Question 1

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) recall of GM trucks from the market
B) removal of certain orange juice from the market
C) removal of high-fat pork products from the market
D) removal of low-SPF tanning products from the market
E) removal of animal-tested cosmetics from the market

Accepted Answer

The FDA has the power to remove products from the market if they are found to be unsafe or contaminated. In 2012, the FDA announced a recall of certain orange juice products due to the presence of a chemical called carbendazim, which is not allowed in the United States. This is an example of the FDA using its power to remove products from the market.

Question 2

FTC consent decrees agreed to by firms accused of illegal trade practices:
A) contain the terms of a settlement
B) may include redress for consumers
C) may include prison time for scam operators
D) contain the terms of a settlement and may include redress for consumers
E) contain the terms of a settlement and may include redress for consumers and may include prison time for scam operators

Accepted Answer

FTC consent decrees agreed to by firms accused of illegal trade practices contain the terms of a settlement and may include redress for consumers, but they typically do not include prison time for scam operators.

Question 3

The Federal Trade Commission regulates:
A) deceptive business practices
B) false advertising claims
C) highly risky stock deals
D) deceptive business practices and false advertising claims
E) deceptive business practices and false advertising claims and highly risky stock deals

Accepted Answer

The Federal Trade Commission regulates both deceptive business practices and false advertising claims. While it has the authority to investigate and penalize misleading stock deals, highly risky stock deals are primarily regulated by the Securities and Exchange Commission. Therefore, only option D is correct.

Question 4

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:
A) recall of GM trucks from the market
B) removal of animal-tested cosmetics from the market
C) removal of high-fat pork products from the market
D) removal of low-SPF tanning products from the market
E) none of the other choices

Accepted Answer

The given options do not provide an example of the FDA's use of its power to remove products from the market. Therefore, the correct answer is E, none of the other choices.

Question 5

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?
A) there is a misrepresentation or omission of information in a communication to consumers
B) the deception is likely to mislead a reasonable consumer
C) there is proximate cause between the deception and the losses suffered by consumers who are misled
D) the deception is material⎯likely to mislead the consumer to his or her detriment
E) all of the other choices are a part of the deception standard

Accepted Answer

All of the other choices are part of the FTC policy statement for determining if a practice is deceptive. Choice C refers to the requirement that the deception must have caused losses or harm to the consumers who were misled. While it may be an important factor in considering the overall impact and severity of the deception, it is not explicitly listed as a component of the deception standard itself.

Question 6

A noteworthy change at the FDA in recent years is its:
A) greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs
B) regulation of the sale of fish and shellfish
C) increased inspection of foreign fruit shipments
D) dropping the quarantine requirements that apply to animals brought into the U.S.
E) none of the other choices

Accepted Answer

The FDA has not made any of the changes listed in options A, B, C, or D in recent years.

Question 7

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?
A) there is a representation or omission of information in a communication to consumers
B) the deception is likely to mislead a reasonable consumer
C) the deception may cause physical harm to consumers
D) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer
E) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer and the deception may cause physical harm to consumers

Accepted Answer

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

Question 8

Which of the following is often contained in consent decrees agreed upon by the parties charged in an FTC complaint:
A) terms of a settlement
B) redress for consumers
C) payment of civil penalties
D) prohibition of certain practices
E) all of the other specific choices are correct

Accepted Answer

Consent decrees agreed upon by the parties charged in an FTC complaint often contain terms of settlement, redress for consumers, payment of civil penalties, and prohibition of certain practices. Therefore, all of the other specific choices are correct.

Question 9

FTC consent decrees agreed to by firms accused of illegal trade practices:
A) contain the terms of a settlement
B) may include redress for consumers
C) include possible payment of civil penalties
D) contain the terms of a settlement and may include redress for consumers
E) contain the terms of a settlement and may include redress for consumers and include possible payment of civil penalties

Accepted Answer

FTC consent decrees agreed to by firms accused of illegal trade practices contain the terms of a settlement and may include redress for consumers, as well as include possible payment of civil penalties.

Question 10

FTC staff members propose complaints to:
A) five executives
B) ten commissioners
C) five commissioners
D) district courts
E) the U.S. Supreme Court

Accepted Answer

FTC staff members propose complaints to the five commissioners of the Federal Trade Commission.

Question 11

The Federal Trade Commission investigates:
A) unfair and deceptive practices
B) tax evasion practices
C) profitable practices
D) legal practices
E) drug development

Accepted Answer

The Federal Trade Commission (FTC) is responsible for investigating unfair or deceptive business practices, such as false advertising or fraudulent claims. The other choices, including tax evasion, profitable practices, legal practices, and drug development, are not within the scope of the FTC's responsibilities.

Question 12

The ____ shields drug manufacturers from liability in cases where doctors misuse drugs.
A) learned intermediary doctrine
B) medical intermediary doctrine
C) misuse doctrine
D) professional intermediary doctrine
E) physician intermediary doctrine

Accepted Answer

The learned intermediary doctrine shields drug manufacturers from liability in cases where doctors misuse drugs, stating that the manufacturer fulfills its duty to warn by providing adequate warnings to the doctor, who acts as a learned intermediary between the manufacturer and the patient.

Question 13

A noteworthy change at the FDA in recent years is its:
A) greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs
B) regulation of the sale of fish and shellfish
C) increased inspection of foreign fruit shipments
D) allowing quicker approval for use of drugs that show promise in treating life-threatening diseases
E) dropping the quarantine requirements that apply to animals brought into the U.S.

Accepted Answer

The FDA has implemented policies to shorten the approval time for drugs that show promise in treating life-threatening diseases, such as cancer and AIDS, to speed up access to potentially life-saving treatments for patients.

Question 14

For a complaint proposed to the five commissioners by an FTC staff member to be officially issued:
A) there must be unanimous agreement
B) at least 2 commissioners must vote for it
C) at least 3 commissioners must vote for it
D) at least 1 commissioner must vote for it
E) 4 out of 5 commissioners must vote for it

Accepted Answer

According to the FTC Rules of Practice, at least 3 commissioners must vote in favor of issuing a complaint before it can be officially issued.

Question 15

Which of the following is part of the FTC's three part test for deciding whether a particular act or practice is deceptive:
A) there is a misrepresentation or omission of information in a communication to consumers
B) the deception is likely to mislead a reasonable consumer
C) the deception is material
D) all of the other specific choices are correct
E) none of the other specific choices are correct

Accepted Answer

The FTC's three part test for deciding whether a particular act or practice is deceptive includes all of the specific choices listed: there must be a misrepresentation or omission of information in a communication to consumers, the deception must be likely to mislead a reasonable consumer, and the deception must be material.

Question 16

The ____ shields drug manufacturers from liability in cases where doctors misuse drugs.
A) physician intermediary doctrine
B) medical intermediary doctrine
C) misuse doctrine
D) professional intermediary doctrine
E) none of the other choices are correct

Accepted Answer

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

Question 17

The Federal Trade Commission regulates:
A) deceptive business practices
B) false advertising claims
C) unfair business practices
D) deceptive business practices and false advertising claims
E) deceptive business practices and false advertising claims and unfair business practices

Accepted Answer

The Federal Trade Commission regulates all three types of practices mentioned in the options - deceptive business practices, false advertising claims, and unfair business practices. Therefore, the best answer is E - which includes all three.

Question 18

Which of the following is part of the FTC policy statement for determining if a practice is deceptive?
A) there is a representation or omission of information in a communication to consumers
B) the deception is likely to mislead a reasonable consumer
C) the deception is material⎯likely to mislead the consumer to his or her detriment
D) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer
E) there is a representation or omission of information in a communication to consumers and the deception is likely to mislead a reasonable consumer and the deception is material⎯likely to mislead the consumer to his or her detriment

Accepted Answer

The FTC policy statement for determining if a practice is deceptive includes all three factors: there is 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 his or her detriment. Therefore, choice E is the correct answer as it includes all three factors.

Question 19

The Federal Trade Commission was established in:
A) 1909
B) 1915
C) 1920
D) 1937
E) 1950

Accepted Answer

The Federal Trade Commission was established in 1914 through the Federal Trade Commission Act. Therefore, the best choice is B, which is the year 1915, the closest option to the actual year of establishment.

Question 20

A material deception is one that:
A) is likely to be misleading to the detriment of consumers
B) involves the material used to make the product
C) involves the production process
D) leads the consumer to believe the product is cheaper than it is
E) none of the other choices are correct

Accepted Answer

A material deception is one that is likely to mislead consumers to their detriment. This can include false or misleading advertising, packaging, or labeling that could cause consumers to make purchasing decisions they would not have otherwise made.

Quiz 19: Consumer Protection

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:

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

The Federal Trade Commission regulates:

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

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

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:

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

FTC staff members propose complaints to:

The Federal Trade Commission investigates:

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

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

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

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

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

The Federal Trade Commission regulates:

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

The Federal Trade Commission was established in:

A material deception is one that: