Praxis II Business Education Study Guide

Federal Trade Commission Act CORRECT ANSWER 1914 - , established the FTC that would investigate and prevent unfair business practices - encourage competition Sherman Antitrust Act CORRECT ANSWER 1890, A law that made it illegal to create monopolies or trusts that restrained free trade Clayton Antitrust Act CORRECT ANSWER This act was enacted in 1914, and it reinforces and broadens the provisions of the Sherman Act. Among its prohibitions are certain exclusive contracts, predatory price cutting to eliminate competitors, and inter-related boards of directors and stock holdings between same-industry corporations Wheeler-Lea Act CORRECT ANSWER 1938, Made unfair and deceptive advertising practices illegal and put FTC over food and drug promotion Robinson Patman Act CORRECT ANSWER Passed in 1936, it aims to prevent businesses from selling the same product to different people at different prices (price discrimination); this act strengthened the Clayton Act Food and Drug Administration (FDA) CORRECT ANSWER Federal agency formed in 1913 that approves all food, drugs, and cosmetics for sale in the US. Consumer Product Safety Commission (CPSC) CORRECT ANSWER 1972, oversees the safety of products such as toys, electronics, and household furniture