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| 1 | |
The legal concept of negligence focuses on the conduct and state of mind of the producers and holds them responsible for harms only when they fail to act in ways that could have prevented the harm. |
| | A) | TRUE |
| | B) | FALSE |
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| 2 | |
Even though parties freely engage in an exchange of goods or services, we cannot be sure that autonomy has been respected (the Kantian requirement) and that mutual benefit has been achieved (the utilitarian requirement). |
| | A) | TRUE |
| | B) | FALSE |
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| 3 | |
Need for a product, or anxiety and other stress experienced during a business transaction, or price gouging may make a consumer's choice less voluntary, and misleading advertising or incomplete understanding of a product's complexity may make his or her consent less informed. |
| | A) | TRUE |
| | B) | FALSE |
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| 4 | |
Given that business transactions between two parties are mutually beneficial and freely entered into, social norms of equal treatment and fairness or questions as to what social goods are promoted or threatened are not ethically relevant to the transactions. |
| | A) | TRUE |
| | B) | FALSE |
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| 5 | |
The contract model of the marketing relationship that offers a consumer only a limited or expressed warranty on a product is not really one-sided nor does it fail to meet the standards of truly informed consent because the consumer agrees to these limitations. |
| | A) | TRUE |
| | B) | FALSE |
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| 6 | |
In claiming that the concept of negligence should include the standard of the "reasonable" person who is a thoughtful, reflective, and judicious decision maker, we are surely asking no more of the average consumer than he or she is capable of giving. |
| | A) | TRUE |
| | B) | FALSE |
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| 7 | |
The legal doctrine of strict products liability is controversial because it unfairly holds a business accountable for paying damages in cases where it was not at fault. |
| | A) | TRUE |
| | B) | FALSE |
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| 8 | |
According to McCall's fairness argument, holding the manufacturer liable under the strict product liability doctrine is fair because the injuries caused by a product are externalities that fairness requires to be internalized in the exchange between producer and consumer. |
| | A) | TRUE |
| | B) | FALSE |
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| 9 | |
Because the efficiency benefits of large retailers can be passed on to consumers in the form of lower prices, and because a competitive market should drive out uncompetitive firms, there is no persuasive rationale for claiming that it is unethical, unfair, to force smaller stores out of businesses by temporarily pricing products under cost. |
| | A) | TRUE |
| | B) | FALSE |
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| 10 | |
Even if there are social costs involved in a transaction, costs not reflected in the price agreed to by the parties to the transaction, the fact that the price is freely agreed to means that it must still be accepted as fair and beneficial. |
| | A) | TRUE |
| | B) | FALSE |
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