Which of the following federal laws passed by the U.S. Congress prohibits fake advertising allowances and limits quantity discounts? a) Clayton Act b) Magnuson-Moss Act c) Consumer Product Safety Act d) Sherman Act e) Robinson-Patman Act

Answer = e, Robinson-Patman Act The Robinson-Patman Act seeks prohibits “fake” advertising allowances and limits quantity discounts. More test answers on https://studyhippo.com/practice-test-2/

Which of the following statements is not true? a. self-promotion is not a substitute for quality products b. inferior products harm a firm’s profitability and a nation’s balance of payments c. product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product d. quality – be it good or bad – will show up in perceptions about a firm’s new products, employment practices, and supplier relations e. legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards

C More test answers on https://studyhippo.com/isds-chapter-6/

The role of quality in limiting a firms’s product liability is illustrated by a. ensuring that contaminated products such as impure foods do not reach customers b. ensuring that products meet standards such as those of the Consumer Product Safety Act c. designing safe products to limit possible harm to consumers d. using processes that make products as safe or as durable as their design specification call for e. all of the above are valid

E More test answers on https://studyhippo.com/isds-chapter-6/

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Consumer Product Safety Act Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Consumer Product Safety Act and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Consumer Product Safety Act and get quick solutions for your test.

What is Consumer Product Safety Act?

The Consumer Product Safety Act is a law passed by the United States Congress in 1972 which has been amended and extended several times since then. The primary purpose of the CPSA is to protect consumers from products that could potentially be hazardous or cause harm. This legislation also set up the Consumer Product Safety Commission (CPSC), an independent government agency responsible for enforcing product safety standards, conducting research, and issuing warnings and recalls on products deemed unsafe. The CPSA requires manufacturers to meet certain safety standards when producing consumer goods. This includes testing products for potential hazards such as flammability, chemical toxicity, lead content, and other risks posed by materials and design elements. The regulations also cover product labeling to make sure manufacturers provide clear instructions and warnings regarding safe use of their products. The CPSC also works with businesses to recall consumer products when they are found to be dangerous or not meeting safety requirements. Recalls can involve items like toys, furniture, clothing, appliances, electronics and more importantly child car seats which have been proven especially hazardous if not properly constructed or secured properly in a vehicle. In addition to recalls from businesses themselves, the CPSC can issue orders requiring companies to conduct public service announcements or initiate corrective actions if their products are found to be dangerous in any way. In extreme cases where a large number of people have suffered injury due to a faulty product or design flaw, class action lawsuits may be brought against companies who fail to comply with relevant safety regulations or neglect proper testing procedures prior to sale of their goods. All in all, the Consumer Product Safety Act has been instrumental in ensuring that consumer goods are produced safely across the United States so that people don’t suffer injuries caused by defective items available on store shelves or online catalogs today.