Ch. 10 Consumer Production

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint?

Consumer Federation of America.

Which of the following statements is not true about the organization Consumer Reports?

It is supported by the federal government.

* A goal of the consumer movement is to make consumer power:

An effective counterbalance to the rights and powers of firms that sell goods and services.

* Which of the following is (are) core rights of consumers?

The right to safety.

* The "right to be heard" assures that consumers’ interests will:

Receive full and sympathetic consideration.

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

The Truth in Lending Act.

In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?

Federal Trade Commission.

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act.

Which of the following is not a goal of consumer protection laws?

Facilitate consumers’ getting extended credit when making purchases.

Manufacturers making false or misleading claims about a competitor’s product is:

Illegal and unethical.

* Before deregulation, government agencies frequently:

Held prices artificially high, shielding businesses from competition.

Which of the following limits the collection of information online from and about children under the age of 13?

The Children’s Online Privacy Protection Act

*Which of the following departments was established in 1914 and has been given additional powers to protect consumers over the years, including in the area of online privacy?

Federal Trade Commission.

Which agency(ies) was (were) created during the great wave of consumer regulations in the 1960s and early 1970s?

Consumer Product Safety Commission. , National Highway Traffic Safety Administration. and National Transportation Safety Board.

*The main responsibility of the National Highway Traffic Safety Administration is to:

Set motor vehicle safety standards.

* Which of the following is a mission of the Food and Drug Administration?

To assure the safety and effectiveness of a wide range of consumer products.

**The major federal consumer protection agencies are authorized by law to:

Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers. and Substitute government-mandated standards for decision making by private buyers and sellers.

Online shoppers have always been concerned that:

Information they reveal in the course of a sales transaction might be misused.

An identifying marker placed on a user’s computer hard drive during visits in order to identify the user during each subsequent visit and to build profiles of their behavior over time is called a:

Cookie.

Advertising that is targeted to particular customers, based on their observed online behavior, is called:

Behavioral advertising.

When businesses adopt voluntary policies for protecting the privacy of individuals’ information disclosed during electronic transactions, this is called:

Industry self-regulation.

Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?

Strict liability.

***Many companies have argued that the evolution of strict liability has:

Unfairly burdened them with excess costs.

Under proposals to establish uniform federal standards for determining liability:

Companies would not have to go through repeated trials on the same charges in different states.

***Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?

Strict liability should be retained.

One alternative to product liability lawsuits is called:

Alternative dispute resolution.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Consumer call centers