LAW 531 Week 5 Quiz/Knowledge Check 100% Correct (Latest Updated Jan, 2015)

1. Identify an accurate statement about the Food, Drug, and Cosmetic Act (FDCA).

2. Which product is exempt from Food and Drug Administration (FDA) regulation of cosmetics?

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?

4. What is an environmental impact statement most likely to contain?

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.

6. What is a true statement in the context of environmental laws?

7. What is true of the per se rule according to Section 1 of the Sherman Act?

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?

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?

10. When is a court likely to apply the piercing the corporate veil doctrine?

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

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?

13.What step can food manufacturers and processors take to avoid legal risks associated with the Nutrition Labeling and Education Act (NLEA)?

14. According to Section 2 of the Clayton Act, in which of these scenarios is a seller most likely to face a legal risk?

15. What will help chemical industries avoid legal risks in the context of environmental laws?