BUS 309 Week 6 Quiz Question 1 Which statement is true from an ethical perspective? The argument for strict liability is basically utilitarian. Strict liability is identical with absolute liability. The concept of due care is identical with that of caveat emptor. The argument for due care is basically Kantian. Question 2 The goal of advertising is to persuade people to purchase the product. to provide information about goods and services. to provide information about prices. to subsidize the media. Question 3 Terms like “can be,” “as much as,” and “help,” are examples of concealment of facts. ambiguity. truth in advertising. consumer confidence. Question 4 Harvard business professor Theodore Levitt has drawn an analogy between advertising and art. proven the possibility of effective subliminal advertising. argued that the process of production today creates the very wants it then satisfies. invented the concept of “puffery”. Question 5 The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts permitted consumers to sue manufacturers with whom they had no contractual relationships. adopted the principle of caveat emptor. permitted consumers to sue the retailer from whom they had purchased the product. adopted the principle of strict liability. Question 6 The terms “best, finest, and most” are examples of puffery. truth in advertising. psychological appeals. trust building statements. Question 7 “Puffery” is an example of which of the following deceptive or misleading advertising techniques? ambiguity psychological appeals exaggeration concealed facts Question 8 Which of the following is an example of price gouging? Selling World Series Tickets for $300. New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks. Having to pay above the seller’s original asking price for a home. Increasing the price of lawn movers in the spring and summer. Question 9 Caveat emptor means strict product liability due care let the buyer beware the customer and manufacturer meet as equals Question 10 According to the legal doctrine of strict product liability, the producer of a product is responsible for any injury the consumer suffers. consumers must assume all risk whenever they buy a product. product liability presupposes negligence by more than one party. a manufacturer need not be negligent to be held liable for a defective product. Question 11 Legal paternalism is the doctrine that the law may justifiably restrict the freedom of the individual for his or her own good. may justifiably forbid lawsuits against those who act paternalistically. should encourage business to develop a paternal sense of responsibility for consumers. should only restrict people’s freedom in order to protect other people. Question 12 For years Bayer aspirin advertised that it contained “the ingredient doctors recommend most.” This is an example of ambiguity. exaggeration. psychological appeals. concealed facts. Question 13 Critics of advertising generally agree that advertising rarely gives consumers much useful information. brand loyalty increases price competition. restrictions on advertising violate the moral rights of advertisers. advertising can only influence us if we want it to. Question 14 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 the principle of strict liability. the direct contractual relationship between the producer and the consumer. the principle of the reasonable person. whether or not the manufacturer exercised due care. Question 15 Which statement is accurate in its description of consumer protection? The Consumer Product Safety Commission has the power to order recalls. Statistics show that, in

BUS/309 BUS309 BUS 309 Week 6 Quiz


There are no reviews yet.

Be the first to review “BUS/309 BUS309 BUS 309 Week 6 Quiz”

Your email address will not be published. Required fields are marked *