Prior to the Passing of the Federal Trade Practices Act

question 50

Multiple Choice

Prior to the passing of the federal Trade Practices Act 1974,consumers were not adequately protected by the Sale of Goods Acts and contract law because:

• A)contracts for services did not receive statutory protection.
• B)it was difficult to prove that a misrepresentation or unconscionable conduct had occurred.
• C)remedies for breaches were limited.
• D)of all of the above problems.
• E)of A and B.

---

Definitions:

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semifixed costs.

Variable Components

Variable components are costs or elements of a product, service, or project that change in proportion with the level of activity or volume.

Fixed Components

Parts of a budget or costs that remain constant regardless of the level of production or business activity.

Direct Materials Cost

The cost of raw materials that are directly traceable to the manufacturing of a product.