Responsible for ensuring free trade among businesses

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Reference no: EM132210385

1. The federal agency that is responsible for ensuring free trade among businesses and which investigates false, deceptive, and misleading claims in advertising and other marketing material is the

Consumer Product Safety Commission (CPSC)

Bureau of Alcohol, Tobacco, and Firearms (BATF)

Federal Trade Commission (FTC)

Federal Communications Commission (FCC)

2. Sandra believes that one reason she owes over $12,000 on her credit cards is all of the advertising she sees on television for various products. This is an example of the ethical concern that marketing

increases the prices of goods and services

capitalizes on human weaknesses

causes people to buy more than they can afford

shapes inappropriate cultural values

3. In an investigation of misleading or deceptive advertising, if the FTC feels a violation has occurred, the first step in resolving the issue will be to issue a consent order.

False

True

4. The federal agency that regulates and oversees the manufacturing, distribution, and labeling of food and drugs is the

Federal Communications Commission (FCC)

U.S. Post Service (USPS)

Bureau of Alcohol, Tobacco, and Firearms (BATF)

Food and Drug Administration (FDA)

5. The legislation that prohibits charging different prices to different buyers of the same merchandise and requires sellers that offer a service to one buyer to make the same offer of service available to all buyers is the

Clayton Act

Federal Trade Commission Act

Robinson-Patman Act

Lanham Act

6. In bait and switch legal cases, the most difficult test of a bait and switch tactic to prove is that

the retailer intentionally did not stock enough of a sale item with the intent of running out, thus causing customers to switch to a higher-priced model

the advertisement used deceptive and misleading information

salespeople used undue pressure to influence customers to purchase a higher-priced model

the salespeople made false claims about the advertised model

Reference no: EM132210385

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