ETH/321 Week 4 Chapter Questions Student ______________________________ Chapter 15 1. Under the regulation of interstate commerce: ___A. the states have the exclusive power to regulate commerce that passes across their lines. ___B. activities affecting interstate commerce do not come under the power of the federal government. ___C. regulation on any activity is appropriate if it aids interstate commerce. ___D. intrastate activities affecting interstate commerce can be regulated only by the state governments. ___E. the Congress cannot regulate a local activity. 2. By requiring state legislation and regulation to protect the public's health, safety, morals, and general welfare, _____ give(s) state governments expansive power to regulate business activities. ___A. eminent domain ___B. Presidential authority ___C. commerce clause ___D. police powers ___E. federal authority 3. Administering laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs is a function of the _____. ___A. FCC ___B. FTC ___C. FRB ___D. FDA ___E. FAA 4. Business often fails to regulate itself, and the lack of self-regulation is contrary to the public interest. To counterbalance, administrative agencies exist to: ___A. refer the problem or area to experts for solution and management. ___B. protect the public, especially from the business community. ___C. replace competition with regulation. ___D. develop detailed rules and regulations to carry out the legislative policy. ___E. provide services, having been arisen out of necessity. 5. Which of the following functions allows an agency to gather and compile information concerning the organization and business practices of any corporation or industry engaged in commerce to determine whether there has been a violation of any law? ___A. adjudicating ___B. advising ___C. rule making ___D. investigating ___E. determining Chapter 16 6. For a seller's pricing to be considered predatory conduct, there must be proof that: ___A. the seller was selling the product at a price below the cost price. ___B. the prices were intended to drive competitors out of business followed by the wrongdoer recouping these initial losses. ___C. the prices were significantly lower than those of all competitors within the same product group. ___D. the buyers were unwilling to buy the product at the seller's prices, and only bought the product from a lack of choice. ___E. the buyer had other options in the same product line available in different price ranges. 7. The _____ holds that contracts or conspiracies in restraint of trade are illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act. ___A. rule of per se illegality ___B. Parker v. Brown doctrine ___C. rule of reason ___D. duty-to-deal doctrine ___E. Ker-Frisbie doctrine 8. Attempt ...