Chapter 17: Question Preview (ID: 20892)


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A voluntary, court-enforceable agreement to stop an illegal or questionable practice is
a) a cease-and-desist order b) a consent order c) a class action d) a restitution order
The CPSC receives reports about product failure from
a) the distributor b) the manufacturer c) the consumer d) all of these
Violations of the weights and measures laws are punishable by
a) fine b) imprisonment c) both d) none of these
The relationship that exists between contracting parties as a result of their legally binding agreement is referred to as
a) caveat emptor b) caveat venditor c) express warranty d) privity of contract
A product liability suit may be based on
a) breach of warranty b) torts of fraud, negligence, or strict liablity c) all of these d)
An assurance of quality or promise of performance clearly made by the seller is
a) an express warranty b) an implied warranty c) a warranty of title d) a warranty against infringement
An implied warranty of fitness for a particular purpose arises when the buyer
a) personally selects the goods b) does not rely on the skill and judgement of the seller c) both d) neither
Warranties implied by law for merchants include
a) warranty of merchantability b) warranty against infringement c) both of these d) neither of these
Such expressions as with all faults or as is will
a) exclude all implied warranties b) exclude all express warranties c) both d) neither
Consumer Protection of consumer goods and services often begins with
a) caveat venditor b) class actions c) licensing suppliers d) mandatory inspections of all businesses
Which of the following regarding a disclaimer is true?
a) is necessary when selling goods with a warranty b) must be in writing c) are necessary for all expressed warranties d) none of these
If a person is injured as a result of an unreasonably dangerous or defective product, how will he or she most likely recover damages for the injury?
a) hold the retailer of the product strictly liable b) hold the wholesaler strictly reliable c) hold the manufacturer strictly liable d) all of these
Which of the following statements is not true?
a) An express warranty may be oral or written b) By law, sellers are required to give a warranty c) The law requires warranties on consumer products costing more than $15 must meet certain standards d) Warranties must be written in simple and readily understandable language
Which of the following is an example of unfair pricing and service?
a) offering a free car wash with fill-up then inflating gasoline prices to cover the cost of the car wash b) legitimate half-price sale in which cost is maintained c) presenting a repair estimate noticeably less than the actual price d) both the car wash and the repair estimate
Dave works as a purchasing agent. Best Value Office Supply offers Dave 2 weeks of free use of the company condo in exchange for him ordering all of the supplies from Best Value. This is known as
a) commercial bribery b) push money c) commercial espionage d) commercial bribery and push money
Lavonne receives 4 desk calendars from Time-Date Inc, that she did not order. 2 weeks later, Time-Date calls Lavonne, demands payment, and then threatens to ruin her credit by turning her delinquency in. This is an example of
a) commercial bribery b) unfair trade practices c) confidence game d) solicitation
Certain understood obligations imposed by law on all sellers are known as a(n)
a) trade practices b) expressed warranties c) implied warranties d) both trade practices and implied warranties
Hilda enjoys taking her kids to the ice cream parlor. The assurance that the ice cream she purchases is wholesome and fit for human consumption is an example of
a) expressed warranty b) strict liability c) caveat emptor d) warranty of merchantability
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