237) 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) to have legal representation in a court of law
B) to exchange or return products and services within a reasonable period of time
C) to receive fair prices for both products and services
D) to be heard
E) to be compensated for product defects
238) 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 which Consumer Bill
of Rights principle?
A) to choose
B) to be informed
C) to safety
D) to be heard
E) to quality
239) 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.
240) 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.
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241) 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) quality.
E) be informed.
242) Business culture affects ethical behavior in competition. Two kinds of unethical behavior
are most common:
A) economic espionage and corruption.
B) price fixing and copyright infringement.
C) bribery and extortion.
D) price fixing and economic espionage.
E) economic espionage and antitrust infractions.
243) 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.
244) 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.
245) 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.
246) 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 non-compete 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.
247) A rival of a branded food product manufacturer was known to have asked a mutual supplier
for certain ingredients, using secret codes known only to the manufacturer and the supplier. The
competitor discovered an email password and was able to access the rival’s codes on the
supplier’s network. This is an example of
A) corporate intelligence.
B) economic espionage.
C) clandestine trade secrets.
D) industrial reconnaissance.
E) competitive surveillance.
248) 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
249) Marketing and advertising executives were asked to imagine they were senior executives at
PepsiCo when a Coca-Cola employee offered to sell them the marketing plan and sample for a
new Coke product at a modest price. When asked in an online survey, ________ percent of the
executives said they would buy the plan and product sample if there were no repercussions.
A) 15
B) 36
C) 52
D) 67
E) 89
250) 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.
251) ________ 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
252) 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.
253) Bribery is most likely to occur 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.
254) 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.
255) 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.
256) 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.
257) Lava.com is an Internet company that helps other organizations implement marketing
strategies to aid them in dominating 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.
258) 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.
259) A formal statement of ethical principles and rules of conduct is referred to as
A) an ethical mission.
B) a moral code.
C) a core value pronouncement.
D) a code of conduct.
E) a code of ethics.
260) 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.
261) 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 record keeping
E) conflicts of interest
262) A referral network profiles home-repair companies for homeowners looking for a contractor
or handyman. To ensure that recommended companies are reliable, the network checks the
business licenses, insurance coverages, Better Business Bureau records, and trade references.
The recommended home service company also has to agree to ________, which includes
maintaining professionalism and guaranteeing the quality of its work.
A) a statement of cultural values
B) a statement of values and beliefs
C) an industry endorsement
D) a code of ethics
E) a contract due diligence
263) Which of the following is a major reason for the violation of ethics codes?
A) government regulation
B) family influence
C) lack of religious beliefs
D) fear of disciplinary action
E) perceived behavior of top management
264) Six executives of Tyson Foods, one of the world’s largest poultry, beef, and pork
processors, were arrested for the illegal smuggling of undocumented foreign workers into the
United States to work at Tyson plants. Based on this information, Tyson’s violations may have
been the result of ________, one of the major reasons some company employees engage in
unethical behavior.
A) a mission statement that is too broad
B) the absence of a written core values statement
C) the absence of whistle-blowers
D) top management’s behavior
E) the absence of a stakeholder code of ethics
265) A recent study of business executives reported that ________ percent had witnessed
ethically troubling behavior.
A) 7
B) 18
C) 25
D) 45
E) 63
266) Employees who report unethical or illegal actions of their employers are referred to as
A) whistle-blowers.
B) scabs.
C) cronies.
D) corporate snitches.
E) ombudsmen.
267) Whistle-blowers refer to
A) employees who are simultaneously employed by competing firms and who trade company
secrets.
B) employees who blackmail or extort money from their employers.
C) employees who are coerced by their employers to participate in illegal or unethical activities.
D) customers who report unethical or illegal actions of the firms that market the offerings they
purchased.
E) employees who report unethical or illegal actions of their employers.
268) An employee who contacts the SEC to report her company’s use of illegal accounting
procedures is an example of
A) a crony.
B) a scab.
C) a whistle-blower.
D) a corporate snitch.
E) an ombudsman.
269) Which of the following statements best describes the activities of a whistle-blower?
A) An employee is unhappy because his company is downsizing.
B) An employee tells the Consumer Product Safety Commission his company falsified safety
reports on a child’s car seat.
C) A salesperson for a company finds out that a member of his softball team, who works for
another firm, “borrowed” some wheelbarrows from that firm to use for his personal use and calls
his boss.
D) An employee criticizes his employer’s finance personnel to his fellow co-workers for picking
the wrong stocks in his retirement fund; they lost value last year despite an upturn in the stock
market.
E) An employee spends the afternoon at work studying for her test rather than counting
inventory as she was supposed to be doing.
270) Which of the following statements best describes the activities of a whistle-blower?
A) Mattel employees were sorry that 150 of the 10 million Power Wheels cars and trucks the
company sold had caught on fire.
B) Mattel research engineers proved that the spate of fires in the company’s Power Wheels cars
and trucks was the result of consumers’ tinkering with the engine.
C) A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and
slightly burned its rider.
D) The Consumer Product Safety Commission investigated the fires and ordered a recall to
repair all of the 10 million units that had been sold.
E) A Mattel employee reported to the Consumer Product Safety Commission that Mattel
knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged
use.
271) Two former sales representatives of Amgen, a biotech company, alleged the company
strongly encouraged its salesforce to search confidential medical records in dermatologist’s
offices to find names of patients that would benefit Amgen’s drug Enbrel, a psoriasis treatment.
After reporting this practice to the president, one rep was fired and the other resigned after
receiving a poor performance review. Both sued Amgen, claiming they did not go along with the
scheme because they objected to it as being unethical. The two sales representatives are
A) scabs.
B) cronies.
C) whistle-blowers.
D) contrarians.
E) ombudsmen.
272) Ultimately, ethical choices are based on
A) the personal moral philosophy of the decision maker.
B) societal culture and norms.
C) business culture and industry practices.
D) laws enacted by Congress and regulations by federal and state governments.
E) chance and opportunity.