The False Claims Act is a federal law that imposes liability on individuals and companies who defraud governmental programs.

• A. A tax regulation
• B. A regulation on medical licensing
• C. A federal law that imposes liability on individuals and companies who defraud governmental programs
• D. A policy prohibiting price fixing

Answer: (C)

The main idea tested is identifying what the False Claims Act really is: a federal civil law that creates liability for individuals or companies that knowingly submit or cause false claims to be paid by government programs. This statute is designed to deter and penalize fraud against the government and even allows whistleblower suits with potential recovery. It is not a tax regulation (which governs taxes), not a medical licensing regulation (which handles professional credentials), and not a policy about price fixing (which relates to competition). So the statement correctly characterizes the False Claims Act as a federal law imposing liability for defrauding governmental programs.