Question 1

Private parties can enforce the FTC regulations on comparative ads.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is $\underline{\text{not}}$  regulated by the FTC?

Accepted Answer

A) content accuracy 
B) celebrity endorsements 
C) performance claims 
D) express warranties 
E) All of the above are regulated by the FTC. 
A) content accuracy 
B) celebrity endorsements 
C) performance claims 
D) express warranties 
E) All of the above are regulated by the FTC.

Question 3

Which of the following is $\underline{\text{not}}$ an express warranty?

Accepted Answer

A) "fireproof" 
B) "waterproof" 
C) "puncture-proof" 
D) All of the above are express warranties. 
A) "fireproof" 
B) "waterproof" 
C) "puncture-proof" 
D) All of the above are express warranties.

Question 4

Takata manufactures air bags that are sold to automakers for installation in their vehicles.A series of Takata air bags were prone to explosion,and resulted in the recall of 19 million vehicles in the United States,8 deaths,and hundreds of injuries.When the air bags explode,they send shrapnel throughout the vehicles.
-Some employees at Takata have come forward to reveal that they were aware that there were problems with the air bags and that the testing data may have been altered to minimize the likelihood of an explosion of the air bags.This information:​

Accepted Answer

A) ​is not needed to establish a Section 402A product liability case. 
B) ​could be the type of information that could result in punitive damages. 
C) will exonerate the car manufacturers from liability to victims. 
D) both a and b 
E) none ofthe above 
A) ​is not needed to establish a Section 402A product liability case. 
B) ​could be the type of information that could result in punitive damages. 
C) will exonerate the car manufacturers from liability to victims. 
D) both a and b 
E) none ofthe above

Question 5

Which of the following $\underline{\text{not}}$  constitute an express warranty?

Accepted Answer

A) "This car will give you a great deal of satisfaction." 
B) "This car is equipped with Michelin radial tires." 
C) "This car goes from 0 to 60 mph in 10 seconds." 
D) All of the above are express warranties. 
A) "This car will give you a great deal of satisfaction." 
B) "This car is equipped with Michelin radial tires." 
C) "This car goes from 0 to 60 mph in 10 seconds." 
D) All of the above are express warranties.

Question 6

The implied warranty of merchantability (unless disclaimed)is given in every sale of goods by a merchant.

Accepted Answer

A) True 
 B)False

Question 7

Corrective ads can be required only when competition is affected.

Accepted Answer

A) True 
 B)False

Question 8

The Federal Trade Commission is responsible for the regulation of deceptive advertising.

Accepted Answer

A) True 
 B)False

Question 9

The FDA tested a vitamin supplement and found that it contained 21% anabolic steroids.The label does not include a disclosure about the presence of steroids.What are the remedies available against the company?​

Accepted Answer

A) ​injunction to halt sales 
B) ​correction of the labels 
C) recall of the product 
D) all of the above 
A) ​injunction to halt sales 
B) ​correction of the labels 
C) recall of the product 
D) all of the above

Question 10

Which of the following issues in advertising $\underline{\text{not}}$ regulated by the FTC?

Accepted Answer

A) accuracy of ad content 
B) accuracy of performance claims 
C) celebrity endorsements 
D) All of the above are regulated by the FTC. 
A) accuracy of ad content 
B) accuracy of performance claims 
C) celebrity endorsements 
D) All of the above are regulated by the FTC.

Question 11

Dam Good Adventures operates a helicopter tour business near Lake Mead,Nevada.Lake Mead is the site of Hoover Dam.Dam Good has purchased 5 helicopters over the 27 years it has been in business and its mechanic has rebuilt the engines on all of the helicopters.In addition,Dam Good's mechanic has altered the timing mechanisms on the helicopters so that they are able to hover longer and with less noise,two features that are important for tourists.One of Dam Good's helicopters crashed over Lake Mead,killing the pilot and the four passengers on board.Discuss liability and theories of liability.

Accepted Answer

Students should discuss the alteration o

Question 12

"As is" written in a contract:

Accepted Answer

A) serves to disclaim the implied warranty of merchantability. 
B) serves to disclaim the implied warranty of fitness for a particular purpose. 
C) has no effect on warranty protection. 
D) both a and b 
E) none of the above 
A) serves to disclaim the implied warranty of merchantability. 
B) serves to disclaim the implied warranty of fitness for a particular purpose. 
C) has no effect on warranty protection. 
D) both a and b 
E) none of the above

Question 13

Strict tort liability under Section 402A is the same as negligence.

Accepted Answer

A) True 
 B)False

Question 14

A purchase of a deep fryer at a sale of a bankrupt restaurant's equipment by the bankruptcy trustee is covered by the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 15

Which is a requirement for an express warranty?

Accepted Answer

A) use of the word "warrant" or "guarantee" 
B) a description or promise of performance 
C) written statement 
D) must be made by a merchant 
A) use of the word "warrant" or "guarantee" 
B) a description or promise of performance 
C) written statement 
D) must be made by a merchant

Question 16

The implied warranty of fitness for a particular purpose (unless disclaimed)is given in every sale of goods by a merchant.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is $\underline{\text{not}}$ a remedy available to the FTC?

Accepted Answer

A) injunctions 
B) corrective ads 
C) criminal penalties 
D) All of the above are remedies available to the FTC. 
A) injunctions 
B) corrective ads 
C) criminal penalties 
D) All of the above are remedies available to the FTC.

Question 18

Negligence product liability cases:

Accepted Answer

A) are the same as 402A cases. 
B) have no defenses. 
C) require proof of privity. 
D) none of the above 
A) are the same as 402A cases. 
B) have no defenses. 
C) require proof of privity. 
D) none of the above

Question 19

Comparative ads are now illegal.

Accepted Answer

A) True 
 B)False

Question 20

A company is liable for a design defect in its product only if:

Accepted Answer

A) it was aware of the design defect. 
B) the design defect has caused a previous injury. 
C) there was negligence in the product testing. 
D) none of the above 
A) it was aware of the design defect. 
B) the design defect has caused a previous injury. 
C) there was negligence in the product testing. 
D) none of the above

Private parties can enforce the FTC regulations on comparative ads.

Which of the following is $\underline{\text{not}}$ regulated by the FTC?

Which of the following is $\underline{\text{not}}$ an express warranty?

Which of the following $\underline{\text{not}}$ constitute an express warranty?

The implied warranty of merchantability (unless disclaimed)is given in every sale of goods by a merchant.

Corrective ads can be required only when competition is affected.

The Federal Trade Commission is responsible for the regulation of deceptive advertising.

The FDA tested a vitamin supplement and found that it contained 21% anabolic steroids.The label does not include a disclosure about the presence of steroids.What are the remedies available against the company?

Which of the following issues in advertising $\underline{\text{not}}$ regulated by the FTC?

"As is" written in a contract:

Strict tort liability under Section 402A is the same as negligence.

A purchase of a deep fryer at a sale of a bankrupt restaurant's equipment by the bankruptcy trustee is covered by the warranty of merchantability.

Which is a requirement for an express warranty?

The implied warranty of fitness for a particular purpose (unless disclaimed)is given in every sale of goods by a merchant.

Which of the following is $\underline{\text{not}}$ a remedy available to the FTC?

Negligence product liability cases:

Comparative ads are now illegal.

A company is liable for a design defect in its product only if:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 13: Product Advertising and Liability

Private parties can enforce the FTC regulations on comparative ads.

Which of the following is not‾\underline{\text{not}}not​ regulated by the FTC?

Which of the following is not‾\underline{\text{not}}not​ an express warranty?

Which of the following not‾\underline{\text{not}}not​ constitute an express warranty?

The implied warranty of merchantability (unless disclaimed)is given in every sale of goods by a merchant.

Corrective ads can be required only when competition is affected.

The Federal Trade Commission is responsible for the regulation of deceptive advertising.

The FDA tested a vitamin supplement and found that it contained 21% anabolic steroids.The label does not include a disclosure about the presence of steroids.What are the remedies available against the company?​

Which of the following issues in advertising not‾\underline{\text{not}}not​ regulated by the FTC?

"As is" written in a contract:

Strict tort liability under Section 402A is the same as negligence.

A purchase of a deep fryer at a sale of a bankrupt restaurant's equipment by the bankruptcy trustee is covered by the warranty of merchantability.

Which is a requirement for an express warranty?

The implied warranty of fitness for a particular purpose (unless disclaimed)is given in every sale of goods by a merchant.

Which of the following is not‾\underline{\text{not}}not​ a remedy available to the FTC?

Negligence product liability cases:

Comparative ads are now illegal.

A company is liable for a design defect in its product only if:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Which of the following is $\underline{\text{not}}$ regulated by the FTC?

Which of the following is $\underline{\text{not}}$ an express warranty?

Which of the following $\underline{\text{not}}$ constitute an express warranty?

The FDA tested a vitamin supplement and found that it contained 21% anabolic steroids.The label does not include a disclosure about the presence of steroids.What are the remedies available against the company?

Which of the following issues in advertising $\underline{\text{not}}$ regulated by the FTC?

Which of the following is $\underline{\text{not}}$ a remedy available to the FTC?