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If a salesperson truthfully discussed the benefits of a product but…

If a salesperson truthfully discussed the benefits of a product but avoided talking about risks because she wanted the consumer to purchase it, how is she deceiving the customer?

  Collusion
  Outright lying
  White lie
  Exaggerated claims
  Concealing facts

Question

2  of 10

 

“Lemon laws” ensure that automobile sales ______________________.

  proceed without the use of any coercion on the part of the seller
  require a bill of sale that includes the name of the seller, the buyer, the registration date of the vehicle, and the make and model
  include appropriate warranties and remedies for defects that impair the safety, use, or value of the vehicle
  do not violate the rights of the buyer in the exchange process
  provide information that outlines the rights the buyer has if he or she wants to return the vehicle

Question

3  of 10

 

When will companies have more successful philanthropic efforts?

  When they make sustainability a companywide priority
  When they allocate more resources to engage in improved philanthropic initiatives consumers care about
  When the cause is a good fit with the firm’s category, industry, customer concerns, and/or location
  After consumers realize that the company is genuine in its philanthropic efforts and not engaging in window-dressing
  After a scandal, because philanthropic initiatives demonstrate that the company cares about its stakeholders

Question

4  of 10

 

What is the promotion of environmentally friendly products called?

  Earth Day
  Green marketing
  Earth-friendly initiatives
  Planet protection
  Enviro-promotion

Question

5  of 10

 

Which of the following most closely describes the relationship between consumers and businesses?

  They are fundamentally connected by an economic relationship that often leads to deeper attachment.
  All consumers are closely affiliated with the ethical principles the companies they buy from represent.
  The relationships between consumers and businesses are purely economic in nature through the exchange of value.
  There really is no relationship between businesses and consumers.
  “Let the buyer beware” describes the power that businesses now have over consumers.

Question

6  of 10

 

A recall occurs when ______________________________________.

  products are found to be defective
  consumers are caught committing fraud
  companies are sued for liability issues
  consumers break a product and send it back
  advertising is found to be deceptive

Question

7  of 10

 

Why did McDonald’s start displaying warning signs that its coffee is hot after the famous lawsuit?

  As a friendly reminder to customers that coffee is in fact hot
  As a form of advertising that the coffee at McDonald’s is always fresh
  To try to eliminate further injury and product liability
  Because the government ordered that these signs be posted
  So that customers would not think McDonald’s was serving iced coffee

Question

8  of 10

 

Which area of law refers to a business’s legal responsibility for the performance of its products?

  Lemon laws
  Product liability
  Warranties
  Strict accountability
  Product misuse

Question

9  of 10

 

Although it is against company policy, Jeannette—who cashiers at a local retailer—charged her boyfriend half-price when he purchased a product from her organization. What type of consumer fraud is this?

  Collusion
  Duplicity
  Shoplifting
  Guile
  Tag switching

Question

10  of 10

 

Which government agency reports the top consumer complaints across the nation annually?

  Better Business Bureau
  Bureau of Consumer Protection
  Federal Trade Commission
  Federal Communications Commission
  Consumer Reports