BADM Exam Latest Updated Solution
Rated A+
The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on
alert to look after their own interests. - CORRECT ANSWER-false
Consumer advocacy groups in the United States actively promote and speak for
the interests of millions of consumers. - CORRECT ANSWER-true
As business firms grow in size and market power, they have increasingly lost the
ability to dominate marketplace transactions with their customers. - CORRECT
ANSWER-false
Under the "right to be heard" protection, the consumer is to be assured
satisfactory quality and service at fair prices. - CORRECT ANSWER-false
The consumer's right to privacy assures that information disclosed in the course of
a commercial transaction is not shared with others unless authorized. - CORRECT
ANSWER-true
Consumers make less rational choices when they have accurate information about
a product - CORRECT ANSWER-false
,Deceptive advertising is still legal in most countries - CORRECT ANSWER-false
The Children's Online Privacy Protection Act limits the collection of information
online from and about children under the age of 13 - CORRECT ANSWER-true
The Department of Agriculture has authority over genetically modified food and
some chemicals that may affect consumers. - CORRECT ANSWER-false
The Environmental Protection Agency's mission is to assure the safety and
effectiveness of a wide range of consumer products including pharmaceutical drugs
and foods. - CORRECT ANSWER-false
In the "consumer self-help" approach to protecting consumer privacy rights, new
government regulations will protect the consumer online. - CORRECT ANSWER-
false
The doctrine of strict liability extends only to the retailer who is involved in selling
the product, not the manufacturer. - CORRECT ANSWER-false
One reason for business efforts to reform product liability laws is the increasing
cost of insuring against liability suits. - CORRECT ANSWER-true
Quality management emphasizes high quality and customer satisfaction through
continuous improvement of a company's product or service at the final stages of
the production process - CORRECT ANSWER-false
Managing for product quality is an attempt by business to address its suppliers'
needs. - CORRECT ANSWER-false
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,A prime social responsibility of business is to safeguard consumers: - CORRECT
ANSWER-While continuing to supply them with goods and services they want.
Consumers have become more dependent on businesses for product quality
because: - CORRECT ANSWER-The complexity of products makes choices
complicated for consumers.
Which organization brings together 300 nonprofit groups to espouse the consumer
viewpoint? - CORRECT ANSWER-Consumer Federation of America.
Which of the following statements is not true about the organization Consumer
Reports? - CORRECT ANSWER-It is supported by the federal government.
A goal of the consumer movement is to make consumer power: - CORRECT
ANSWER-An effective counterbalance to the rights and powers of firms that sell
goods and services
Which of the following is(are) core rights of consumers? - CORRECT ANSWER-
The right to safety.
The "right to be heard" assures that consumers' interests will: - CORRECT
ANSWER-Receive full and sympathetic consideration.
The act that requires lenders to inform borrowers of the annual rate of interest to
be charged, plus related fees and services charges is called: - CORRECT
ANSWER-The Truth in Lending Act.
, In the United States, which of the following agencies enforces the laws prohibiting
deceptive advertising? - CORRECT ANSWER-Federal Trade Commission.
The law requiring that toys and infant products be tested before sale is called the: -
CORRECT ANSWER-Consumer Product Safety Improvement Act.
Which of the following is not a goal of consumer protection laws? - CORRECT
ANSWER-Facilitate consumers' getting extended credit when making purchases
Manufacturers making false or misleading claims about a competitor's product is: -
CORRECT ANSWER-Illegal and unethical
Before deregulation, government agencies frequently: - CORRECT ANSWER-
Held prices artificially high, shielding businesses from competition.
Which of the following limits the collection of information online from and about
children under the age of 13? - CORRECT ANSWER-The Children's Online
Privacy Protection Act.
Which of the following departments was established in 1914 and has been given
additional powers to protect consumers over the years, including in the area of
online privacy? - CORRECT ANSWER-Federal Trade Commission
Which agency(ies) was(were) created during the great wave of consumer
regulations in the 1960s and early 1970s? - CORRECT ANSWER-A. Consumer
Product Safety Commission.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Rated A+
The Latin phrase, caveat emptor, meaning "let the seller beware" has put sellers on
alert to look after their own interests. - CORRECT ANSWER-false
Consumer advocacy groups in the United States actively promote and speak for
the interests of millions of consumers. - CORRECT ANSWER-true
As business firms grow in size and market power, they have increasingly lost the
ability to dominate marketplace transactions with their customers. - CORRECT
ANSWER-false
Under the "right to be heard" protection, the consumer is to be assured
satisfactory quality and service at fair prices. - CORRECT ANSWER-false
The consumer's right to privacy assures that information disclosed in the course of
a commercial transaction is not shared with others unless authorized. - CORRECT
ANSWER-true
Consumers make less rational choices when they have accurate information about
a product - CORRECT ANSWER-false
,Deceptive advertising is still legal in most countries - CORRECT ANSWER-false
The Children's Online Privacy Protection Act limits the collection of information
online from and about children under the age of 13 - CORRECT ANSWER-true
The Department of Agriculture has authority over genetically modified food and
some chemicals that may affect consumers. - CORRECT ANSWER-false
The Environmental Protection Agency's mission is to assure the safety and
effectiveness of a wide range of consumer products including pharmaceutical drugs
and foods. - CORRECT ANSWER-false
In the "consumer self-help" approach to protecting consumer privacy rights, new
government regulations will protect the consumer online. - CORRECT ANSWER-
false
The doctrine of strict liability extends only to the retailer who is involved in selling
the product, not the manufacturer. - CORRECT ANSWER-false
One reason for business efforts to reform product liability laws is the increasing
cost of insuring against liability suits. - CORRECT ANSWER-true
Quality management emphasizes high quality and customer satisfaction through
continuous improvement of a company's product or service at the final stages of
the production process - CORRECT ANSWER-false
Managing for product quality is an attempt by business to address its suppliers'
needs. - CORRECT ANSWER-false
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,A prime social responsibility of business is to safeguard consumers: - CORRECT
ANSWER-While continuing to supply them with goods and services they want.
Consumers have become more dependent on businesses for product quality
because: - CORRECT ANSWER-The complexity of products makes choices
complicated for consumers.
Which organization brings together 300 nonprofit groups to espouse the consumer
viewpoint? - CORRECT ANSWER-Consumer Federation of America.
Which of the following statements is not true about the organization Consumer
Reports? - CORRECT ANSWER-It is supported by the federal government.
A goal of the consumer movement is to make consumer power: - CORRECT
ANSWER-An effective counterbalance to the rights and powers of firms that sell
goods and services
Which of the following is(are) core rights of consumers? - CORRECT ANSWER-
The right to safety.
The "right to be heard" assures that consumers' interests will: - CORRECT
ANSWER-Receive full and sympathetic consideration.
The act that requires lenders to inform borrowers of the annual rate of interest to
be charged, plus related fees and services charges is called: - CORRECT
ANSWER-The Truth in Lending Act.
, In the United States, which of the following agencies enforces the laws prohibiting
deceptive advertising? - CORRECT ANSWER-Federal Trade Commission.
The law requiring that toys and infant products be tested before sale is called the: -
CORRECT ANSWER-Consumer Product Safety Improvement Act.
Which of the following is not a goal of consumer protection laws? - CORRECT
ANSWER-Facilitate consumers' getting extended credit when making purchases
Manufacturers making false or misleading claims about a competitor's product is: -
CORRECT ANSWER-Illegal and unethical
Before deregulation, government agencies frequently: - CORRECT ANSWER-
Held prices artificially high, shielding businesses from competition.
Which of the following limits the collection of information online from and about
children under the age of 13? - CORRECT ANSWER-The Children's Online
Privacy Protection Act.
Which of the following departments was established in 1914 and has been given
additional powers to protect consumers over the years, including in the area of
online privacy? - CORRECT ANSWER-Federal Trade Commission
Which agency(ies) was(were) created during the great wave of consumer
regulations in the 1960s and early 1970s? - CORRECT ANSWER-A. Consumer
Product Safety Commission.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
