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Exam 6: Consumers

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Question 31

Multiple Choice

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Which statement is accurate in its description of consumer protection?

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

E) B) and C)
F) A) and D)

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Question 32

Multiple Choice

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

A) the reasonable consumer standard.
B) the ignorant/gullible consumer standard.
C) a "modified" ignorant-consumer standard.
D) none of these choices.

E) B) and C)
F) All of the above

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Question 33

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Subliminal advertising is advertising that supposedly communicates at a level beneath our conscious awareness.

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.

Defend the position that advertising manipulates human needs and can create artificial ones.

Which statement is true from an ethical perspective?

What is the doctrine of caveat emptor?

Statistically,there is strong evidence that exposure to television advertising is strongly associated with

The Federal Trade Commission (FTC) was established in 1914 to protect consumers against deceptive advertising.

Give an example of deceptive ambiguity in advertising.

In 1972 Congress created one of the most important agencies for regulating product safety.This agency is the

Before the case of MacPherson v.Buick Motor Car in 1916,injured consumers could only recover damages from the retailer of the defective product.

Strict liability is the same thing as absolute liability.

In the 1960 case Greenman v.Yuba PowerProducts,injured consumers were awarded damages based on their proving that the manufacturers of the defective products were negligent.

Why then is there concern about the ethics of advertising? If the consumer is responsible to make the decision,is there anything to justify restricting the advertiser? Justify and explain your answers.

Every year ____ of Americans require medical treatment from product related accidents.

Caveat emptor means

What is subliminal advertising?

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

The controversy over legal paternalism pits the values of individual freedom and autonomy against social welfare.