Cross 9e TBB Ch24
Chapter 24
Consumer Protection
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. A sanction known as counteradvertising requires a company to advertise anew to inform the public about earlier misinformation.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Advertising that contains an endorsement by a celebrity will not be deemed deceptive.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. Deceptive advertising does not occur in the online environment.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. Puffery constitutes deceptive advertising.
ANSWER: F PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
7. The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. Labels on fresh meats are not required to indicate where the food originated.
ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
9. Restaurants must post guidelines on the number of calories that an average person requires daily.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
10. The Federal Reserve Board of Governors has issued a regulation that governs credit
Consumer Protection
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. State consumer protection agencies are charged by Congress with the broadly stated goal of preventing unfair and deceptive trade practices.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. Advertising that appears to be based on factual evidence will not be deemed deceptive even if it is not reasonably supported by evidence.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. A sanction known as counteradvertising requires a company to advertise anew to inform the public about earlier misinformation.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Advertising that contains an endorsement by a celebrity will not be deemed deceptive.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. Deceptive advertising does not occur in the online environment.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. Puffery constitutes deceptive advertising.
ANSWER: F PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
7. The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. Labels on fresh meats are not required to indicate where the food originated.
ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
9. Restaurants must post guidelines on the number of calories that an average person requires daily.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
10. The Federal Reserve Board of Governors has issued a regulation that governs credit