Question 1

Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?

Accepted Answer

A)   Punitive damages should be limited.
B)   Strict liability should be retained.
C)   The burden of proof should be shifted to consumers.
D)   Losers should be made to pay some of the other side's legal bills.E) C) and D)
F) A) and B)

Question 2

Before deregulation, government agencies frequently:

Accepted Answer

A)   Held prices artificially high, shielding businesses from competition.
B)   Held prices artificially low, shielding consumers from selection.
C)   Encouraged overseas trade, shielding businesses from competition.
D)   Discouraged overseas trade, shielding consumers from selection.E) A) and B)
F) A) and C)

Question 3

As business firms grow in size and market power, they have increasingly lost the ability to dominate marketplace transactions with their customers.

Accepted Answer

A) True 
 B)False

Question 4

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

Accepted Answer

A)   The Consumer Protection Act.
B)   The Product Safety Act.
C)   The Predatory Mortgage Act.
D)   The Truth in Lending Act.E) All of the above
F) A) and C)

Question 5

A goal of the consumer movement is to make consumer power:

Accepted Answer

A)   Exceed the rights and powers of firms that sell goods and services.
B)   Exceed the rights and powers of the Food and Drug Administration.
C)   An effective counterbalance to the rights and powers of firms that sell goods and services.
D)   An effective counterbalance to the rights and powers of the Food and Drug Administration.E) A) and D)
F) B) and C) C

Question 6

The consumer's right to privacy assures that information disclosed in the course of a commercial transaction is not shared with others unless authorized.

Accepted Answer

A) True 
 B)False

Question 7

One alternative to product liability lawsuits is called:

Accepted Answer

A)   Limited resolution.
B)   Punitive damages reform.
C)   Alternative dispute resolution.
D)   Consumerism.E) None of the above
F) A) and D) C

Question 8

Managing for product quality is an attempt by business to address its suppliers' needs.

Accepted Answer

A) True 
 B)False

Question 9

Consumer advocates argue that consumers are entitled to five core rights. What are they? Explain each.

Accepted Answer

Consumer advocates argue that consumers ...

Question 10

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Accepted Answer

A)   Product liability law reform.
B)   Consumer call centers.
C)   Consumer advocacy groups.
D)   Alternative dispute resolution policies.E) A) and B)
F) A) and C) B

Question 11

The main responsibility of the National Highway Traffic Safety Administration is to:

Accepted Answer

A)   Set a uniform national speed limit.
B)   Set airline safety standards.
C)   Set motor vehicle safety standards.
D)   Safeguard consumers from altered odometers.E) A) and D)
F) All of the above

Question 12

The Environmental Protection Agency's mission is to assure the safety and effectiveness of a wide range of consumer products including pharmaceutical drugs and foods.

Accepted Answer

A) True 
 B)False

Question 13

In your opinion, do U.S. product liability laws need to be changed? If so, how? If not, why not? Investigate proposed changes in product liability laws over the last several years and evaluate them.

Accepted Answer

In my opinion, U.S. product liability la...

Question 14

Consumers have become more dependent on businesses for product quality because:

Accepted Answer

A)   The complexity of products makes choices complicated for consumers.
B)   Instructions for use or care of product are provided in clear and simple language.
C)   Their technical competence allows them to inspect the products thoroughly.
D)   Competition has forced manufacturers to market lower-quality goods.E) C) and D)
F) B) and C)

Question 15

The consumer movement exists because consumers want to be treated fairly and honestly in the marketplace. Outline and explain the additional reasons for the existence of the consumer movement.

Accepted Answer

The consumer movement exists for several...

Question 16

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Accepted Answer

A)   Code of regulation.
B)   Consumer affairs doctrine.
C)   Voluntary industry codes of conduct.
D)   Industry action standards.E) A) and B)
F) None of the above

Question 17

One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits.

Accepted Answer

A) True 
 B)False

Question 18

The major federal consumer protection agencies are authorized by law to:

Accepted Answer

A)   Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers.
B)   Substitute government-mandated standards for decision making by private buyers and sellers.
C)   Intervene in the market by influencing consumers to buy one product or service rather than another.
D)   Both A and B, but not CE) None of the above
F) B) and C)

Question 19

The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on alert to look after their own interests.

Accepted Answer

A) True 
 B)False

Question 20

Which agency(ies)  was (were)  created during the great wave of consumer regulations in the 1960s and early 1970s?

Accepted Answer

A)   Consumer Product Safety Commission.
B)   National Highway Traffic Safety Administration.
C)   National Transportation Safety Board.
D)   All of the above.E) None of the above
F) C) and D)

Exam 15: Consumer Protection

Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?

Correct AnswerverifiedShow Answer

Before deregulation, government agencies frequently:

Correct AnswerverifiedShow Answer

As business firms grow in size and market power, they have increasingly lost the ability to dominate marketplace transactions with their customers.

Correct AnswerverifiedShow Answer

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

Correct AnswerverifiedShow Answer

A goal of the consumer movement is to make consumer power:

Correct AnswerverifiedC

The consumer's right to privacy assures that information disclosed in the course of a commercial transaction is not shared with others unless authorized.

Correct AnswerverifiedShow Answer

One alternative to product liability lawsuits is called:

Correct AnswerverifiedC

Managing for product quality is an attempt by business to address its suppliers' needs.

Correct AnswerverifiedShow Answer

Consumer advocates argue that consumers are entitled to five core rights. What are they? Explain each.

Correct AnswerAnswered by ExamLex AIConsumer advocates argue that consumers ...View AnswerShow Answer

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Correct AnswerverifiedB

The main responsibility of the National Highway Traffic Safety Administration is to:

Correct AnswerverifiedShow Answer

The Environmental Protection Agency's mission is to assure the safety and effectiveness of a wide range of consumer products including pharmaceutical drugs and foods.

Correct AnswerverifiedShow Answer

In your opinion, do U.S. product liability laws need to be changed? If so, how? If not, why not? Investigate proposed changes in product liability laws over the last several years and evaluate them.

Correct AnswerAnswered by ExamLex AIIn my opinion, U.S. product liability la...View AnswerShow Answer

Consumers have become more dependent on businesses for product quality because:

Correct AnswerverifiedShow Answer

The consumer movement exists because consumers want to be treated fairly and honestly in the marketplace. Outline and explain the additional reasons for the existence of the consumer movement.

Correct AnswerAnswered by ExamLex AIThe consumer movement exists for several...View AnswerShow Answer

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Correct AnswerverifiedShow Answer

One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits.

Correct AnswerverifiedShow Answer

The major federal consumer protection agencies are authorized by law to:

Correct AnswerverifiedShow Answer

The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on alert to look after their own interests.

Correct AnswerverifiedShow Answer

Which agency(ies) was (were) created during the great wave of consumer regulations in the 1960s and early 1970s?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Consumer advocates argue that consumers ...
View Answer

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
In my opinion, U.S. product liability la...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The consumer movement exists for several...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified