CBJ Industry Regulations 2 — Questions and Answers
Question 1: Which federal agency enforces the Federal Trade Commission Act as it relates to jewelry advertising and misrepresentation of gemstone quality?
- Consumer Product Safety Commission
- Federal Trade Commission (Correct answer)
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Occupational Safety and Health Administration
Correct answer: Federal Trade Commission
The FTC enforces truth-in-advertising rules for jewelry, including proper disclosure of treatments, synthetics, and metal content.
Question 2: Under FTC guidelines, what minimum gold content must a piece contain to be stamped '14K Gold Filled'?
- 1/10 of total metal weight
- 1/20 of total metal weight (Correct answer)
- 1/5 of total metal weight
- 1/40 of total metal weight
Correct answer: 1/20 of total metal weight
Gold-filled items must have a gold layer that is at least 1/20 of the total metal weight by the FTC standard.
Question 3: The Dodd-Frank Act Section 1502 requires US-listed companies to disclose use of conflict minerals. Which of the following is NOT one of the four covered minerals?
- Tin
- Tungsten
- Cobalt (Correct answer)
- Tantalum
Correct answer: Cobalt
Cobalt is not one of the four 3TG conflict minerals; the covered minerals are tin, tungsten, tantalum, and gold.
Question 4: OSHA's Hazard Communication Standard (HazCom) requires jewelers to maintain Safety Data Sheets for hazardous chemicals. What is the minimum retention period for an SDS once a product is no longer in use?
- 3 years
- 5 years
- 10 years
- 30 years (Correct answer)
Correct answer: 30 years
OSHA requires that SDS records be retained for 30 years after the product is no longer in use to protect workers from long-latency diseases.
Question 5: When a jeweler purchases gold from the public, which regulation primarily governs record-keeping to help combat theft and fencing of stolen property?
- National Stolen Property Act
- State secondhand dealer or precious metals dealer laws (Correct answer)
- Bank Secrecy Act exclusively
- Sarbanes-Oxley Act
Correct answer: State secondhand dealer or precious metals dealer laws
State-level secondhand dealer and precious metals dealer statutes require jewelers to record seller identification and hold purchased items for a mandated period before resale.
Question 6: Under the Bank Secrecy Act, a jewelry retailer must file a Currency Transaction Report (CTR) when a customer pays with cash in what threshold amount?
- $5,000
- $7,500
- $10,000 (Correct answer)
- $25,000
Correct answer: $10,000
A CTR must be filed for any single cash transaction or series of related cash transactions exceeding $10,000.
Question 7: Which marking is legally required on sterling silver articles sold in the United States under the National Stamping Act?
- 925 or Sterling, plus maker's trademark (Correct answer)
- 925 alone is sufficient without a trademark
- Sterling plus country of origin only
- No federal marking is required; only FTC guidelines apply
Correct answer: 925 or Sterling, plus maker's trademark
The National Stamping Act requires that a quality mark on silver articles be accompanied by the manufacturer's or dealer's registered trademark to ensure accountability.
CBJ Industry Regulations 2
Which federal agency enforces the Federal Trade Commission Act as it relates to jewelry advertising and misrepresentation of gemstone quality?