In the Case That Opened the Chapter, Abbott Industries Supplied

question 15

Multiple Choice

In the case that opened the chapter, Abbott Industries supplied 1.2 million tubes of bad eye medication to Altana, a customer, for resale. What did the court rule regarding the liability of Abbott Industries?

• A) That Abbott industries was liable for the cost of the recall and destruction of the defective medication, for the costs of employee overtime, and for lost future sales because Altana was unable to meet its contractual obligations.
• B) That Abbott industries was liable for the cost of the recall and destruction of the defective medication, for the costs of employee overtime, and for lost future sales even though Altana was able to meet its contractual obligations.
• C) That Abbott industries was liable for the cost of the recall and destruction of the defective medication and for the costs of employee overtime, but not for lost future sales because Altana was able to meet its contractual obligations.
• D) That Altana was only entitled to receive cover, meaning substitution for the defective medication.
• E) That Altana was unable to recover anything because business people take a risk that some shipments will be bad.

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Definitions:

Dispositional Influences

Internal factors such as beliefs, values, personality traits, and attitudes that guide an individual's behavior.

Confederate

In experiments, a person who is secretly working with the experimenter and is aware of the experiment's aims but pretends to be a participant to manipulate situations as required.

Obedience Research

The study of how individuals comply with orders from an authority figure, often examined within social psychology.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or associations, rather than logical argument, to influence people's attitudes or behaviors.