Question 1

Which of the following is true of public interest and public policy?

Accepted Answer

A)  Public interest promotes behaviour complying with the public consensus, while public policy refers to the idea that certain activities affect the entire social structure. 
B)  Public interest is the consensus and public policy is the coercive social engineering strategy by which that consensus is implemented. 
C)  Public interest promotes the making of safe goods to coerce the public policy to maintain a social structure that promotes health and safety, and prevents illness and injury. 
D)  To meet the goal of public policy, public interest insists that manufacturers, sellers, and distributors compensate a victim, who is injured by an unsafe product. 
A)  Public interest promotes behaviour complying with the public consensus, while public policy refers to the idea that certain activities affect the entire social structure. 
B)  Public interest is the consensus and public policy is the coercive social engineering strategy by which that consensus is implemented. 
C)  Public interest promotes the making of safe goods to coerce the public policy to maintain a social structure that promotes health and safety, and prevents illness and injury. 
D)  To meet the goal of public policy, public interest insists that manufacturers, sellers, and distributors compensate a victim, who is injured by an unsafe product. B

Question 2

The prime target of the ____________ has been handguns.

Accepted Answer

A)  Consumer Product Safety Act 
B)  dangerous per se rule 
C)  telemarketing sales rule 
D)  negative option rule 
A)  Consumer Product Safety Act 
B)  dangerous per se rule 
C)  telemarketing sales rule 
D)  negative option rule B

Question 3

Robin orders merchandise from Internet Enterprises. If no delivery date is promised, Internet must ship the merchandise within ten days.

Accepted Answer

A) True 
 B)False  False

Question 4

A plaintiff in a strict liability case may not recover punitive damages.

Accepted Answer

A) True 
 B)False

Question 5

A 900 telephone number bills the consumer for the telephone charge.

Accepted Answer

A) True 
 B)False

Question 6

A successful plaintiff in a product liability suit always recovers punitive damages.

Accepted Answer

A) True 
 B)False

Question 7

A child is injured after swallowing a piece of glass hidden in a jar of jam. A court will award money for the injuries suffered only if the child or the child's parents purchased the jam.

Accepted Answer

A) True 
 B)False

Question 8

Dillon received a call from a 900 telephone number and called it back without knowing that she would have to pay for the call. The telemarketer did not warn her about the cost of the call. She realized, for the first time when she received the telephone bill, that there was a charge for the call. Discuss.

Accepted Answer

The FTC regulations require that telemar

Question 9

Jackson Motors tells Sue, a consumer, that Bliss Automobiles are made with metal bodies when they are in fact made of fiberglass. This would be considered a(n):

Accepted Answer

A)  fraudulent misrepresentation. 
B)  sales puffery. 
C)  bait-and-switch scheme. 
D)  act of dunning. 
A)  fraudulent misrepresentation. 
B)  sales puffery. 
C)  bait-and-switch scheme. 
D)  act of dunning.

Question 10

The ____________ is an attempt by the federal government to reduce the use of unsolicited commercial e-mails on the Internet.

Accepted Answer

A)  Can Spam Act 
B)  Mail and Telephone Order Rule 
C)  Truth-in-Mailing Act 
D)  Anti-Slamming Law 
A)  Can Spam Act 
B)  Mail and Telephone Order Rule 
C)  Truth-in-Mailing Act 
D)  Anti-Slamming Law

Question 11

Which of the following is true of the "Cooling-Off" Rule?

Accepted Answer

A)  It gives consumers an opportunity to change their minds after signing contracts with people who come to their homes for product sales. 
B)  It allows sales of consumer goods or services under $25, made away from the seller's place of business, to be cancelled within three business days after the sale. 
C)  It requires the seller to give the buyer one copy of a cancellation form, which the buyer may send to the seller any time before the third business day after the sale. 
D)  It does not apply to consumer product parties given in private homes and to sales made in rented hotel rooms or restaurants. 
A)  It gives consumers an opportunity to change their minds after signing contracts with people who come to their homes for product sales. 
B)  It allows sales of consumer goods or services under $25, made away from the seller's place of business, to be cancelled within three business days after the sale. 
C)  It requires the seller to give the buyer one copy of a cancellation form, which the buyer may send to the seller any time before the third business day after the sale. 
D)  It does not apply to consumer product parties given in private homes and to sales made in rented hotel rooms or restaurants.

Question 12

Under the doctrine of strict liability, when a product is obviously dangerous, a manufacturer has no duty to warn consumers of potential injuries.

Accepted Answer

A) True 
 B)False

Question 13

Congress passed the ____________ which requires lenders to disclose the finance charge and the annual percentage rate.

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Equal Credit Opportunity Act 
C)  Truth-in-Lending Act 
D)  Fair Debt Collection Practices Act 
A)  Fair Credit Reporting Act 
B)  Equal Credit Opportunity Act 
C)  Truth-in-Lending Act 
D)  Fair Debt Collection Practices Act

Question 14

Joslin orders merchandise by phone from Marginal Enterprises with no stated delivery date. When she does not receive it after a month, she contacts Marginal who indicates that due to a strike at their production plant, delivery that normally takes one month will take two months. Discuss Joslin's legal options.

Accepted Answer

If the order is not shipped within thirt

Question 15

An FTC order, under which a company agrees to stop a disputed practice without necessarily admitting that it violated the law, is called a consent order.

Accepted Answer

A) True 
 B)False

Question 16

The purpose of a bait-and-switch scheme is to switch customers from buying the advertised merchandise to buying something else that is usually more expensive.

Accepted Answer

A) True 
 B)False

Question 17

Jasmine discovered that she had been slammed by her old company, Voicetone, after she had paid her telephone bill to the company, Distant Enterprise. Discuss Jasmine's legal rights.

Accepted Answer

FCC rules state that Distant E

Question 18

According to the Consumer Product Safety Act, interstate commerce consists of local business activity carried on within state boundaries.

Accepted Answer

A) True 
 B)False

Question 19

The Federal Trade Commission requires used car dealers in most states to display statements that the cars are sold "as is" if the cars are sold with no warranties.

Accepted Answer

A) True 
 B)False

Question 20

The FTC's "Cooling-Off" Rule applies to sales that are entered completely by phone or by mail.

Accepted Answer

A) True 
 B)False

Exam 15: Product Liability and Consumer Protection

Which of the following is true of public interest and public policy?

The prime target of the ____________ has been handguns.

Robin orders merchandise from Internet Enterprises. If no delivery date is promised, Internet must ship the merchandise within ten days.

A plaintiff in a strict liability case may not recover punitive damages.

A 900 telephone number bills the consumer for the telephone charge.

A successful plaintiff in a product liability suit always recovers punitive damages.

A child is injured after swallowing a piece of glass hidden in a jar of jam. A court will award money for the injuries suffered only if the child or the child's parents purchased the jam.

Jackson Motors tells Sue, a consumer, that Bliss Automobiles are made with metal bodies when they are in fact made of fiberglass. This would be considered a(n):

The ____________ is an attempt by the federal government to reduce the use of unsolicited commercial e-mails on the Internet.

Which of the following is true of the "Cooling-Off" Rule?

Under the doctrine of strict liability, when a product is obviously dangerous, a manufacturer has no duty to warn consumers of potential injuries.

Congress passed the ____________ which requires lenders to disclose the finance charge and the annual percentage rate.

An FTC order, under which a company agrees to stop a disputed practice without necessarily admitting that it violated the law, is called a consent order.

The purpose of a bait-and-switch scheme is to switch customers from buying the advertised merchandise to buying something else that is usually more expensive.

Jasmine discovered that she had been slammed by her old company, Voicetone, after she had paid her telephone bill to the company, Distant Enterprise. Discuss Jasmine's legal rights.

According to the Consumer Product Safety Act, interstate commerce consists of local business activity carried on within state boundaries.

The Federal Trade Commission requires used car dealers in most states to display statements that the cars are sold "as is" if the cars are sold with no warranties.

The FTC's "Cooling-Off" Rule applies to sales that are entered completely by phone or by mail.

Ethics, Social Responsibility, and the Law

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Alternate Dispute Resolution

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The Essentials of Contract Law

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Capacity and Legality: The Final Elements

Written Contracts and Cyber-Commerce

Third Parties, Discharge, and Remedies

Sales Contracts: Formation, Title, and Risk of Loss

Sales Contracts Rights, Duties, Breach, and Warranties

The Nature of Negotiable Instruments

Holders in Due Course Defenses and Liabilities

Bank-Depositor Relationships and Cyber-Banking

Insurance

Mortgages and Security Interests

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