Question 1

The Federal Trade Commission (FTC) was established over seventy-five years ago to protect consumers against deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 2

Advertising

Accepted Answer

A)   makes the market more efficient.
B)   maximizes consumer well-being (thanks to the invisible hand) .
C)   can't be restricted without violating the moral rights of advertisers.
D)   subsidizes the media.E) All of the above
F) None of the above

Question 3

Which of the following consumer goods is responsible for the greatest number of individual social ills?

Accepted Answer

A)   alcohol
B)   cars
C)   cigarettes
D)   handgunsE) A) and B)
F) All of the above C

Question 4

To properly protect consumers,

Accepted Answer

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)   accidents occur exclusively as a result of product misuse.
C)   if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it.
D)   only new products, not established products, need to be tested.E) None of the above
F) All of the above

Question 5

Which statement is accurate in its description of consumer protection? ​

Accepted Answer

A)   The Consumer Product Safety Commission has the power to order recalls, public warnings, and refunds.
B)   Statistics show that, in fact, safety regulations rarely succeed in increasing safety.
C)   Critics exaggerate the cost of safety regulations and product recalls.
D)   Safety regulations permit people to choose to save money by purchasing riskier (but less expensive)  products.E) A) and C)
F) C) and D) A

Question 6

Which statement is true from an ethical perspective?

Accepted Answer

A)   The argument for strict liability is basically utilitarian.
B)   Strict liability is identical with absolute liability.
C)   The concept of due care is identical with that of caveat emptor.
D)   The argument for due care is basically Kantian.E) All of the above
F) C) and D)

Question 7

"Puffery" is an example of which of the following deceptive or misleading advertising techniques?

Accepted Answer

A)   ambiguity
B)   exaggeration
C)   psychological appeals
D)   concealment of factsE) All of the above
F) A) and B)

Question 8

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

Accepted Answer

A) True 
 B)False  False

Question 9

Critics of advertising contend that

Accepted Answer

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.E) A) and B)
F) B) and C)

Question 10

One decisive case in the legal transition away from the reasonable-person standard in matters of advertising, sales and marketing was FTC v. Standard Education.

Accepted Answer

A) True 
 B)False

Question 11

The media with the greatest advertising influence over children is

Accepted Answer

A)   radio.
B)   television.
C)   Internet.
D)   magazines.E) A) and B)
F) B) and D)

Question 12

Statistics indicate that the faith consumers place in manufacturers is often misplaced.

Accepted Answer

A) True 
 B)False

Question 13

In his books The Affluent Society and The New Industrial State, John Kenneth Galbraith argues that consumer wants determine what gets produced.

Accepted Answer

A) True 
 B)False

Question 14

Anti-paternalism gains plausibility from the view that individuals know their own interests better than anyone else and that they are fully informed and able to advance those interests.

Accepted Answer

A) True 
 B)False

Question 15

The FTC now follows the "modified" ignorant consumer standard and protects only those cases of foolishness that are committed by significant numbers of people.

Accepted Answer

A) True 
 B)False

Question 16

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts

Accepted Answer

A)   expanded the liability of manufacturers for injuries caused by defective products.
B)   adopted the principle of caveat emptor.
C)   permitted consumers to sue the retailer from whom they had purchased the product.
D)   adopted the principle of strict liability.E) A) and B)
F) None of the above

Question 17

Before the case of MacPherson v. Buick Motor Car in 1916, the law based a manufacturer's liability for injuries due to a defective product on

Accepted Answer

A)   the principle of strict liability.
B)   the contractual relationship between the producer and the consumer.
C)   the principle of the reasonable person.
D)   whether or not the manufacturer exercised due care.E) A) and B)
F) A) and C)

Question 18

Defenders of advertising claim that, despite criticisms, advertising enjoys protection under the first Amendment as a form of speech.

Accepted Answer

A) True 
 B)False

Question 19

Defend the position that advertisers must be use imagination, symbolism, and artistic content to address human needs.

Accepted Answer

Advertisers must use imagination, symbol...

Question 20

In deciding whether an ad is deceptive, today the FTC basically follows

Accepted Answer

A)   the reasonable consumer standard.
B)   the gullible consumer standard.
C)   the "modified" gullible-consumer standard.
D)   none of the above.E) None of the above
F) A) and B)

Exam 6: Consumers

The Federal Trade Commission (FTC) was established over seventy-five years ago to protect consumers against deceptive advertising.

Correct AnswerverifiedShow Answer

Advertising

Correct AnswerverifiedShow Answer

Which of the following consumer goods is responsible for the greatest number of individual social ills?

Correct AnswerverifiedC

To properly protect consumers,

Correct AnswerverifiedShow Answer

Which statement is accurate in its description of consumer protection? ​

Correct AnswerverifiedA

Which statement is true from an ethical perspective?

Correct AnswerverifiedShow Answer

"Puffery" is an example of which of the following deceptive or misleading advertising techniques?

Correct AnswerverifiedShow Answer

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

Correct AnswerverifiedFalse

Critics of advertising contend that

Correct AnswerverifiedShow Answer

One decisive case in the legal transition away from the reasonable-person standard in matters of advertising, sales and marketing was FTC v. Standard Education.

Correct AnswerverifiedShow Answer

The media with the greatest advertising influence over children is

Correct AnswerverifiedShow Answer

Statistics indicate that the faith consumers place in manufacturers is often misplaced.

Correct AnswerverifiedShow Answer

In his books The Affluent Society and The New Industrial State, John Kenneth Galbraith argues that consumer wants determine what gets produced.

Correct AnswerverifiedShow Answer

Anti-paternalism gains plausibility from the view that individuals know their own interests better than anyone else and that they are fully informed and able to advance those interests.

Correct AnswerverifiedShow Answer

The FTC now follows the "modified" ignorant consumer standard and protects only those cases of foolishness that are committed by significant numbers of people.

Correct AnswerverifiedShow Answer

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts

Correct AnswerverifiedShow Answer

Before the case of MacPherson v. Buick Motor Car in 1916, the law based a manufacturer's liability for injuries due to a defective product on

Correct AnswerverifiedShow Answer

Defenders of advertising claim that, despite criticisms, advertising enjoys protection under the first Amendment as a form of speech.

Correct AnswerverifiedShow Answer

Defend the position that advertisers must be use imagination, symbolism, and artistic content to address human needs.

Correct AnswerAnswered by ExamLex AIAdvertisers must use imagination, symbol...View AnswerShow Answer

In deciding whether an ad is deceptive, today the FTC basically follows

Correct AnswerverifiedShow Answer

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C

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Which statement is accurate in its description of consumer protection?

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A

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False

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Answered by ExamLex AI
Advertisers must use imagination, symbol...
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