Question 1

The ethical theory based on the concept of duty that states that fmns 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

The contractual theory is based on the concept of duty and emphasizes the responsibilities of firms to adhere to the terms of the sale, inform customers about the product, avoid misrepresentation, and not coerce customers.

Question 2

All of the following are dimensions of quality except

Accepted Answer

The dimensions of quality are typically recognized as features, performance, reliability, conformance, durability, serviceability, aesthetics, safety, and perceived quality. Objectivity is not typically considered a dimension of quality.

Question 3

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 reason to be concerned about product liability, as it does not directly impact the number or severity of product liability cases. The other options are all valid reasons to be concerned, as they reflect the increasing frequency and severity of product liability cases and lawsuits.

Question 4

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

Accepted Answer

"Caveat emptor" means "let the buyer beware" in Latin and is a legal principle that places the burden of responsibility on the buyer to fully understand the product they are purchasing and to accept the risks that come with it. This principle prevailed throughout most of history and is still relevant today in some cases.

Question 5

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

Accepted Answer

Automobiles are not considered a consumer product category in the same way as the other options listed. While automobile accidents can certainly result in injuries requiring hospital treatment, they are not considered a product that consumers purchase for personal use or consumption.

Question 6

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 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 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

The legal principle described is strict liability. Under strict liability, anyone in the product's chain of distribution can be held liable for harm caused to the user if the product was unreasonably dangerous when it was sold, even if the seller or manufacturer took all possible precautions.

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 are performance, features, reliability, conformance, durability, serviceability, and aesthetics. Status is not considered a dimension of quality in the textbook.

Question 10

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 11

The primary responsibility for product safety lies with the

Accepted Answer

The primary responsibility for product safety lies with the producer, as they have control over the design, manufacturing process, labeling, and packaging of the product. However, government agencies such as the Consumer Product Safety Commission also play a role in regulating and enforcing product safety standards. While consumers have some responsibility to use products properly and follow safety instructions, the majority of the burden to ensure safe products falls on the producer.

Question 12

Due diligence means that a company

Accepted Answer

Due diligence means that a company has taken every possible precautionary step possible and followed all industry standards. It is a legal obligation for companies to exercise due diligence to prevent harm or damage to others. This includes doing research, testing, and implementing safety measures to ensure that their products or services are safe and comply with regulations.

Question 13

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

Accepted Answer

"Caveat vendor" is the legal principle meaning "let the seller beware," which is the opposite of "caveat emptor," meaning "let the buyer beware."

Question 14

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

Accepted Answer

All of the other choices are listed in the top ten list of safety principles, but allowing a margin of error for the consumer is not included as one of them.

Question 15

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 exercise reasonable care in their work and to avoid causing harm to their customers, who are often more vulnerable and less knowledgeable about the product or service being provided. The other options (contractual theory, social costs view, and caveat vendor) do not specifically address the vulnerability of the customer.

Question 16

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

Accepted Answer

The other options, A, B, and C, all relate to external factors and market pressures that have made quality a priority in business. However, employee satisfaction is not generally considered a driving force behind the focus on quality.

Question 17

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

Accepted Answer

The allegation that the product was produced under inhumane conditions is not commonly made in product liability suits. The other three choices - improper manufacturing, defective design, and failure to provide satisfactory instructions - are commonly alleged in such suits.

Question 18

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

Accepted Answer

This situation is an example of market share liability, which holds companies responsible for the damage caused by their products based on their share of the market. This is a way to attribute responsibility in situations where it may be difficult to identify the specific company that caused the harm. Strict liability imposes responsibility on a company regardless of fault, while absolute liability means that a company is responsible regardless of fault or market share. Relative liability is not a recognized term in legal liability.

Question 19

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

Accepted Answer

Encouraging customers to try out the product before purchasing it is not a principle of safety. The other options are included in the top ten principles of safety.

Question 20

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

Accepted Answer

The Tylenol case in the 1980s is an example of product tampering, where an unknown assailant injected cyanide into Tylenol capsules on store shelves, resulting in the deaths of several people.

Quiz 14: Consu1ner Stakeholders:product and Service Lssues