Chapter 6 Consumers

A  False

B  True

A  the reasonable consumer standard.

B  the gullible consumer standard.

C  the “modified” gullible-consumer standard.

D  none of these choices.

A  express and implied

B  positive and negative

C  limited and unlimited

D  legal and moral

A  True

B  False

A  True

B  False

A  True

B  False

A  having to pay above the seller’s original asking price for a home

B  selling World Series Tickets for $300

C  increasing the price of lawn movers in the spring and summer

D  a New York hotel tripling its room prices after 9/11

A  advertising rarely gives consumers much useful information.

B  brand loyalty increases price competition.

C  restrictions on advertising violate the moral rights of advertisers.

D  advertising can only influence us if we want it to.

A  True

B  False

A  drawn an analogy between advertising and art.

B  proven the possibility of effective subliminal advertising.

C  invented the concept of “puffery”.

D  argued that the process of production today creates the very wants it then satisfies.

A  billboards.

B  word of mouth.

C  testimonials of other customers.

D  the label and package.

A  True

B  False

A  toward the principle of caveat emptor.

B  that removed power from the Federal Trade Commission (FTC).

C  away from the reasonable-person standard.

D  toward the reasonable-person standard.

A  should encourage business to develop a paternal sense of responsibility for consumers.

B  may justifiably be used to restrict the freedom of individuals for their own good.

C  should only restrict people’s freedom in order to protect other people.

D  may justifiably forbid lawsuits against those who act paternalistically.

A  False

B  True

A  a manufacturer need not be negligent to be held liable for a defective product.

B  the producer of a product is never responsible for any injury the consumer suffers.

C  product liability presupposes negligence by more than one party.

D  consumers must assume all risk whenever they buy a product.

A  magazines.

B  radio.

C  Internet.

D  television.

A  Securities and Exchange Commission.

B  Fair Packaging and Labeling Commission.

C  Federal Drug Administration Agency.

D  Consumer Product Safety Commission.

A  False

B  True

A  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.

B  based on the principle of absolute liability.

C  based on the principle of caveat emptor.

D  based on the principle “let the buyer beware”.

A  True

B  False

A  tests of a product can safely assume that the product will be used in just the way that the manufacturer intends it to be used.

B  manufacturers of a product can legitimately assume that accidents occur exclusively as a result of product misuse.

C  only new products, not established products, need to be tested.

D  if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it.

A  truth in advertising.

B  puffery.

C  psychological appeals.

D  trust building statements.

A  True

B  False

A  True

B  False