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38) In the private purchase of a used or "pre-owned" car, ________ places the burden on the
buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a
mechanic. Once the transaction is complete the buyer typically will not receive a warranty or
return option from the seller.
A) modus operandi
B) caveat emptor
C) de facto marketing
D) c'est la vie
E) anguis in herba
39) In the 1960s, President Kennedy developed what is known as the Consumer Bill of Rights.
This legislation represents limitations to the legal concept of ________ that was pervasive before
that.
A) utilitarianism
B) self-regulation
C) economic espionage
D) consumerism
E) caveat emptor
40) A law that codified the ethics of exchange between buyers and sellers, including the rights to
safety, to be informed, to choose, and to be heard, is referred to as the
A) Lanham Act.
B) Fair Practices Act.
C) Caveat Emptor Decree.
D) Consumer Bill of Rights.
E) Customer Consent Decree.
41) The Consumer Bill of Rights refers to a statement that
A) codified the ethics of exchange between manufacturers, distributors, and suppliers, including
the right to be paid.
B) codified the ethics of exchange between manufacturers, distributors, and suppliers, including
the rights to safe working conditions, fair pay, and collaborative decision making.
C) codified the ethics of exchange between buyers and sellers, including the rights to safety, to
be informed, to choose, and to be heard.
D) guaranteed consumers the right to be compensated through replacement, repair, or
reimbursement for products that fail to perform as promised by the manufacturer.
E) guaranteed consumers the rights that are enumerated in the First Amendment to the U.S.
Constitution.
42) The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It
was outlined by ________ in ________.
A) President John F. Kennedy; 1962
B) President Ronald Reagan; 1983
C) President Bill Clinton; 1996
D) President George W. Bush; 2003
E) President Barack Obama; 2009
43) In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the
ethics of exchange between buyers and sellers. Which of the following is one of the primary
principles?
A) right to privacy
B) right to be compensated for product defects
C) right to be treated with respect
D) right to be treated without prejudice
E) right to be informed
44) In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the
ethics of exchange between buyers and sellers. Which of the following is a major principle that
was included?
A) right to have legal representation in a court of law
B) right to exchange or return products and services within a reasonable period of time
C) right to receive fair prices for both products and services
D) right to be heard
E) right to be compensated for product defects
45) The right to safety manifests itself in industry and federal safety standards for most products
sold in the United States. The U.S. ________ routinely monitors the safety of 15,000 consumer
products.
A) Chamber of Commerce
B) Better Business Bureau
C) Consumer Product Safety Commission
D) Department of Commerce
E) Consumer Protection Agency
46) Companies need to be vigilant in product quality testing not simply from an ethical
perspective but from a financial one as well. Personal claims and property damage from
consumer product safety incidents cost companies more than ________ annually.
A) $100 million
B) $2.2 trillion
C) $300 billion
D) $500 billion
E) $700 billion
47) Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard
to consumers. The company recalled 2.7 million batteries and gave consumers a replacement
before any personal injuries resulted. Dell was most likely concerned with consumers' right to
A) choose.
B) be informed.
C) safety.
D) be heard.
E) happiness.
48) Cosco, the world's largest children's products company, recently sold a high chair that could
be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined,
an infant bed for $49. The prototypes had been tested by Cosco employees who had small
children, but this was the only product testing performed. Once sold, several children were
injured and some died as a result of using the chair. Cosco was charged with being unconcerned
about consumers' right to
A) choose.
B) be informed.
C) be treated courteously.
D) safety.
E) happiness.
49) Recently, Chillafish recalled some of its Chillafish brand of children's balance bikes. The
Consumer Product Safety Commission website stated that overinflated tires could cause the
wheel rims to crack and send pieces of the plastic rim flying, posing a laceration hazard to
consumers. Chillafish was responding to consumers' right to
A) choose.
B) be informed.
C) be treated courteously.
D) safety.
E) happiness.
50) If a brand of imported toys was found to have very high levels of lead in the paint and was
recalled, the action would be to protect consumers' right to
A) safety.
B) be informed.
C) be heard.
D) choose.
E) be treated courteously.
51) The Children's Online Privacy Protection Act (1998) is a law designed to protect consumers'
right to
A) choose.
B) be informed.
C) be treated courteously.
D) safety.
E) be heard.
52) When shopping on the Internet, most consumers assume their personal information is
confidential. If a web retailer proposed sharing its customer information with its partners without
telling users, this is related most directly to consumers' right to
A) be heard.
B) be treated courteously.
C) safety.
D) happiness.
E) be informed.
53) ________, the cash or free goods required by some retailers in exchange for shelf space to
stock new products, may limit a consumer's right to choose.
A) Slotting allowances
B) Kickbacks
C) Economic espionage
D) Tying arrangements
E) Industrial bribes
54) The right to be heard means that
A) the U.S. Department of Commerce has the right to hear consumer complaints.
B) the American Marketing Association has the right to discipline marketers based on customer
complaints.
C) consumers should have access to public-policy makers regarding complaints about products
and services.
D) companies should have access to company representatives regarding complaints about
fraudulent consumer practices.
E) consumers should have access to company representatives regarding new product ideas.
55) Business culture affects ethical behavior in competition. Two kinds of unethical behavior are
most common—
56) Economic espionage refers to
A) the destruction of a competitor's products or services through physical damage of property or
damage to their reputation.
B) persuading someone to act in one's favor, typically illegally or dishonestly, by a gift of money
or other inducement.
C) an illicit payment made to someone who has facilitated a transaction or appointment.
D) the collection of trade secrets or other intellectual property from foreign countries or
governments.
E) the clandestine collection of trade secrets or proprietary information about a company's
competitors.
57) The clandestine collection of trade secrets or proprietary information about a company's
competitors is referred to as
A) economic espionage.
B) industrial espionage.
C) marketplace espionage.
D) industrial surveillance.
E) patent infringement.
58) All of the following are examples of economic espionage except which?
A) electronic hacking
B) trespassing
C) bribery
D) searching a competitor's trash
E) noncompete clause employment contract violations
59) Economic espionage includes such activities as
A) two firms hiring the same musician to write their company jingle.
B) hiring people who worked in an executive capacity at a competitor's firm, especially if they
didn't have a noncompete clause.
C) offering to accept all competitors' coupons, making their effectiveness as a promotional tool
negligible.
D) searching through a competitor's trash.
E) marrying someone who works for a competitor in an executive position.
60) Economic espionage is most likely to occur in which type of industries?
A) fashion
B) entertainment
C) high-technology
D) consumer packaged goods
E) beverage
61) A rival of a branded food product manufacturer was known to have asked a supplier of the
food product manufacturer for certain ingredients, using secret codes known only to the
manufacturer and the supplier. The rival discovered an email password and was able to access
the manufacturer's codes on the supplier's network. This is an example of
A) corporate intelligence.
B) economic espionage.
C) clandestine trade secrets.
D) industrial sleuthing.
E) competitive surveillance.
62) A national pet health care provider recently made a competitive move when it acquired new
information. A rival had "preannounced" a new pet coverage product in a tiny community
newspaper six months prior to launching it. The national pet health care provider's marketing
manager was notified immediately through a news monitoring service. The firm quickly added a
similar offering, and got it to the market before its rival. The marketing manager relied on
________ to keep abreast of competitors' activities.
A) legitimate environmental scanning
B) economic espionage
C) kickbacks
D) corporate piracy
E) primary market research
63) An employee of Coca-Cola attempted to share its marketing plan with an employee of
PepsiCo for a modest price. What should the PepsiCo employee do?
A) Buy the marketing plan if assured there would be no legal or ethical repercussions.
B) Ignore the offer to buy the marketing plan and hope the ethical dilemma will go away.
C) Immediately contact Coca-Cola to advise it of the plot to sell the marketing plan.
D) Immediately report the offer to the Better Business Bureau.
E) Advise the Coca-Cola employee that it would be ethical to accept the plan if it was offered for
free.
64) ________ involves unethical conduct by a person entrusted with a position of authority,
often to acquire a personal benefit.
A) Economic espionage
B) Utilitarianism
C) Business intelligence
D) Oligopoly
E) Corruption
65) The giving and receiving of bribes, kickbacks, and graft are the most common forms of
A) economic espionage.
B) utilitarianism.
C) business intelligence.
D) oligopoly.
E) corruption.
66) Bribery is most likely to occur in situations when
A) industries experience little competition.
B) the country has reached a high level of economic development.
C) industries are high-tech in nature.
D) a monopoly exists in the industry.
E) the country is facing economic and political turmoil.
67) Transparency International is an organization that
A) monitors how developed nations deal with developing nations.
B) establishes procedures for ethical international business based on the ISO 7000 Code of
Conduct.
C) monitors and ranks countries on the basis of their perceived level of corruption.
D) creates an acceptable international code of ethics.
E) makes sure federal, state, and local governments in the United States abide by the Consumer
Bill of Rights.
68) Two laws specifically intended to curb economic espionage and bribery in international
marketing are
A) Economic Espionage Act and Foreign Corrupt Practices Act.
B) Transparency International Act and Dumpster Diving Act.
C) Global Rights Protection Act and Foreign Corrupt Practices Act.
D) Consumer Bill of Rights Act and Economic Espionage Act.
E) Fair Trade Practices Act and Bribery Protection Act.
69) Corporate culture refers to
A) a formalized method for controlling the marketing environment.
B) the set of accepted standards and practices within a given industry.
C) the fundamental, passionate, and enduring principles of an organization that guide its conduct
over time.
D) the set of values, ideas, and attitudes that is learned and shared among the members of an
organization.
E) the formal statement of ethical principles and rules of conduct adopted by an organization.
70) The set of values, ideas, and attitudes that is learned and shared among the members of an
organization is referred to as
A) a mission statement.
B) core values.
C) the socialization process.
D) a code of ethics and conduct.
E) corporate culture.
71) Corporate culture manifests itself in many different ways: the ethical behavior of top
management, expectations for ethical behavior present in formal codes of ethics, and
A) contracts and agreements between members of the same industry.
B) state and local laws regarding ethical business behavior.
C) the dress codes, manner of work, and sayings of its employees.
D) the socially responsible behaviors of its customers.
E) the involvement of shareholders with an organization's day-to-day marketing decisions.
72) Lava.com is an Internet company that helps other organizations implement marketing
strategies to help them dominate their industry. Lava's advertising states, "We ignore the rules,
and we let no obstacle stand in your company's way—no matter how bold or impossible your
idea may seem." The company is composed of eighteen bright young Internet experts. They
work in one large room, which also contains dartboards, a pool table, and a meditation center. If
you were to walk into the office, it would be next to impossible to tell the company owners from
its lowest ranking employee. This best describes the Internet company's
A) modus operandi.
B) mission or vision.
C) socialization process.
D) business definition.
E) corporate culture.
73) A code of ethics is a formal statement of ethical principles and
A) legal restrictions.
B) rules of conduct.
C) cultural values.
D) core values.
E) moral laws.
74) A formal statement of ethical principles and rules of conduct is referred to as a(n)
A) ethical mission.
B) moral code.
C) core value pronouncement.
D) code of conduct.
E) code of ethics.
75) A code of ethics refers to
A) a formal statement of moral and ethical business attitudes.
B) a formal statement of ethical principles and rules of conduct.
C) an informal guide of ethical principles that can guide challenging decisions.
D) the written, signed document stating the beliefs and values of each employee in a firm.
E) a firm's itemized list of business activities that are and are not consistent with the company's
mission statement.
76) All of the following are typically addressed by an organization's code of ethics except which?
A) the dress, sayings, and manner of work of employees
B) contributions to political parties and government officials
C) customer and supplier relationships
D) accurate recordkeeping
E) conflicts of interest
