When the FDA prohibits a drug from being marketed, this is an example of what?

Study for the Business Law Test. Use flashcards and multiple choice questions, each equipped with hints and explanations. Prepare for your exam with confidence!

When the FDA prohibits a drug from being marketed, this action is an example of an agency regulation. The FDA, which stands for the Food and Drug Administration, is a federal agency responsible for ensuring the safety and efficacy of food, drugs, and medical devices. Its authority to regulate drugs comes from various laws enacted by Congress, such as the Federal Food, Drug, and Cosmetic Act.

When the FDA determines that a drug is unsafe, ineffective, or otherwise not suitable for market, it issues regulations to prohibit its sale. This regulatory power is vital for protecting public health, as it helps prevent potentially harmful products from entering the market. The FDA's decisions are based on scientific evidence and can involve complex considerations regarding a drug's safety profile, manufacturing processes, labeling, and consumer risks.

In contrast, the other options refer to different processes or actions within the framework of law and governance. A court ruling would involve a legal decision made by a judge following a lawsuit, a legislative act pertains to laws passed by Congress, and a public health initiative usually refers to broader programs aimed at improving community health rather than specific regulatory measures concerning drug approval.

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