Application 6D pg. 20 - 21

Question 1

Describe the Federal Trade Commission

Answer 1

The purpose of the FTC is to protect American consumers from fraud and deceptive business practices and to maintain competition.
Also works to eliminate price fixing.
Also protects consumers from identity theft (someone stealing another’s personal and/or bank information)

Question 2

Define price fixing

Answer 2

Price fixing occurs when several businesses in the same industry collude and agree to raise prices together to increase their revenues.

Question 3

Describe the punishment of price fixing

Answer 3

Companies guilty of price fixing would be severely penalized. Companies found guilty of price fixing face heavy fines, a bad public image, and possibly even jail time for the Chief Executive Officer (CEO).

Question 4

Describe the Food and Drug Administration

Answer 4

another agency designed to protect consumers by maintaining the safety of the nation’s food supply
>also protects veterinarian and human medications, medical devices, cosmetics, and any product that emits radiation
>tests sample of food as it is being produced before sent to consumer
>inspects food preparation facilities and food transportation vehicles for safety
>goal is to stop food-borne illness before food gets to public
>have authority to order food recalls to make sure that the contaminated food is no longer available to the public
>inspects labels and nutritional information on food containers to ensure that information is accuract

Question 5

Describe the Federal Aviation Administration

Answer 5

another agency that protects the consumer by overseeing air travel safety

Question 6

Describe the Federal Deposit Insurance Corporation

Answer 6

another agency to protect the consumer by insuring money deposited in banks

Question 7

Describe the Occupational Safety and Health Administration

Answer 7

another agency to protect consumer by ensuring that all workers have a safe work environment