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Q:
Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine of
a. $0.
b. $15,000 per day.
c. $30,000 per day.
d. $30,000 total.
Q:
Metal Smelting, Inc., operates a planta "major source"that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely
a. a violation.
b. not a violation because a "major source" is exempt.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
Q:
The operations of Metal Refining Industries, Inc., are major sources of air pollution. These operations must use
a. the absolutely cleanest air technology.
b. the best available filter technology.
c. the maximum achievable control technology.
d. the most affordable scrubbing technology.
Q:
Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Q:
Rural Electric Company submits a bid to build a dam on federal land as part of a federal project. For this action, an environmental impact statement is most likely
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Q:
New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Q:
Rock Mining Company operates a gravel pit next to Siera's residence. Siera files a suit against Rock, alleging that the pit is a nuisance and unreasonably interferes with the enjoyment of her property The court is most likely to award Siera an injunction
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
Q:
Verna makes a living by commercial fishing in a river allegedly polluted by Wall Paint Company. To bring a suit against Wall Paint on the ground of private nuisance, Verna must allege that she suffers from
a. a distinct harm separate from that affecting the general public.
b. a lesser harm than an injunction would impose on Wall Paint.
c. Wall Paint's failure to use reasonable care to avert herm to Verna.
d. the same harm as that affecting the general public.
Q:
Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Q:
Dita takes out a student loan from Everloan Bank. When she fails to make the scheduled payments for six months, Everloan advises her of further action that it will take. This violates
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Q:
The credit department of Metro-Mart calls Nikki at work about an overdue bill. Nikki's employer objects. Metro-Mart continues to call Nikki at work. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Q:
Quik Collection Agency calls Pat several times a day, and sometimes in the middle of the night, about an overdue bill that Regal Sporting Goods turned over to Quik for collection. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Q:
Bodie's application to City Bank for a credit card is denied. Bodie can obtain information on her credit history in a credit agency's files under
a. no federal law.
b. the Equal Credit Opportunity Act.
c. the Fair Credit Reporting Act.
d. the Fair Debt Collection Practices Act.
Q:
Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without Kirk's permission, his roommate Leif uses the card to buy a new laptop for $1,800. Kirk is
a. liable for $1,000.
b. liable for $500.
c. liable for $50.
d. not liable for any amount.
Q:
Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on
a. intelligence.
b. education.
c. income.
d. race.
Q:
Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to
a. no federal law.
b. the Consumer Leasing Act.
c. the Consumer Product Safety Act.
d. the Truth-in-Lending Act.
Q:
Creditworthy Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, Creditworthy must inform potential borrowers of
a. credit terms offered by other lenders.
b. comparative prices for goods to be bought with the borrowed funds.
c. Creditworthy's credit terms.
d. the borrowers' credit scores.
Q:
Steel Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Steel to
a. export the tool and sell it only abroad.
b. increase the price to cover the cost of any injuries or damage.
c. reduce the price to indicate the hazard to consumers.
d. remove the tool from the market.
Q:
Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with
a. the Consumer Product Safety Commission.
b. no single federal agency.
c. the Federal Trade Commission.
d. the Food and Drug Administration.
Q:
Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is
a. a restaurant chain with twenty or more locations.
b. a food distributor with twenty or more customers.
c. a food processor with twenty or more products.
d. a food producer with twenty or more acres.
Q:
Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are
a. prohibited.
b. required.
c. strictly voluntary.
d. warranted by the nature of the food.
Q:
Bright Brew Coffee, Inc., processes and sells a variety of coffee products. Bright Brew's product packages must include
a. the identity of the company owner.
b. the net quantity of the contents.
c. the restaurants and stores in which the product is sold.
d. the type of consumer most likely interested in the product.
Q:
Va-Va-Voom Products, Inc., engages in deceptive advertising when it markets its product Weight-No-More as able to help consumers lose weight in their sleep. Va-Va-Voom is ordered to include in all future advertising of Weight-No-More the statement, "This product will not cause anyone to lose weight while sleeping." This is
a. a counteradvertising order.
b. a multiple product order.
c. a "cooling-off" law.
d. a validation notice.
Q:
Cleaners & Solvents, Inc. (CSI), engages in deceptive advertising when it markets its product Dirt Remover as able to kill germs over long periods of time. In an action against CSI regarding Dirt Remover, the firm is ordered to stop its false advertising of Dirt Remover and other products. This is
a. a counteradvertising order.
b. a multiple product order.
c. a "cooling-off" law.
d. a validation notice.
Q:
Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Commission is most likely to issue
a. a cease-and-desist order.
b. a counteradvertising order.
c. a multiple product order.
d. none of the choices.
Q:
Orange Company makes cellphones. The company's ad states that "if you aren"t usin" an Orange, you aren"t gettin" any "˜C."" The Federal Trade Commission would consider this ad
a. false and misleading.
b. impermissibly vague and general.
c. a deceptive half-truth.
d. none of the choices.
Q:
When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.
Q:
The Environmental Protection Agency can regulate a toxic substance that poses an imminent hazard but cannot prohibit its use altogether.
Q:
It is a violation of federal law to destroy or deface any labeling required on a pesticide or herbicide.
Q:
The Environmental Protection Agency sets minimum levels for pollutants in public water systems.
Q:
Public water system operators must meet the Environmental Protection Agency's standards regardless of the economic and technological feasibility.
Q:
The courts have considerably scaled back the Clean Water Act's protection of wetlands.
Q:
Special requirements must be met to discharge toxic chemicals into surface waters.
Q:
Any point source emitting pollutants into water must have a permit.
Q:
Those who knowingly violate the Clean Air Act are exempt from criminal penalties.
Q:
Performance standards for major sources of air pollution require the use of the any available technology, or AAT.
Q:
The Environmental Protection lists all hazardous air pollutants (HAPs) on a prioritized schedule.
Q:
Different standards for air quality apply to existing sources of pollution and major new sources.
Q:
The primary responsibility for preventing and controlling air pollution rests with the federal government.
Q:
The Environmental Protection Agency has concluded that greenhouse gases, including carbon dioxide emissions, do not constitute a public danger.
Q:
There are no plans to develop national standards regulating the fuel economy and emissions for medium- and heavy-duty trucks.
Q:
The Environmental Protection Agency periodically updates the air pollution standards.
Q:
An environmental impact statement is required for every major federal action that significantly affects the quality of the environment.
Q:
Injured individuals can rely on the common law to obtain damages and injunctions against business polluters.
Q:
A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.
Q:
Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.
Q:
A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.
Q:
A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.
Q:
The key federal statute regulating the credit and credit-card industries is basically a disclosure law.
Q:
Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.
Q:
Merchants must ship orders within the time promised in their ads.
Q:
Merchants must issue a refund within a specified period of time when a consumer cancels an order.
Q:
Labels on vegetables and fruits are not required to indicate where the food originated.
Q:
Food labels are not required to provide standard nutrition facts.
Q:
Labels must use words that are easily understood by the ordinary marketing executive.
Q:
Counteradvertising requires a company to advertise the products of its competitor to counter its own false claims.
Q:
All adsboth online and offlinemust be truthful.
Q:
Bait-and-switch advertising occurs when an ad appears to be based on factual evidence but in fact is not reasonably supported by evidence.
Q:
Vague generalities and obvious exaggerations constitute deceptive advertising.
Q:
Advertising will not be deemed deceptive so long as it appears to be based on factual evidence, even if it is not.
Q:
Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law.
Q:
An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement's benefits outweigh its anticompetitive effects.
Q:
An act must substantially affect interstate commerce to violate antitrust law.
Q:
The basic purpose of antitrust law is to regulate economic competition.
Q:
A restraint of trade is an agreement between firms that has the effect of reducing competition in the marketplace.
Q:
The Sherman Act, the Clayton Act and the Federal Trade Commission Act are all examples of legislation designed to curb anticompetitive business practices.
Q:
Antitrust legislation was created because of the belief that competition leads to lower prices.
Q:
Bubbly Bottling Company is engaged in the soft-drink bottling and distribution industry in the states of New York and New Jersey. The firm currently has about 40 percent of the market for these products and related services. Carbonate Distribution Corporation competes with Bubbly in the same states. Carbonate has about 35 percent of the market. If Bubbly were to acquire the stock and assets of Carbonate, would Bubbly be in violation of any of the antitrust laws? If so, which one? Discuss fully.
Q:
Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast, Inc., and other coffeemakers. The contracts require that during the two-year term a coffeemaker not buy beans from Java Bean's competitors. The contracts do not limit the coffeemakers' purchase of tea or other beverage ingredients from other suppliers, however. In the second year of the contract, Mellow Roast protests that this arrangement violates antitrust law. Is Mellow Roast correct? If not, why not? If so, under which antitrust statute, or statutes, could these contracts be held illegal?
Q:
Big U.S. Oil Company joins with a foreign cartel to control the price of oil. If the cartel has a substantial effect on U.S. commerce
a. both Big U.S. Oil and the foreign cartel can be sued for violation of U.S. antitrust laws.
b. neither Big U.S. Oil nor the foreign cartel can be sued for violation of U.S. antitrust laws.
c. only Big U.S. Oil can be sued for violation of U.S. antitrust laws.
d. only the foreign cartel can be sued for violation of U.S. antitrust laws
Q:
Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market. Antitrust laws can be enforced against Melon by
a. Mango and its competitors only.
b. Mango, its competitors, and the Federal Trade Commission only.
c. Mango, its competitors, the Federal Trade Commission, and the U.S. Department of Justice.
d. the Federal Trade Commission and U.S. Department of Justice only.
Q:
Global Services Corporation engages in trade practices that may violate antitrust law. The Federal Trade Commission has the power to act against unfair trade practices under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no law.
Q:
Luminescent Silicon Corporation, which controls 40 percent of the computer-chip market in the United States, merges with Micro Processors, Inc., which controls 15 percent of the same market. This merger is a violation
a. only if the result more clearly concentrates the market.
b. only if the result makes it more difficult for potential competitors to enter the market.
c. if the result more clearly concentrates the market and makes it more difficult for potential competitors to enter the market.
d. under no circumstances.
Q:
City Manufacturing Corporation conditions shipments of its products to Exurb Stores, Inc., on Exurb's agreement not to buy products from Regional Works Company, City's competitor. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a unilateral refusal to deal.
Q:
To drive its competitors out of a certain geographic segment of its market, Fryin" Potatoes, Inc., sets the prices of its products below cost for the buyers in that area. This is
a. a refusal to deal.
b. business acumen.
c. predatory bidding.
d. price discrimination.
Q:
HVAC Parts Company charges different buyers different prices for identical goods. HVAC's prices are subject to evaluation under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Q:
Precious Metals Corporation, a raw materials vendor, sells its commodities in certain quantities to Quarry Refining Company for a certain price but charges Rich Assets, Inc., a Quarry competitor, a higher price. This is most likely a violation of
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Q:
A unilateral refusal to deal can violate antitrust laws if the refusal
a. is likely to have an anticompetitive effect on a particular market.
b. results in lower prices for consumers.
c. provides no economic benefits for consumers.
d. is likely to increase competition.
Q:
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores, Inc., a retailer. This is
a. "an unfair or deceptive act or practice."
b. a per se violation.
c. not a violation.
d. subject to analysis under the rule of reason.
Q:
An antitrust action is brought against Tri-State Transport Company, alleging the offense of attempted monopolization. To be guilty of this offense, Tri-State's attempt must have
a. a dangerous probability of success.
b. a deadly guaranty of success.
c. a distant possibility of success.
d. a distinct improbability of success.