Chapter 15 Consumer Protection

33. I went to jail for violating the CAN-SPAM act. Who am I? A) Sarah Moreland B) Scott Karp C) Adam Vitale D) Alan Sanders

Adam Vitale

37. In 2000, how much did Americans spend on fast food? A) $6 billion B) 19 billion C) $43 billion D) $110 billion

$110 billion

35. An acronym for a way to resolve lawsuits without going to court is A) COP B) ADR C) ALJ D) EDL

ADR

32. Which hotelier agreed in 2000 to pay $8 million dollars to settle a class-action racial discrimination lawsuit. A) Hilton. B) Adam's Mark. C) Sheraton. D) Ramada Inn.

Adam's Mark.

38. What was the nickname of the bill introduced in 2005 to limit the fast food industry's liability? A) hamburger bill B) Cheeseburger bill C) McDonald's protection act D) McCheese bill

Cheeseburger bill

39. What company launched an advertising campaign in 2001 under the slogan "Live Richly" E) Citigroup F) Househould Financial Services G) JP Morgan H) EF Hutton

Citigroup

16. Which of the following is an NGO that represents over 220 consumer groups in 115 countries: A) Consumers Union. B) Consumers Abroad. C) Consumers International. D) Consumers Today.

Consumers International.

18. The "right to be heard" assures that: A) Consumers' interests will receive full and sympathetic consideration in the formulation of government policy. B) Consumers will be protected against fraudulent or misleading information. C) Consumers will be assured satisfactory quality and service at a fair price. D) Consumers will be given all the facts to make an informed choice.

Consumers' interests will receive full and sympathetic consideration in the formulation of government policy.

27. An identifying marker placed on a user's computer hard drive during visits to some Web sites is called a: A) Spy. B) Virus. C) Cookie. D) Firewall.

Cookie

1. In January, 2009, 19,000 people became ill by eating contaminated chicken. A) True B) False

False

11. In the United States, the legal system has generally looked unfavorably on consumer claims. A) True B) False

False

12. The CAN-SPAM effect went into effect in 2007. A) True B) False

False

14. In 2005, Congress passed a law which required most large class-action suits to be moved from federal to state court. A) True B) False

False

5. The right to satisfaction is generally considered the primary consumer right. A) True B) False

False

6. In the U.S. The FCC enforces the law prohibiting deceptive advertising. A) True B) False

False

8. The Federal Trade Commission's mission includes the safety and effectiveness of a wide range of consumer products, including pharmaceutical drugs, medical devices, foods and cosmetics. A) True B) False

False

25. 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? A) Federal Trade Commission. B) Food and Drug Administration. C) Consumer Product Safety Commission. D) Antitrust Division of the Department of Justice.

Federal Trade Commission.

23. Which of the following is true: A) Food manufacturers must list the number of calories in bottled foods. B) Labels may, but are not required, to list the amount of trans fat in foods. C) A food item must be deemed organic by the FDA to advertise itself as organic. D) A, B and C are all true.

Food manufacturers must list the number of calories in bottled foods.

20. Which of the following is not a reason for the consumer movement? A) Unreliable and unsafe products. B) Promotion of harmful products. C) Increased competition among corporations. D) Misleading advertising claims for some goods and services.

Increased competition among corporations.

34. Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure? A) Voluntary Product recalls B) Industry codes of conduct C) Consumer advocacy groups D) Alternative dispute resolution policies

Industry codes of conduct

22. Which of the following statements is not true about the organization Consumers Union (the publisher of Consumer Reports magazine)? A) It is involved in activities promoting the interests of consumers. B) It conducts extensive tests on selected consumer products and services. C) It is supported by the federal government. D) It publishes the results of tests, with ratings on brand-name basis, in magazines.

It publishes the results of tests, with ratings on brand-name basis, in magazines.

38. What company quickly removed an ad that referred to mothers who "wear their babies". A) McDonalds B) Pfizer C) Merck D) Johnson & Johnson

Johnson & Johnson

31. Which of the following was NOT part of the Class Action Fairness Act: A) The burden of proving liability was shifted to the consumer. B) Uniform standards were set up to determine liability. C) Judges rather than juries would determine the original amount of punitive damages. D) Most large class action suits were moved from state to federal court.

Judges rather than juries would determine the original amount of punitive damages.

24. Which of the following is not a responsibility of the Federal Trade Commission: A) Competitive pricing. B) Online Privacy. C) Packaging and labeling. D) Safety standards for consumer products.

Safety standards for consumer products.

28. The burden of responsibility for product performance has shifted to the producer, under the legal doctrine of: A) Strict liability. B) Product liability. C) Consumer liability. D) Supplier liability.

Strict liability.

36. What over the counter medicine is used to make methamphetamine A) Tylenol B) Nyquil C) Sudafed D) Nightall

Sudafed

21. Consumers have become more dependent on businesses for product quality because: A) The complexity of products makes choices complicated for consumers. B) Instructions for use or care of product are provided in clear and simple language. C) Their technical competence allows them to inspect the products thoroughly. D) Competition has forced manufacturers to market lower-quality goods.

The complexity of products makes choices complicated for consumers.

19. Which of the following consumer products is not a consumer right? A) The right to be protected. B) The right to be informed. C) The right to choose. D) The right to privacy.

The right to be protected.

17. Which of the following is (are) provisions for consumers under the consumer bill of rights? A) The right to safety. B) The right to be represented. C) The right to purchase. D) All of the above.

The right to safety.

29. According to the doctrine of strict liability, which of the following statements is not true? A) It is not necessary for consumers to prove negligence or breach of warranty by the producer. B) The consumer's own negligence is not an acceptable defense by the manufacturer. C) Manufacturers can be held liable if a product is inherently dangerous. D) This doctrine extends only to those involved in supplying parts for the final product.

This doctrine extends only to those involved in supplying parts for the final product.

26. Which of the following is a mission of the Food and Drug Administration? A) To assure the safety and effectiveness of a wide range of consumer products. B) To prohibit unfair or deceptive advertising. C) Toxic chemicals research. D) Inspection of meat, poultry, seafood, and produce.

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

10. Critics of consumer privacy self-regulation by the industry fear that the industry rules would be too weak. A) True B) False

True

13. Huge product liability verdicts, though often well publicized, are the exception not the rule. A) True B) False

True

15. Gun liability law suits have not fared well in Courts: A) True B) False

True

2. Companies such as MTV and McDonalds use "nueromarketing" to better understand how to boost the effectiveness of advertising. A) True B) False

True

3. After the fall of Communism, a consumer movement has blossomed in Central Europe. A) True B) False

True

4. Consumer advocacy groups in the United States actively promote and speak for the interests of millions of consumers. A) True B) False

True

7. Countrywide mortgage was the largest mortgage lender in The United States until it collapsed in July, 2008. A) True B) False

True

9. A "cookie" is an identifying mark placed on a user's computer hard drive during visits to some Web sites. A) True B) False

True

30. Many companies have argued that the evolution of strict liability has: A) Unfairly burdened them with excess costs. B) Decreased liability insurance rates. C) Increased corporate revenues and dividends. D) Changed top management's attitude about the consumer.

Unfairly burdened them with excess costs.