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Business English Exercises
 

Consumer Protection

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 100
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consumer protection answer 1
The US Federal Trade Commission has prepared the following information to help consumers understand the antitrust laws and protect consumer sovereignty — the freedom to choose goods and services in an open marketplace at a price and quality that fit the consumer's needs.

Correct answer: (d) sovereignty

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consumer protection answer 2
A naked agreement on price among competitors — where the agreement is not reasonably related to the firms' business operations — is illegal.

Correct answer: (b) naked

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consumer protection answer 3
Price similarities also can result from normal economic conditions: for example, vigorous competition can drive prices down to a common level.

Correct answer: (d) vigorous

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consumer protection answer 4
As for the appearance of uniformly high prices, collusion may not be the only basis for the situation: prices may increase if consumer demand for a product is particularly high and the supply is limited.

Correct answer: (b) collusion

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consumer protection answer 5
An agreement to restrict production or output is illegal because reducing the supply of a product or service inevitably drives up its price.

Correct answer: (a) inevitably

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consumer protection answer 6
A group boycott — an agreement among competitors not to deal with another person or business — violates the law if it is used to force another party to pay higher prices.

Correct answer: (d) boycott

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consumer protection answer 7
Market division — agreements among competitors to divide sales territories or allocate customers — are presumed to be illegal.

Correct answer: (b) allocate

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consumer protection answer 8
Restrictions on price advertising can be illegal if they deprive consumers of important information.

Correct answer: (c) deprive

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consumer protection answer 9
A professional code of ethics may be unlawful if it unreasonably restricts the ways professionals may compete.

Correct answer: (b) code

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consumer protection answer 10
Vertical price-fixing — an agreement between a supplier and a dealer that fixes the minimum resale price of a product — is a clear-cut antitrust violation.

Correct answer: (b) clear-cut

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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