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Chapter Quiz
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1

Most of the activities of the Consumer Product Safety Commission have dealt with voluntary safety standards of industries.
A)True
B)False
2

The FDA is the one federal agency that has the most extensive controls over a single product.
A)True
B)False
3

In the U.S., a manufacturer can be held liable for a breach of warranty that is explicit, but not implied.
A)True
B)False
4

In the U.S., when a product is sold there is an automatic implied warranty that it will work for the ordinary use for which it is intended.
A)True
B)False
5

Class action lawsuits help pay for legal fees when the losses of an individual are small but the collective losses of a group of people are large.
A)True
B)False
6

An individual who uses products or services is known as a(n):
A)consumer.
B)seller.
C)wholesaler.
D)retailer.
7

A movement that promotes the rights of consumers in relation to sellers of products is called:
A)the right to privacy movement.
B)the EPA.
C)the FDA.
D)consumerism.
8

Which of the following was a basic right of consumers proposed to Congress by President John F. Kennedy?
A)The right to make intelligent choices among products
B)The right to make complaints and to be heard
C)The right to have access to accurate information about products
D)All of the above
9

Which of the following was a basic right of consumers proposed to Congress by President John F. Kennedy?
A)The right to be offered a fair price
B)The right to have safe products
C)The right to receive acceptable service
D)All of the above
10

Which of the following protects consumers from abuses?
A)Federal laws and regulations
B)Dissemination of information to the mass media
C)The legal system
D)All of the above
11

In the U.S., consumers have recourse to compensation for injury to:
A)reputation.
B)property.
C)person.
D)all of the above.
12

Which of the following is a fundamental principle under which manufacturers can be held liable for defective products?
A)Negligence
B)Strict liability
C)Breach of warranty
D)All of the above
13

Under which principle are manufacturers held liable for defective products if the manufacturer does not do what a reasonable person could be expected to do?
A)Negligence
B)Breach of warranty
C)Strict liability
D)Caveat emptor
14

"Let the buyer beware" in marketing products is known as the principle of:
A)caveat emptor.
B)negligence.
C)malpractice.
D)breach of warranty.
15

What type of warranty is an explicit claim by the manufacturer to the seller?
A)Implied warranty
B)Express warranty
C)Strict liability warranty
D)Product design warranty
16

What type of liability makes it possible for injured parties to hold all members of the distribution chain responsible for selling defective products?
A)Strict liability
B)Warranties
C)Negligence
D)Countervailing force
17

The idea that "anyone who sells a defective product to a consumer that is unreasonably dangerous to the consumer" is held liable for harm caused to the consumer is the basic premise of:
A)warranties.
B)strict liability.
C)negligence.
D)the profit effect.
18

When individuals join a group of people to create a common lawsuit representing the group against a company, this is called:
A)a tort.
B)express warranty.
C)class action.
D)privity.
19

The relationship between the parties to a contract that gives them a common legal interest is called:
A)caveat emptor.
B)tort.
C)negligence.
D)privity.
20

The dominant U.S. federal agency concerned with abuses in product advertising is the:
A)EPA.
B)CPSC.
C)FTC.
D)SEC.





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