Deck 20: Public Policy Issues

Question 1

A steam vaporizer whose center of gravity is so high that the unit is likely to spill is an example of inherent risk.

Answer 1

False

Question 2

Some economists believe market dominance constitutes monopoly and outstanding new products can lead to market dominance.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Most industries aggressively greet every legislative thrust on new products,and vigorous public affairs programs are standard fare.

Question 6

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

Question 7

Traditionally,the uniquely personal nature of services subjected the suppliers of such offerings to much greater exposure to product liability actions than was faced by producers of goods.

Question 8

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

Question 9

A NAFTA agreement requires trading partners to enforce intellectual property rights.

Question 10

Generally,green product innovation refers to development of a low cost version of a successful product.

Question 11

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

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

Question 12

The primary thrust of the trial support stage of the cycle of a public concern is the search for _____.

A)supporters
B)media coverage
C)a political base
D)financial help

Question 13

Typically,this is the last stage in the cycle of 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
B)Regulatory adjustment
C)The political arena
D)Stirring

Question 14

Legislative and / or regulatory solutions to public concerns always provide clear and precise guidelines for all parties involved.

Question 15

Currently,product design is the most complex and frustrating of the social / legal problems faced by firms.

Question 16

Managements today demand tough standards,rigorous auditing at all points,good record keeping,and training of new product employees.

Question 17

A manufacturer 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.

Question 18

In a product liability suit,lack of privity as a defense against negligence is not acceptable.

Question 19

During the _____ stage of the cycle of a public concern,companies must gird up for battle in state and / or federal legislatures or in the various regulatory areas.

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

Question 20

In this phase 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
B)Stirring
C)The political arena
D)Regulatory adjustment

Question 21

Generally,_____ product innovation refers to either new product design or delivery that reduces negative impacts on the environment.

A)white
B)natural
C)green
D)social

Question 22

The manufacturer needs to provide adequate instructions for use or warnings against particular uses of a product.These warnings should:

A)be accompanied by statements that the product is safe.
B)be placed conspicuously on the product.
C)be extremely brief.
D)not communicate the level of danger.

Question 23

Which of the following is the biggest complaint against the laws governing product liability?

A)It ignores customer changes to the product that led to the injury.
B)It is based on assumption of risk.
C)The definition of unforeseeable misuse is extremely narrow.
D)It has a negative impact upon the willingness to innovate.

Question 24

Under the doctrine of _____,injury claimants had to prove that there was direct sale from the manufacturer to the injured.

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

Question 25

The concept of _____ liability holds that a seller is responsible for keeping defective products off the market.

A)legal
B)assumed
C)strict
D)implicit

Question 26

Which of the following sources of product liability stems from a promise that is NOT fulfilled?

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

Question 27

Which of the following tasks is most likely to be performed by a recall program coordinator?

A)Assessing the safety risk
B)Communicating to the media and to regulatory bodies
C)Taking the corrective action
D)Making financial arrangements to sustain the loss

Question 28

Which of the following best represents express warranty?

A)An instruction for use
B)Absence of a safety device
C)A statement of fact made by the manufacturer about a product
D)Information regarding an inherent risk

Question 29

Traditionally,product liability has been applied to all of the following EXCEPT:

A)manufactured products.
B)services.
C)consumer goods.
D)industrial goods.

Question 30

A wagon maker failed to attach a wheel securely to the axle.The wheel came off and the driver was injured.This is an example of:

A)assumption of risk.
B)misrepresentation.
C)negligence.
D)unforeseeable misuse.

Question 31

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

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

Question 32

Which of the following statements is NOT true about product recall?

A)Any firm may one day face a product recall.
B)A cross functional team should be designated as the recall program coordinator.
C)To ensure that it is handled successfully,steps can be taken prior to recall.
D)During the recall,safety risks should be assessed and corrective action taken.

Question 33

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

A)assumption of risk.
B)unforeseeable misuse.
C)nondefective product.
D)inadequate materials.

Question 34

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)defects in manufacture

Question 35

Currently the most complex,frustrating,and potentially costly problem facing new product managers is _____.

A)innovation
B)product recall
C)product liability
D)product standardization

Question 36

A manufacturer is most likely to be held liable for injuries caused by a "perfect" product if the injury was the result of:

A)misrepresentation.
B)unforeseeable misuse.
C)assumed risk.
D)unintended use.

Question 37

"Puffing" is most closely related to:

A)express warranties.
B)design defects.
C)manufacturing defects.
D)strict liability.

Question 38

A new product is said to harm the environment in all of the following cases EXCEPT if:

A)its raw materials are scarce or hard to get.
B)its design is not compatible with breakthrough technology.
C)its use causes pollution.
D)recycling cannot deal with its disposal.

Question 39

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

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

Question 40

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

Question 41

A firm announces that its product has been pirated and that only the real thing offers top value and should be sought out.The firm is most likely to be protecting itself against product piracy through _____.

A)communication
B)legal recourse
C)labeling
D)piracy as promotion

Question 42

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

Question 43

Managements educate company personnel about new products through:

A)labels.
B)how-to sheets.
C)additional instructional advertising.
D)ombudsmen.

Question 44

What is product piracy? What are the various types of product piracy?

Question 45

Explain the terms "express warranty" and "implied warranty."

Question 46

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

Question 47

In this approach,the 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 48

This is the unauthorized production of goods that are protected by trademark,copyright,or patent.Such goods range from low price and quality to excellent quality;often a giveaway is that the product lacks the manufacturer's original warranty.Identify the type of product piracy in discussion.

A)Counterfeiting
B)Brand piracy
C)Near brand usage
D)Intellectual property copying

Question 49

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

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

Question 50

Some firms have begun market testing in _____ to pass what is felt to be the world's toughest greenness test.

A)Canada
B)Britain
C)America
D)Germany

Question 51

The best success in green product development occurs when:

A)the firm aligns its business objectives with its environmental initiatives.
B)the firm establishes a separate department to look after the environmental concerns.
C)all the employees in the firm are aware about environmental concerns.
D)the firm avoids dealing with channel partners who violate laws related to environment protection.

Question 52

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

A)Counterfeiting
B)Brand piracy
C)Near brand usage
D)Intellectual property copying

Question 53

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

Question 54

In this type of product piracy,the pirate manufacturer uses slightly different brand names such as Chanel fragrances,Panasonic camcorders,or Tommy Hilfiger clothes.

A)Counterfeiting
B)Brand piracy
C)Near brand usage
D)Intellectual property copying

Question 55

_____ often leads us to explore the minds of customers to find something they want or will want when they hear about it.

A)Brainstorming
B)Situation analysis
C)Concept generation
D)Prototyping