BUSINESS LAW FINAL EXAM 2025 #2 ||
QUESTIONS AND ANSWERS (Graded
A+)
The Food and Drug Administration: (A) prohibits the sale of any drug without a
prescription (B) prohibits the sale of drugs without FDA approval (C) prohibits the sale of
prescription drugs to anyone under age 19 without parental consent (D) prohibits the
sale of any drug without a prescription and prohibits the sale of drugs without FDA
approval
(E) prohibits the sale of any drug without a prescription and prohibits the sale of drugs
without FDA approval and prohibits the sale of prescription drugs to anyone under age
19 without parental consent - ANSWER - (B) prohibits the sale of drugs without FDA
approval
The government agency charged with monitoring food and drug safety is the: (A) Food
and Drug Administration (B) Food Safety Administration (C) Food and Drug Regulation
Agency (D) Food and Dangerous Drug Administration (E) Consumable Products
Administration - ANSWER - (A) Food and Drug Administration
The Food and Drug Administration: (A) inspects drug manufacturing facilities (B)
prohibits the sale of drugs without FDA approval (C) prohibits the sale of prescription
drugs to anyone under age 19 without parental consent (D) inspects drug manufacturing
facilities and prohibits the sale of drugs without FDA approval (E) inspects drug
manufacturing facilities and prohibits the sale of drugs without FDA approval and
prohibits the sale of prescription drugs to anyone under age 19 without parental consent
- ANSWER - (D) inspects drug manufacturing facilities and prohibits the sale of drugs
without FDA approval
The Food and Drug Administration does not have which of the following powers: (A) to
restrict false advertising of drugs (B) to inspect factories where drugs are manufactured
(C) to set the levels of additives that may be used in food (D) to seize drugs that have
been approved to be on the market (E) all of the other choices are FDA powers -
ANSWER - (E) all of the other choices are FDA powers
The Food and Drug Administration does not have which of the following powers: (A) to
restrict false advertising of drugs (B) to inspect factories where drugs are manufactured
(C) to prosecute physicians who violate the learned intermediary rule (D) to seize drugs
that have been approved to be on the market (E) all of the other choices are FDA
powers - ANSWER - (C) to prosecute physicians who violate the learned intermediary
rule
The Food and Drug Administration does not have which of the following powers:
, (A) to restrict false advertising of drugs (B) to inspect plants where drugs are
manufactured (C) to decide which drug company will develop which kinds of new drugs
(D) to seize drugs that have been approved to be on the market (E) all of the other
choices are FDA powers - ANSWER - (C) to decide which drug company will develop
which kinds of new drugs
The Federal Trade Commission was established in: (A) 1909 (B) 1915 (C) 1920 (D)
1937 (E) 1950 - ANSWER - (B) 1915
The 1962 Kefauver Amendment to the Food and Drug Act gave the FDA authority for
the first time to: (A) approve drugs based on their proven effectiveness (B) license the
use of drugs in physician offices (C) determine which drugs are to be prescription drugs
(D) approve drugs based on their safety
(E) all of the other choices - ANSWER - (A) approve drugs based on their proven
effectiveness
The ____ to the Food and Drug Act gave the FDA authority for the first time to approve
drugs based on their proven effectiveness. (A) Kefauver Amendment of 1962 (B) Food,
Drug and Cosmetics Amendment of 1964 (C) Effectiveness Amendment of 1962 (D)
Madison Amendment of 1962 (E) Drug Efficacy Amendment of 1964 - ANSWER - (A)
Kefauver Amendment of 1962
In Leegin Creative Leather Products v. PSKS, a maker of leather goods would not sell
to stores that would not follow its pricing policy (resale price maintenance). The
Supreme Court used the case to overturn the rule established a century before in: (A)
State Oil Co. v. Khan (B) Business Electronics v. Sharp Electronics (C) Dr. Miles
Medical Co. v. John D. Park & Sons (D) Standard Oil v. U.S. (E) none of the other
choices - ANSWER - (C) Dr. Miles Medical Co. v. John D. Park & Sons
In Leegin Creative Leather Products v. PSKS, a maker of leather goods would not sell
to stores that would not follow its pricing policy (resale price maintenance). The
Supreme Court held that: (A) all vertical price fixing subject to a per se rule of illegality
(B) vertical price restraints would be viewed under a rule of reason (C) vertical price
restraints injure the ability of sellers to compete so are generally illegal (D) vertical price
fixing of minimum prices is subject to a per se rule of illegality (E) none of the other
choices - ANSWER - (B) vertical price restraints would be viewed under a rule of reason
The general understanding of Leegin Creative Leather Products v. PSKS, where a
maker of leather goods would not sell to stores that would not follow its pricing policy
(resale price maintenance), is that: (A) resale price maintenance continues to be per se
illegal (B) strong territorial controls are generally illegal (C) manufacturers have wide
control in selecting dealers to distribute their products (D) manufacturers must have a
strong justification for not selling to distributors who request their products (E) none of
the other choices - ANSWER - (C) manufacturers have wide control in selecting dealers
to distribute their products
QUESTIONS AND ANSWERS (Graded
A+)
The Food and Drug Administration: (A) prohibits the sale of any drug without a
prescription (B) prohibits the sale of drugs without FDA approval (C) prohibits the sale of
prescription drugs to anyone under age 19 without parental consent (D) prohibits the
sale of any drug without a prescription and prohibits the sale of drugs without FDA
approval
(E) prohibits the sale of any drug without a prescription and prohibits the sale of drugs
without FDA approval and prohibits the sale of prescription drugs to anyone under age
19 without parental consent - ANSWER - (B) prohibits the sale of drugs without FDA
approval
The government agency charged with monitoring food and drug safety is the: (A) Food
and Drug Administration (B) Food Safety Administration (C) Food and Drug Regulation
Agency (D) Food and Dangerous Drug Administration (E) Consumable Products
Administration - ANSWER - (A) Food and Drug Administration
The Food and Drug Administration: (A) inspects drug manufacturing facilities (B)
prohibits the sale of drugs without FDA approval (C) prohibits the sale of prescription
drugs to anyone under age 19 without parental consent (D) inspects drug manufacturing
facilities and prohibits the sale of drugs without FDA approval (E) inspects drug
manufacturing facilities and prohibits the sale of drugs without FDA approval and
prohibits the sale of prescription drugs to anyone under age 19 without parental consent
- ANSWER - (D) inspects drug manufacturing facilities and prohibits the sale of drugs
without FDA approval
The Food and Drug Administration does not have which of the following powers: (A) to
restrict false advertising of drugs (B) to inspect factories where drugs are manufactured
(C) to set the levels of additives that may be used in food (D) to seize drugs that have
been approved to be on the market (E) all of the other choices are FDA powers -
ANSWER - (E) all of the other choices are FDA powers
The Food and Drug Administration does not have which of the following powers: (A) to
restrict false advertising of drugs (B) to inspect factories where drugs are manufactured
(C) to prosecute physicians who violate the learned intermediary rule (D) to seize drugs
that have been approved to be on the market (E) all of the other choices are FDA
powers - ANSWER - (C) to prosecute physicians who violate the learned intermediary
rule
The Food and Drug Administration does not have which of the following powers:
, (A) to restrict false advertising of drugs (B) to inspect plants where drugs are
manufactured (C) to decide which drug company will develop which kinds of new drugs
(D) to seize drugs that have been approved to be on the market (E) all of the other
choices are FDA powers - ANSWER - (C) to decide which drug company will develop
which kinds of new drugs
The Federal Trade Commission was established in: (A) 1909 (B) 1915 (C) 1920 (D)
1937 (E) 1950 - ANSWER - (B) 1915
The 1962 Kefauver Amendment to the Food and Drug Act gave the FDA authority for
the first time to: (A) approve drugs based on their proven effectiveness (B) license the
use of drugs in physician offices (C) determine which drugs are to be prescription drugs
(D) approve drugs based on their safety
(E) all of the other choices - ANSWER - (A) approve drugs based on their proven
effectiveness
The ____ to the Food and Drug Act gave the FDA authority for the first time to approve
drugs based on their proven effectiveness. (A) Kefauver Amendment of 1962 (B) Food,
Drug and Cosmetics Amendment of 1964 (C) Effectiveness Amendment of 1962 (D)
Madison Amendment of 1962 (E) Drug Efficacy Amendment of 1964 - ANSWER - (A)
Kefauver Amendment of 1962
In Leegin Creative Leather Products v. PSKS, a maker of leather goods would not sell
to stores that would not follow its pricing policy (resale price maintenance). The
Supreme Court used the case to overturn the rule established a century before in: (A)
State Oil Co. v. Khan (B) Business Electronics v. Sharp Electronics (C) Dr. Miles
Medical Co. v. John D. Park & Sons (D) Standard Oil v. U.S. (E) none of the other
choices - ANSWER - (C) Dr. Miles Medical Co. v. John D. Park & Sons
In Leegin Creative Leather Products v. PSKS, a maker of leather goods would not sell
to stores that would not follow its pricing policy (resale price maintenance). The
Supreme Court held that: (A) all vertical price fixing subject to a per se rule of illegality
(B) vertical price restraints would be viewed under a rule of reason (C) vertical price
restraints injure the ability of sellers to compete so are generally illegal (D) vertical price
fixing of minimum prices is subject to a per se rule of illegality (E) none of the other
choices - ANSWER - (B) vertical price restraints would be viewed under a rule of reason
The general understanding of Leegin Creative Leather Products v. PSKS, where a
maker of leather goods would not sell to stores that would not follow its pricing policy
(resale price maintenance), is that: (A) resale price maintenance continues to be per se
illegal (B) strong territorial controls are generally illegal (C) manufacturers have wide
control in selecting dealers to distribute their products (D) manufacturers must have a
strong justification for not selling to distributors who request their products (E) none of
the other choices - ANSWER - (C) manufacturers have wide control in selecting dealers
to distribute their products
