Deck 14: Consumer Stakeholders: Product and Service Issues

Question 1

The challenge that management faces is to make products as safe as possible for the lowest possible cost.

Answer 1

False

Question 2

No matter how careful business is regarding the safety of its products,product liability suites are inevitable.

Answer 2

True

Question 3

The standard of absolute liability is less demanding than that of strict liability.

Answer 3

False

Question 4

The problem of product liability is largely confined to the United States.

Question 5

The "subjective calculation" for value is a comparison of quality received for the price spent.

Question 6

Under the doctrine of strict liability,there is no legal defense for placing on the market a product that is dangerous to a consumer because of a known or knowable defect unless an argument of due diligence is allowed.

Question 7

The Consumer Product Safety Commission's track record is one of stable operations and results.

Question 8

The Consumer Product Safety Commission is an independent laboratory that has power of persuasion only.

Question 9

Market share liability is rarely successful in current product liability lawsuits.

Question 10

The Food and Drug Administration and the CPSC have been controversial over the decades.

Question 11

Court cases and legal doctrine now make it clear that business is responsible for product safety.

Question 12

The Consumer Product Safety Commission is the only mechanism available for recalling unsafe products.

Question 13

The Food and Drug Administration grew out of the work of one man.

Question 14

The debate of product liability law will continue until tort reform is passed.

Question 15

Business's response to consumerism has consistently been to meet consumers' demands as quickly and effectively as possible.

Question 16

In a survey of households by Walker Research,the top three factors in customers' satisfaction with products were quality,price,and service.

Question 17

A basic premise of Total Quality Management (TQM)is that the product designer is the final judge of quality.

Question 18

Traditionally,the Food and Drug Administration's primary concern has been the "War on Drugs."

Question 19

Product liability is a major issue in all countries.

Question 20

By definition,quality does not include service.

Question 21

Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment?

A)sports and recreational activities
B)home structures and construction materials
C)home furnishings and fixtures
D)automobiles

Question 22

The ethical theory based on the concept of duty that suggests that if a product causes harm,the firm should pay the costs of any injury is

A)contractual theory.
B)due care theory.
C)social costs view.
D)caveat vendor.

Question 23

All of the following are dimensions of quality except

A)features.
B)conformance.
C)serviceability.
D)objectivity.

Question 24

The current legal view of "let the seller take care" is

A)caveat vendor.
B)e pluribis unum.
C)norvus ordo seclorum.
D)caveat emptor.

Question 25

The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called

A)strict liability.
B)absolute liability.
C)historical liability.
D)market share liability.

Question 26

The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale,inform the customer about the product,not misrepresent anything,and not coerce the customer is

A)contractual theory.
B)due care theory.
C)social costs view.
D)caveat emptor.

Question 27

Which of the following is not an allegation commonly made in product liability suits?

A)The product was improperly manufactured.
B)The product's design was defective.
C)The manufacturer failed to provide satisfactory instructions.
D)The product was produced under inhumane conditions.

Question 28

The legal view of "let the buyer beware" that prevailed in the 1800s was

A)caveat vendor.
B)e pluribus unum.
C)norvus ordo seclorum
D)caveat emptor.

Question 29

The two central issues of goods and services are

A)price and warranties.
B)reliability and durability.
C)quality and safety.
D)value and function.

Question 30

Which of the following is not one of the top ten list of safety principles?

A)Build safety into product design.
B)Educate consumers about product safety.
C)Allow a margin of error for the consumer.
D)Learn from your and others' mistakes.

Question 31

All of the following are in the top ten principles of safety except

A)fully investigate product safety incidents.
B)encourage customers to try out the product before purchasing it.
C)report product safety defects promptly.
D)track your product's safety performance.

Question 32

Which of the following is not a dimension of quality listed in the textbook?

A)performance
B)durability
C)status
D)aesthetics

Question 33

Reasons to be concerned about product liability include all of the following except

A)the sheer number of cases.
B)the number of trial attorneys being licensed.
C)the propensity of people to sue when they are unhappy.
D)the growing size of financial awards.

Question 34

The meaning of product quality is uniform to all.

Question 35

Which of the following is not a driver of the quest to improve product and service quality?

A)the demands of a competitive marketplace
B)legislation and regulation
C)an increasingly sophisticated consumer base
D)the threat of product liability lawsuits

Question 36

The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is

A)contractual theory.
B)due care theory.
C)social costs view.
D)caveat vendor.

Question 37

All of the following are reasons given for the current obsession with quality except

A)the average consumer demands more.
B)global competitiveness.
C)the Internet.
D)employee satisfaction.

Question 38

Due diligence means that a company

A)has done sufficient preparatory work to produce a safe product.
B)the company has successfully passed an OSHA safety audit.
C)has taken every possible precautionary step possible and followed all industry standards.
D)has studied the problem extensively.

Question 39

The primary responsibility for product safety lies with the

A)consumer.
B)government.
C)producer.
D)Consumer Product Safety Commission.

Question 40

The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is

A)strict liability.
B)absolute liability.
C)relative liability.
D)market share liability.

Question 41

The Food and Drug Administration is involved in the regulation of

A)pet food.
B)weight loss programs.
C)dietary supplements.
D)fast foods.

Question 42

Six Sigma practitioners believe in fixing the ____ rather than the ____.

A)practice;theory
B)product;worker
C)process;product
D)worker;customer

Question 43

The Food and Drug Administration regulates all of the following except

A)food.
B)drugs.
C)cosmetics.
D)personal care products.

Question 44

The focus of total quality management programs is

A)quality.
B)the customer.
C)efficiency.
D)worker satisfaction.

Question 45

Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products?

A)developing voluntary standards within an industry
B)issuing and enforcing mandatory standards
C)lobbying Congress to pass new consumer protection laws
D)conducting research on potential product hazards

Question 46

One of the strengths of Six Sigma program's has been its

A)laser-like focus on worker satisfaction.
B)increase in customer loyalty.
C)contribution to research in production quality.
D)clarity of process and the steps companies must take to adopt it.

Question 47

Which of the following is not part of the FDA's mission?

A)to help identify and develop new foods and drugs
B)to promote the public health
C)to protect the public health
D)to help reduce the burden of regulation

Question 48

Business's response to consumerism over time has been one of

A)benign neglect.
B)rapid response.
C)ineffective action,followed by improved responses.
D)extreme care.

Question 49

Programs that attempt to blend all of the functions of a business into a holistic,integrated philosophy built around teamwork,productivity,and customer satisfaction are called

A)Six Sigma programs.
B)total care programs.
C)total quality management programs.
D)customer focus programs.

Question 50

The body of methodologies and techniques for achieving quality that focuses on the number of defects is called

A)Seven Standards.
B)Six Smith.
C)Six Sigma.
D)Seven Severance.

Question 51

The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except

A)banning consumer products.
B)passing legislation outlawing products.
C)obtaining recall of products.
D)informing and educating consumers.

Question 52

Early research conducted in the organization later known as the Food and Drug Administration fed small doses of poison to

A)rats.
B)chimpanzees.
C)the "Death Squad."
D)the "Poison Squad."

Question 53

Which of the following is not an activity engaged in by the Food and Drug Administration?

A)analysis
B)promotion
C)surveillance
D)correction

Question 54

The Tylenol case in the 1980s,in which capsules were injected with cyanide,is an example of

A)product extortion.
B)product liability.
C)product tampering.
D)product packaging.

Question 55

Businesses have responded to consumer activism with all of the following efforts except

A)toll-free hot lines.
B)user-friendly Web sites.
C)rebate and discount programs.
D)consumer representatives.

Question 56

The initial part of the total quality management process is to

A)define quality in terms of customer expectations and requirements.
B)develop standards and specifications for quality.
C)design efficient production processes.
D)develop customer satisfaction surveys.

Question 57

The Food and Drug Administration is part of

A)Housing and Urban Development.
B)the Health and Human Services Department.
C)the Interstate Commerce Commission.
D)the Federal Trade Commission.

Question 58

Business claims that current product liability law suffers from all of the following problems except

A)inefficiency.
B)bias.
C)raising the costs of litigation.
D)imposition of a hidden tax on consumers.

Question 59

A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to

A)strict liability.
B)absolute liability.
C)relative liability.
D)market share liability.

Question 60

An important criticism of total quality management is that it

A)tried to do too much.
B)never did anything to define quality.
C)actually took focus off of the customer.
D)focused too much on adherence to standards,taking the enjoyment out of work.

Question 61

The driving force behind guidelines for product liability is which of the following?

A)legal responsibility
B)selling products
C)ethical reasoning
D)immoral people

Question 62

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What have been the impacts of new leadership in the CPSC?

Question 63

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Law judge Roy Pearson and Jack Cline have both experienced issues of product liability according to the text.What is the double-edged sword of tort reform?

Question 64

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the legal doctrine of absolute liability.

Question 65

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Summarize the total quality management process.

Question 66

TQM must emphasize all of the following except?

A)leadership
B)individualism
C)recognition
D)communication

Question 67

With respect to service,consumers are concerned with which of the following?

A)performance
B)building time
C)provider attributes
D)durability

Question 68

Which of the following is not an FDA congressional milestone?

A)The Federal Food,Drug,and Cosmetic Act of 1938
B)The Kefauver-Harris Amendments of 1962
C)The Medical Device Amendments of 1976
D)The Civil Rights Act of 1964

Question 69

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What group(s)did Congress originally intend to be the primary participants in the Consumer Product Safety Commission's decision making process? Was that the "right" stance? What has happened to that stance in recent years?

Question 70

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the major contributions that Six Sigma can make to the business/consumer relationship.

Question 71

Customer service is provided by all of the following except?

A)passing the buck
B)offices of consumer affairs
C)warranties
D)money back guarantees

Question 72

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Analyze the situation involving Dr.Jane Henney,the Food and Drug Administration,RU486,and the second Bush administration.

Question 73

Which of the following is not impacted by tort risk?

A)relocation of a new plant
B)selling products
C)expanding operations
D)introducing a new product

Question 74

The Consumer Product Safety Improvement Act of 2008 does not cover which of the following?

A)ATVs
B)labeling of toys
C)cotton
D)lead

Question 75

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why are the food and manufacturing industries particularly susceptible to product liability suits?

Question 76

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why do businesses want a uniform product liability code?

Question 77

Provide a short answer to each of these questions.Be sure to fully explain your answer.
The Food and Drug Administration may be asked to regulate the pet food industry,over the objections of some who claim that to do so would be a way to protect the industry.Evaluate both sides of this debate.

Question 78

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What has caused the expansion of the doctrine of strict liability concept?

Question 79

Essential aspects of quality include which of the following?

A)advertising
B)color
C)attributes
D)durability

Question 80

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What two issues hurt Toyota when the public learned of its recalls due to runaway acceleration problems? What does this illustrate?