Question 1

Discuss the ethics of Toyota delaying its recall on vehicles with sudden unintended acceleration problems.

Accepted Answer

Students may want to discuss the potenti

Question 2

Federal trademark law provisions provide remedies for companies whose products are misrepresented in comparative advertising.

Accepted Answer

A) True 
 B)False

Question 3

The Wheeler-Lea Act:

Accepted Answer

A) expanded the FTC's authority to regulate advertising. 
B) limited the FTC's authority to regulate only ads that affected competition. 
C) eliminated the FTC authority to require corrective ads. 
D) none of the above 
A) expanded the FTC's authority to regulate advertising. 
B) limited the FTC's authority to regulate only ads that affected competition. 
C) eliminated the FTC authority to require corrective ads. 
D) none of the above

Question 4

Which of the following actions $\underline{\text{cannot}}$  be taken on comparative advertising that is misleading?

Accepted Answer

A) the FTC can seek an injunction 
B) the FTC can seek criminal penalties 
C) the manufacturer of the product that is compared can bring suit 
D) All of the above actions can be taken. 
A) the FTC can seek an injunction 
B) the FTC can seek criminal penalties 
C) the manufacturer of the product that is compared can bring suit 
D) All of the above actions can be taken.

Question 5

Chevy (General Motors)manufactured a truck called the LUV.Expert evidence has shown that the absence of a head restraint in the LUV exposes the occupants in a low-speed rear-end collision to cranial impact 16 times that which would result if head restraints were provided.Discuss the risk General Motors runs with the product as it is and possible theories owners injured in such crashes could use for recovery.Must a car be crash-proof?

Accepted Answer

It is a design defect - either

Question 6

"This car has the finest workmanship money can buy" is an example of an express warranty.

Accepted Answer

A) True 
 B)False

Question 7

Express warranties cannot be disclaimed.

Accepted Answer

A) True 
 B)False

Question 8

A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.

Accepted Answer

A) True 
 B)False

Question 9

​Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating.
-Suppose that Jill had been using the skates for one year when the wheel fell off.Which of the following best summarizes the manufacturer's liability?

Accepted Answer

A) There is no liability because of assumption of risk. 
B) There is no liability because the skates are one-year old. 
C) There could be liability if the wheel fell off due to defective design and there is no change in the design over the course of the last year. 
D) There is no liability because manufacturers are excused from liability when there is passage of this much time. 
E) none of the above 
A) There is no liability because of assumption of risk. 
B) There is no liability because the skates are one-year old. 
C) There could be liability if the wheel fell off due to defective design and there is no change in the design over the course of the last year. 
D) There is no liability because manufacturers are excused from liability when there is passage of this much time. 
E) none of the above

Question 10

"With all faults" serves to disclaim:

Accepted Answer

A) an express warranty. 
B) liability under 402A. 
C) liability for negligence. 
D) none of the above 
A) an express warranty. 
B) liability under 402A. 
C) liability for negligence. 
D) none of the above

Question 11

Personal Alarms,Inc.advertises a product for senior citizens who live alone that is a type of warning device when the individual is experiencing health or safety issues.According to Personal Alarm ads,all the user needs to do is press the button on the small Personal Alarm bracelet and through a direct contact,the police are notified immediately and able to detect location of the Personal Alarm user and dispatch assistance.The FTC has learned that the Personal Alarm only alerts a monitoring system that must then call the police.The FTC:

Accepted Answer

A) can issue a cease and desist order for the Personal Alarm ads on direct police contact. 
B) cannot stop the ads so long as there is some police notification process. 
C) does not have authority to stop ads because of First Amendment commercial speech protections. 
D) none of the above 
A) can issue a cease and desist order for the Personal Alarm ads on direct police contact. 
B) cannot stop the ads so long as there is some police notification process. 
C) does not have authority to stop ads because of First Amendment commercial speech protections. 
D) none of the above

Question 12

Which of the following is not an example of an express warranty?

Accepted Answer

A) "This jacket is lined." 
B) "This water heater holds 50 gallons." 
C) "This toothpaste makes teeth the whitest around." 
D) "Preshrunk jeans." 
A) "This jacket is lined." 
B) "This water heater holds 50 gallons." 
C) "This toothpaste makes teeth the whitest around." 
D) "Preshrunk jeans."

Question 13

Celebrity endorsements of products are deceptive unless the celebrity has used the product.

Accepted Answer

A) True 
 B)False

Question 14

In comparative advertising,a company cannot be held liable for misrepresentations regarding products other than its own.

Accepted Answer

A) True 
 B)False

Question 15

The UCC warranty of merchantability:

Accepted Answer

A) does not cover sales of food in restaurants. 
B) can be disclaimed by using the term "as is." 
C) is made in every sale of goods. 
D) none of the above 
A) does not cover sales of food in restaurants. 
B) can be disclaimed by using the term "as is." 
C) is made in every sale of goods. 
D) none of the above

Question 16

Under the Consumer Product Safety Improvement Act a reseller of goods cannot be liable for selling toys or other products with lead paint because the reseller did not manufacture the goods.

Accepted Answer

A) True 
 B)False

Question 17

There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer.

Accepted Answer

A) True 
 B)False

Question 18

"Stops assailants dead in their tracks," written on the package for a mace product,is an express warranty.

Accepted Answer

A) True 
 B)False

Question 19

Section 402A permits suits only by those in privity of contract.

Accepted Answer

A) True 
 B)False

Question 20

Bait and switch:

Accepted Answer

A) is a sales tactic of advertising a cheaper product in order to get a customer in to buy a more expensive product. 
B) is not based on ad content. 
C) is not regulated by the FTc. 
D) none of the above 
A) is a sales tactic of advertising a cheaper product in order to get a customer in to buy a more expensive product. 
B) is not based on ad content. 
C) is not regulated by the FTc. 
D) none of the above

Discuss the ethics of Toyota delaying its recall on vehicles with sudden unintended acceleration problems.

Federal trademark law provisions provide remedies for companies whose products are misrepresented in comparative advertising.

The Wheeler-Lea Act:

Which of the following actions $\underline{\text{cannot}}$ be taken on comparative advertising that is misleading?

"This car has the finest workmanship money can buy" is an example of an express warranty.

Express warranties cannot be disclaimed.

A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.

Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating. -Suppose that Jill had been using the skates for one year when the wheel fell off.Which of the following best summarizes the manufacturer's liability?

"With all faults" serves to disclaim:

Which of the following is not an example of an express warranty?

Celebrity endorsements of products are deceptive unless the celebrity has used the product.

In comparative advertising,a company cannot be held liable for misrepresentations regarding products other than its own.

The UCC warranty of merchantability:

Under the Consumer Product Safety Improvement Act a reseller of goods cannot be liable for selling toys or other products with lead paint because the reseller did not manufacture the goods.

There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer.

"Stops assailants dead in their tracks," written on the package for a mace product,is an express warranty.

Section 402A permits suits only by those in privity of contract.

Bait and switch:

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

Discuss the ethics of Toyota delaying its recall on vehicles with sudden unintended acceleration problems.

Federal trademark law provisions provide remedies for companies whose products are misrepresented in comparative advertising.

The Wheeler-Lea Act:

Which of the following actions cannot‾\underline{\text{cannot}}cannot​ be taken on comparative advertising that is misleading?

"This car has the finest workmanship money can buy" is an example of an express warranty.

Express warranties cannot be disclaimed.

A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.

​Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating. -Suppose that Jill had been using the skates for one year when the wheel fell off.Which of the following best summarizes the manufacturer's liability?

"With all faults" serves to disclaim:

Which of the following is not an example of an express warranty?

Celebrity endorsements of products are deceptive unless the celebrity has used the product.

In comparative advertising,a company cannot be held liable for misrepresentations regarding products other than its own.

The UCC warranty of merchantability:

Under the Consumer Product Safety Improvement Act a reseller of goods cannot be liable for selling toys or other products with lead paint because the reseller did not manufacture the goods.

There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer.

"Stops assailants dead in their tracks," written on the package for a mace product,is an express warranty.

Section 402A permits suits only by those in privity of contract.

Bait and switch:

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 actions $\underline{\text{cannot}}$ be taken on comparative advertising that is misleading?

Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating. -Suppose that Jill had been using the skates for one year when the wheel fell off.Which of the following best summarizes the manufacturer's liability?