Deck 6: Community, Consumerism, and the Media

Question 1

Communities do have power over business with local laws and regulations that are heavily influenced and developed by community members who try to balance the power between community consumers and producers.

Answer 1

True

Question 2

Which statement about regulatory agencies is not correct?

A) The Consumer Product Safety Commission (CPSC) regulates protecting the public against unreasonable risks of injury associated with consumer products, through setting and enforcing safety standards.
B) The Federal Trade Commission (FTC) regulates unfair or deceptive acts or practices of business.
C) The Food and Drug Administration (FDA) regulates the safety of foods, drugs, cosmetics, and medical devices.
D) The National Highway Traffic Safety Administration (NHTSA) regulates how roads must be built to meet national standards to minimize the number of accidents.
E) The Securities and Exchange Commission (SEC) regulates the protection of investors; maintains fair, orderly, and efficient markets; and facilitates capital formation.

Answer 2

D

Question 3

A ________ is a contract in which the seller guarantees the integrity of the product, and the buyer is entitled to compensation for any consequent harm.

A) product
B) collaboration
C) consumer right
D) liability
E) warranty

Answer 3

E

Question 4

Which statement best describes the product liability litigation process and the parties involved?

A) Product liability litigation is the process of a business (offendant) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products.
B) Product liability litigation is the process of a consumer (offendant) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products.
C) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products or business actions.
D) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products but not from business actions.
E) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) through the federal court system to be compensated for harm resulting from defective products.

Question 5

___________ is the process of a consumer filing a lawsuit against a firm seeking compensation for harm resulting from defective products or business actions.

A) Consumer information
B) Product liability litigation
C) Defense for the current system
D) Company negligence
E) Absolute liability

Question 6

Which of the following is not one of the guidelines when dealing with the media issues?

A) Reality
B) Truth
C) Audience
D) Cover-up
E) Summary points

Question 7

Which of the following are elements of the business-community relationship?

A) Community power
B) Eminent domain
C) Layoffs and plant closings
D) Corporate social responsibility
E) International treaties

Question 8

Which of the following are community involvement programs?

A) Volunteer programs encourage and reward employees for doing work for community nonprofit organizations, sometimes during paid work hours.
B) Investment programs allow nonprofits to buy stock in companies at a discount rate but pay regular dividends.
C) Philanthropic programs give resources of products and services and finances of cash to the community.
D) CEOs contributing in stock option plans.
E) Collaborative partnership programs are voluntary relationships among business, social interest groups, and/or government to solve a social problem.

Question 9

Which statements are correct regarding customers and consumers?

A) Consumers do not use business products.
B) Customers of manufacturers of products are commonly retail stores.
C) People who buy gifts are consumers, and the recipients are customers.
D) If you use Facebook, you are a customer, not a consumer.
E) Customers and consumers can be the same.

Question 10

Which statements about warranties are correct?

A) An express warranty is an explicit claim made by the producer to the consumer.
B) An implicit warranty is an unwritten guarantee that the product is adequate to meet reasonable expectations for intended purposes.
C) A full warranty must express unconditional assurance that the product will be replaced or repaired within a reasonable time and without charge.
D) A limited warranty conditionally excludes certain parts of the product or particular types of defects from coverage.
E) An extended warranty is the same as an express warranty.

Question 11

Which of the following are criteria in making stories newsworthy?

A) They are of interest to the audience and have social significance.
B) They are about the negative side of people.
C) They are about immediate or urgent issues.
D) They include controversy or conflict.
E) They are easily told.

Question 12

Which of the following are roles for the media?

A) Business groups never complain about the media because they know that it is always fair and unbiased.
B) The media provide information for those in the market and nonmarket environment so that people know what is going on in the world, primarily so that business, society and government can make better decisions.
C) Factual stories report on why the story is important and what implications it has on society.
D) The media shape individual attitudes and values about issues that result in public sentiment.
E) The media are used to develop nonmarket issue agendas so that business, society and government can determine which issues they will pursue.

Question 13

What is community involvement and how important is It important to business?

Question 14

Describe the function of the Better Business Bureau.

Question 15

Name at least four of the major consumer protection agencies the textbook mentions.

Question 16

What role do the media play in business?

Question 17

The right to _______ gives consumers the assurance that a variety of products at competitive prices will be available whenever possible.

A) choose
B) have information
C) be heard
D) privacy
E) safety

Question 18

Which of the following is not a consumer right?

A) The right to safety protects consumers against products that are hazardous to their health and life.
B) The right to be informed protects consumers against the marketing of products through fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices.
C) The right to satisfaction assures consumers they will be satisfied with products they choose.
D) The right to be heard assures that consumer interests will receive full and sympathetic consideration in the formulation of government policies, laws, and regulation.
E) The right to privacy protects consumers from misuse of personal information.

Question 19

How many advocacy groups are concerned with consumer issues?

A) Only three
B) 15-20
C) Several dozen
D) 100
E) Several hundred

Question 20

Having a good corporate reputation for being socially responsible usually does not help with community relations.

Question 21

The Worker Adjustment and Retraining Notification Act (WARN) protects communities by requiring employers to provide notification 10 calendar days in advance of plant closings and mass layoffs.

Question 22

The role of the community relations department is to interact with community citizens and the news media, to develop community involvement programs, and to work with local governments.

Question 23

Companies rarely give away money to charitable organizations.

Question 24

The goal of the consumer movement is to counterbalance the power of business.

Question 25

Businesses must be members of the Better Business Bureau.

Question 26

The right to accurate information is based on the temptation of business to promote its products in the best light possible in order to sell more products.

Question 27

Consumer rights essentially came from President Richard Nixon.

Question 28

Product liability is the firm's legal responsibility for its actions and products, especially costs or damages.

Question 29

A warranty is a contract in which the seller guarantees that a customer will like the product.

Question 30

The term "defective" is open to interpretation in court.

Question 31

Most lawsuits regarding product liability make it to court.

Question 32

Advocacy stories support a position or course of action; they are commonly editorials.

Question 33

Which statement about the business-community interrelationship is not correct?

A) Community is everywhere in the world that a business sells its products and affects stakeholders.
B) Business needs community support with infrastructure, transportation systems, and public safety.
C) The community needs business for economic development, products, jobs, and tax revenues.
D) Community can include cyber communities on the Internet.
E) Having a good corporate reputation for being socially responsible does helps with community relations.

Question 34

______ is the government's ability to take private property for government use.

A) Community involvement
B) Corporate stewardship
C) Corporate interaction
D) Government intervention
E) Eminent domain

Question 35

When businesses give and lend their resources, including products and services, to help the community, it is referred to as _________.

A) advocacy advertisements
B) collaborative partnerships
C) diversity links
D) in-kind contributions
E) reciprocity

Question 36

_______ buy products from business, and _______use business products.

A) Consumers, advocates
B) Strategists, advocates
C) Customers, consumers
D) Philanthropists, customers
E) Consumers, customers

Question 37

What is media bias?