Exam 6: Consumers

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Statistics indicate that the faith consumers place in manufacturers is often misplaced.

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The case of MacPherson v.Buick Motor Car in 1916 changed product liability law.As a result of it,the courts

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The FTC now follows the reasonable-person standard in matters of advertising,sales and marketing.

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Can advertisers create a need that is not really present?  Does advertising have the power to drive consumption up?  Provide your explanation of your position.

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Due care is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer,who has knowledge and expertise the consumer does not have.

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The Fair Packaging and Labeling Act of 1966 empowers representative agencies to rank and list all ingredients in the order of decreasing percentage of total contents.

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What is the argument for strict products liability?

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Defend the position that advertising manipulates human needs and can create artificial ones.

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Give an example of labeling or packaging that is deceptive or misleading.

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The Federal Trade Commission (FTC)was established over seventy-five years ago to protect consumers against deceptive advertising.

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What is the importance of the 1916 case of MacPherson v.Buick Motor Car?

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Strict liability is the same thing as absolute liability.

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The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

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For years Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of:

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A psychological appeal is one that aims to persuade by appealing primarily to reason and not to human emotional needs.

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Economists favor legal paternalism because it prevents individuals from balancing safety against price.

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In his books The Affluent Society and The New Industrial State,John Kenneth Galbraith argues that consumer wants determine what gets produced.

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Defend the position that advertisers must use imagination,symbolism,and artistic content to address human needs.

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Give an example of deceptive ambiguity in advertising.

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Give an example of manipulative pricing.

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