Ethics Final Exam Review96

Moral issues that arise in interviewing generally relate to

. both the manner in which the interview was conducted and the method of the interview.

The FTC now follows which standard in determining that a marketing promotion may be misleading?

. the modified ignorant-person standard

Which best characterizes advertising that the FTC currently seeks to prohibit?

Advertising that misleads a significant number of consumers in a vulnerable group.

According to FTC guidelines, which of the following would constitute price misrepresentation?

An object with a $100 price tag that never sold for more than $95 marked as "Formerly $100."

Some jobs are by their nature dangerous. Which two conditions are necessary to ensure that such risks are morally acceptable?

Assumption of risk and right to refuse dangerous work.

The term "grease payments"

Because the law affects only U.S. companies, foreign companies are given an unfair advantage in corrupt nations.

In a non-legal sense, ________ is the idea that sellers and buyers do not meet as equals in a way that makes consumers particularly vulnerable to being harmed by the manufacturer.

Due care

Most employers are prohibited from using lie detectors in pre-employment testing under the

Employee Polygraph Protection Act

A psychological appeal is one that aims to persuade by appealing primarily to reason and not to human emotional needs.

False

Economists favor legal paternalism because it prevents individuals from balancing safety against price.

False

In his books The Affluent Society and The New Industrial State, John Kenneth Galbraith argues that consumer wants determine what gets produced.

False

In the 1960 case Henningsen v. Bloomfield Motors and the 1963 case Greenman v. Yuba PowerProducts, injured consumers were awarded damages based on their proving that the manufacturers of the defective products were negligent.

False

The FTC now follows the reasonable-consumer standard in all matters of advertising, sales and marketing.

False

The Fair Packaging and Labeling Act empowers representative agencies to rank and list all ingredients in the order of decreasing percentage of total contents.

False

The agency responsible for protecting consumers against deceptive marketing promotions and fraudulent commercial practices is the:

Federal Trade Commission (FTC).

Bribing foreign officials for business favors was declared illegal in the United States under the

Foreign Corrupt Practices Act (FCPA).

Which of the following would not be covered under the Federal Food, Drug, and Cosmetic Act?

Household Soap

Which of the following is a primary ethical issue concerning employee monitoring

It often involves gathering information about employees without informed consent.

This law prevents sellers from disclaiming implied warranty of merchantability and the implied warranty of fitness for a particular purpose in the sale of consumer goods.

Magnuson-Moss Warranty Act

According to your instructor, which of the following types of whistle-blowing is always morally permissible assuming the whistle-blower is acting for moral reasons?

Nongovernmental, Personal Whistle-Blowing

____________________ requires the more than 20,000 food labels found on grocery store shelves to disclose the number of calories derived from fat and the amount of dietary fiber, saturated fat, cholesterol, and a variety of other substances

Nutrition Labeling and Education Act

________ is when a seller takes advantage of a short-term situation in which buyers have few purchase options for a much-needed product by raising prices.

Price gouging

The legislation that provides protection for employees who report possible securities fraud is called the

Sarbanes-Oxley Act of 2002

The buying or selling of financial securities by business "insiders" on the basis of information that has not been made public is called:

Section 10(b) insider trading.

The authors describe which premise of personality tests as "questionable"?

That individuals fit into a small number of personality type

In the Hawthorne studies, the researchers found that productivity increased when the lighting was made brighter, but it also increased when the lighting was made dimmer. What conclusion did they draw?

That workers respond well to attention and recognition

Unlike many other industrialized nations, the United States does not provide public subsidies for child care or require companies to provide paid maternity leave. Such worker benefits are not viewed as

The development of our potential capabilities is a moral ideal and thus women should not be forced to choose between childbearing and their careers.

The text suggests that when we are faced with an ethical problem, it is useful to discuss the problem with a friend. What advantage can be had this way?

The friend can help us avoid bias and gain a better perspective

Which of the following is a generally acknowledged weakness of polygraphy?

The polygraph cannot reveal with certainty whether a person is telling the truth.

Which of the following rights has been acknowledged by the Supreme Court?

The right to refuse dangerous work.

Business's responsibility for understanding and providing for consumer needs derives from the fact that citizen-consumers are dependent on business to satisfy their needs.

True

Defenders of advertising claim that, despite criticisms, advertising enjoys protection under the First Amendment as a form of speech.

True

From the consumer's standpoint, one problem with implied warranties is that the law allows the seller to disclaim or limit the warranty in most circumstances.

True

One decisive case in the legal transition away from the reasonable-consumer standard in matters of advertising, sales and marketing was FTC v. Standard Education.

True

Statistics indicate that the faith consumers place in manufacturers is often misplaced

True

Strict product liability is the doctrine that the seller of a product has legal responsibilities to compensate the user of that product for injuries suffered due to a defective aspect of the product, even though the seller has not been negligent in permitting that defect to occur.

True

Subliminal advertising is advertising that supposedly communicates at a level beneath our conscious awareness.

True

The FTC now follows the reasonable-consumer standard in all matters of advertising, sales and marketing.

True

The Federal Trade Commission (FTC) was established over seventy-five years ago to protect consumers against deceptive advertising.

True

The Federal Trade Commission (FTC) was established over seventy-five years ago to protect consumers against deceptive advertising. S

True

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

True

The watershed legislation passed in 1935 that prohibited firing employees because of union membership or activities is known as the:

Wagner Act.

A contract restricting an employees ability to work with a competitor or start a competing company is

a non-competition agreement.

Bona Fide Occupational Qualifications

allow an employer to legally and morally discriminate in some limited circumstances.

A marketing promotion that is deceptive because it can be understood in more than one way is:

ambiguous

A living wage is the

amount of money a full-time employee needs to afford the necessities of life, support a family, and live above the poverty line.

A properly implemented personality test helps screen job applications by indicating

areas of adequacy and inadequacy

A kickback is a kind of bribe.

bribe

Under Section 1107 of the Sarbanes-Oxley Act, employers who retaliate against employees who report any federal offense

can be sued, forced to rehire whistle-blowers, and may face up to ten years imprisonment

Acknowledging employees civil liberties by respecting their rights and dignity:

can enhance employee morale and improve competitive performance.

Some critics of consumer product safety regulations are concerned about the cost-effectiveness of safety regulations. They calculate the economic costs by:

comparing the number of lives saved with the cost of implementing the regulation.

Businesses' heightened responsibility for providing for consumers' needs derives from:

consumers' dependence on business for their survival and enrichment.

There are two areas of workers rights which have growing needs due to the growing presence of women in the workplace. Which are they?

day care and maternity leave

The concept of informed consent implies

deliberation and free choice.

Although some writers believe that a fair wage is determined by what is acceptable to an employee, in an ethical organization, the central question with regard to remuneration should be

distributive justicebased on the employees value to the busines

David Ewing, former editor of Harvard Business Review, recognizes two historical factors contributing to the decline of civil liberties. One is professional management that puts the system over the person, and the other is the:

doctrine of employment-at-will.

Under the Americans with Disabilities Act (ADA), employers must make reasonable accommodations for employees with disabilities as long as:

doing so does not inflict undue hardship on the business

Galbraith's "dependence effect" is the idea that:

due to increasing affluence, advertising creates new consumer wants rather than satisfying consumer needs.

According to the instructor, governmental whistle-blowing involves

employees within a firm that has government contracts who report fraud or other wrongdoing against the government. government employees who divulge to a governmental regulatory or investigative bureau unethical practices in their division. leaks by government employees to the media.

Contractual obligations to purchasers that arise from an explicit statement made by a seller are:

express warranties

All gifts are bribe

false

Business is right to insist that accidents occur exclusively as a result of product misuse and that it is thereby absolved of all responsibility.

false

Companies have a right to prevent employees in technical fields from quitting and working for another company.

false

Congress has now outlawed puffery.

false

Employees have no obligations to people with whom they have no business relations.

false

Inbreeding is the practice of showing favoritism to relatives and close friends.

false

Increased productivity by changing the color of the surrounding working environment is known as the "Hawthorne effect."

false

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

false

Nepotism is the practice of promoting exclusively from within the firm or externally hiring employees with the same demographic characteristics.

false

Notification of employee monitoring constitutes consent on the part of the employee to be monitored.

false

Prudential reasons are reasons that refer to the interests of others and the demands of morality.

false

Strict liability is the same thing as absolute liability.

false

The Supreme Court has rejected the idea that inside trading involves "misappropriating" confidential information

false

The law precisely defines the concept of a trade secret, just as it does patents and copyrights

false

When advertisers conceal facts, they suppress information that is favorable to their products.

false

The 1970 Occupational Safety and Health Act established that the prime responsibility for regulating working conditions resides with

he federal government.

When direct competitors agree to a set price schedule, it is:

horizontal price fixing.

Contractual obligations to purchasers that can arise automatically through a transaction with a seller are:

implied warranties.

The practice of promoting exclusively from within the company can lead to

inbreeding.

A morally complicated problem arises when employees who are privy to proprietary information are restricted in various ways when they choose to change jobs. While the company may be motivated by the need to protect proprietary information, such restrictions may be unfair to the employee because they

infringe on the employees right to seek new employment.

In general, if the contents of the work agreement are legal and an employee freely consents to them, then he or she

is obliged to fulfill the terms of the work contract.

The courts repudiated the doctrine of caveat emptor in the first part of the twentieth century, largely on the grounds of:

its unrealistic assumptions about consumers' knowledge, competence, and behavior.

In a situational interview

job candidates engage in role playing in a mock office scena

A ________ describes the minimum qualifications an employee needs, such as knowledge, skills, and abilities.

job specification

A recent health implication has been recognized, one which is closely related to fatigue. This condition is known as

job stress.

In order to create an atmosphere of fairness in which rules and standards of discipline are applied equally, the principles of ________ must operate.

just cause and due process

Authors Fagothey and Gonsalves have suggested that the conditions that are necessary for a strike to be just are

just cause, proper authorization and last resort.

The doctrine that the law may justifiably be used to restrict the freedom of individuals for their own good is called:

legal paternalism

Job satisfaction has been found to be a strong predictor of

longevity.

The practice of showing favoritism to relatives and close friends is

nepotism.

The use of ones official position for personal gain raises moral concerns because of the likelihood that

one is violating ones obligations to the firm or organization.

The most common reason cited by employees for leaving a job is

poor relationships with their immediate supervisors

The Taft-Hartley Act, which amended the National Labor Relations Act, allowed for the creation of right-to-work states. They are called that because they

prohibit union contracts requiring all employees to join the union or pay the equivalent of union dues.

A consideration from self-interest is called a(n)

prudential reason

A(n) ________ is aimed primarily at emotion, not reason, and is potentially the advertising technique of greatest moral concern.

psychological appeal

The statement by an automobile seller that "You will not find a better automobile at this price" is an example of

puffery.

Some "economy size" items sell for a higher per unit price than their smaller counterparts. This deceptive labeling practice is known as:

quantity surcharge.

Prior to 1916, injured consumers were limited to

recovering damages only from the retailer of the product.

Test validity

refers to whether test scores correlate with performance in some other activity.

Testing is an integral part of the hiring process especially with large firms. If tests are used, companies using them are obliged to ensure that they are

reliable and valid

A _____________ involves a company that does not directly employ the workers who are involved in the dispute.

secondary boycott.

With regard to establishing product safety rules and resolving disputes, businesses generally prefer:

self-regulation, competition and voluntary safety standards.

The theory that holds manufacturers responsible for compensating users who have suffered injuries from defective products, irrespective of fault on the part of the manufacturer is called:

strict product liability.

Actions taken above and beyond the call of duty are called

supererogatory

The four types of discharge are firing, layoff, position elimination and

termination.

The government agency responsible for regulating product safety was established pursuant to:

the Consumer Product Safety Act of 1972.

As a general rule, whenever an organization infringes on what would normally be defined as the personal sphere of an individual

the burden is on the organization to establish the legitimacy of that infringement.

According to the text, nothing affects the work environment more than

the style and quality of management.

"A formula, pattern, device, or compilation of information that is not generally known and is used in ones business to obtain competitive advantage" is called a:

trade secret.

One of the defenses used by high level executives who engage in illegal insider trading is that

trading on the basis of non-public information seldom harms anyone

A bribe is remuneration for the performance of an act thats inconsistent with the work contract or the nature of the work one has been hired to perform.

true

A conflict of interest arises when an employee has private interests that are substantial enough to interfere with his or her job duties.

true

A workplace environment in which employees are treated fairly and their inherent dignity respected is compatible with a firms business goals.

true

An early 1970s government survey of worker dissatisfaction identified the lack of opportunities to be ones own boss as one of the three chief sources of worker dissatisfaction.

true

An employee can have a conflict of interest even if he or she doesnt act to the detriment of the organization.

true

Any drug-testing program, assuming it is warranted, must be careful to respect the dignity and rights of the persons to be tested.

true

Before the case of MacPherson v. Buick Motor Car in 1916, injured consumers could only recover damages from the retailer of the defective product.

true

Businesses often claim polygraphs are a fast and economical way to verify the information provided by a job applicant.

true

Due process requires specific and systematic means for workers to appeal discharge or disciplinary decisions.

true

Employees have a legal right to refuse to work when it exposes them to imminent danger.

true

From the beginning, unions have been driven by an attempt to protect workers from abuses of power at the hands of employers.

true

Informed consent implies deliberation and free choice.

true

Job performance and the fairness of the work contract are relevant to the issue of fair wages.

true

Just cause requires that reasons for discipline or discharge be related directly to job performance.

true

One of the chief concerns of nepotism is the disregard of managerial responsibilities to the organization and of fairness to other employees.

true

One study suggests a positive correlation between job satisfaction and longevity.

true

Privacy is widely acknowledged today to be a fundamental human right.

true

The controversy over legal paternalism pits the values of individual freedom and autonomy against social welfare.

true

The general proposition that a firm has a legitimate interest only in employee behavior that significantly influences work performance applies equally to off-the-job conduct.

true

The reliability of a test refers to the quality of exhibiting a reasonable consistency in results obtained.

true

Traditionally, the obligations between a business organization and its employees could be boiled down to "A fair wage for an honest days work."

true

Weasel words" are words used to evade or retreat from a direct or forthright statement.

true

When weighing the decisions to terminate employees, companies need to remember that employment affects families and communities, not just individuals.

true

General contractual obligations to purchasers that sellers assume are:

warranties.

Firms that exercise explicit or implicit pressure on employees to engage in volunteer activities, can be guilty of attempting to influence the personal choices of employees in ways that constitute invasion of privacy. In doing so, they are, in fact, communicating the firms notion of

what to believe, what values to support, and what goals to promote outside work

The firm has a legitimate interest in

whatever significantly influences work performance.

The ultimate moral judgment on whether or not a gift or entertainment expense is acceptable hinges on

whether it might lead the recipient to sacrifice the interest of the firm.

The act of informing on another or disclosure of corruption or wrongdoing is referred to as

whistle-blowing