GBU 321 Chapter 15

_____ is Latin for "let the buyer beware". A. Caveat emptor B. Actus reus C. Caveat venditor D. Mens rea

A. Caveat emptor

Which of the following is an ideology in which the pursuit of material goods beyond subsistence shapes social conduct? A. Consumerism B. Citizenship C. Materialism D. Productivism

A. Consumerism

What are the two kinds of warranties? A. Express and implied B. Express and categorical C. Categorical and allusive D. Connoted and implied

A. Express and implied

Which of the following agencies sets the drinking water standards? A. The Environmental Protection Agency B. The Food Safety and Inspection Service C. The Consumer Product Safety Commission D. The Food and Drug Administration

A. The Environmental Protection Agency

Which of the following federal agencies was established in 1966 to set highway safety standards? A. The Federal Highway Administration B. The National Transportation Safety Board C. The National Highway Traffic Safety Administration D. The Federal Motor Carrier Safety Administration

A. The Federal Highway Administration

Which of the following was a major force that oppressed individualism in the northern colonies of America in the early 1800s? A. The ascetic Puritan theology B. The ascetic Presbyterian theology C. The Catholic Church D. The Separatist belief

A. The ascetic Puritan theology

A(n) _____ warranty is an unwritten commonsense warranty arising out of reasonable expectations that a product will both fulfill its ordinary purpose and fulfill the particular purpose of the buyer. A. implied B. express C. categorical D. absolute

A. implied

Intense competition between corporations works to bring consumers: A. lower prices. B. lower quality. C. less choices. D. average quality.

A. lower prices.

The Federal Trade Commission (FTC): A. promotes fair competition in industries by enforcing antitrust laws. B. bans the sale of products that expose consumers to unreasonable risks. C. sets safety and effectiveness standards for over-the-counter drugs. D. regulates the safety and labeling of cosmetics.

A. promotes fair competition in industries by enforcing antitrust laws.

The Consumer Product Safety Commission (CPSC) has the power to: A. set mandatory safety standards for more than 15,000 consumer products. B. minimize but not ban the sale of products that expose consumers to unreasonable risks. C. prevent false and deceptive advertising. D. protect the public from fraudulent and deceptive sales practices.

A. set mandatory safety standards for more than 15,000 consumer products.

_____ refers to a situation that arises when an individual sits on the board of directors of two or more corporations. A. Collaborative leadership B. Director interlock C. Office sharing D. Directorate formation

B. Director interlock

The _____ is authorized to inspect meat, poultry, and eggs. A. Animal and Plant Health Inspection Service B. Food Safety and Inspection Service C. Food and Drug Administration D. Center for Disease Control and Prevention

B. Food Safety and Inspection Service

The first national movement that sprung up with the aim to protect consumers was the: A. Socialist movement. B. Populist movement. C. Progressive movement. D. Elitist movement.

B. Populist movement.

According to which of the following theories does liability exist, even in the absence of negligence, when an activity or product is inherently dangerous? A. Absolute liability B. Strict liability C. Contributory liability D. Enterprise liability

B. Strict liability

In the late 1800s and early 1900s, manufacturers were well protected from liability suits brought by injured customers because of two formidable obstacles in the law. What were they? A. The principle of actus reus and the doctrine of laches. B. The principle of caveat emptor and the doctrine of privity. C. The principle of caveat emptor and the doctrine of laches. D. The principle of actus reus and the doctrine of privity.

B. The principle of caveat emptor and the doctrine of privity.

A(n) _____ warranty is a categorical claim made by the manufacturer to the buyer regarding a product or service. A. tacit B. express C. implied D. allusive

B. express

According to historian Gary Cross, consumerism: A. is less powerful in comparison to other political ideologies, religions, or class distinctions. B. is the belief that goods give meaning to individuals and their roles in society. C. is a formal philosophy. D. is not a dominant ideology in America.

B. is the belief that goods give meaning to individuals and their roles in society.

All of the following statements about the Enlightenment are true EXCEPT: A. it refers to a wave of new, challenging ideas based on human reason and scientific inquiry. B. it believed that the pursuit of material goods beyond subsistence shapes social conduct. C. it promoted the idea that human beings are ends in themselves. D. it encouraged individual choices and allowed individuals to focus on material pleasures.

B. it believed that the pursuit of material goods beyond subsistence shapes social conduct.

In 2009, Congress gave the FDA power to: A. protect consumers from any practice that limits competition. B. regulate cigarettes and smokeless tobacco. C. ban tobacco products. D. reduce nicotine levels to zero.

B. regulate cigarettes and smokeless tobacco.

The law of _____ addresses the issue of private wrongs committed by one person against another person or his/her property. A. unjust enrichment B. torts C. contracts D. evidence

B. torts

Which of the following is an example of an express warranty? A. A vendor sells the buyer a fruit that looks and smells good but is found to have worms when cut. B. A buyer asks a mechanic to provide snow tires and receives tires that are unsafe to use in the snow. C. A car advertisement that says this vehicle only needs an oil change every 10,000 miles. D. A buyer buys food for immediate consumption and relies on the food seller's judgment.

C. A car advertisement that says this vehicle only needs an oil change every 10,000 miles.

The _____ sets drinking water standards, but the _____ regulates bottled water. A. Food Safety and Inspection Service; Consumer Product Safety Commission B. Consumer Product Safety Commission; Food Safety and Inspection Service C. Environmental Protection Agency; Food and Drug Administration D. Food and Drug Administration; Environmental Protection Agency

C. Environmental Protection Agency; Food and Drug Administration

Which of the following is true regarding the law of torts? A. It involves one party making an offer for an arrangement that another party accepts. B. It covers any type of harm caused by one individual to another. C. It allows injured persons to seek compensation from parties that allege to have caused their injury. D. It is designed to provide compensation to victims and to send the tortfeasor to prison.

C. It allows injured persons to seek compensation from parties that allege to have caused their injury.

Which of the following is true regarding the FDA? A. Its main emphasis in terms of budget and staffing is food regulation. B. It is lax on premarket testing of new prescription drugs. C. It has the authority to inspect foreign food factories but the resources to visit only one-tenth of 1 percent of them. D. It has been successful in eradicating economically motivated contamination and counterfeiting in the food supply.

C. It has the authority to inspect foreign food factories but the resources to visit only one-tenth of 1 percent of them.

Which of the following observations about the Food and Drug Administration (FDA) is true? A. It was created by Congress in the Food Quality Protection Act of 1996. B. It descends from the old Agency for Healthcare Research and Quality. C. It is a big, complex agency in the Department of Health and Human Services. D. Its administrator reports to the Under Secretary for Food Safety.

C. It is a big, complex agency in the Department of Health and Human Services.

_____ is an emphasis on material objects or money that displaces spiritual, aesthetic, or philosophical values. A. Consumerism B. Individualism C. Materialism D. Rationalism

C. Materialism

Which of the following acts made it illegal for an individual to sit on the board of directors of two or more corporations if the corporations compete in the same market(s)? A. The Keating-Owen Act B. The Robinson-Patman Act C. The Clayton Act D. The Sherman Antitrust Act

C. The Clayton Act

Which of the following agencies acts against housing and loan discrimination? A. The Federal Trade Commission B. The Bureau of Consumer Financial Protection C. The Equal Employment Opportunity Commission D. The Federal Deposit Insurance Corporation

C. The Equal Employment Opportunity Commission

Which of the following is true regarding the Federal Trade Commission (FTC)? A. This important regulator was set up in the Populist era. B. The president nominates its seven commissioners. C. The Senate has to approve the commissioners. D. Each commissioner serves a five-year term.

C. The Senate has to approve the commissioners.

Which of the following doctrines defined the legal relationship between a consumer and other parties to a sale? A. The doctrine of res judicata B. The doctrine of res ipsa loquitur C. The doctrine of privity D. The doctrine of laches

C. The doctrine of privity

Which of the following is true about strict liability? A. It arose in tort law many years ago in the United States. B. The theory of strict liability was extended to product liability and by the 1940s it was firmly entrenched. C. The injured person need not prove negligence to prevail in court. D. Injured consumers had to prove breach of warranty even after the 1960s to prevail in cases where there was some inherent danger in the use of a product.

C. The injured person need not prove negligence to prevail in court.

Economist Thorstein Veblen argued that in the new industrial society, people earned their status by: A. conquest in warfare. B. prowess in hunting. C. conspicuous consumption. D. respecting interior values.

C. conspicuous consumption.

The movement that promotes the rights and powers of end users in relation to the sellers of products and services is called: A. citizenship. B. materialism. C. consumerism. D. productivism.

C. consumerism.

Product liability: A. is a doctrine in the body of common law known as the law of torts. B. cases are always based on negligence. C. was not a progressive part of the law until the 1960s. D. cases are always based on strict liability.

C. was not a progressive part of the law until the 1960s.

Which of the following products is regulated by the CPSC? A. Pesticides B. Firearms C. Cosmetics D. Bicycles

D. Bicycles

The _____ has oversight of deceptive marketing, but if the fraud involves a moving van the _____ takes jurisdiction. A. Consumer Product Safety Commission; Federal Trade Commission B. Consumer Product Safety Commission; Federal Motor Carrier Safety Administration C. Federal Motor Carrier Safety Administration; Federal Trade Commission D. Federal Trade Commission; Federal Motor Carrier Safety Administration

D. Federal Trade Commission; Federal Motor Carrier Safety Administration

_____ is the idea, arising in the Enlightenment, that human beings are ends in themselves. A. Collectivism B. Utilitarianism C. Consumerism D. Individualism

D. Individualism

Which of the following is true regarding the Consumer Product Safety Commission (CPSC)? A. The agency was set up at the crest of the first wave of consumer protection. B. Congress gave it little autonomy. C. It is subject to presidential control. D. Its five commissioners have staggered seven-year appointments.

D. Its five commissioners have staggered seven-year appointments.

Negligence is: A. a misinterpretation which affects a person's reputation in society. B. illegal participation in an otherwise legal activity. C. deliberately exposing a person to the risk of injury. D. an unintentional failure to act as a responsible, prudent person exercising ordinary care.

D. an unintentional failure to act as a responsible, prudent person exercising ordinary care.

The FDA has the authority to: A. regulate the safety and labeling of alcoholic beverages. B. protect the public from fraudulent sale practices. C. regulate the quality, safety, and labeling of poultry. D. approve human and veterinary drug and medical services.

D. approve human and veterinary drug and medical services.

Laws that prohibited stores from opening on Sundays were called: A. soft laws. B. tort laws. C. hard laws. D. blue laws.

D. blue laws.

The Federal Trade Commission (FTC) has broad duties to: A. ban the sale of products that expose consumers to unreasonable risks. B. prohibit discrimination by lenders based on religion. C. set safety standards for radiation-emitting products. D. challenge mergers and acquisitions that reduce competition or innovation.

D. challenge mergers and acquisitions that reduce competition or innovation.

The National Highway Traffic Safety Administration does all of the following EXCEPT: A. mandates minimum safety standards for automobiles, trucks, and their components. B. establishes fuel economy standards for cars and light-duty trucks. C. administers grants for states and cities to promote highway safety. D. conducts its own investigations for information about defects.

D. conducts its own investigations for information about defects.

Critics of consumerism believe that: A. people are judged for their interior qualities rather than their external possessions. B. consumption for emotional reasons encourages productive uses of money. C. consumption is compatible with sustainability. D. things are judged for their market value rather than their intrinsic value.

D. things are judged for their market value rather than their intrinsic value.

A contract in which the seller guarantees the nature of the product is known as a(n): A. entitlement. B. privilege. C. condition. D. warranty.

D. warranty.

What is meant by director interlock?

Director interlock refers to a situation that arises when an individual sits on the board of directors of two or more corporations.

A manufacturer or seller can be held liable for a breach of express warranty but not implied warranty.

FALSE

A tort solely involves an intentional action that causes injury.

FALSE

According to historian Gary Cross, consumerism expresses a less powerful worldview than political ideologies.

FALSE

An implied warranty is a written warranty arising out of reasonable expectations that a product will both fulfill its ordinary purpose and fulfill the particular purpose of the buyer.

FALSE

Economist Thorstein Veblen argued that in the new industrial society, people earned their status by conquest in warfare.

FALSE

In the United States, the Progressive movement was the first movement to protect the consumers.

FALSE

The Environmental Protection Agency sets drinking water standards and also regulates bottled water.

FALSE

The Food and Drug Administration has the authority to regulate the quality, safety, and labeling of poultry, meat, eggs, and alcoholic beverages.

FALSE

The key to strict liability is that the injured person must prove negligence or breach of warranty to prevail in court.

FALSE

The president nominates two out of the five commissioners of the Federal Trade Commission.

FALSE

In common usage, what does consumerism refer to?

In common usage, consumerism refers to a movement to promote the rights and powers of the consumers in relation to sellers of products and services.

What does materialism mean?

Materialism is an emphasis on material objects or money that displaces spiritual, aesthetic, or philosophical values.

Define product liability.

Product liability is a doctrine in the law of torts that covers redress for injuries caused by defective products.

A tort is a private wrong committed by one person against another person or his/her property.

TRUE

A warranty is a contract in which the seller guarantees the nature of the product.

TRUE

According to critics of consumerism, it makes people judge other people for their external possessions rather than their interior qualities.

TRUE

Consumerism is a term that describes a society in which people define their identities by acquiring and displaying material goods beyond what they need for subsistence.

TRUE

Director interlock refers to a situation that arises when an individual sits on the board of directors of two or more corporations.

TRUE

Enlightenment led to the rise of the idea that human beings are ends in themselves.

TRUE

In 2009, Congress gave the Food and Drug Administration the power to regulate cigarettes and smokeless tobacco.

TRUE

Laws that prohibit retail stores from being open for business on Sundays are called blue laws.

TRUE

The Consumer Product Safety Commission has the power to ban the sales of products that expose consumers to unreasonable risks.

TRUE

The principle of caveat emptor imposes on buyers the responsibility to inspect carefully and skeptically items they purchase.

TRUE

Define individualism.

The idea, arising in the Enlightenment, that human beings are ends in themselves is known as individualism.