MCQ Quiz: Pharmacy Closure & Transfer of Ownership

The closure or transfer of ownership of a pharmacy is a complex process governed by strict federal and state regulations designed to ensure public safety, prevent drug diversion, and provide for continuity of patient care. Pharmacists, especially those in management roles, must be experts in these procedures, a core topic within the Principles of Pharmacy Law and Ethics course “. This quiz will test your knowledge on the legal requirements for notifying regulatory bodies, handling patient records, and properly transferring controlled substance inventories during a pharmacy closure or sale.

1. When a pharmacy is closing permanently, which two primary government agencies must be notified?

• a. The FDA and the CDC
• b. The State Board of Pharmacy and the DEA
• c. The DEA and the FTC
• d. The State Board of Pharmacy and the local police department.

Answer: b. The State Board of Pharmacy and the DEA

2. What is the primary purpose of requiring a closing pharmacy to arrange for the transfer of its prescription files to another pharmacy?

• a. To ensure continuity of care for the patients.
• b. To sell the files for profit.
• c. To fulfill a marketing requirement.
• d. To make it easier for the Board of Pharmacy to audit.

Answer: a. To ensure continuity of care for the patients.

3. When Pharmacy A is sold to Pharmacy B, what must Pharmacy B do regarding the pharmacy permit?

• a. They can continue to operate under Pharmacy A’s existing permit.
• b. They must notify the Board of Pharmacy of the sale within 30 days.
• c. They must apply for and receive a new pharmacy permit from the State Board of Pharmacy.
• d. They only need to update the Pharmacist-in-Charge on the old permit.

Answer: c. They must apply for and receive a new pharmacy permit from the State Board of Pharmacy.

4. On the day a pharmacy transfers ownership, a complete and exact inventory must be taken of which medications?

• a. All medications in the pharmacy.
• b. Only the most expensive medications.
• c. All controlled substances.
• d. Only Schedule II controlled substances.

Answer: c. All controlled substances.

5. How are Schedule II controlled substances legally transferred from a selling pharmacy to a buying pharmacy?

• a. The selling pharmacy issues a DEA Form 222 to the buying pharmacy.
• b. The buying pharmacy issues a DEA Form 222 to the selling pharmacy.
• c. The transfer is documented on a simple invoice.
• d. No special documentation is needed.

Answer: b. The buying pharmacy issues a DEA Form 222 to the selling pharmacy.

6. The principles of pharmacy law are a core course in the curriculum.

• a. True
• b. False

Answer: a. True

7. The inventory taken on the day of a pharmacy ownership transfer serves as:

• a. The final inventory for the seller and the initial inventory for the buyer.
• b. Only the final inventory for the seller.
• c. Only the initial inventory for the buyer.
• d. A practice inventory for the DEA.

Answer: a. The final inventory for the seller and the initial inventory for the buyer.

8. A pharmacy that is closing must provide public notice to allow patients adequate time to:

• a. Find a new pharmacy and transfer their prescriptions.
• b. Purchase over-the-counter medications at a discount.
• c. Say goodbye to the staff.
• d. Apply for jobs at the pharmacy.

Answer: a. Find a new pharmacy and transfer their prescriptions.

9. Records related to the transfer of controlled substances must be kept for at least:

• a. 6 months
• b. 1 year
• c. 2 years
• d. 5 years

Answer: c. 2 years

10. Who holds the ultimate responsibility for the proper closure of a pharmacy and disposition of its drugs and records?

• a. The lead pharmacy technician.
• b. The newest staff pharmacist.
• c. The Pharmacist-in-Charge (PIC) and the pharmacy permit holder.
• d. The delivery driver.

Answer: c. The Pharmacist-in-Charge (PIC) and the pharmacy permit holder.

11. Understanding legal requirements is a key part of the experiential education curriculum.

• a. True
• b. False

Answer: a. True

12. How are Schedule III, IV, and V controlled substances transferred from a selling pharmacy to a buying pharmacy?

• a. With a DEA Form 222.
• b. With no documentation.
• c. Through documentation on an invoice that includes all required information.
• d. With a DEA Form 41.

Answer: c. Through documentation on an invoice that includes all required information.

13. A pharmacy goes out of business. What should be done with the pharmacy’s permit and DEA registration certificate?

• a. They should be framed and kept by the owner.
• b. They should be returned to the State Board of Pharmacy and the DEA, respectively.
• c. They can be sold to another pharmacy.
• d. They should be shredded.

Answer: b. They should be returned to the State Board of Pharmacy and the DEA, respectively.

14. If a closing pharmacy cannot transfer its prescription files to another pharmacy, it must typically:

• a. Destroy all the files.
• b. Ensure the files are secured and accessible to patients for a period of time as required by state law.
• c. Give the files to the patients themselves.
• d. Sell the files to a marketing company.

Answer: b. Ensure the files are secured and accessible to patients for a period of time as required by state law.

15. A pharmacist is considering buying a pharmacy. What is a key regulatory step they must take?

• a. Obtain their own pharmacy permit and DEA registration for the location.
• b. Assume the previous owner’s DEA number.
• c. Hire all new staff.
• d. Change the name of the pharmacy.

Answer: a. Obtain their own pharmacy permit and DEA registration for the location.

16. The law course PHA5703 provides the foundation for understanding these regulations.

• a. True
• b. False

Answer: a. True

17. Upon closing, unused DEA Form 222s must be:

• a. Used to order more stock for another pharmacy.
• b. Returned to the DEA.
• c. Shredded by the pharmacist.
• d. Kept for future use.

Answer: b. Returned to the DEA.

18. The primary concern of the DEA during a pharmacy closure or transfer of ownership is:

• a. The continuity of care for non-controlled prescriptions.
• b. The proper accounting and prevention of diversion of all controlled substances.
• c. The financial viability of the new pharmacy.
• d. The number of employees being laid off.

Answer: b. The proper accounting and prevention of diversion of all controlled substances.

19. A pharmacy that is closing must make arrangements for the disposal of non-controlled substances. This must be done:

• a. By flushing them down the toilet.
• b. By throwing them in the regular trash.
• c. In accordance with federal and state environmental regulations, often using a reverse distributor.
• d. By giving them away to staff members.

Answer: c. In accordance with federal and state environmental regulations, often using a reverse distributor.

20. A pharmacist’s professional ethics require them to ensure patient care is not abandoned during a pharmacy closure.

• a. True
• b. False

Answer: a. True

21. A pharmacy owner unexpectedly passes away. The State Board of Pharmacy:

• a. Has no jurisdiction in this case.
• b. Will immediately take ownership of the pharmacy.
• c. Has specific regulations that must be followed by the owner’s estate to ensure proper closure or sale of the pharmacy.
• d. Allows the pharmacy to continue operating without a pharmacist.

Answer: c. Has specific regulations that must be followed by the owner’s estate to ensure proper closure or sale of the pharmacy.

22. If a pharmacy transfers its controlled substance inventory to another pharmacy, who is responsible for the accuracy of the count?

• a. Only the seller.
• b. Only the buyer.
• c. Both the seller and the buyer.
• d. The DEA agent who witnesses it.

Answer: c. Both the seller and the buyer.

23. An active learning session on pharmacy law is a key part of which course?

• a. PHA5703 Principles of Pharmacy Law and Ethics
• b. PHA5163L Professional Skills Lab 3
• c. PHA5781 Patient Care I
• d. PHA5782C Patient Care 2

Answer: a. PHA5703 Principles of Pharmacy Law and Ethics

24. The new owner of a pharmacy must obtain a new ____ before they can legally possess and dispense controlled substances.

• a. pharmacist license
• b. pharmacy permit
• c. DEA registration
• d. Both b and c

Answer: d. Both b and c

25. A pharmacist is closing their practice. They must send a written notice to the DEA at least how many days in advance?

• a. 1 day
• b. 7 days
• c. 14 days
• d. 30 days

Answer: c. 14 days

26. The regulations for pharmacy closure are designed primarily to protect:

• a. The pharmacy owner’s profits.
• b. The public.
• c. The drug wholesalers.
• d. The pharmaceutical manufacturers.

Answer: b. The public.

27. The transfer of patient records during a closure must be done in a manner that protects:

• a. The pharmacy’s reputation.
• b. Patient confidentiality under HIPAA.
• c. The financial value of the records.
• d. The records from being accessed by the patient.

Answer: b. Patient confidentiality under HIPAA.

28. An active learning session on pharmacy law is part of which course?

• a. PHA5703 Principles of Pharmacy Law and Ethics
• b. PHA5163L Professional Skills Lab 3
• c. PHA5781 Patient Care I
• d. PHA5782C Patient Care 2

Answer: a. PHA5703 Principles of Pharmacy Law and Ethics

29. What happens to the prescriptions on file at a closing pharmacy?

• a. They become void and patients must get new prescriptions.
• b. They are transferred to another pharmacy chosen by the patient or designated by the closing pharmacy.
• c. They are destroyed.
• d. They are given back to the patients.

Answer: b. They are transferred to another pharmacy chosen by the patient or designated by the closing pharmacy.

30. The laws for pharmacy closure and transfer of ownership are uniform in all 50 states.

• a. True
• b. False

Answer: b. False

31. The transfer of Schedule II medications between pharmacies for any reason (e.g., selling stock, closure) requires the use of:

• a. An invoice
• b. A DEA Form 222 or its electronic equivalent (CSOS)
• c. A DEA Form 106
• d. A verbal agreement

Answer: b. A DEA Form 222 or its electronic equivalent (CSOS)

32. The Pharmacist-in-Charge is the key individual responsible for a pharmacy’s compliance with these regulations.

• a. True
• b. False

Answer: a. True

33. The principles of law and ethics are foundational to pharmacy practice.

• a. True
• b. False

Answer: a. True

34. Upon transfer of ownership, the new PIC must conduct what type of inventory on the day they begin operations?

• a. A biennial inventory
• b. An estimated inventory
• c. An initial inventory of all controlled substances.
• d. An inventory of only Schedule II drugs.

Answer: c. An initial inventory of all controlled substances.

35. A pharmacist leaving a PIC position should ensure all records are in order because:

• a. They are legally responsible for the pharmacy’s operations during their time as PIC.
• b. It is a professional courtesy to the next PIC.
• c. It can help prevent issues during a future Board of Pharmacy inspection.
• d. All of the above.

Answer: d. All of the above.

36. A key part of managing a pharmacy closure is:

• a. A detailed plan and timeline.
• b. Good communication with staff, patients, and regulatory bodies.
• c. Meticulous documentation.
• d. All of the above.

Answer: d. All of the above.

37. When a pharmacy is sold, the new owner is automatically granted the same DEA number as the old owner.

• a. True
• b. False

Answer: b. False

38. The pharmacy law course PHA5703 provides the foundation for understanding these complex regulations.

• a. True
• b. False

Answer: a. True

39. If a pharmacy closes, what happens to the physical prescription files?

• a. They are destroyed immediately.
• b. They must be stored securely for a period of time as required by state law.
• c. They are given to the DEA.
• d. They are given to the local police department.

Answer: b. They must be stored securely for a period of time as required by state law.

40. An active learning session covering pharmacy law is part of which course?

• a. PHA5703 Principles of Pharmacy Law and Ethics
• b. PHA5163L Professional Skills Lab 3
• c. PHA5781 Patient Care I
• d. PHA5782C Patient Care 2

Answer: a. PHA5703 Principles of Pharmacy Law and Ethics

41. Which of the following is NOT a responsibility of the PIC during a pharmacy closure?

• a. Notifying the Board of Pharmacy.
• b. Ensuring proper disposition of all drugs.
• c. Ensuring patient files are transferred or secured.
• d. Setting the sale price of the pharmacy.

Answer: d. Setting the sale price of the pharmacy.

42. The transfer of controlled substance records must be readily retrievable for inspection.

• a. True
• b. False

Answer: a. True

43. A pharmacy that is part of a chain closes one of its locations. It can transfer its controlled substance inventory to another pharmacy in the same chain by:

• a. Simply moving the drugs.
• b. Following the same legal transfer requirements as if selling to an outside pharmacy.
• c. Notifying the FDA only.
• d. Getting patient permission first.

Answer: b. Following the same legal transfer requirements as if selling to an outside pharmacy.

44. The pharmacist’s role in a closure or transfer is purely administrative and has no impact on patient safety.

• a. True
• b. False

Answer: b. False

45. What is the most important consideration during a pharmacy closure?

• a. Maximizing the sale price of the inventory.
• b. Ensuring patient safety and continuity of care.
• c. Completing the closure as quickly as possible.
• d. Minimizing the amount of paperwork.

Answer: b. Ensuring patient safety and continuity of care.

46. A pharmacy’s DEA registration must be active on the day a transfer of controlled substances occurs.

• a. True
• b. False

Answer: a. True

47. Practicing in accordance with state and federal laws is a core competency taught in the IPPE courses.

• a. True
• b. False

Answer: a. True

48. A pharmacist buying a pharmacy should perform “due diligence,” which includes:

• a. Reviewing the pharmacy’s financial records.
• b. Ensuring the pharmacy has a clean record with the Board of Pharmacy and DEA.
• c. Reviewing inventory and policies.
• d. All of the above.

Answer: d. All of the above.

49. The overall purpose of regulating pharmacy closures and transfers is to:

• a. Create a complex process to discourage pharmacy ownership.
• b. Maintain the integrity of the closed system of drug distribution and protect the public.
• c. Generate fees for the state board.
• d. Ensure all pharmacies are part of large chains.

Answer: b. Maintain the integrity of the closed system of drug distribution and protect the public.

50. The ultimate reason to learn about these procedures is to:

• a. Be able to legally and ethically manage a pharmacy through major operational changes.
• b. Pass the MPJE.
• c. Both a and b.
• d. Neither a nor b.

Answer: c. Both a and b.