Q&A Hero

Q: The power held by consumers comes from a. umbrella organizations. b. trade associations. c. company lobbying. d. grassroots involvement.

Q: Common consumer complaints include all of the following except a. poor quality of products. b. lack of consumer credit. c. high prices. d. misleading packaging or labeling.

Q: The father of the consumer movement is a. Ralph Nader. b. Dan Murtaugh. c. Michael Moore. d. Richard Nixon.

Q: Which of the following is not an activity of the CFPB? a. Taking consumer complaints b. Researching consumer behavior c. Promoting political education d. Restricting unfair, deceptive, or abusive acts or practices

Q: The social movement that seeks to augment the rights and powers of buyers in relation to sellers is a. caveat emptor. b. buyer beware. c. consumerism. d. purchaser power.

Q: The right to be heard was listed as part of the consumer's Magna Carta because a. consumers should have a say in a store's hours of operations. b. many consumers felt that they could not effectively communicate their desires and grievances to businesses. c. everyone wants to feel that others listen to them. d. because business has refused to listen to customers.

Q: A consumer's right to choose refers to a. his right to have an inventory of more than one to choose from. b. her right to decide what store to buy from. c. his right to eliminate products that do not meet his needs. d. the assurance that competition is working effectively.

Q: Which of the following is not one of the rights in the consumer's Magna Carta? a. right to safety b. right to be informed c. right to be protected d. right to choose

Q: Ambiguous advertising that leaves it to the viewer to infer the message is the use of a. concealed facts. b. weasel words. c. plot placements. d. exaggerated claims.

Q: The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is a. customer service. b. effective marketing. c. customer relationship management. d. ethical marketing.

Q: Consumers are readily pursuing green products. a. True b. False

Q: Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to children most aggressively. a. True b. False

Q: The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers. a. True b. False

Q: Self-regulation in advertising relies on the advertiser itself to control its advertising conduct and performance. a. True b. False

Q: The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3-day right of rescission in any transaction involving a security interest in the consumer's residence. a. True b. False

Q: A limited warranty means that the company guarantees all parts of the product and all types of defects, but only for a limited period of time. a. True b. False

Q: A full warranty must contain certain features, including repair within a reasonable period of time at no charge a. True b. False

Q: Ad creep has been expanding. a. True b. False

Q: A company's desire to portray its product in the most flattering light can lead to misinfomration. a. True b. False

Q: Tobacco companies no longer advertise tobacco products in a way to appeal to children. a. True b. False

Q: Advertising hard liquor on television used to be illegal in the United States. a. True b. False

Q: If the Children's Advertising Review Unit (CARU) cannot get advertisers to modify their campaigns, CARU must let the matter drop with no further action. a. True b. False

Q: Sexual references in advertising create more of a backlash today than they did two or three decades ago. a. True b. False

Q: Targets of comparative advertising have no recourse if they think their competition has gone too far. a. True b. False

Q: Comparative advertising always affects advertising positively. a. True b. False

Q: Not telling the whole truth in advertisements is a widely used practice called concealing facts. a. True b. False

Q: Most consumers today understand that advertising attempts to persuade them. a. True b. False

Q: The effects of advertising have clearly had a net negative effect on society. a. True b. False

Q: The effects of advertising have clearly had a net positive effect on society. a. True b. False

Q: The consumer movement is generally traced back to a single cause or event, although the specific incident varies from author to author. a. True b. False

Q: Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to sell. How would these companies keep this issue off the public agenda and out of the limelight?

Q: Should PACs be outlawed? Why or why not?

Q: The textbook notes that Rep. Billy Tauzin of Louisiana, chief architect of the new Medicare prescription drug law, has received a lucrative job lobbying for the pharmaceutical industry. News commentators have suggested that he has already earned his salary because the Medicare bill is expected to provide windfall profits for the drug companies. Chapter 10 said that one of the reasons government regulates business is to control excess profits. Are "windfall" profits for the pharmaceutical industry "excessive?" If so, how can we reconcile government's efforts to regulate against excess profits with Tauzin's ability to draft legislation that provides windfall profits?

Q: Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no further than lining their own pockets, with no regard for their clients' needs. Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling casinos.

Q: Microsoft was able to effectively defend against an antitrust suit by the United States, but lost a similar case in the European Union. The European Commission charged that Microsoft exploited its monopoly position in several foreign countries. Investigate the resolution of this case. Also, how did Microsoft take advantage of its win in the U.S.?

Q: What has been the impact of the Citizens United and Speechnow decisions on campaign funding?

Q: What's the danger of a company not being able to define a public issue.

Q: What can be done to limit the influence of money on the political process?

Q: Why might PACs lose their effectiveness?

Q: Are the arguments for PACs more compelling than those against these organizations? Explain your position.

Q: The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual companies that do not want their names attached to certain lobbying efforts. Certain coalitions also provide companies with this anonymity. Why would a company want to keep its name out of the public eye in lobbying efforts? and what resulting impacts has this had for them?

Q: The National Association of Manufacturers (NAM) experiences conflict among its members over the question of free trade among nations. Why is this a contentious issue for NAM members?

Q: Lobbyists often show legislators the benefits and detriments of complex legislation. Discuss the wisdom of allowing lobbyists to perform this function.

Q: Federal laws require a waiting period of one year before former government officials can discuss private business matters with anyone in the White House. Why does this provision exist? Is one year a sufficient waiting period?

Q: Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business?

Q: Describe the role of political activity to the success of business.

Q: To fight for tort reform, the U.S. Chamber of Commerce established: a. The Institute for Tort Reform. b. The Institute for Legal Reform. c. The U.S. Chamber for Tort Reform. d. The American League for Tort Reform.

Q: The relationship between Congress and lobbying firms has been referred to as: a. cordial. b. friendly. c. a back door. d. a revolving door.

Q: Green rankings can be misleading because: a. they focus on compliance with regulations. b. they focus on operational impacts. c. they focus on overall practices, while ignoring the firm's political advocacy activities. d. All of these are correct.

Q: After Citizens United, an explosion of money created: a. a campaign spending system that lets every citizen participate equally with corporations. b. a system that is no holds barred. c. a system that ignores corporate money d. None of these is true.

Q: Corporations which donate to PACs may encounter. a. leadership problems. b. agency problems. c. coalition problems. d. political problems.

Q: Which of the following is not a level at which businesses lobby? a. individual company. b. sectoral trade associations. c. umbrella trade associations. d. All of these are levels at which businesses lobby.

Q: Political accountability is: a. arguing against corporate political spending. b. making direct financial contributions. c. raising unlimited amounts of money to support a political candidate. d. responsibility for political actions and a willingness to answer for them.

Q: Key elements of corporate political disclosure and accountability include all of the following except a. lobbying. b. disclosure. c. policies. d. oversight.

Q: Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located. This targeted lobbying is: a. successful b. unsuccessful. c. mixed. d. untested.

Q: Studies of financial performance outcomes on political spending a. show a strong correlation between contributions to PACs, and corporate financial performance. b. show a weak correlation between contributions to PACs, and corporate financial performance. c. are inconclusive. d. apply only to political outcomes.

Q: The channels through which corporations can make political contributions are. a. limited. b. many and varied. c. difficult to navigate. d. primarily tax loopholes.

Q: The top PAC contributor during 2015-2016 was: a. Honeywell International b. Teamsters. c. Service Employees International Union. d. Lockheed Martin.

Q: The Golden Rule of Politics is a. do unto others before they do unto you. b. do unto others as you would want done to you. c. he who has the gold, rules. d. do unto others as they would want done to them.

Q: The principal instruments through which business uses its financial resources to influence government are a. umbrella organizations. b. political action committees. c. trade associations. d. lobbyists.

Q: Distinct groups or parties that realize they have something in common, so that it makes sense for them to join forces, typically form a. joint ventures. b. partnerships. c. coalitions. d. limited liability corporations.

Q: The National Federation of Independent Businesses (NFIB) attributes its newfound power to a. the growth of multinational companies. b. globalization. c. its new status as a trade association. d. the growth of small businesses in business news.

Q: The primary focus of the Business Roundtable is a. free trade policies. b. opposing shareholder empowerment. c. the economic well-being of the nation. d. executive compensation.

Q: The Business Roundtable is an association of a. Fortune 500 companies. b. CEOs of leading companies. c. leading consulting firms. d. human resource executives.

Q: The National Association of Manufacturers (NAM): a. receives accolades from its small and medium-sized members for focusing on their particular needs. b. advocates for protectionist trade policies. c. is the preeminent U.S. manufacturers association as well as the nations largest industrial trade association. d. is credited with helping create the gain in manufacturing jobs.

Q: One of the ways that the Chamber of Commerce has regained its power is by a. making large campaign contributions on its own behalf. b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts. c. hiring outside lobbyists to help it attract more members. d. focusing on international trade issues.

Q: Which of the following is not an umbrella organization? a. Chamber of Commerce b. National Association of Manufacturers c. Pharmaceutical Research and Manufacturers of America d. Business Roundtable

Q: Political contributions from undisclosed donors are called: a. soft money b. hard money c. easy money d. dark money

Q: In lobbying, a trade association often uses a. written phone banks. b. grassroots lobbying support. c. lagging promotion. d. limited spending.

Q: One recommendation to make cyberadvocacy more effective is for advocates to a. social media. b. wireless internet. c. smart phones and tablets. d. creation of apps.

Q: Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

Q: Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

Q: The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

Q: Business lobbyists do all of the following things for their clients except a. establish communications channels with regulatory bodies. b. protect firms against surprise legislation. c. audit the effects of passed legislation. d. help draft legislation.

Q: Which of the following is not usually a function that lobbyists serve for their clients? a. monitoring legislation b. helping members of Congress get reelected c. organizing grassroots efforts d. helping former members of Congress find jobs

Q: The central product of the new breed of lobbyist is a. influence. b. access. c. advice. d. information.

Q: When a firm advocates for its own special interest, it is a. acting as an umbrella organization. b. representing its trade association. c. harming it labor union. d. company lobbying.

Q: Lobbying organizations that are composed of many firms in a given industry or line of business are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.

Q: Lobbying organizations that represent the collective business interests of the United States are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.

Q: Lobbying takes place at all of the following levels except a. umbrella organizations. b. PACs. c. trade associations. d. company lobbying.