1. Regulation is more likely to be effective than litigation at deterring a company's harmful (negligent) behavior if:
The company is judgment proof.
The harms caused by the company are small and widely dispersed.
The risks at issue at largely hidden from the view of consumers and their agents.
All of the above
2. Innocent misrepresentation:
Occurs when a lawyer poorly defends an innocent client.
Is similar to fraud, but it does not require misrepresentations to be intentional.
Is a violation of public law that typically involves a Federal fine when it occurs.
Is another term for fraud.
3. The purpose of the Consumer Product Safety Commission is:
To protect consumers against all risks of injury associated with products
To protect consumers against unreasonable risks of injury associated with products
To protect consumers against manufacturers fraudulent and deceptive practices
To protect industry against excessive consumer litigation