LES 305 Clark /Contracts / Business Organizations & Agency
Law / Business Law Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
• LES305 — Government regulation of business (antitrust,
securities, consumer protection)
I. Antitrust Law (Sherman Act, Clayton Act, FTC Act)
1. The Sherman Antitrust Act primarily prohibits:
A) Misleading advertising
B) Contracts, combinations, or conspiracies in restraint of trade
C) Pollution of waterways
D) Insider trading
Answer: B
2. Price-fixing agreements between competitors are generally considered:
A) Per se illegal under antitrust law
B) Legal if prices remain fair
C) Allowed if competitors disclose the agreement
D) Only regulated by state law
Answer: A
3. The Clayton Act specifically targets:
A) Monopolistic mergers and acquisitions
B) Interstate commerce regulation
C) Securities fraud
D) Employment discrimination
Answer: A
,4. Under the Sherman Act, monopolization requires proof of:
A) A monopoly plus intent to maintain or acquire it unfairly
B) Large market share alone
C) Any successful business strategy
D) Selling goods internationally
Answer: A
5. Exclusive dealing contracts may violate antitrust law if they:
A) Substantially lessen competition
B) Increase market efficiency
C) Are between small businesses only
D) Involve goods priced under $500
Answer: A
6. The FTC Act prohibits unfair methods of competition and:
A) Environmental violations
B) Unfair or deceptive acts in commerce
C) Insider trading
D) Bankruptcy filings
Answer: B
7. A “tying arrangement” in antitrust law involves:
A) Bundling one product with another as a sales condition
B) Collusion between labor unions
C) Two firms agreeing to divide geographic markets
D) False advertising practices
Answer: A
8. Which agency primarily enforces the Sherman Act?
A) SEC
B) FTC
C) DOJ Antitrust Division
D) EPA
Answer: C
,9. Which antitrust law established the Federal Trade Commission?
A) Sherman Act
B) Clayton Act
C) FTC Act
D) UCC Article 2
Answer: C
10. Which type of antitrust violation is judged under the “rule of reason”?
A) Horizontal price-fixing
B) Market division agreements
C) Vertical restraints like resale price maintenance
D) Bid rigging
Answer: C
II. Consumer Protection Laws
1. The Federal Trade Commission (FTC) is responsible for enforcing laws against:
A) Misleading advertising
B) Unsafe food products
C) Air pollution
D) Securities fraud
Answer: A
2. Which act requires truth in consumer credit terms?
A) Truth in Lending Act (TILA)
B) Sherman Act
C) Clean Air Act
D) Clayton Act
Answer: A
3. The Fair Debt Collection Practices Act (FDCPA) prohibits:
A) Harassing or abusive debt collection practices
B) Charging interest on loans
C) Extending consumer credit
, D) Selling securities without registration
Answer: A
4. The Consumer Product Safety Commission (CPSC) oversees:
A) Workplace safety standards
B) Safety of consumer goods
C) Securities markets
D) Environmental emissions
Answer: B
5. Which law requires credit reporting agencies to ensure accuracy and fairness?
A) FCRA (Fair Credit Reporting Act)
B) TILA
C) FDCPA
D) OSHA
Answer: A
6. A company advertising a product as “free” when shipping charges apply may
violate:
A) Sherman Act
B) FTC deceptive advertising rules
C) Clean Water Act
D) UCC Article 2
Answer: B
7. Which federal law established guidelines for nutritional labeling?
A) Fair Packaging and Labeling Act
B) Clean Air Act
C) Sherman Act
D) ADEA
Answer: A
8. The Magnuson-Moss Warranty Act governs:
A) Employment discrimination
B) Disclosure of written consumer product warranties
Law / Business Law Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
• LES305 — Government regulation of business (antitrust,
securities, consumer protection)
I. Antitrust Law (Sherman Act, Clayton Act, FTC Act)
1. The Sherman Antitrust Act primarily prohibits:
A) Misleading advertising
B) Contracts, combinations, or conspiracies in restraint of trade
C) Pollution of waterways
D) Insider trading
Answer: B
2. Price-fixing agreements between competitors are generally considered:
A) Per se illegal under antitrust law
B) Legal if prices remain fair
C) Allowed if competitors disclose the agreement
D) Only regulated by state law
Answer: A
3. The Clayton Act specifically targets:
A) Monopolistic mergers and acquisitions
B) Interstate commerce regulation
C) Securities fraud
D) Employment discrimination
Answer: A
,4. Under the Sherman Act, monopolization requires proof of:
A) A monopoly plus intent to maintain or acquire it unfairly
B) Large market share alone
C) Any successful business strategy
D) Selling goods internationally
Answer: A
5. Exclusive dealing contracts may violate antitrust law if they:
A) Substantially lessen competition
B) Increase market efficiency
C) Are between small businesses only
D) Involve goods priced under $500
Answer: A
6. The FTC Act prohibits unfair methods of competition and:
A) Environmental violations
B) Unfair or deceptive acts in commerce
C) Insider trading
D) Bankruptcy filings
Answer: B
7. A “tying arrangement” in antitrust law involves:
A) Bundling one product with another as a sales condition
B) Collusion between labor unions
C) Two firms agreeing to divide geographic markets
D) False advertising practices
Answer: A
8. Which agency primarily enforces the Sherman Act?
A) SEC
B) FTC
C) DOJ Antitrust Division
D) EPA
Answer: C
,9. Which antitrust law established the Federal Trade Commission?
A) Sherman Act
B) Clayton Act
C) FTC Act
D) UCC Article 2
Answer: C
10. Which type of antitrust violation is judged under the “rule of reason”?
A) Horizontal price-fixing
B) Market division agreements
C) Vertical restraints like resale price maintenance
D) Bid rigging
Answer: C
II. Consumer Protection Laws
1. The Federal Trade Commission (FTC) is responsible for enforcing laws against:
A) Misleading advertising
B) Unsafe food products
C) Air pollution
D) Securities fraud
Answer: A
2. Which act requires truth in consumer credit terms?
A) Truth in Lending Act (TILA)
B) Sherman Act
C) Clean Air Act
D) Clayton Act
Answer: A
3. The Fair Debt Collection Practices Act (FDCPA) prohibits:
A) Harassing or abusive debt collection practices
B) Charging interest on loans
C) Extending consumer credit
, D) Selling securities without registration
Answer: A
4. The Consumer Product Safety Commission (CPSC) oversees:
A) Workplace safety standards
B) Safety of consumer goods
C) Securities markets
D) Environmental emissions
Answer: B
5. Which law requires credit reporting agencies to ensure accuracy and fairness?
A) FCRA (Fair Credit Reporting Act)
B) TILA
C) FDCPA
D) OSHA
Answer: A
6. A company advertising a product as “free” when shipping charges apply may
violate:
A) Sherman Act
B) FTC deceptive advertising rules
C) Clean Water Act
D) UCC Article 2
Answer: B
7. Which federal law established guidelines for nutritional labeling?
A) Fair Packaging and Labeling Act
B) Clean Air Act
C) Sherman Act
D) ADEA
Answer: A
8. The Magnuson-Moss Warranty Act governs:
A) Employment discrimination
B) Disclosure of written consumer product warranties
