Question 1

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 typically categorized under consumer products in the context of injury statistics; they are often considered separately under traffic-related incidents.

Question 2

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 3

All of the following are dimensions of quality except

Accepted Answer

The dimensions of quality include features (characteristics of the product/service), conformance (how well the product/service meets established standards), serviceability (ease of repair and maintenance), reliability (consistency of performance), durability (expected lifespan of the product/service), and perceived quality (customer perception of the product/service). Objectivity is not a recognized dimension of quality.

Question 4

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

Accepted Answer

"Caveat vendor" is Latin for "let the seller take care," meaning the seller is responsible for ensuring the product is safe and meets legal standards.

Question 5

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 6

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.

Question 7

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

Accepted Answer

The allegation that a product was produced under inhumane conditions is not typically made in product liability suits. The other three options (improper manufacturing, defective design, failure to provide satisfactory instructions) are common claims in such suits.

Question 8

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

Accepted Answer

"Caveat emptor" means "let the buyer beware" and was the legal view that prevailed in the 1800s, emphasizing that it was the buyer's responsibility to do their due diligence and make informed decisions, rather than relying solely on the seller's representations.

Question 9

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 10

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

Accepted Answer

All of the other principles are part of the top ten list of safety principles, as established by the Consumer Product Safety Commission. However, allowing a margin of error for the consumer is not one of the principles. The top ten list includes principles such as ensuring adequate warnings, training employees on safety, and reporting and investigating potential safety hazards.

Question 11

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

Accepted Answer

While it is important to ensure customers are satisfied with a product before purchasing it, encouraging them to try it out does not directly relate to safety. The other choices all directly relate to product safety and are included in the top ten principles of safety.

Question 12

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, aesthetics, perceived quality, and safety. Status is not included as a dimension of quality.

Question 13

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. The other options listed, such as the number of cases, propensity for people to sue, and growing size of financial awards, can all contribute to potential negative impacts on a company facing product liability.

Question 14

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 15

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

Accepted Answer

Legislation and regulation are not necessarily drivers of the quest to improve product and service quality, but rather a response to the need for increased regulation in cases where quality and safety standards are not being met. The other options are all drivers of the quest to improve quality, as they reflect market pressures, consumer expectations, and legal risk.

Question 16

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 the responsibility of businesses to exercise reasonable care in the products and services that they offer, taking into account the potential harm that could be caused to customers. This is particularly important when customers are vulnerable, such as when they lack information or are unable to protect themselves. The other options, contractual theory, social costs view, and caveat vendor, do not specifically focus on the vulnerability of customers.

Question 17

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

Accepted Answer

The other options (A, B, and C) are commonly cited as reasons for the current obsession with quality, while employee satisfaction is not typically included as a top reason.

Question 18

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 to ensure safety and minimize potential risks. It is a legal requirement for companies to exercise due diligence in their operations. A successful OSHA safety audit is only one aspect of due diligence, and studying a problem extensively may not necessarily cover all possible risks or adhere to industry standards.

Question 19

The primary responsibility for product safety lies with the

Accepted Answer

The producer, or manufacturer, is responsible for ensuring the safety of their products before they are sold to consumers. This includes conducting safety testing and providing warning labels for potential hazards. While the government and Consumer Product Safety Commission play a role in enforcing safety regulations and recalling products that pose a risk to consumers, the primary responsibility for product safety lies with the producer.

Question 20

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 in the question is strict liability. It holds anyone in the chain of distribution liable for harm caused to the user if the product sold was found to be unreasonably dangerous. Absolute liability is a more extreme form of liability where the defendant can be held liable even if they took all necessary precautions to avoid harm. Relative liability is not a recognized legal principle, and market share liability is a theory applied to cases involving multiple manufacturers of a similar product.

Quiz 14: Consumer Stakeholders: Product and Service Issues