5. Deceptive Practices and Consumer Protection

Question 1

These are acts that mislead deliberately or acts that cause one to believe what is not true the intention of which is to take unfair advantage of another.

Answer 1

Deceptive practices

Question 2

Forms and Types of Deception in Business

Answer 2

1. False advertising and other misrepresentation
2. Deceptive pricing
3. Bluffing in negotiation and transactions
4. Charging for goods and services at a higher rate than advertised price.

Question 3

happens from hiring to firing of a worker

Answer 3

Employees’ deception

Question 4

Direct or indirect misrepresentation of a product or service by intentionally distorting some details makes advertising _____ and ______.

Answer 4

false and deceptive

Question 5

3. Is a dishonest or fraudulent rivalry in trade and commerce that usually includes misrepresentation of one’s product through deceptive packaging, labeling, or other unjust practices.

Answer 5

unfair competition

Question 6

Law that makes deceptive practices illegal and unethical.

Answer 6

RA 7394 Consumer Act of the Philippines

Question 7

flow from deceit and they are detrimental both to sound agreement and good relationships between parties.

Answer 7

unethical practices

Question 8

Deceptive practices directly undermine the _____ of the organization.

Answer 8

integrity

Question 9

7. Is required in any business transaction.

Answer 9

Trust

Question 10

The _____ is always visible to the eyes (as demanded by law) whereas ______ remains invisible and is kept in conscience.

Answer 10

legal requirement ; ethical requirement

Question 11

Being wrong in business is to violate the _________ of a contract such as selling knowingly low-quality products, uses a deceptive scale for measuring or when overpricing – thus breach of contract

Answer 11

legal requirement

Question 12

Deviating from the requirement of social responsibility means doing business in bad faith by exploiting the consumer’s lack of __________.

Answer 12

commercial experience

Question 13

It is our right to be safe and protected from harm.

Answer 13

right to safety

Question 14

Ensures the safety of most products, tasked to protect the public from unreasonable risk of injury caused by consumer products.

Answer 14

DTI or Department of Trade and Industry

Question 15

The ____ in the DTI ensures that processed foods, drugs, medical services and cosmetics are safe and properly labeled, that foods are wholesome and that drugs are effective.

Answer 15

FDA or Food and Drug Administration

Question 16

Consumers need sufficient information in order to choose wisely among the competing products and services available.

Answer 16

Right to be informed

Question 17

Essential Rights of Consumers

Answer 17

(1) Right to safety
(2) Right to be informed
(3) Right to choose
(4) Right to be heard

Question 18

Business Responsibility Before Transaction covers:

Answer 18

(1) Production
(2) Information

Question 19

Business Responsibility During Transaction

Answer 19

(1) to comply with terms of sales/sales contract
(2) to disclose the nature of a product or service
(3) to avoid misrepresentations
(4) to avoid coercion and undue influence

Question 20

CSR after transaction

Answer 20

(1) Feedback systems through customer service departments
(2) Resolving complaints
(3) Compensatory justice

Question 21

Business to assume responsibility when injuries arise out of the defects of the products.

Answer 21

compensatory justice

Question 22

True or False
1. Deceptive practices are aimed not only at one stakeholder but also at the multiple stakeholders of business namely employees, consumers, government and general public.
2. Employee’s deception happens from hiring to firing a worker.
3. Illegal and deceptive practices have raised questions about the integrity of corporate leaders and placed concerns on morality and corporate social responsibility on the global agenda.
4. Accomplishing the legal requirement of a contract is the maximum necessity of the corporate citizenship.
5. The fulfillment of the social responsibility requirement does not complete the legal requirement.
6. According to Ralph Nader, it is good business when you know how to protect consumers from their own ignorance and indiscretion.
7. Business have the social responsibility to make sure that packages are labelled truthfully with basic facts such as quantity and ingredients, with expiration date, not misleading advertising

Answer 22

1. T
2. T
3. T
4. F
5. F
6. T
7. T