ethics True or False

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A psychological appeal is one that aims to persuade by appealing primarily to reason and not to human emotional needs

False

Economists favor legal paternalism because it prevents individuals from balancing safety against price

False

In the 1960 Hayes Henningsen v. Bloomfield Motors and the 1963 Case Green Man v. Yuba power products, injured consumers were awarded damages based on their providing that the manufacturers of the defective products were negligent.

False

The FTC now follows the reasonable-consumer standard in all matters of advertising, sales and marketing.

False

When advertisers conceal, facts they suppress information that is favorable to their products

False

business is right to insist that accidents occur exclusively as a result of product misuse in that is thereby absolved by all responsibility

False

legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals on their own good

False

"weasel words" are words used to evade or retreat from a direct or forthright statement

True

Anti-paternalism gains plausibility from the view that individuals know their own interests better than anyone else and that they are fully informed and able to advance those interests

True

Businesses' responsibility for understanding and providing for consumers needs derives from the fact that citizen-consumers are dependent on business to satisfy their needs

True

Defenders of advertising claim that, despite criticisms, advertising enjoys protection under the First Amendment as a form of speech

True

From the consumer's standpoint, one problems with implied warranties is that the law allows the seller to disclaim or limit the warranty in most circumstances

True

One decisive case in the legal transition away from the reasonable consumer standard in matters of advertising, sales and marketing was the FTC v. standard education

True

STRICT PRODUCT LIABILITY is the doctrine that the seller of a product has legal responsibilities to compensate the user of that product for injuries suffered due to the defective aspect of the product, even though the seller has not been negligent in permitting that the effect to occur

True

The nonlegal concept of due care is the idea that consumers and sellers do not meet as equals and that the consumer's interest are particularly vulnerable to being harmed by the manufacturer, who has knowledge and expertise the customer does not have

True

Congress has now outlawed puffery

false

In his books The Affluent Society and The New Industrial State, John Kenneth Galbraith argues that consumer wants to determine what gets produced.

false

The Fair Packaging and Labeling Act empowers represented agencies to ranking list all ingredients in the Order of the decreasing percentage of total contents

false

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

false

strict liability is the same thing as absolute liability

false

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

true

Subliminal advertising is advertisement that supposedly communicates at the level beneath our conscious awareness

true

The Federal Trade Commission (FTC) was established over 75 years ago to protect consumers against deceptive advertising

true

statistics indicated that the faith customers place in manufactures is often misplaced

true

the controversy over legal paternalism pits the values of individual freedom in autonomy against social welfare

true


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