ethics True or False
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