Ethics Quiz 7

22 August 2022
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25 test answers

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question
According to Galbraith's "dependence effect", Selected Answer: process. Answers: a. production depends upon wants. b. consumer demand tends to be shaped by the production process. c. advertising depends on consumerism. d. advertising depends on the wants of the consumer.
answer
B
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Which of the following consumer goods is responsible for the greatest number of individual social ills? Selected Answer: Answers: a. alcohol b. handguns c. cigarettes d. cars
answer
C
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For years Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of: Selected Answer: Answers: a. concealment of facts. b. psychological appeals. c. exaggeration. d. ambiguity.
answer
A
question
Which statement is true from an ethical perspective? Selected Answer: Answers: a. The argument for due care is basically Kantian. b. The concept of due care is identical with that of caveat emptor. c. The argument for strict liability is basically utilitarian. d. Strict liability is identical with absolute liability.
answer
C
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Critics of advertising contend that Selected Answer: Answers: a. brand loyalty increases price competition. b. advertising rarely gives consumers much useful information. c. restrictions on advertising violate the moral rights of advertisers. d. advertising can only influence us if we want it to.
answer
B
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Advertising is best known for Selected Answer: Answers: a. the objectivity of the view of the product. b. the persuasion to purchase the product. c. the information about prices. d. the information about goods and services.
answer
B
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In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the Answers: a. Fair Packaging and Labeling Commission. b. Securities and Exchange Commission. c. Federal Drug Administration Agency. d. Consumer Product Safety Commission.
answer
D
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The case of FTC v. Standard Education was important in the legal transition Selected Answer: Answers: a. toward the principle of caveat emptor. b. toward the reasonable-person standard. c. away from the reasonable-person standard. d. that removed power from the Federal Trade Commission (FTC).
answer
C
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In deciding whether an ad is deceptive, today the FTC basically follows Selected Answer: Answers: a. the reasonable consumer standard. b. the gullible consumer standard. c. the "modified" gullible-consumer standard. d. none of the above.
answer
C
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The media with the greatest advertising influence over children is Answers: a. television. b. Internet. c. magazines. d. radio.
answer
A
question
"Puffery" is an example of which of the following deceptive or misleading advertising techniques? Answers: a. exaggeration b. concealment of facts c. psychological appeals d. ambiguity
answer
A
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The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts Selected Answer: Answers: a. permitted consumers to sue the retailer from whom they had purchased the product. b. expanded the liability of manufacturers for injuries caused by defective products. c. adopted the principle of strict liability. d. adopted the principle of caveat emptor.
answer
B
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The terms "best, finest, and most" are examples of Selected Answer: Answers: a. trust building statements. b. truth in advertising. c. puffery. d. psychological appeals.
answer
C
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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 Selected Answer: Answers: 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.
answer
B
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The consumer's main source of product information is Selected Answer: Answers: a. word of mouth. b. the label and package. c. testimonials of other customers. d. billboards.
answer
B
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Which of the following is an example of price gouging? Selected Answer: Answers: a. a New York hotel tripling its room prices after 9/11 b. selling World Series Tickets for $300 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 summer
answer
A
question
According to the legal doctrine of strict product liability, Answers: a. product liability presupposes negligence by more than one party. b. consumers must assume all risk whenever they buy a product. c. the producer of a product is responsible for any injury the consumer suffers. d. a manufacturer need not be negligent to be held liable for a defective product.
answer
D
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Advertising Answers: a. makes the market more efficient. b. maximizes consumer well-being (thanks to the invisible hand). c. subsidizes the media. d. can't be restricted without violating the moral rights of advertisers.
answer
C
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Terms like "can be," "as much as," and "help," are examples of Selected Answer: Answers: a. concealment of facts. b. consumer confidence. c. truth in advertising. d. ambiguity.
answer
D
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Harvard business professor Theodore Levitt has Selected Answer: Answers: a. proven the possibility of effective subliminal advertising. b. argued that the process of production today creates the very wants it then satisfies. c. drawn an analogy between advertising and art. d. invented the concept of "puffery".
answer
C
question
Legal paternalism is the doctrine that the law Selected Answer: Answers: a. should only restrict people's freedom in order to protect other people. b. may justifiably be used to restrict the freedom of individuals for their own good. c. may justifiably forbid lawsuits against those who act paternalistically. d. should encourage business to develop a paternal sense of responsibility for consumers.
answer
B
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Due care is Selected Answer: Answers: a. based on the principle of absolute liability. b. based on the principle of caveat emptor. 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 "let the buyer beware".
answer
C
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To properly protect consumers, Answers: a. only new products, not established products, need to be tested. b. 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. c. accidents occur exclusively as a result of product misuse. d. if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it.
answer
D
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People generally speak of two kinds of warranties. What are these two kinds of warranties? Selected Answer: Answers: a. express and implied b. limited and unlimited c. legal and moral d. positive and negative
answer
A
question
Which statement is accurate in its description of consumer protection? ​ Answers: a. Safety regulations permit people to choose to save money by purchasing riskier (but less expensive) products. b. The Consumer Product Safety Commission has the power to order recalls, public warnings, and refunds. c. Critics exaggerate the cost of safety regulations and product recalls. d. Statistics show that, in fact, safety regulations rarely succeed in increasing safety.
answer
B