Consumer Act of the Philippines (R.A 7394) Quiz
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Questions and Answers

What is the main emphasis of the Consumer Act of the Philippines (R.A 7394)?

  • Allowing sellers to dictate product safety and quality
  • Promoting ethical relations between businesspersons and consumers
  • Safeguarding the rights of consumers through mechanisms for education and information (correct)
  • Ensuring the protection of buyers from unreasonably high prices and low-quality products

    • What does the market approach assume about the free market?

  • It ensures consumer welfare through ethical business relations
  • It will protect buyers from unreasonably high prices and low-quality products (correct)
  • It guarantees government intervention in assuring product safety
  • It provides mechanisms for consumer education and information

    • How does the market approach view government intervention regarding product safety and quality?

  • It is considered essential to ensure consumer welfare
  • It is seen as a means to guarantee competition among businesspersons
  • It is believed to be required for promoting ethical relations with consumers
  • It is assumed to be unnecessary as the natural laws of the market will suffice (correct)

    • What role does the market approach emphasize in ensuring ethical relations with consumers?

    <p>Role of competition and demands of consumers</p> Signup and view all the answers

    What happens in a monopoly situation?

    <p>There is no need for government intervention in product safety and quality</p> Signup and view all the answers

    What is the significance of providing accurate information on products or services according to the Consumer Act?

    <p>It allows consumers to make informed choices</p> Signup and view all the answers

    According to the contract approach, what is the duty of the seller?

    <p>To provide full knowledge of the nature of the contract</p> Signup and view all the answers

    What does 'caveat emptor' imply?

    <p>The duty of the buyer to check the product if it is of good quality</p> Signup and view all the answers

    What is the focus of the social costs view?

    <p>Minimizing negative societal impacts</p> Signup and view all the answers

    What is the duty of the seller according to the due care theory?

    <p>To assure that the product is safe and not defective</p> Signup and view all the answers

    What does 'caveat vendor' imply?

    <p>The duty of the seller to assure that the product is safe and not defective</p> Signup and view all the answers

    What is one important condition in a contractual agreement according to the text?

    <p>The buyer and seller are not forced to enter into a contract</p> Signup and view all the answers

    According to social costs view, who should internalize external costs associated with business activities?

    <p>Manufacturer</p> Signup and view all the answers

    What is one benefit for manufacturers according to social costs view?

    <p>Full trust of consumers</p> Signup and view all the answers

    Study Notes

    Consumer Act of the Philippines (R.A 7394)

    • The main emphasis is on protecting consumers and promoting their welfare.

    Market Approach

    • Assumes that the free market can self-regulate and ensure product safety and quality.
    • Views government intervention as unnecessary and potentially detrimental to the market.
    • Emphasizes the role of consumer education and awareness in ensuring ethical relations with consumers.

    Monopoly Situation

    • A situation where a single entity has complete control over a market, leading to a lack of competition.

    Significance of Accurate Information

    • Providing accurate information on products or services is crucial in ensuring consumer protection and trust.

    Contract Approach

    • The duty of the seller is to fulfill the contractual obligations and provide what has been agreed upon.

    Caveat Emptor

    • Implies "let the buyer beware," meaning the buyer takes full responsibility for the purchase.

    Social Costs View

    • Focuses on the negative externalities associated with business activities, such as environmental harm or social injustice.
    • Emphasizes that businesses should internalize these external costs and take responsibility for them.

    Due Care Theory

    • The duty of the seller is to exercise reasonable care in the production and sale of products.

    Caveat Vendor

    • Implies "let the seller beware," meaning the seller takes full responsibility for the product or service.

    Contractual Agreement

    • One important condition is that both parties (buyer and seller) must agree to the terms and conditions.

    Social Costs View - Responsibility

    • Businesses should internalize external costs associated with their activities.

    Social Costs View - Benefits for Manufacturers

    • One benefit is that manufacturers can reduce their costs by reducing waste and improving efficiency.

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    Description

    Test your knowledge about the Consumer Act of the Philippines (R.A 7394) which emphasizes safeguarding the rights of consumers and providing mechanisms for consumer education and information. Learn about the significance of providing accurate information on products or services for informed consumer choices and the market approach to protecting buyers.

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