CH 14 MGT

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called:

Consumers International.

An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a:

Cookie

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

Antitrust laws.

The primary goal(s) of the Food and Drug Administration include:

Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumer

The EU's 2018 General Data Protection Regulation applies to:

Companies anywhere who provide services to European customers

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits.

FALSE

Under the "right to be heard" protection, the consumer is guaranteed satisfactory quality and service at fair prices.

FALSE

Which of these is not a current consumer law that protects individual privacy?

Internet "do not track" rules.

The consumer's "right to privacy" assures that information disclosed in the course of a commercial transaction is not shared with others unless authorized.

TRUE

Many companies have argued that the evolution of strict liability has:

Unfairly burdened them with excess costs.

Which of the following describe why the consumer movement exists?

Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.

The Department of Agriculture has authority over vitamins and some minerals that may affect consumers.

FALSE

The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on alert to look after their own interests.

FALSE

The doctrine of strict liability extends only to the retailer who is involved in selling the product, not the manufacturer.

FALSE

Which of the following is not a goal of consumer protection laws?

Facilitate consumers' getting extended credit when making purchases.

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

The main responsibility of the National Highway Traffic Safety Administration is to:

Set motor vehicle safety standards

The Children's Online Privacy Protection Act limits the collection of information online from and about children under the age of 13.

TRUE

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

The Truth in Lending Act.

Industry "self-regulation" includes carrying out government mandated recalls.

FALSE

One problem with companies issuing product recalls is that the public is often unaware of them.

TRUE