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Law 531 Week 5 Knowledge Check

918 words - 4 pages

1. Identify an accurate statement about the Food, Drug, and Cosmetic Act (FDCA).
It prohibits the disclosure of nutrition information on food labels.
It only covers the quality of actual products and does not encompass packaging.
It prohibits the shipment, distribution, or sale of adulterated food.
It does not place liability on manufacturers or distributors for deceptive labelling.

2. Which product is exempt from Food and Drug Administration (FDA) regulation of cosmetics?
Household soap
Facial cleanser
Lip color
Eye shadow

3. Glitter is a clothing store advertising a week-long sale featuring low-price summer merchandise. Amy visits the store on the second day of ...view middle of the document...

What is a true statement in the context of environmental laws?
The Clean Air Act encompasses only stationary sources of pollution and not automobiles.
States are responsible for the enforcement of air quality standards even though the Environmental Protection Agency (EPA) sets the standards.
The primary task of enforcing the provisions of the Clean Water Act rests with the federal government and not state governments.
The federal Clean Water Act does not encompass the maintenance of wetlands.

7. What is true of the per se rule according to Section 1 of the Sherman Act?
It holds that even reasonable restraints violate Section 1 of the Sherman Act.
It applies to restraints that are intrinsically anticompetitive.
It applies to cases where restraints have both pro- and anticompetitive effects.
It applies to cases where justifications and evidence can be considered to evaluate restraints.

8. Envy, Bling, and Pattern are three established and well-known clothing manufacturers and sellers. They decide not to sell their clothes to Embellish, a clothing retail store. Which form of horizontal restraint does this scenario best exemplify?
Price fixing
Division of markets
Group boycotts
Conscious parallelisms

9. Some forms of business and activities like labor unions and agricultural cooperatives are expressly exempt from the reach of antitrust laws in the rules enacted by Congress. What type of exemptions are these?
Statutory exemptions
Implied exemptions
State action exemptions
Organization exemptions

10. When is a court likely to apply the piercing the corporate veil doctrine?
When a corporation is not generating adequate profits because of a drop in sales
When a shareholder has been found to be misusing corporate assets
When shareholders are not adequately participating in the management of the corporation
When an employee has violated corporation rules

11. What statement is true in the context of the board of directors of a...

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