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The government cannot remove a product from the market simply because it is considered imminently hazardous.

A) True
B) False

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Hi-Yield, Inc. makes an herbicide with a risk to people of developing cancer from exposure. This substance must be


A) disposed of before anyone develops cancer.
B) registered before it is sold.
C) taken off the market and placed in temporary storage.
D) used only in a way that avoids exposure to people.

E) All of the above
F) C) and D)

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Selling a site where hazardous wastes were disposed of relieves the seller-and the buyer-of liability for the clean-up, as does merging with or buying a corporation that has not violated Superfund.

A) True
B) False

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There is a significant distinction between regulating the information dispensed about a product and regulating the product's actual content.

A) True
B) False

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Before being transported, hazardous waste produced by the operations of Fabrication Inc. must be properly labeled and packaged under the Resource Conservation and Recovery Act by


A) the federal Environmental Protection Agency.
B) the local Resource Conservation and Recovery Committee.
C) the state Environmental Regulatory Commission.
D) Fabrication Inc.

E) A) and D)
F) A) and C)

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Lawn Company and Mowers Inc. make yard tools. Both companies use only steel produced in the United States. Lawn's ad claims, "We use only U.S. steel, while our competitor uses inferior foreign steel!" For purposes of the application of advertising standards under the Federal Trade Commission Act, this statement is most likely


A) an obvious exaggeration.
B) puffery.
C) a false claim about a competitor's product.
D) a half-truth.

E) A) and B)
F) A) and D)

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The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer. This is a violation of


A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

E) A) and B)
F) A) and C)

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A creditor can always require the signature of a cosigner on a credit application.

A) True
B) False

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Leo's application to Metro Bank for a credit card is denied on the basis of what Leo believes is an inaccurate credit report. Leo should


A) immediately apply for a credit card with a different financial institution.
B) appeal the denial to the appropriate federal or state agency.
C) obtain his credit report and notify the reporting agency of inaccuracies.
D) file a suit against the bank, alleging a violation of federal credit laws.

E) B) and C)
F) None of the above

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Noxious Inc. makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency can


A) conduct an inspection of the maker's plant.
B) declare the substance to be unregulated and allow its production.
C) ignore the risk if the benefit outweighs the harm.
D) order the substance to be sold in an adulterated form.

E) B) and C)
F) A) and D)

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Under the Marine Protection, Research, and Sanctuaries Act (the Ocean Dumping Act) , Coastline Chemicals, Inc., may dump its chemical waste into the ocean


A) after obtaining a permit.
B) before obtaining a permit.
C) without a permit.
D) not at all.

E) A) and B)
F) None of the above

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Ultrahazard Corporation transports radioactive materials. Vince, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vince's suit against Ultrahazard to recover for the injury is


A) an environmental impact statement.
B) a nuisance.
C) a toxic tort.
D) a hazardous substance response.

E) A) and C)
F) A) and D)

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A false statement or unjustified claim about a competitor's products can result in liability for deceptive advertising.

A) True
B) False

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The primary responsibility for preventing and controlling air pollution rests with the federal government.

A) True
B) False

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Because point-source water pollution control is based on a permit system, the permits are the key to enforcement.

A) True
B) False

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Blue Water Power Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Blue Power must install certain equipment


A) with all deliberate speed after beginning operations.
B) before beginning operations.
C) only on a voluntary basis.
D) only if a regulatory agency challenges the discharge.

E) A) and C)
F) B) and D)

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An obviously exaggerated advertising claim will be considered deceptive even if a reasonable consumer would not believe it to be true.

A) True
B) False

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Mary receives an unsolicited credit card in the mail and tosses it on her desk. Without Mary's permission, her roommate Nan uses the card to buy a new laptop for $1,800. Mary is liable for


A) $1,800.
B) $500.
C) $50.
D) none of the choices.

E) All of the above
F) A) and C)

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ChemCo Inc. makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is


A) the Consumer Product Safety Commission.
B) none of the choices.
C) the Federal Trade Commission.
D) the Food and Drug Administration.

E) A) and C)
F) B) and C)

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Without a permit, Timberline Plywood Company discharges its untreated wastewater into Urban City's storm drainage pipes, which empty into Valley Creek. Under the Clean Water Act, this discharge is most likely


A) a violation.
B) not a violation because the company does not have a permit.
C) not a violation because water is not a stationary source.
D) not a violation because a storm drainage pipe is not a point source.

E) A) and B)
F) A) and D)

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