Question 1

The major thrust of trade practices legislation, from a consumer perspective, comes from its protection of marketing firms against product liability concerns.

Accepted Answer

The major thrust of trade practices legislation is to protect consumers from unfair or deceptive practices by businesses, not to protect marketing firms against product liability concerns. Product liability is covered under separate legislation.

Question 2

Australian research demonstrates that parents and teachers play a key role in building the nutritional expertise of children.

Accepted Answer

The statement is true according to Australian research. Parents and teachers have a significant role in shaping the nutritional knowledge and habits of children.

Question 3

Identify and describe the types of intervention that governments use in the interest of protecting the public from the practices of marketing firms.
-1. Regulation
2. Consumer education 
3. Encouragement of industry self-regulation
4. Incentives
5. Complaints handling

Accepted Answer

The answer of Identify and describe the types of intervention...

Question 4

Because compliance costs are ultimately borne by the consumer, legislators and governments now actively weigh the costs and benefits of enacting and enforcing consumer legislation.

Accepted Answer

Compliance costs, such as those for meeting consumer legislation requirements, are typically passed on to consumers in the form of higher prices. This has led legislators and governments to consider the overall costs and benefits of implementing such legislation to ensure they are in the best interest of consumers.

Question 5

Whyme Electrical Discounts advertises a TV that has had a large price reduction from a phoney high list price. Whyme Electrical Discounts is practicing deceptive pricing.

Accepted Answer

When a store advertises a "phoney high list price" and claims to have made a large price reduction, it is likely a deceptive pricing tactic to make customers believe they are getting a better deal than they actually are. This is illegal in many countries and is considered unethical business behavior.

Question 6

Manufactured food in Australia is required to list ingredients in descending order by weight except for water, which can be listed last.

Accepted Answer

This is correct as per the Food Standards Code of Australia and New Zealand. The ingredients in manufactured food are required to be listed in descending order by weight, with the exception of water which can be listed last. This allows consumers to be aware of the quantity of different ingredients in the product they are buying.

Question 7

The main purpose of corrective advertising is to improve the content of the advertisement with a view to broadening its market reach.

Accepted Answer

The main purpose of corrective advertising is to correct any false or misleading information in previous advertisements and to clarify any misperceptions that may have been created. It is not aimed at broadening the market reach, but rather at ensuring that consumers have accurate information and are not misled.

Question 8

An unfair advertisement contains explicit or implied claims or omissions that are likely to mislead a consumer into acting reasonably under the circumstances.

Accepted Answer

The answer of An unfair advertisement contains explicit or implied...

Question 9

Some firms have been involved with consumer education in the belief that educated consumers make better customers.

Accepted Answer

Many firms believe that by educating consumers about their products or services, they can improve customer satisfaction and sales. Educated consumers are more likely to make informed purchasing decisions and understand the value of the product or service, which can lead to better long-term relationships between the customer and the company. This approach is often seen in industries such as healthcare, technology, and finance, where complex products and services require an understanding of the benefits and risks involved.

Question 10

Corrective advertising can be both effective and ineffective. Some consumers tend to over-generalise the corrective message, so that they disbelieve all subsequent advertising claims for the brand and product category.

Accepted Answer

This statement is true as some consumers may have a negative reaction to corrective advertising and become skeptical of future advertising claims for the brand and product category, leading to decreased effectiveness.

Question 11

Because consumer legislation is always based on empirical consumer research findings, the effectiveness of consumer legislation in safeguarding consumer rights has proven to be highly successful.

Accepted Answer

Consumer legislation is not always based solely on empirical consumer research findings; it can also be influenced by political, economic, and social factors, which means its effectiveness in safeguarding consumer rights can vary.

Question 12

Research suggests that low-income consumers are more interested in the amount of interest they were charged, rather than the size and frequency of their loan repayments.

Accepted Answer

Research generally indicates that low-income consumers often focus more on the size and frequency of their loan repayments rather than the total amount of interest charged. This is because immediate cash flow concerns are typically more pressing for them than the total cost of the loan over time.

Question 13

When McDonalds changed their packaging from polystyrene to recyclable cardboard and paper in the 1990s, McDonalds was practicing green marketing.

Accepted Answer

McDonalds' decision to switch to recyclable materials for their packaging aligns with the principles of green marketing, which focuses on promoting environmentally responsible products and practices. Therefore, the statement is true.

Question 14

A)What is deceptive advertising? Describe the three categories of deception identified. Which category is the most difficult to determine and why?
B)What is corrective advertising? Is it effective?

Accepted Answer

The answer of A)What is deceptive advertising? Describe the three...

Question 15

Of the three categories of deceptive advertising, the category in which completely false claims are made intentionally is unconscionable lies.

Accepted Answer

Unconscionable lies are a type of deceptive advertising in which completely false claims are intentionally made.

Question 16

What is narrowcasting? Give examples, with particular reference to its use on the Web.

Accepted Answer

The answer of What is narrowcasting? Give examples, with particular...

Question 17

Unconscionable conduct includes taking advantage of people who, due to a lack of skills in English or for some other reason, do not understand the document involved.

Accepted Answer

Unconscionable conduct can involve exploiting a person's vulnerability or lack of understanding, which may include language barriers or other factors that make it difficult to comprehend documents.

Question 18

A)What are 'masked marketing' practices? 
B)Describe some of the types employed.

Accepted Answer

The answer of A)What are 'masked marketing' practices? 
B)Describe some...

Question 19

The Advertising Standards Board receives and adjudicates on consumer complaints about advertising, particularly in relation to taste, decency, health and safety.

Accepted Answer

The Advertising Standards Board deals with consumer complaints about advertising, with a focus on issues such as taste, decency, health, and safety.

Question 20

Consumer research has revealed a large segment of socially concerned consumers who favour products that have been modified to meet environmental concerns.

Accepted Answer

This statement indicates that consumer research has found a large segment of socially concerned consumers who prefer environmentally friendly products, which is likely to be true.

Quiz 16: Public policy and consumer protection