Deck 18: Public Policy Issues

Question 1

Courts are more likely to be understanding to manufacturers if a product injury was the result of a(n) _____.

A) design defect
B) manufacturing defect
C) inadequate material
D) inherent risk

Answer 1

D

Question 2

A firm may produce an acceptable product but may still get into trouble if it fails to provide adequate instructions for use or warnings against particular uses.

Answer 2

True

Question 3

Business firms deal with public policy issues that are restricted to just new products.

Answer 3

False

Question 4

Historically, product liability applied to goods, not services, and there have been many lost attempts to extend the law to cover services.

Question 5

The _____ is typically the last stage in the life cycle of a public concern that often lasts for years, and where general shifts in a country's political thinking may cause various issues to move into or out of the idle state.

A) trial support phase
B) regulatory adjustment phase
C) political arena phase
D) stirring phase

Question 6

New regulatory legislation is often precise and made exclusively to prevent a period of jockeying among adversaries.

Question 7

In terms of the seriousness of the potential suits and the costs of error, the most complex and frustrating problem that new product managers currently face is _____.

A) reverse engineering
B) product differentiation
C) product liability
D) mass customization

Question 8

In a product liability suit, lack of privity as a defense against negligence is acceptable.

Question 9

Which of the following is true of the stirring phase of the life cycle of a public concern?

A) It is characterized by a would-be leader and a muted cause seeking a political base.
B) It typically occurs when the opportunity for defusing the public concern has usually passed.
C) It is easy to identify this period, although most people ignore it.
D) It is characterized by a period of jockeying by adversaries.

Question 10

One of the key defenses available to a manufacturer in the case of a product liability suit is assumption of risk by a product user.

Question 11

The unauthorized production of goods that are protected by trademark, copyright, or patent is known as near brand usage.

Question 12

In many foreign markets, especially developing economies, the laws governing intellectual property protection and product piracy are very stringent.

Question 13

Which of the following is true of product liability?

A) Products with inherent risks are excluded from product liability.
B) Historically, it applied to goods and not to services.
C) It is applicable in cases where there is an assumption of risk.
D) It is particularly applied in cases of unforeseeable misuse.

Question 14

Identify the correct statement about the political arena phase of the life cycle of a public concern.

A) At this stage, the opportunity for defusing the public issue has already passed.
B) At this stage, a champion decides to take on the public issue as a cause.
C) It is characterized by a period of jockeying by the adversaries.
D) It is characterized by tentative expressions of concern by knowledgeable authorities.

Question 15

Sustainable design refers to either new product design or delivery that reduces negative impacts on the environment.

Question 16

An implied warranty is any statement of fact made by the manufacturer about a product, whether made by salespeople, retailers, or others.

Question 17

In the _____ of the life cycle of a public concern, individuals begin to sound off long before enough people have been injured or irritated to cause a general reaction.

A) trial support phase
B) stirring phase
C) political arena phase
D) regulatory adjustment phase

Question 18

With reference to the life cycle of a public concern, as public agitations over an issue increase, a champion may decide to take it on as a cause in the _____ phase of the cycle.

A) stirring
B) political arena
C) regulatory adjustment
D) trial support

Question 19

The concept of strict liability requires proof that a direct sale from the manufacturer to the injured user took place.

Question 20

A hair dryer lacking an overheat cutoff switch is an example of a product with inherent risk.

Question 21

According to the U.S. Trade Representation lists, the countries with the biggest piracy problem are currently:

A) Germany and Korea.
B) Britain and Canada.
C) Mexico and Japan.
D) China and Taiwan.

Question 22

The best success in sustainable product design occurs when firms:

A) align their business objectives with their environmental initiatives.
B) use raw materials that are scarce or hard to get.
C) pursue projects that have short-term environmental benefits.
D) try to prevent their environmentally responsible business practices from achieving revenue objectives.

Question 23

With reference to product liabilities, injuries caused as a result of inadequate materials and absence of safety devices would fall under the category of _____.

A) design defects
B) inherent risks
C) customer misuse
D) dangers after use

Question 24

Janet uses the Atlas brand of lawnmowers despite being aware of its potential defects. She neglects the defects and continues to use the product regardless of its dangers. In this case, the manufacturer of Atlas lawnmowers can use _____ as a defense against any strict liability claims.

A) assumption of risk
B) misrepresentation
C) warranty
D) inherent risk

Question 25

Under the concept of strict liability, the:

A) buyer is unjustified to depend on the seller being right.
B) seller of an item is required to make an implied warranty rather than an express warranty.
C) seller of an item has the responsibility for not putting a defective product on the market.
D) buyer needs to prove that there was direct sale from the manufacturer.

Question 26

Which of the following sources of product liability stems from a seller's promise that is unfulfilled?

A) Misrepresentation
B) Warranty
C) Negligence
D) Strict liability

Question 27

Simply offering a product for a given use is sufficient to create a(n):

A) proof of negligence.
B) misrepresentation liability.
C) explicit warranty.
D) implied warranty.

Question 28

Panaroma is a patented apparel brand. A manufacturer sells low quality apparel under a slightly different brand name "panoroma" that can cause confusion among customers. This scenario best illustrates _____.

A) embezzlement
B) brand cannibalization
C) near brand usage
D) defalcation

Question 29

During which of the following stages of the new products process are problem experts involved as players in the communications program?

A) Development
B) Concept generation
C) Project evaluation
D) Launch

Question 30

A manufacturer deals in jackets for motorcyclists. The jackets are sold in plastic covers that have a picture of a motorcycle racer wearing the jacket. Ryan, a motorcycle racer, buys one of these jackets to wear for a race. He meets with an accident during the race and gets seriously injured. He realizes that the jackets were not made to be used as safety gear for riding. In this scenario, which of the following legal bases for product liability should Ryan use to claim product liability?

A) Misrepresentation
B) Strict liability
C) Negligence
D) Warranty

Question 31

Which of the following statements is true of product recall?

A) Safety risks and corrective action are avoided during the recall stage.
B) Recall program coordinators should be cross-functional teams rather than individual members.
C) Recall notices mailed to consumers should resemble junk mail to enable risk assessment.
D) Final customers as well as intermediaries should be informed of the potential risks.

Question 32

With which of the following injury sources are inadequate quality techniques that may result in faulty product units, even if a product is well designed, most closely associated?

A) Failure to provide adequate instructions
B) Defects in manufacture
C) Inherent risks
D) Design defects

Question 33

A firm charged with strict liability in an injury case may seek to defend on the basis of:

A) misrepresentation of product.
B) unforeseeable misuse.
C) specialized legislation.
D) inadequate materials.

Question 34

The degree of puffing a court will allow in business is most closely related to:

A) express warranties.
B) quasi contracts.
C) negligent torts.
D) strict liabilities.

Question 35

A(n) _____ is best described as any statement of fact made by a manufacturer about a product, whether made by salespeople, retailers, or others.

A) implied warranty
B) express warranty
C) oblique warranty
D) assumed warranty

Question 36

Under the concept of _____, the seller of an item has the responsibility for not putting a defective product on the market.

A) inherent risk
B) assumption of risk
C) strict liability
D) express warranty

Question 37

Which of the following is true of counterfeiting as a means to product piracy?

A) Counterfeit goods range from low price and quality to excellent quality.
B) It involves making defamatory statements about established product brands.
C) It refers to a ban on copyrighted or patented goods or brands.
D) Counterfeited products have the manufacturer's original warranty.

Question 38

Which of the following is the primary task of a recall program coordinator for defective products?

A) Fighting strict liability claims on the firm's behalf
B) Communicating with the media and regulatory bodies
C) Writing complaint letters to political representatives
D) Making financial arrangements to sustain the loss

Question 39

_____ is best described as the unauthorized use of copyrighted or patented goods or brands.

A) Defalcation
B) Brand piracy
C) Brand cannibalization
D) Embezzlement

Question 40

In the context of common law in the 1880s, under the doctrine of _____, injury claimants had to prove that there was direct sale of a defective product from the manufacturer to the injured user for the user to claim product liability.

A) profitability
B) portability
C) privity
D) possession

Question 41

A concern facing product developers is the unlocked potential in developing markets or in Third-World countries. Elaborate on this statement.

Question 42

In _____, a manufacturer assumes all responsibility and is expected to pass along the costs somehow.

A) monopolistic approach
B) no-fault approach
C) trade-off approach
D) zero defects approach

Question 43

Even when a particular situation seems to have a clear-cut guiding principle, one often finds a contrary principle of equal merit and this is referred to as a(n) _____.

A) trade-off problem
B) legal recourse
C) ethical lapse
D) no-fault situation

Question 44

Describe with examples the various sources of injury that can cause product liability claims.

Question 45

What are the various ways in which a product can be protected against product piracy?

Question 46

Explain the legal bases for negligence and warranty claim with respect to product liability.

Question 47

Briefly trace the stages of the life cycle of a public concern.