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Ch 3 Marketing Consumer Laws

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

What is the Sherman AntiTrust Act, 1890? Fill in the blank: This was the federal law that prohibits ________ business practices and mergers (prohibits unfair monopolies) that could harm consumers, workers, and taxpayers.

a)

anticompetitive

b)

cooperative

c)

innovative

d)

sustainable

2.

Is the Sherman AntiTrust Act, 1890 still important today?

a)

Yes, limiting the market power of any particular firm.

b)

No, it is no longer relevant.

3.

Fill in the blank: The Federal Trade Commission Act, 1914 enforces federal consumer protection laws that prevent ______, deception and unfair business practices.

a)

fraud

b)

competition

c)

advertising

d)

innovation

4.

Fill in the blank: The FTC also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less ______.

a)

competition

b)

regulation

c)

advertising

d)

taxation

5.

Fill in the blank: Companies label the ingredients and drugs on a label or medicine capsule to keep it ______ so you know what your body is consuming.

a)

safe

b)

expensive

c)

colorful

d)

hidden

6.

Fill in the blank: Labeling ingredients and drugs on products helped manufacturer sales and helped solve misleading information to help from ______ food.

a)

poisonous

b)

delicious

c)

expensive

d)

imported

7.

Which act requires informative labeling and non-deceptive packaging to protect consumers?

a)

Consumer Credit Protection Act, 1968

b)

Fair Packaging and Labeling Act, 1966

c)

Consumer Product Safety Act, 1972

8.

Fill in the blank: The Consumer Credit Protection Act, 1968 protects consumers from harm by ________, banks, and credit card companies.

a)

creditors

b)

retailers

c)

manufacturers

d)

investors

9.

Which act set safety standards and formed the Consumer Product Safety Commission?

a)

Fair Packaging and Labeling Act, 1966

b)

Consumer Credit Protection Act, 1968

c)

Consumer Product Safety Act, 1972

10.

Fill in the blank: Almost every product must follow the ________ (name the law/act).

a)

Fair Packaging and Labeling Act, 1966

b)

Consumer Protection Act, 1986

c)

Sale of Goods Act, 1930

d)

Trademark Act, 1999

11.

The Consumer Product Safety Act, 1972 gives people the right to ban products that are bad for the public and not up to the standards of the people.

a)

True

b)

False

12.

What does the Telemarketing and Consumer Fraud and Abuse Prevention Act, 1994 (TCFPA) provide to consumers?

a)

Protection from telemarketing abuse and deception

b)

Protection from online fraud

c)

Protection from identity theft

d)

Protection from email spam

13.

The TCFPA requires the Federal Trade Commission (FTC) to create rules that prohibit _______ telemarketing practices.

a)

deceptive

b)

friendly

c)

authorized

d)

charitable

14.

Which of the following is NOT a requirement under the TCFPA rules created by the FTC?

a)

Restrict when unsolicited calls can be made to consumers

b)

Require telemarketers to disclose the purpose of a call

c)

Allow telemarketers to make unsolicited calls at any time

d)

Prohibit telemarketers from making coercive or invasive calls

15.

The TCPA restricts the making of telemarketing calls and the use of automatic telephone dialing systems and artificial or prerecorded voice messages.

a)

True

b)

False

16.

What is the main purpose of the Robinson-Patman Act, 1936?

a)

To protect large franchised companies

b)

To protect small businesses from being driven out of the marketplace by prohibiting discrimination in pricing, promotional allowances, and advertising by large franchised companies

c)

To encourage unfair pricing advantages

d)

To promote monopolies

17.

Fill in the blank: The Robinson-Patman Act, 1936, was enacted to stop discrimination from ________ and to stop unfair pricing advantages and unfair advertising by large franchised companies.

a)

small businesses

b)

large corporations

c)

foreign investors

d)

government agencies

18.

According to the Robinson-Patman Act, what must businesses be mindful of regarding pricing and marketing strategies?

a)

Increasing prices for all customers

b)

RPA’s prohibitions on pricing discrimination

c)

Ignoring competitors

d)

Offering the same discounts to all buyers

19.

The Robinson-Patman Act was also known as the 'Anti Chain Store Act.'

a)

True

b)

False

20.

Fill in the blank: Retailers with extraordinary bargaining power, such as Walmart, can use their position to extract deep discounts from suppliers that are not offered to their ______ competitors.

a)

smaller

b)

larger

c)

international

d)

wealthy

21.

Who signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law on July 21, 2010?

a)

President Barack Obama

b)

President George W. Bush

c)

President Bill Clinton

d)

President Donald Trump

22.

What is the main purpose of the Consumer Financial Protection Bureau (CFPB) created by the Dodd-Frank Act?

a)

To set and enforce clear, consistent rules for the financial marketplace and ensure financial firms are held to high standards.

b)

To regulate international trade agreements.

c)

To oversee the Federal Reserve's monetary policy decisions.

d)

To manage the national budget and allocate government spending.

23.

Which act was created to increase competition among businesses by regulating monopolies?

a)

Food and Drug Act (1906)

b)

Sherman Antitrust Act (1890)

c)

Federal Trade Commission Act (1914)

d)

Dodd-Frank Act (2010)

24.

Match the following consumer laws with their definitions:

a)

The Law that makes the companies label the ingredients and drugs on a label or medicine capsule.


.

1.

Food and Drug Act (1906)

b)

Enforces consumer protection laws that prevent fraud, deception and unfair business practices. Also prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.

2.

Federal Trade Commission Act (1914)

c)

To increase competition among businesses by regulating monopolies.

3.

Sherman Antitrust Act (1890)

25.

Fill in the blank: The purpose of the Robinson-Patman Act (1936) is to ________.

a)

protect small businesses from unfair pricing practices between manufacturers and large businesses.

b)

regulate international trade agreements.

c)

enforce environmental protection standards.

d)

establish minimum wage laws.

26.

Fill in the blank: The Fair Packaging and Labeling Act (1966) requires packages to be ________.

a)

accurately labeled and fairly represent the contents.

b)

sealed with tamper-proof technology at all times.

c)

priced lower than competing products.

d)

manufactured only in the United States.

27.

Fill in the blank: The Consumer Credit Protection Act (1968) requires ________.

a)

disclosure of credit requirements and rates to loan applicants.

b)

all loans to be interest-free.

c)

creditors to forgive all debts after five years.

d)

the government to set all interest rates.

28.

Fill in the blank: The Telemarketing and Consumer Fraud and Abuse Prevention Act (1994) was enacted to ________.

a)

prohibit deceptive telemarketing practices and regulate calls made to consumers' homes.

b)

encourage telemarketing as a primary method of business communication.

c)

eliminate all forms of telephone communication in business.

d)

support unlimited telemarketing calls without restrictions.

29.

Fill in the blank: The Dodd-Frank Wall Street Act was created to ________.

a)

regulate financial markets.

b)

promote agricultural exports.

c)

increase military spending.

d)

reduce healthcare costs.

30.

The Reform and Consumer Protection Act (2010) was created to ________ and set up the Consumer Financial Protection Bureau.

a)

protect consumers from unfair lending practices

b)

increase corporate profits for banks

c)

reduce government oversight of financial institutions

d)

eliminate all consumer credit options