Lesson 14: Government Regulations Affecting Business

Administrative agencies are created by which governments?

• federal only

• state only

• federal and state

• international

Which of the following is one of the purposes of an administrative agency?

• to develop laws that are later voted on by Congress

• to enforce statutes enacted by Congress

• to take pressure off local and state resources

• to evaluate the feasibility of retaining laws

Which branch or branches of government is/are responsible for creating federal administrative agencies?

• executive only

• judicial and legislative

• legislative and executive

• legislative only

All of the following are reasons why consumer protection laws were developed except

• to promote safety of food and drugs.

• to prohibit deceptive selling practices.

• to save corporations from financial losses.

• to require safe products and services.

Making sure that cosmetic packages list ingredients used is the role of the

• Food and Drug Administration.

• U.S. Department of Agriculture.

• Consumer Product Safety Commission.

• Federal Trade Commission.

The federal government has divided each state into air quality control regions; those that do not meet air quality standards are then designated

• areas of further study.

• nonattainment areas.

• areas of noncompliance.

• air improvement areas.

The Federal Water Pollution Control act, enacted in 1948, is known today as the

• Clean Water Act.

• Water Protection Act.

• Water Pollution Act.

• Save Our Water Act.

The Supreme Court adopted the ________ for analyzing cases that were being heard for violating Section 1 of the Sherman Act.

• unreasonable restraints rule

• review of effect

• rule of reason standard

• per se rule

When two major airlines decided to combine and form one large airline they had to take into consideration which of the following federal antitrust statutes?

• restraints of trade

• price discrimination

• tying arrangements

• mergers

Which of the following statements is not true about the per se rule?

• It applies to restraints of trade that can be considered inherently anticompetitive.

• The plaintiff bears the burden of proving the restraint of trade.

• No further evidence needs to be considered once a violation is characterized as inherently anticompetitive.

• Trade restraints violate Section 1 of the Sherman Act.