Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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When
a consumer considers several products that can meet his or her needs before making a purchase, it is
called a. | a class
action. | c. | comparison
shopping. | b. | warranty shopping. | d. | consumer protection planning. | | | | |
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2.
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A
court order to cancel an existing contract is known as a. | a cease and
desist order. | c. | a consent
decree. | b. | rescission. | d. | restitution. | | | | |
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3.
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A
order to a business to end certain illegal practices is known as a. | a cease and
desist order. | c. | a consent
decree. | b. | rescission. | d. | restitution. | | | | |
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4.
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If
you have a problem after making a purchase, the first thing you should do is a. | contact the
Better Business Bureau. | b. | contact the seller. | c. | contact the
Federal Trade Commission. | d. | write to your local consumer protection
agency. | | |
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5.
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A
voluntary agreement in which a business ends an illegal practice is known as a. | a consent
decree. | c. | restitution. | b. | a cease and desist order. | d. | rescission. | | | | |
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Completion
Complete each sentence or
statement.
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Complete each of the following statements with the appropriate choice below.
Some choices are not used.
association
approach | claims of authorities approach | bandwagon approach | restitution | direct action
| remedy | celebrity
appeal | seeing is believing | | |
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6.
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A
____________________ makes up for a legal injury.
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7.
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Ads
that rely on the testimonials of people who have used the product are using the ____________________
technique.
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8.
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Ads
that promote the idea that everybody is using the product are using the
____________________.
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9.
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Ads
that refer to persons with respect or scientific support, including doctors and test results are
using the ____________________.
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10.
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Ads
that link the product with popular ideas or symbols, such as family, motherhood, wealth, or sex
appeal are using the ____________________.
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11.
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The
____________________ technique uses famous athletes or movie stars to advertise the
product.
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Matching
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Match each item with the correct statement below. Some items may not be
used. a. | Americans
with Disabilities Act | e. | Consumer
Product Safety Act | b. | cease and desist order | f. | rescission | c. | class
action | g. | restitution | d. | consent decree | h. | revoke | | | | |
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12.
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an
order to refund or repay any money illegally obtained
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13.
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allows the government to ban, seize, or prevent the sale of harmful
products
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14.
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protects disabled consumers
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15.
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to
take away licenses from businesses for violations of required standards
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16.
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a
lawsuit brought by one or more persons on behalf of a larger group
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Short Answer
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Chart appeared
in Consumer Sentinel, “Cross-Border Fraud Trends: January 2002-December 2002,”
published by the Federal Trade Commission, February 19, 2003.
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17.
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How
many complaints did U.S. consumers make about cross-border frauds in 1998?
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18.
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How
many complaints did U.S. consumers make about cross-border frauds in 2002?
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19.
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How
many more complaints did U.S. consumers make about cross-border frauds in 2002 than in
1998?
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20.
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How
many fewer complaints did U.S. consumers make about cross-border frauds in 1999 than in
1998?
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21.
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How
many more complaints did U.S. consumers make about cross-border frauds in 2001 than
2000?
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22.
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Describe the trend in the number of fraud complaints from U.S. consumers about
cross-border companies.
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