Question 1

Give an example of labeling or packaging that is deceptive or misleading.

Accepted Answer

One example of deceptive labeling or pac...

Question 2

What is the doctrine of caveat emptor?

Accepted Answer

The doctrine of caveat emptor is a legal...

Question 3

Strict liability is the same thing as absolute liability.

Accepted Answer

A) True 
 B)False

Question 4

What is subliminal advertising?

Accepted Answer

Subliminal advertising is a marketing te...

Question 5

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

Accepted Answer

A) True 
 B)False

Question 6

Harvard business professor Theodore Levitt has

Accepted Answer

A)   drawn an analogy between advertising and art.
B)   proven the possibility of effective subliminal advertising.
C)   argued that the process of production today creates the very wants it then satisfies.
D)   invented the concept of "puffery".E) A) and B)
F) None of the above

Question 7

Regulations are often effect at safeguarding consumers, but there are exceptions. Give an example of one.

Accepted Answer

Regulations are typically designed to pr...

Question 8

The Fair Packaging and Labeling Act of 1966 empowers representative agencies to rank and list all ingredients in the order of decreasing percentage of total contents.

Accepted Answer

A) True 
 B)False

Question 9

Business's responsibility for understanding and providing for consumer needs derives from the fact that citizen-consumers are dependent on business to satisfy their needs.

Accepted Answer

A) True 
 B)False

Question 10

The controversy over legal paternalism pits the values of individual freedom and autonomy against social welfare.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of price gouging?

Accepted Answer

A)   selling World Series Tickets for $300
B)   a New York hotel tripling its room prices after 9/11
C)   having to pay above the seller's original asking price for a home
D)   increasing the price of lawn movers in the spring and summerE) A) and C)
F) B) and C)

Question 12

Economists favor legal paternalism because it prevents individuals from balancing safety against price.

Accepted Answer

A) True 
 B)False

Question 13

The consumer's main source of product information is

Accepted Answer

A)   testimonials of other customers.
B)   billboards.
C)   word of mouth.
D)   the label and package.E) C) and D)
F) A) and B)

Question 14

What is the importance of the 1916 case of MacPherson v. Buick Motor Car?

Accepted Answer

The 1916 case of MacPherson v. Buick Mot...

Question 15

In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the

Accepted Answer

A)   Securities and Exchange Commission.
B)   Federal Drug Administration Agency.
C)   Fair Packaging and Labeling Commission.
D)   Consumer Product Safety Commission.E) B) and C)
F) A) and D)

Question 16

Strict product liability is the doctrine that the seller of a product has legal responsibilities to compensate the user of that product for injuries suffered due to a defective aspect of the product, even though the seller has not been negligent in permitting that defect to occur.

Accepted Answer

A) True 
 B)False

Question 17

Legal paternalism is the doctrine that the law

Accepted Answer

A)   may justifiably be used to restrict the freedom of individuals for their own good.
B)   may justifiably forbid lawsuits against those who act paternalistically.
C)   should encourage business to develop a paternal sense of responsibility for consumers.
D)   should only restrict people's freedom in order to protect other people.E) A) and B)
F) B) and D)

Question 18

Due care is

Accepted Answer

A)   based on the principle of caveat emptor.
B)   based on the principle "let the buyer beware".
C)   the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.
D)   based on the principle of absolute liability.E) B) and C)
F) None of the above

Question 19

Before the case of MacPherson v. Buick Motor Car in 1916, injured consumers could only recover damages from the retailer of the defective product.

Accepted Answer

A) True 
 B)False

Question 20

Subliminal advertising is advertising that supposedly communicates at a level beneath our conscious awareness.

Accepted Answer

A) True 
 B)False

Exam 6: Consumers

Strict liability is the same thing as absolute liability.

Correct AnswerverifiedShow Answer

Regulations are often effect at safeguarding consumers, but there are exceptions. Give an example of one.

Correct AnswerAnswered by ExamLex AIRegulations are typically designed to pr...View AnswerShow Answer

Strict product liability is the doctrine that the seller of a product has legal responsibilities to compensate the user of that product for injuries suffered due to a defective aspect of the product, even though the seller has not been negligent in permitting that defect to occur.

Correct AnswerverifiedShow Answer

Economists favor legal paternalism because it prevents individuals from balancing safety against price.

Correct AnswerverifiedShow Answer

What is the doctrine of caveat emptor?

Correct AnswerAnswered by ExamLex AIThe doctrine of caveat emptor is a legal...View AnswerShow Answer

The controversy over legal paternalism pits the values of individual freedom and autonomy against social welfare.

Correct AnswerverifiedShow Answer

The Fair Packaging and Labeling Act of 1966 empowers representative agencies to rank and list all ingredients in the order of decreasing percentage of total contents.

Correct AnswerverifiedShow Answer

Subliminal advertising is advertising that supposedly communicates at a level beneath our conscious awareness.

Correct AnswerverifiedShow Answer

Business's responsibility for understanding and providing for consumer needs derives from the fact that citizen-consumers are dependent on business to satisfy their needs.

Correct AnswerverifiedShow Answer

Which of the following is an example of price gouging?

Correct AnswerverifiedShow Answer

Give an example of labeling or packaging that is deceptive or misleading.

Correct AnswerAnswered by ExamLex AIOne example of deceptive labeling or pac...View AnswerShow Answer

The consumer's main source of product information is

Correct AnswerverifiedShow Answer

What is subliminal advertising?

Correct AnswerAnswered by ExamLex AISubliminal advertising is a marketing te...View AnswerShow Answer

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

Correct AnswerverifiedShow Answer

Due care is

Correct AnswerverifiedShow Answer

Legal paternalism is the doctrine that the law

Correct AnswerverifiedShow Answer

Harvard business professor Theodore Levitt has

Correct AnswerverifiedShow Answer

What is the importance of the 1916 case of MacPherson v. Buick Motor Car?

Correct AnswerAnswered by ExamLex AIThe 1916 case of MacPherson v. Buick Mot...View AnswerShow Answer

In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the

Correct AnswerverifiedShow Answer

Before the case of MacPherson v. Buick Motor Car in 1916, injured consumers could only recover damages from the retailer of the defective product.

Correct AnswerverifiedShow Answer

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Regulations are typically designed to pr...
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The doctrine of caveat emptor is a legal...
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One example of deceptive labeling or pac...
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Answered by ExamLex AI
Subliminal advertising is a marketing te...
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The 1916 case of MacPherson v. Buick Mot...
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