Question 1

The current legal view of "let the seller beware" is

Accepted Answer

"Caveat vendor" translates to "let the seller beware," which reflects a shift from the traditional "caveat emptor" (let the buyer beware) principle, indicating a legal environment where sellers must ensure their products or services meet certain standards and disclosures.

Question 2

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

Accepted Answer

While employee satisfaction is important for overall company success, it is not typically cited as a driving factor for the current obsession with quality. The other choices, including consumer demands, global competition, and the impact of the internet, are often cited as reasons for businesses to prioritize and focus on quality.

Question 3

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

Accepted Answer

Encouraging customers to try out a product before purchasing it may not necessarily be a principle of safety, but rather a marketing strategy. The other three answer choices are directly related to ensuring product safety.

Question 4

Due diligence means that a company

Accepted Answer

Due diligence refers to taking all possible precautionary steps and following industry standards. It is not necessarily related to producing a safe product or passing an OSHA safety audit, although those may be part of the process. Studying a problem extensively may be part of the due diligence process, but it alone does not fulfill the concept of due diligence.

Question 5

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

Accepted Answer

Allowing a margin of error for the consumer is not a recognized principle of safety. The other choices are all part of the top ten list of safety principles.

Question 6

The primary responsibility for product safety lies with the

Accepted Answer

The primary responsibility for product safety lies with the producer. This means that the company or individual responsible for designing, manufacturing, and distributing the product is accountable for ensuring that it meets safety standards and does not pose a risk to consumers. While government agencies like the Consumer Product Safety Commission play a role in regulating product safety and holding producers accountable, it is ultimately the producer that has the most direct control over ensuring that their products are safe. Consumers also have a responsibility to use products appropriately and follow any safety instructions or warnings provided.

Question 7

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

Accepted Answer

The answer of The fact that a company is responsible...

Question 8

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

Accepted Answer

The social costs view posits that if a product causes harm, the firm should bear the costs of any injury. This theory emphasizes the responsibility of businesses to not only their shareholders but also to the society at large, including taking care of the damages their products might cause.

Question 9

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

Accepted Answer

The dimensions of quality listed in the textbook include performance, durability, aesthetics, features, reliability, and perceived quality. Status is not listed as a dimension of quality.

Question 10

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

Accepted Answer

The number of trial attorneys being licensed is not a valid reason to be concerned about product liability. The other choices, such as the sheer number of cases, propensity to sue, and growing size of financial awards are all valid reasons to be concerned about product liability.

Question 11

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

Accepted Answer

Strict liability holds all parties involved in the production and distribution of a product responsible for any harm caused to the user if the product was found unreasonably dangerous or had a defect. This includes manufacturers, distributors, wholesalers, and retailers. Absolute liability and relative liability are not legal principles, and market share liability is a concept that applies specifically to cases involving pharmaceuticals.

Question 12

The meaning of product quality is uniform to all.

Accepted Answer

The meaning of product quality can vary among individuals and organizations depending on their standards, preferences, and expectations.

Question 13

All of the following are dimensions of quality except

Accepted Answer

The four dimensions of quality are features, conformance, serviceability, and reliability. Objectivity is not a dimension of quality.

Question 14

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

Accepted Answer

Cost controls are not a driver of the quest to improve product and service quality. While cost may be a consideration in improving quality, it is not the main driver. The demands of a competitive marketplace, an increasingly sophisticated consumer base, and the threat of product liability lawsuits all contribute to the push for better quality.

Question 15

The two central issues of goods and services are

Accepted Answer

Quality and safety are the two central issues concerning goods and services, as they directly impact consumer satisfaction and well-being.

Question 16

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

Accepted Answer

Among the given options, automobiles are not a consumer product category, but rather a mode of transportation. Therefore, they are not frequently associated with injuries requiring hospital treatment as a consumer product category.

Question 17

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

Accepted Answer

Allegations of inhumane production conditions are not typically cited in product liability cases. The most common claims in these lawsuits are that the product was either defectively designed or manufactured, or that the manufacturer failed to provide adequate instructions or warnings about its proper use.

Question 18

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

Accepted Answer

The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is the Due Care Theory. This theory emphasizes that businesses have a duty to take reasonable care to avoid harming their customers and to provide them with a safe product or service. It also recognizes that customers are often more vulnerable in the business relationship and therefore need extra protection. The other options are not directly related to customer vulnerability or duty towards customers.

Question 19

The legal view of "let the buyer beware" that prevailed throughout most of history was

Accepted Answer

The phrase "let the buyer beware" is commonly known as caveat emptor, which means that the buyer assumes the risk in a transaction and needs to beware of any defects or problems with what they are buying. This legal principle prevailed for most of history, until consumer protection laws were enacted to shift the responsibility to the seller.

Question 20

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

Accepted Answer

Contractual theory is based on the concept of duty and emphasizes the responsibilities of firms towards their customers, including compliance with the terms of sale, providing product information, ensuring no misrepresentation, and avoiding coercion.

Quiz 14: Consumer Stakeholders: Product and Service Issues.