7. A trade union, or labor union, is an organized group of workers who come together to lobby employers
about conditions affecting their work.
9. b
11. The Civil Rights Act provides broad provisions pertaining to citizens’ civil rights. Title VII of the Civil Rights
Act deals with discrimination in employment. It bans employers from discriminating against employees in their
hiring, firing, and promotion practices on the basis of sex, national origin, color, religion, or race. All employers
who are engaged in commercial activity and who employ 15 or more employees for 20 consecutive weeks in a
year are covered by the Act.
13. c
15. a
Chapter 10
1. Administrative law is also referred to as regulatory and public law. It is the law that is related to
administrative agencies. Administrative agencies are established by statutes and governed by rules,
regulations and orders, court decisions, judicial orders, and decisions.
3. c
5. The FDA was created to protect the public’s health. The agency’s responsibilities are very broad. The agency
fulfills its role by ensuring the safety and effectiveness of drugs consumed by people and animals, biological
products, medical devices, food, and cosmetics.
7. d
9. c
Chapter 11
1. b
3. Naked restraint occurs as contracts promote a general restraint of competition. If the restraint was created
with a goal of long-term impact without boundaries, it was considered to be a naked restraint. Ancillary
restraint occurs as the restriction is limited in time and geography. With ancillary restraint, the restraint would
be short-term and limited in scope. The courts tended to frown upon naked restraint, but were less consistent
with ancillary restraint.
5. The original purpose of antitrust legislation, i.e., to foster competition that results in lower prices, more
products, and more equal distribution of wealth between producers, remains relevant today.
7. b
9. c
11. c
13. a
15. The FTC did not formally have a consumer protection mission until the passage of the Wheeler-Lea Act in
1938. This act gave the FTC the power to combat false advertising for any foods, drugs, medical devices, or
cosmetics. In addition to the Wheeler-Lea Act, subsequent amendments to the FTC Act, as well as judicial
respect toward the agency, broadened the power and jurisdiction of the FTC.
Chapter 12
1. The term “unfair trade practice” describes the use of deceptive, fraudulent, or unethical methods to gain
business advantage or to cause injury to a consumer. Unfair trade practices are considered unlawful under the
Consumer Protection Act. The purpose of the law is to ensure that consumers have the opportunity to make
informed, rational decisions about the goods and services they purchase.
3. Bait and switch is a form of false advertising whereby the company advertises a product or service and then
sells another item in its place.
5. c
Chapter 13
1. International law relates to the policies and procedures that govern relationships among nations.
3. The European Union (EU) is a regional international organization that includes many countries in Europe. It
was established to create peace across the region and promote economic, social, and cultural development.
5. a
7. The Principle of Comity states that nations will defer to the laws and decrees of other nations when those
laws are consistent with their own, essentially upholding reciprocity between nations with similar laws.
9. b
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Answer Key
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