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1. New regulatory legislation is often precise and made exclusively to prevent a period of
jockeying among adversaries.
2. Business firms deal with public policy issues that are restricted to just new products.
3. Historically, product liability applied to goods, not services, and there have been many
lost attempts to extend the law to cover services.
4. A hair dryer lacking an overheat cutoff switch is an example of a product with inherent
risk.
5. A firm may produce an acceptable product but may still get into trouble if it fails to
provide adequate instructions for use or warnings against particular uses.
6. In a product liability suit, lack of privity as a defense against negligence is acceptable.
7. An implied warranty is any statement of fact made by the manufacturer about a product,
whether made by salespeople, retailers, or others.
8. The concept of strict liability requires proof that a direct sale from the manufacturer to
the injured user took place.
9. One of the key defenses available to a manufacturer in the case of a product liability suit
is assumption of risk by a product user.
10. A new product whose raw materials are scarce or hard to get does not fall under the
ambit of an environmentally unsustainable product.
11. The unauthorized production of goods that are protected by trademark, copyright, or
patent is known as near brand usage.
12. In many foreign markets, especially developing economies, the laws governing intellectual
property protection and product piracy are very stringent.
13. The General Agreement on Tariffs and Trade (GATT) allows a nation to restrain imports
from countries where piracy is a problem.
14. Managements today demand tough standards, rigorous auditing at all points, good record
keeping, and training of new product employees.
15. Firms today manage the marketing and distribution process of products with the same
vigor they manage design and manufacturing.
16. In the _____ of the life cycle of a public concern, individuals begin to sound off long before
enough people have been injured or irritated to cause a general reaction.
17. With reference to the life cycle of a public concern, as public agitations over an issue
increase, a champion may decide to take it on as a cause in the _____ phase of the cycle.
18. Which of the following is true of the stirring phase of the life cycle of a public concern?
19. Identify the correct statement about the political arena phase of the life cycle of a public
concern.
20. The _____ is typically the last stage in the life cycle of a public concern that often lasts for
years, and where general shifts in a country's political thinking may cause various issues to move
into or out of the idle state.
21. In terms of the seriousness of the potential suits and the costs of error, the most complex
and frustrating problem that new product managers currently face is _____.
22. Which of the following is true of product liability?
23. Courts are more likely to be understanding to manufacturers if a product injury was the
result of a(n) _____.
24. With reference to product liabilities, injuries caused as a result of inadequate materials
and absence of safety devices would fall under the category of _____.
25. With which of the following injury sources are inadequate quality techniques that may
result in faulty product units, even if a product is well designed, most closely associated?
26. Under the doctrine of _____, injury claimants had to prove that there was direct sale of a
defective product from the manufacturer to the injured.
27. A(n) _____ is best described as any statement of fact made by a manufacturer about a
product, whether made by salespeople, retailers, or others.
28. Which of the following sources of product liability stems from a seller's promise that is
unfulfilled?
29. Simply offering a product for a given use is sufficient to create a(n):
30. The degree of puffing a court will allow in business is most closely related to:
