Question 1

Consumer advocacy groups in the United States actively promote and speak for the interests of millions of consumers.

Accepted Answer

Consumer advocacy groups such as Consumer Reports, Public Citizen, and the National Consumer Law Center work to promote consumer safety and rights, and often lobby for legislation that benefits consumers.

Question 2

Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint?
A) Consumers Union.
B) Consumer Federation of America.
C) National Consumer League.
D) Public Citizen.

Accepted Answer

The Consumer Federation of America is the organization that brings together 300 nonprofit groups to espouse the consumer viewpoint. Consumers Union is a separate organization dedicated to providing unbiased product reviews and ratings. The National Consumer League focuses on advocating for consumer rights and protections, but does not bring together other nonprofit groups. Public Citizen also advocates for consumer rights but primarily focuses on issues related to healthcare, government accountability, and corporate responsibility.

Question 3

The Environmental Protection Agency's mission is to assure the safety and effectiveness of a wide range of consumer products including pharmaceutical drugs and foods.

Accepted Answer

While the EPA's mission is to protect human health and the environment, it does not have jurisdiction over consumer products such as pharmaceutical drugs and foods. That falls under the purview of other agencies such as the Food and Drug Administration (FDA).

Question 4

As business firms grow in size and market power, they have increasingly lost the ability to dominate marketplace transactions with their customers.

Accepted Answer

As business firms grow in size and market power, they often have more control over marketplace transactions and can dominate their customers to some extent.

Question 5

Which of the following statements is not true about the organization Consumers Union (the publisher of Consumer Reports magazine)?
A) It is involved in activities promoting the interests of consumers.
B) It conducts extensive tests on selected consumer products and services.
C) It is supported by the federal government.
D) It publishes the results of tests, with ratings on brand-name basis, in its magazine.

Accepted Answer

Consumers Union is not supported by the federal government. It is a non-profit organization that is funded by subscriptions and donations from consumers.

Question 6

Quality management emphasizes high quality and customer satisfaction through continuous improvement of a company's product or service at the final stages of the production process.

Accepted Answer

Quality management focuses on ensuring high quality and customer satisfaction through continuous improvement at all stages of the production process, not just the final stages.

Question 7

The consumer's right to privacy assures that information disclosed in the course of a commercial transaction is not shared with others unless authorized.

Accepted Answer

The consumer's right to privacy is recognized by various data protection and privacy laws worldwide. It mandates that personal information collected during a commercial transaction should be kept confidential and not shared with third parties unless explicitly authorized by the individual.

Question 8

One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits.

Accepted Answer

The answer of One reason for business efforts to reform...

Question 9

Deceptive advertising is still legal in most countries.

Accepted Answer

Deceptive advertising is illegal in most countries, as it misleads consumers and violates consumer protection laws.

Question 10

The doctrine of strict liability extends only to the retailer who is involved in selling the product, not the manufacturer.

Accepted Answer

The doctrine of strict liability extends to both the retailer and the manufacturer of a product. Both parties can potentially be held liable for any harm caused by their product, regardless of fault or negligence.

Question 11

The Department of Agriculture has authority over genetically modified food and some chemicals that may affect consumers.

Accepted Answer

The answer of The Department of Agriculture has authority over...

Question 12

Under the "right to be heard" protection, the consumer is to be assured satisfactory quality and service at fair prices.

Accepted Answer

The "right to be heard" ensures that consumers' interests will be considered in government policy-making and in the development of products and services, but it does not directly assure satisfactory quality and service at fair prices. That is more closely related to the "right to satisfaction of basic needs" and the "right to redress."

Question 13

Consumers have become more dependent on businesses for product quality because:
A) The complexity of products makes choices complicated for consumers.
B) Instructions for use or care of product are provided in clear and simple language.
C) Their technical competence allows them to inspect the products thoroughly.
D) Competition has forced manufacturers to market lower-quality goods.

Accepted Answer

The complexity of modern products, such as technology and electronics, can make it difficult for consumers to assess product quality on their own. They may have to rely on businesses to ensure products are of good quality and meet their needs.

Question 14

The Children's Online Privacy Protection Act limits the collection of information online from and about children under the age of 13.

Accepted Answer

The Children's Online Privacy Protection Act (COPPA) is a U.S. federal law that limits the collection of personal information online from and about children under the age of 13 without parental consent. It also requires website operators to clearly disclose their data collection practices and obtain parental authorization before collecting, using, or disclosing personal information from children.

Question 15

A goal of the consumer movement is to make consumer power:
A) Exceed the rights and powers of firms that sell goods and services.
B) Exceed the rights and powers of the Food and Drug Administration.
C) An effective counterbalance to the rights and powers of firms that sell goods and services.
D) An effective counterbalance to the rights and powers of the Food and Drug Administration.

Accepted Answer

The goal of the consumer movement is to give consumers a stronger voice in the marketplace and to create an effective counterbalance to the power of businesses. This means that consumers have the ability to influence companies through their purchasing power, and can demand better products, better customer service, and fairer business practices. It does not mean that consumer power should exceed the rights and powers of firms, but rather that consumers should have a say in how businesses operate and should be able to hold them accountable when they fail to meet their expectations.

Question 16

Consumers make less rational choices when they have accurate information about a product.

Accepted Answer

This statement is false. Consumers are more likely to make rational choices when they have accurate information about a product because they can evaluate the product based on its features, quality, and value. When consumers lack information or have inaccurate information, they may make choices based on incomplete or incorrect information, leading to less rational decisions.

Question 17

A prime social responsibility of business is to safeguard consumers:
A) While continuing to supply them with goods and services they want.
B) While maintaining high profit margins.
C) Interests by supplying consumers with products at the lowest possible cost.
D) With better health by providing new technology.

Accepted Answer

The prime social responsibility of business is to safeguard consumers while continuing to supply them with goods and services they want. This means that businesses must ensure that their products or services are safe, reliable, and meet the needs and expectations of their customers. While maintaining high profit margins and supplying goods at the lowest possible cost are important considerations for businesses, they are secondary to the primary responsibility of protecting the interests of consumers. Providing new technology that promotes better health is also important, but it is not the prime responsibility of business.

Question 18

In the "consumer self-help" approach to protecting consumer privacy rights, new government regulations will protect the consumer online.

Accepted Answer

The "consumer self-help" approach relies on consumers being empowered to protect their own privacy online through education, awareness, and the use of privacy-protecting tools and technologies. It does not rely on new government regulations.

Question 19

The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on alert to look after their own interests.

Accepted Answer

The phrase caveat emptor actually means "let the buyer beware", meaning that it is the responsibility of the buyer to be cautious and fully informed before making a purchase, rather than the seller's responsibility.

Question 20

Managing for product quality is an attempt by business to address its suppliers' needs.

Accepted Answer

Managing for product quality is an attempt by business to address customers' needs, not suppliers. It involves implementing processes and systems to ensure that products meet or exceed the expectations of customers.

Quiz 15: Consumer Protection