilities at the outlet did not meet the standards set by the government.In this scenario,a(n)_____ factor affected Hydralicious's business.
A) technological
B) economic
C) legal
D) demographic

Accepted Answer

The closure was due to non-compliance with government health standards, which is a legal factor.

Question 11

Which legislative action created the Consumer Financial Protection Bureau (CFPB)?
A) The Restoring American Financial Stability Act
B) Credit Card Act
C) Consumer Product Safety Act
D) Patient Protection and Affordable Care Act

Accepted Answer

The Consumer Financial Protection Bureau (CFPB) was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is also known as the Restoring American Financial Stability Act.

Question 12

Technological success is based upon innovation,which is independent of imagination and risk taking.

Accepted Answer

Innovation is closely linked to imagination and risk-taking, as it involves creating new ideas and taking risks to implement them successfully.

Question 13

Alex purchased a battery-operated drill.Due to a manufacturing defect,the drill overheated and exploded when he used it for the first time.Alex lodged a complaint against the firm that manufactured the drill with the Consumer Product Safety Commission (CPSC).Given the situation,which of the following is most likely to happen?
A) The CPSC can fine the offending firm up to $500,000.
B) The CPSC will reduce the prices of the drills of the offending firm in the market.
C) The CPSC will introduce changes to the drills of the offending firm in the market.
D) The CPSC has no power to sentence the officers involved in the case.

Accepted Answer

The CPSC can impose fines on companies for violations related to consumer product safety, including manufacturing defects that lead to hazards.

Question 14

Which federal agency is charged with enforcing regulations against selling and distributing adulterated,misbranded,or harmful food or drug products?
A) The Federal Trade Commission (FTC)
B) The Food and Drug Administration (FDA)
C) The Consumer Product Safety Commission (CPSC)
D) The Bureau of Consumer Protection

Accepted Answer

The Food and Drug Administration (FDA) is responsible for protecting the public health by ensuring the safety, efficacy, and security of human and veterinary drugs, vaccines and other biological products, and medical devices. The FDA also ensures the safety of our nation's food supply, cosmetics, and products that emit radiation.

Question 15

Which of the following federal agencies has the power to set mandatory safety standards for almost all products that consumers use example cribs,electronics and video games,school supplies,science kits,toys,and pacifiers?
A) The Federal Trade Commission (FTC)
B) The Food and Drug Administration (FDA)
C) The Consumer Product Safety Commission (CPSC)
D) The Bureau of Consumer Protection

Accepted Answer

The Consumer Product Safety Commission (CPSC) is responsible for setting mandatory safety standards for consumer products to ensure their safety.

Question 16

The Federal Trade Commission's Bureau of Competition _____.
A) promotes restraint of trade among business firms
B) encourages monopolization and agreements between competitors
C) promotes anti-competitive strategies
D) seeks out and challenges anti-competitive conduct in the marketplace

Accepted Answer

The Federal Trade Commission's Bureau of Competition is responsible for enforcing antitrust laws and seeks out and challenges anti-competitive conduct in the marketplace to promote fair competition.

Question 17

The CAN-SPAM Act:
A) prohibits commercial emailers from using false addresses and presenting false or misleading information.
B) requires fast-food chains to open their facilities to health inspection at least once every quarter.
C) requires verifiable parental consent before a website can collect information from children.
D) allows commercial emailers to charge consumers a fee to opt out of receiving further email.

Accepted Answer

The CAN-SPAM Act is a law that sets rules for commercial email, establishes requirements for commercial messages, and gives recipients the right to have emails stopped from being sent to them. It prohibits the use of false or misleading information in emails.

Question 18

Which law primarily targets children's products,which are defined as those used by individuals 12 years old or younger?
A) Consumer Product Safety Commission (CPSC)
B) Child Protection and Toy Safety Act of 1969
C) Child Protection Act of 1990
D) Consumer Credit Protection Act of 1968

Accepted Answer

The Consumer Product Safety Commission (CPSC) is an independent federal agency that is responsible for protecting the public from unreasonable risks of injury or death associated with consumer products. The CPSC has jurisdiction over a wide range of products, including children's products. The Child Protection and Toy Safety Act of 1969 is a federal law that sets safety standards for toys and other children's products. The Child Protection Act of 1990 is a federal law that protects children from abuse and neglect. The Consumer Credit Protection Act of 1968 is a federal law that protects consumers from unfair or deceptive credit practices.

Question 19

Which of the following laws prohibits bribery of foreign officials to obtain business?
A) Foreign Corrupt Practices Act of 1977
B) Consumer Product Safety Act of 1972
C) Homeland Security Act of 2002
D) Restoring American Financial Stability Act of 2010

Accepted Answer

The Foreign Corrupt Practices Act of 1977 (FCPA) is a United States law that prohibits companies and their employees from bribing foreign officials to obtain or retain business.

Question 20

A federal agency which aims at preventing persons or corporations from using unfair methods of competition in commerce is:
A) the Federal Trade Commission (FTC).
B) the Food and Drug Administration (FDA).
C) the Consumer Product Safety Commission (CPSC).
D) the Bureau of Consumer Protection.

Accepted Answer

The Federal Trade Commission (FTC) is the federal agency responsible for preventing unfair methods of competition in commerce.

Quiz 4: The Marketing Environment

Which of the following acts outlaws discrimination in prices to different buyers; prohibits tying contracts (which require the buyer of one product to also buy another item in the line) ; and makes it illegal to combine two or more competing corporations by pooling ownership of their stocks?

Marketers cannot advertise for adulterated and misbranded food or drug products due to the power of:

Which of the following indicates the impact of Patient Protection and Affordable Care Act on marketing?

Which of the following is NOT a key provision of the Patient Protection and Affordable Care Act?

Which of the following is NOT an approach companies take to keep innovation strong?

Define innovation and discuss its importance and current approaches that companies use to stimulate it.

The difficulty of making profit from applied research discoveries has led businesses to cut their spending on applied research.

Which congressional act protects consumers against terrorist actions?

Which federal agency reviews mergers and acquisitions,and challenges those that would likely lead to higher prices,fewer choices,or less innovation?

Hydralicious,a juice outlet,had to close a business because health inspectors found that the storage facilities at the outlet did not meet the standards set by the government.In this scenario,a(n) _____ factor affected Hydralicious's business.

Which legislative action created the Consumer Financial Protection Bureau (CFPB) ?

Technological success is based upon innovation,which is independent of imagination and risk taking.

Which federal agency is charged with enforcing regulations against selling and distributing adulterated,misbranded,or harmful food or drug products?

Which of the following federal agencies has the power to set mandatory safety standards for almost all products that consumers use example cribs,electronics and video games,school supplies,science kits,toys,and pacifiers?

The Federal Trade Commission's Bureau of Competition _____.

The CAN-SPAM Act:

Which law primarily targets children's products,which are defined as those used by individuals 12 years old or younger?

Which of the following laws prohibits bribery of foreign officials to obtain business?

A federal agency which aims at preventing persons or corporations from using unfair methods of competition in commerce is: