Brands Photo
199) In the brands photo shown, the manufacturers of these products may be concerned that their
brand names will become generic. The legislation most likely to address this issue is the
A) Sherman Antitrust Act.
B) Patent Act.
C) Clayton Act.
D) Lanham Act.
E) The FTC Act.
200) Which of these products is least likely to be concerned with having its name become
generic?
A) Kleenex because most people just ask for a tissue
B) Jell-O because there are no other gelatin desserts
C) All Sport Disk because most people call it a Frisbee
D) Q-Tips because most people call it a cotton swab
E) Vaseline because most people refer to it as petroleum jelly
201) Coca-Cola has hired brand police to make sure that the Coca-Cola brand name and logo are
not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark?
A) Coca-Cola risks losing its generic status.
B) In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the
name from becoming generic.
C) The Robinson-Patman Act conferred ownership of the Coke name and other trademarked
property to the Coca-Cola Co.
D) The government will file charges for trademark infringement only if the owner of the
trademark has documented proof of wrongdoing.
E) By protecting its trademark, Coca-Cola is protecting the entire soft drink industry from
indirect competition.
202) Trader Joe’s recently filed an opposition against a company applying to trademark the name
“Trader Schmo.” Why should Trader Joe’s rigorously protect its trademarked name?
A) Trader Joe’s risks losing its status as a generic retail grocer.
B) In order to maintain the use of its widely recognizable trademark, Trader Joe’s must prevent
its name (or too similar a name) from being used by others.
C) The Robinson-Patman Act conferred ownership of the “Trader” name and other trademarked
property to Trader Joe’s.
D) The government will file charges for trademark infringement only if Trader Joe‘s, the owner
of the trademark, has documented proof of wrongdoing by Trader Schmo.
E) By protecting its trademark, Trader Joe’s is protecting the entire retail grocery industry from
indirect competition.
203) An alternative to government control where an industry attempts to police itself is referred
to as
A) consumer protection.
B) self-regulation.
C) industry accountability.
D) voluntary compliance.
E) government-imposed ethical policing.
204) Self-regulation refers to
A) governmental guidelines that suggest what is legal and ethical and what is not.
B) a self-imposed set of rules set by a specific industry watchdog group that dictates legal and
ethical behaviors.
C) an alternative to government control where an industry attempts to police itself.
D) voluntary compliance to governmental rules and regulations set for a specific industry.
E) a set of rules created and enforced by the FTC to which all members of an industry voluntarily
agree to comply.
205) One of the problems associated with self-regulation is
A) the lack of a written code of ethics by firms in the industry.
B) the intrusive enforcement by the FTC.
C) the opportunity corporate for espionage by competitors.
D) the absence of an industry association with persuasive power.
E) enforcement.
206) The best-known self-regulatory group is the ________, which is a voluntary alliance of
companies whose goal is to help maintain fair practices.
A) U.S. Department of Justice
B) National Chamber of Commerce
C) Better Business Bureau
D) Federal Trade Commission
E) National Federation of Independent Business
207) The Better Business Bureau
A) is the best-known federal agency involved in monitoring self-regulation of competing
businesses.
B) has a great deal of legal power to force a company to comply with its regulations.
C) cannot be involved with Internet commerce.
D) is a voluntary alliance of companies whose goal is to help maintain fair practices.
E) is the agency that oversees advertising that runs on television programs.
208) The Better Business Bureau (BBB) uses ________ to encourage its members to comply
with its standards of business.
A) the FTC
B) industry trade associations
C) a partner code of conduct
D) the courts
E) competitors
209) When a firm or business displays the Better Business Bureau (BBB) Accredited Business
logo on its store window or website, it assures consumers that
A) the company’s products comply with current safety standards set by the Consumer Product
Safety Commission.
B) it is a member of a voluntary alliance of companies whose goal is to help maintain fair
business practices.
C) the firm has met the standards for qualification as a green marketing firm.
D) the firm takes a proactive stance on diversity in the workplace.
E) the company incorporates sustainable business practices.
210) Laws refer to
A) a specific set of behaviors a given society considers to be ethical.
B) society’s values and standards that are enforceable in the courts.
C) the agreed upon codes of behavior for a given nation, community, religious group, or family.
D) written documentation of a prescribed set of attitudes, beliefs, and values.
E) a code of ethics that defines what may be done in specific business circumstances.
211) Society’s values and standards that are enforceable in the courts are referred to as
A) situational ethics.
B) cultural norms.
C) industry practices.
D) laws.
E) the Consumer Bill of Rights.
212) Which one of the following statements most accurately distinguishes between laws and
ethics?
A) Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the
minority of society.
B) Ethics deal with religious and moral beliefs while laws deal with social, economic, and
environmental behaviors.
C) Ethics deal with internal (personal) issues while laws deal with external (social) issues.
D) There is no significant difference between laws and ethics; these terms can be used
interchangeably.
E) Ethics deal with personal moral principles and values whereas laws are society’s values that
are enforceable in the courts.
213) Ethics refers to the
A) religious tenets of a country or ethnic region that shape its culture.
B) social norms of a nation, community, or family.
C) values and standards of society that are enforceable in the courts.
D) moral principles and values that govern the actions and decisions of an individual or group.
E) universal laws of man that go beyond an individual or a group’s beliefs of nations or religions.
214) The moral principles and values that govern the actions and decisions of an individual or
group are referred to as
A) social norms.
B) cultural values.
C) ethics.
D) societal philosophy.
E) religion.
215) Which of the following is considered one of the major factors that influences an individual’s
personal moral philosophy and ethical behavior?
A) organizational structures
B) corporate culture and expectations
C) national and local legislation
D) the strength and stability of political parties
E) a nation’s moral philosophy
216) Culture refers to
A) the set of values, ideas, and attitudes that are learned and shared among members of a group.
B) the music, art, theater, etc., that reflects the values of an entire nation.
C) the learned behaviors of a specific racial, ethnic, or religious group based on commonly
shared ethical principles and protected by laws.
D) the combination of beliefs and behaviors accepted as correct regardless of a person’s age, sex,
race, or religion.
E) the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the
members of an organization.
217) In marketing, the set of values, ideas, and attitudes that are learned and shared among
members of a group is referred to as
A) ideals.
B) morals.
C) ethics.
D) culture.
E) diversity.
218) Culture refers to the set of values, ideas, and attitudes that are learned and shared among
members of a group. It also serves as a socializing force that
A) reflects the will of the largest or most powerful ethnic or racial group.
B) is determined by the largest generational cohort at a given point in time.
C) becomes the basis of all legislation—federal, state, and local—in societies around the world.
D) expresses the diverse backgrounds of a nation’s subcultures.
E) dictates what is morally right and just.
219) Which of the following is a socializing force that dictates what is morally right and just?
A) federal regulatory agencies such as the FTC
B) federal, state, and local legislation
C) the U.S. Supreme Court
D) culture
E) organizational core values
220) Culture refers to the set of values, ideas, and attitudes that are learned and shared among
members of a group. Culture also serves as a socializing force that dictates what is morally right
and just. This means that moral standards
A) are relative to particular societies.
B) must be universal in order for cross-cultural marketing to be effective.
C) are fluid and very easy to change.
D) are cyclical so it is important to change with the times.
E) are concrete; something is either right or wrong.
221) In most countries, copyrights, trademarks, and patents are viewed as intellectual property,
and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few
countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For
example, copying a masterpiece may be historically considered an art form in its own right. The
difference between these two groups of countries shows that ________ affect(s) the view of
ethical behavior held in each country.
A) business culture
B) industry practices
C) corporate culture
D) corporate expectations
E) societal culture and norms
222) As the use of the Internet grows around the world, there must be as easy an exchange of
ideas and information as possible between countries. One important issue is opt-in versus opt-
out. In general, European websites have opt-in policies while U.S. websites have opt-out
policies. Opt-in means customers must ask to be involved in data collection and marketing while
opt-out companies automatically include customers in data collection unless the customer
specifically asks not to be included. Europeans believe it is unethical to invade someone‘s
privacy. Americans are not nearly as protective of their right to privacy. What ethical factor is
illustrated by this example?
A) industry practices
B) social legislation
C) societal culture and norms
D) changes in international law
E) organizational culture and expectations
223) Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other
international brands is pervasive in some countries because laws protecting intellectual property
are unclear and sporadically enforced. A business introducing a product into such a country
needs to know that its ________ may lead to trademark infringements.
A) religious precepts
B) antecedent states
C) moral idealism
D) societal culture and norms
E) utilitarianism
224) In marketing, the effective rules of the game, the boundaries between competitive and
unethical behavior, and the codes of conduct in business dealings are referred to as
A) societal norms.
B) societal mores.
C) business cultures.
D) fair trade practices.
E) corporate values.
225) Business culture affects ethical conduct both in the exchange relationship between sellers
and buyers and in the
A) competitive behavior among sellers.
B) purchase behavior among buyers.
C) price, service, and product responsibility to the ultimate consumer.
D) accountability of buyers and sellers to federal and state regulators.
E) perception of ethical behavior as viewed by employers of business firms, not nonprofit
organizations.
226) Ethical exchanges between sellers and buyers should result in
A) the seller making a profit at the expense of the buyer.
B) the buyer getting the product for the best price at the expense of the seller.
C) both parties to the exchange being better off after a transaction.
D) the seller offering buyers its products and services at cost, especially during a period of
recession.
E) the buyer forming a strategic alliance with the seller.
227) The Latin phrase caveat emptor is a legal concept that means
A) “Cash on delivery.”
B) “Let the buyer beware.”
C) “Let’s make a deal.”
D) “Be informed.”
E) “Such is life.”
228) The legal concept of “let the buyer beware,” which was pervasive in the American business
culture before the 1960s, is referred to as
A) ad nauseum.
B) mea culpa.
C) quid pro quo.
D) ćest la vie.
E) caveat emptor.
229) Caveat emptor refers to
A) the legal concept of “let the buyer beware,” which was pervasive in the American business
culture before the 1960s.
B) the marketing concept of “be first or be last,” implying that the first company to the
marketplace wins.
C) the Latin term meaning that “all is fair in love and war,” an attitude that was held by most
marketers prior to the 1990s.
D) the legal concept of “such is life,” which created many illegal as well as legal but unethical
business practices during the 1980s.
E) the Latin phrase meaning “empty promises,” which was a charge placed upon many firms
during the period after WWII when products failed to meet their marketing claims.
230) Investors should understand that when purchasing stock, the principle of ________ is in
effect. It is in the best interests of investors to do research on the company, so they will make a
wise purchase.
A) modus operandi
B) e pluribus unum
C) de facto marketing
D) ćest la vie
E) caveat emptor
231) 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) ćest la vie
E) anguis in herba
232) In the 1960s, President Kennedy outlined 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
233) The ________ codified the ethics of exchange between buyers and sellers, including the
rights to safety, to be informed, to choose, and to be heard.
A) Lanham Act
B) Fair Practices Act
C) Caveat Emptor Decree
D) Consumer Bill of Rights
E) Customer Consent Decree
234) The Consumer Bill of Rights
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.
235) 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
236) 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 primary principle of
it?
A) to privacy
B) to be compensated for product defects
C) to be treated with respect
D) to be treated without prejudice
E) to be informed