LAW 531 Week 5 Knowledge Check UOP Tutorial

LAW 531 Week 5 Knowledge Check
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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
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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 the sale to buy
discounted clothing. However, the store has very few of the low-price clothes
remaining. When Amy inquires about the sale, she is, instead, directed to a
section of very expensive clothing that is not on sale. Feeling pressurized by the
salesperson to buy some of the expensive clothes, Amy ends up spending a lot
of money at the store. What type of deceptive business practice is best
illustrated in the scenario?
Credit and debt
Trade libel
Door-to-door sales
Bait and switch
4. What is an environmental impact statement most likely to contain?
Guidelines for maintaining environmental standards for state governments
A cost-benefit analysis of a proposed federal action that might affect the
environment
Annual environmental reports provided by state governments

Conservation proposals made by environmental experts outside the government
5. Identify the federal act that was enacted to regulate the disposal of new
hazardous wastes and empowers the Environmental Protection Agency (EPA) to
regulate facilities that generate, treat, store, transport, and dispose hazardous
wastes.
Resource Conservation and Recovery Act (RCRA)
Toxic Substances Control Act
National Environmental Policy Act (NEPA)
Nuclear Waste Policy Act
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6. 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
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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
corporation?

All members of the board should be officers of the corporation.
All members of the board should have the same set of specific qualifications.
Officers of other corporations can be elected as directors of the board.
Directors of the board should be residents of the state in which the corporation
was incorporated.
12. Riya is a corporate officer as well as a senior academic author at Derive Inc.,
a content management company. The company develops question banks and
learning material for students. Riya, without permission from the company,
starts her own content management company. Derive then recovers damages
and profits from Riya. Which act of disloyalty does this scenario best exemplify
in the context of fiduciary duties?
Making a secret profit
Usurping a corporate opportunity
Self-dealing
Competing with the corporation
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13.What step can food manufacturers and processors take to avoid legal risks
associated with the Nutrition Labeling and Education Act (NLEA)?
Exclude dietary information on packaging
Provide information about all the nutrients on packaging
Provide only point-of-purchase nutrition information
Exclude information about serving size on packaging
14. According to Section 2 of the Clayton Act, in which of these scenarios is a
seller most likely to face a legal risk?
Jeremy, a seller, uses price discrimination to meet a competitor's price.
Alex, a seller, sells similar quality products to two customers at different prices
around the same time.

Marcos, a seller, increases product prices because of increased costs of
production and packaging.
Chang, a seller, offers a service to a particular customer for a reduced price.
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15. What will help chemical industries avoid legal risks in the context of
environmental laws?
Using special labeling for toxic substances
Avoiding testing of new chemicals
Meeting only the standards that are economically feasible
Adopting only technologically feasible disposal standards
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