alleryStart learning →Why were many consumer protection laws passed?
ABusinesses took unfair advantage of buyers
BBusinesses refused to publish annual accounts
CBusinesses failed to train their own employees
DBusinesses paid wages below the market rate
Answer & Solution
Correct answer: A. Businesses took unfair advantage of buyers
1. Taking unfair advantage is one of the categories of unethical business activity.
2. Many consumer protection laws were passed because businesses took unfair advantage of people who were not educated or could not follow complex contracts.
3. Buyers were misled by the jargon of long, complicated agreements.
4. Accounts, training, and wage levels are not given as the reason those protections appeared.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.1 Recognizing Unethical Business Activities_
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