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Q:
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
Q:
Which of the following is true of the Nutrition Labeling and Education Act (NLEA)?
A) The NLEA is a state law and its implementation is not federally regulated.
B) The NLEA applies to packaged foods and other foods regulated by the Food and Drug Administration.
C) The NLEA mandates compulsory labeling for all kinds of raw and processed food with any exceptions.
D) The NLEA specifically eliminates the practice of providing point-of-purchase nutrition information by sellers.
Q:
The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other foods regulated by the ________.
A) U.S. Department of Agriculture
B) Consumer Product Safety Commission
C) Patient Protection and Affordable Care Act
D) Food and Drug Administration
Q:
The ________ is a federal statute passed in 1990 that requires food manufacturers and processors to provide nutrition information on many foods and prohibits them from making scientifically unsubstantiated health claims.
A) Food, Drug, and Cosmetic Act
B) Health Care and Education Reconciliation Act
C) Nutrition Labeling and Education Act
D) Patient Protection and Affordable Care Act
Q:
The Food and Drug Administration is empowered to ________.
A) recall unsafe toys, appliances, and other consumer products which are harmful to users
B) regulate the safety of meat, poultry, and other food products
C) prosecute violators directly by imposing fines and pronouncing sentences
D) obtain orders for the seizure, recall, and condemnation of harmful products
Q:
Ajax, a pharmaceutical company, has designed a new medicine for morning sickness among pregnant women. Testing at their R&D center showed the drug to be highly reliable. Ajax has to approach a U.S. federal administrative agency called the ________ for the drug to be deemed legal for sale to the public.
A) Medicines and Healthcare Products Regulatory Agency
B) Consumer Product Safety Commission
C) Federal Trade Commission
D) Food and Drug Administration
Q:
The Food, Drug, and Cosmetic Act is a federal statute that ________.
A) covers all food products including poultry and processed meat
B) regulates the sale of food additives, drugs, cosmetics, and medicinal devices
C) implements the Federal Meat Inspection Act, enacted in 1906
D) protects the public by providing greater medical coverage from food-related illnesses
Q:
In the United States, the ________ is the federal administrative agency that is primarily responsible for regulating meat, poultry, and other food products.
Q:
The U.S. Department of Agriculture is the federal administrative agency that is primarily responsible for regulating meat, poultry, and other food products.
Q:
The U.S. Food and Drug Administration promotes the principle of caveat emptor in sales transactions involving food and drugs.
Q:
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 lead 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.
Q:
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
Q:
The ________ is a federal administrative agency that is primarily responsible for regulating the safety of meat, poultry, and other food products.
A) U.S. Department of Agriculture
B) Consumer Product Safety Commission
C) Food and Drug Administration
D) Federal Trade Commission
Q:
________ laws are federal and state statutes and regulations that promote product safety and prohibit abusive, unfair, and deceptive business practices.
A) Profit-Ã -prendre
B) Canon
C) Consumer protection
D) Caveat emptor
Q:
Give an account of the Consumer Financial Protection Act of 2010.
Q:
How does the Mortgage Reform and Anti-Predatory Lending Act of 2010 help regulate mortgage transactions?
Q:
________ is defined as credit extended to natural persons for personal, family, or household purposes.
Q:
The ________ applies to lessors who engage in leasing or arranging leases for consumer goods in the ordinary course of their business.
Q:
The ________ allowed all credit-card companies with whom a cardholder had a credit card to raise the interest rate on his or her card, including on the existing balances, if the cardholder was late in making a payment to any credit card company.
Q:
The ________ limits the contact that a debt collector may have with third persons other than the debtor's spouse or parents.
Q:
The ________ Act is a federal statute that requires disclosure of credit terms on credit card and charge card solicitations and applications.
Q:
Lease creditors that violate the ________ Act are subject to the civil and criminal penalties provided in the Truth-in-Lending Act (TILA).
Q:
The ________ Act permits consumers to place fraud alerts in their credit files.
Q:
The ________ expressly prohibits debt collectors from using certain practices like harassing, abusing, or intimidating debtors.
Q:
A person of a specific religion is protected from credit extension discrimination by the ________ Act.
Q:
Title XIV of the Dodd-Frank Act, called the ________ Act, is designed to eliminate many abusive loan practices and mandates new duties and disclosure requirements for mortgage lenders.
Q:
________ is an administrative agency regulation that sets forth detailed rules for compliance with the Truth-in-Lending Act (TILA).
Q:
The ________ is a federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor's principal dwelling and covers only creditors that regularly extend credit for goods or services to consumers.
Q:
Give an account of state antitrust laws.
Q:
The exemption of railroads from antitrust laws is an example of a(n) ________ exemption.
Q:
States lack the power to enact antitrust statutes autonomously.
Q:
The U.S. Supreme Court has held that professionals such as lawyers do not qualify for an implied exemption from federal antitrust laws.
Q:
Insurance business that is regulated by a state enjoys a statutory exemption from federal antitrust laws.
Q:
Treble damages are allowed for violations of the Federal Trade Commission (FTC) Act.
Q:
The Federal Trade Commission (FTC) and the Department of Justice share the power to enforce the FTC Act.
Q:
Which of the following businesses or activities enjoys an implied exemption from antitrust laws?
A) railroads
B) agricultural cooperatives
C) airlines
D) labor unions
Q:
Which of the following businesses or activities enjoy a statutory exemption from antitrust laws?
A) airlines
B) professional baseball
C) agricultural cooperatives
D) all professional sports and games
Q:
What are the three statutory defenses under the Robinson-Patman Act for price discrimination?
Q:
What is a premerger notification? Explain the process outlined by the Hart-Scott-Rodino Antitrust Improvement Act to execute a merger.
Q:
The ________ Act is a federal statute, enacted in 1930, that prohibits price discrimination.
Q:
________ are vertical trade restraints that involve the seller's refusal to sell a product, the tying item, to a customer unless the customer purchases a second product.
Q:
Mergers between firms in unrelated businesses are known as ________ mergers.
Q:
The ________ Act, enacted in 1950, widened the scope of Section 7 of the Clayton Act to include asset acquisitions.
Q:
It is necessary to prove actual injury in order for a plaintiff to recover in a price discrimination lawsuit.
Q:
Section 1 of the Sherman Act allows for intangible properties to be sold in tying arrangements.
Q:
According to the failing company doctrine, two or more smaller companies are allowed to merge to compete with a larger company even if they are highly profitable as smaller companies.
Q:
The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market.
Q:
Vertical mergers create an increase in market share because the merging firms serve similar markets.
Q:
The merger of two grocery store chains that serve the same geographical market is an example of a horizontal merger.
Q:
The relevant product or service market generally includes substitute products or services that are reasonably interchangeable with the defendant's products or services.
Q:
The ________ is a defense in a Section 2(a) action which provides that a seller's price discrimination is not unlawful if the price differential is due to "differences in the cost of manufacture, sale, or delivery" of the product.
A) natural monopoly defense
B) meeting the competition defense
C) changing conditions defense
D) cost justification defense
Q:
________ is a restraint of trade in which a seller refuses to sell one product to a customer unless the customer agrees to purchase a second product from the seller.
A) A tying arrangement
B) Predatory pricing
C) Price fixing
D) A group boycott
Q:
The ________ is an act that requires certain firms to notify the Federal Trade Commission and the Justice Department in advance of a proposed merger and comply with a thirty-day waiting period before the merger is approved.
A) Celler-Kefauver Act
B) Hart-Scott-Rodino Antitrust Improvement Act
C) Robinson-Patman Act
D) Sherman Act
Q:
Which of the following is considered a primary defense against Section 7 of the Clayton Act?
A) the Noerr doctrine
B) the Colgate doctrine
C) the failing company doctrine
D) conscious parallelism
Q:
________ are mergers between firms in totally unrelated businesses.
A) Market extension mergers
B) Conglomerate mergers
C) Horizontal mergers
D) Forward vertical mergers
Q:
A merger between two regional fruit-sellers that do not sell fruit in the same geographical area is an example of a ________.
A) market extension merger
B) conglomerate merger
C) horizontal merger
D) vertical merger
Q:
What is a backward vertical merger?
A) a vertical merger between two or more companies that compete in the same business and geographical market
B) a vertical merger between two companies in similar fields whose sales do not overlap
C) a vertical merger in which a supplier acquires a customer
D) a vertical merger in which a customer acquires a supplier
Q:
What is a vertical merger?
A) a merger between firms in totally unrelated businesses
B) a merger that integrates the operations of a supplier and a customer
C) a merger between two companies in similar fields whose sales do not overlap
D) a merger between two or more companies that compete in the same business and geographical market
Q:
A merger between two or more companies that compete in the same business and geographical market is known as ________.
A) a horizontal merger
B) a vertical merger
C) a unilateral refusal to deal
D) conscious parallelism
Q:
How is a relevant market identified by Section 2 of the Sherman Act?
Q:
________ is a defense to a charge of monopolizing which recognizes that a small market can support only one competitor, such as a small-town newspaper.
Q:
Predatory pricing, which is used to drive out competition, is in violation of the ________.
Q:
The power of a firm to control prices or exclude competition, measured by the market share the defendant possesses in the relevant market, is known as ________.
Q:
Natural monopolies are found to violate Section 2 of the Sherman Act.
Q:
Predatory pricing has been held to violate Section 2 of the Sherman Act.
Q:
The relevant geographical market is always considered statewide.
Q:
Section 2 of the Sherman Act prohibits the act of monopolization.
Q:
Which of the following is a defense to a charge of monopoly?
A) horizontal price fixing
B) natural monopoly
C) the setting of minimum resale prices
D) market sharing
Q:
Monopoly power is characterized by ________.
A) market share above 50 percent in the relevant market
B) market share above 60 percent in the non-relevant market
C) market share above 70 percent in the relevant market
D) market share above 80 percent in the non-relevant market
Q:
Give an account of the Noerr doctrine.
Q:
The ________ doctrineholds that two or more persons may petition the executive, legislative, or judicial branch of the government or administrative agencies to enact laws or to take other action without violating antitrust laws.
Q:
If two competing manufacturers of a similar product both separately reach an independent decision not to deal with a retailer, ________ is said to have occurred, which is not a violation of Section 1 of the Sherman Act.
Q:
The ________ doctrine states that a firm can unilaterally choose not to deal with another party without being liable under Section 1 of the Sherman Act.
Q:
The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by using the ________.
Q:
________ occurs when a party at one level of distribution enters into an agreement with a party at another level to adhere to a price schedule that either sets or stabilizes prices.
Q:
Price fixing is a(n) ________ violation of Section 1 of the Sherman Act.
Q:
Contracts, combinations, and conspiracies in restraint of trade are outlawed by Section 1 of the ________ Act.
Q:
The ________ rule is applicable to restraints of trade considered inherently anticompetitive. Once this determination is made about a restraint of trade, the court will not permit any defenses or justifications to save it.
Q:
The Noerr doctrine holds that two or more persons may petition the government to enact laws or take other action without violating antitrust laws.
Q:
Conscious parallelism occurs if two competing manufacturers of a similar product both separately reach an independent decision not to deal with a retailer.