BL 15-1.2: Unfair Trade Practices Quiz

What is the primary purpose of federal antitrust laws?

• To support fraudulent advertising

• To encourage price fixing

• To prevent unfair trade practices in interstate commerce

• To promote monopolies

Which of the following is an example of false and misleading advertising?

• Advertising a limited supply of products

• Providing accurate product descriptions

• Claiming a product cures diseases it does not

• Offering rain checks for sold-out items

What is the term for using a low-priced item to attract customers, only to sell them a higher-priced item?

• Confidence game

• Corrective advertising

• Price fixing

• Bait and switch

Which organization is primarily responsible for preventing false advertising?

• Department of Commerce

• Consumer Product Safety Commission

• Federal Trade Commission (FTC)

• Environmental Protection Agency

What are the three elements required for a scheme to be considered a lottery?

• Payment, skill, chance

• Skill, chance, prize

• Payment, chance, prize

• Payment, skill, prize

Why might a state allow certain religious and charity groups to run lotteries?

• To promote gambling

• To eliminate competition

• To generate revenue for their activities

• To encourage consumer spending

What is a common issue consumers face with repair services?

• Being charged for unauthorized repairs

• Receiving high-quality service

• Receiving free estimates

• Getting discounts on repairs

What is an example of mislabeling goods?

• Accurately labeling secondhand goods

• Providing clear warning labels

• Selling goods at a fair price

• Turning back odometers on used cars

Which practice involves using a brand name similar to a competitor's to confuse the public?

• Trademark infringement

• Industrial espionage

• Bait and switch

• False advertising

What is a pyramid sales scheme an example of?

• A legal lottery

• A fair trade practice

• A confidence game

• A legitimate business model