4
12. More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for membership in the society. The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing. This example illustrates that the physician's actions were A. ethical but illegal. B. ethical and legal. C. unethical and illegal. D. unethical but legal. E. altruistic but naïve.
a
25. 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.
a
29. 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. The important thing to remember is 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.
a
36. 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.
a
105.A sonal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as . A. social responsibility B. moral idealism C. utilitarianism D. hedonism E. religion
b
21. Factors influencing personal moral philosophy and ethical behavior include , business culture and industry practices, and corporate culture and expectations. A. religious beliefs and practices B. societal culture and norms C. national and regional legislation D. universal core values E. the universal concept of good vs. evil
b
22. Which of the following is considered one of the major factors that influences ethical behavior? A. organizational structures B. societal culture and norms C. national and local legislation D. the U.S. Supreme Court E. a nation's moral philosophy
b
24. Factors influencing personal moral philosophy and ethical behavior include societal culture and norms, business culture and industry practices, and . A. religious beliefs and practices B. corporate culture and expectations C. national and regional legislation D. universal core values E. the universal concept of good vs. evil
b
3. Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to A. promote the positive aspects of moderate beer consumption. B. promote responsible drinking and deter underage drinking and alcohol abuse. C. encourage recycling of both aluminum cans and glass bottles by ultimate consumers and suppliers. D. educate employees about the importance of serving as role models by drinking responsibly themselves. E. promote Anheuser-Busch as more socially responsible than its competitors.
b
30. Copyrights, trademarks, and patents are A. public goods. B. intellectual property. C. rights granted to individuals or organizations by the WTO for a period of five years. D. limited to books, music, and software. E. subject to ISO 14000 requirements.
b
38. 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. "Don't take any wooden nickels." E. "Such is life."
b
42. The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from "cooking" their books to paint investors and regulators a better financial picture than they really have. Yet, in the end, it is up to investors to research the companies in which they want to invest because is the norm when investing in the stock market. A. modus operandi B. caveat emptor C. de facto marketing D. cest la vie E. anguis in herba
b
47. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) ; (3) to choose; and (4) to be heard. A. to privacy B. to be informed C. to be treated with respect D. to be treated without prejudice E. to receive fair prices for both products and services
b
5. Anheuser-Busch's commitment preserving the natural environment caused Fortune magazine to rank it among the top companies for . A. utilitarianism B. social responsibility C. moral idealism D. green marketing E. cause marketing
b
53. 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.
b
10. 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
d
13. China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 2 million by 2025. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting A. ethically but illegally. B. ethically and legally. C. unethically and illegally. D. unethically but legally. E. in ways that cannot be determined by the information provided.
d
14. An owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft Word on her friend's computer. This activity is A. both legal and ethical. B. caveat emptor. C. illegal but ethical. D. illegal and unethical. E. sanctioned by the Business Software Alliance since only one copy is to be transferred.
d
16. Many media today use pay-to-vote polls, in which respondents use a 900-telephone number to vote "yes" or "no" on a current issue, as a means of generating viewer or listener interest. The Research Industry Coalition (RIC) has asked all media to inform viewers or listeners that the validity of such polls is questionable and the results are NOT statistically representative of the population but are just a frequency distribution of those who happen to call. If a television station chooses not to make viewers aware of the shortcomings of a pay-to-vote poll, its business practice would fall into which of the following categories? A. ethical but illegal. B. ethical and legal. C. unethical and illegal. D. unethical but legal E in today's media age, this practice has become universal; any bias is implied and need not be directly . stated under the caveat emptor doctrine.
d
2. Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its A. development of a low-carb beer. B. annual sponsorship of the Super Bowl. C. exclusive use of ingredients from American manufacturers and suppliers. D. alcohol awareness and education programs. E. commitment to maintaining the lowest prices possible without sacrificing taste.
d
26. 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
d
28. Which of the following is a socializing force that dictates what is morally right and just? A. federal regulatory agencies like the FTC B. federal, state, and local legislation C. the U.S. Supreme Court D. culture E. organizational core values
d
34. Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in China because laws protecting intellectual property are unclear and sporadically enforced. Even when sanctions are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine. Moreover, copying enjoys a long tradition in China and does not carry a stigma. A business introducing a product into China 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
d
43. 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
d
51. The FTC is concerned about the amount of personal information that is collected through websites because the consumer is not made aware of how this information is being used. Over 92 percent of websites collect personal information, yet only about make their customers aware of how that information is being used. A. one-quarter B. one-third C. one-half D. two-thirds E. three-quarters
d
55. Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll's motorized mouth. However, despite extensive testing, the doll was found to "eat" the child's hair and was subsequently recalled and discontinued. Mattel discontinued the item because of consumers' right to A. choose. B. be informed. C. be treated courteously. D. safety. E. happiness.
d
100.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. BMattel 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. EA Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly . manufactured an electrical system for Power Wheels that would catch on fire after long use.
e
11. Which of the following statements 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 and moral principles whereas laws are society's values that are enforceable in the courts.
e
17. A recent poll by Environics International, a public-opinion research firm, found that 67 percent of North Americans are willing to boycott products on ethical grounds. This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts. Which of the following statements describes a conclusion that should be drawn from this information? A. If you are an ethical person, you should act according to your instincts. B. Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically. C. All businesses will act unethically unless forced by consumers to act morally. D. There is nothing consumers can do to stop unethical business activities. E. Boycotting a product without knowing the facts can be viewed as unethical.
e
18. Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business executives as A. outstanding. B. above average. C. similar to other professions. D. typical of businesspeople around the world. E. fair or poor.
e
20. All of the following are reasons for the state of perceived ethical business conduct EXCEPT: A. a growing tendency for business decisions to be judged publicly by groups with different values and interests. B. the increased pressure on business people to make decisions in a society with diverse value systems. C. an increase in the public's expectations of ethical business behavior. D. ethical business conduct may have declined. E. businesses are behaving more ethically during these difficult economic times.
e
23. Which of the following is considered one of the major factors that influences ethical behavior? A. organizational structures B. legislation C. federal regulatory agencies D. a nation's moral philosophy E. business culture and industry practices
e
27. 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 minority. B. is determined by the largest generational group 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.
e
32. Consider the copying of another's copyright, trademark, or patent. These are viewed as intellectual property. In the U.S., unauthorized use, reproduction, or distribution of intellectual property is illegal. Yet in China, copying enjoys a long tradition and does not carry a stigma. For example, copying a masterpiece was historically considered an art form in its own right. The difference between the two countries shows that A. business culture B. industry practices C. corporate culture D. corporate expectations E. societal culture and norms affect(s) the view of ethical behavior held in each country.
e
39. The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s, is referred to as . A. ad nauseum B. mea culpa C. quid pro quo D. cest la vie E. caveat emptor
e
4. By preserving the natural environment, Anheuser-Busch is appealing to environmentalists through its alcohol abuse awareness initiatives; it is attempting to persuade underage children from thinking that drinking beer makes them cool. Anheuser-Busch is exhibiting which of the following? A. stockholder responsibility B. profit responsibility C. utilitarianism D. cause marketing E. social responsibility
e
41. Investors should understand that when purchasing stock, the principle of is in effect. It behooves 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. cest la vie E. caveat emptor
e
46. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) ; (2) to be informed; (3) to choose; and (4) to be heard. A. to privacy B. to be compensated for product defects C. to be treated with respect D. be treated without prejudice E. to safety
e
49. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) to be informed; (3) to choose; and (4) . 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 compensated for product defects E. to be heard
e
50. 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. $900 million C. $300 billion D. $500 billion E. $700 billion
e
59. When shopping on the Internet, most consumers assume the personal information they give out is confidential. Subscribers to America Online (AOL) were upset when AOL proposed giving member information to partners without telling them. This is related most directly to consumers' right to A. be heard. B. be treated courteously. C. safety. D. happiness. E. be informed.
e
61. The FTC established the Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls. Today, a telemarketer can be fined up to for each call made to a telephone number posted on the registry. A. $500 B. $750 C. $1,250 D. $8,750 E. $16,000
e
63. 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 clandestine collection of trade secrets from foreign countries. E. the clandestine collection of trade secrets or proprietary information about a company's competitors.
e
75. 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. industries operate in an oligarchic competitive environment. E. industries experience intense competition.
e
79. 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
e
81. Lava.com is an Internet company that helps other organizations implement marketing strategies that they hope will let 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.
e
84. 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.
e
88. 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. lack of specificity
e
93. A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who otherwise might not be able to afford their services. This action exhibits which key AMA ethical value? A. honesty B. fairness C. respect D. openness E. responsibility
e
97. 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 bought. E. employees who report unethical or illegal actions of their employers.
e
102.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.
a
103.All of the following statements about a person's moral philosophy are true EXCEPT: A. Moral philosophy cannot be learned through formal education. B. Moral philosophy is learned through the process of socialization with family. C. Moral philosophy is influenced by the corporate culture he/she is in. D. Moral philosophy is learned through the process of socialization with friends. E. Moral philosophy is influenced by the societal culture he/she is in.
a
40. Caveat emptor refers to A.The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to 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. EThe 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.
a
45. The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by in . A. President John Kennedy; 1962. B. President Ronald Reagan; 1983. C. President William H. Clinton; 1996. D. President George W. Bush; 2003. E. President Barack Obama; 2009.
a
52. A current practice whereby retailers may demand cash or free goods in exchange for shelf space to stock new products is referred to as A. slotting allowances. B. kickbacks. C. economic espionage. D. tying arrangements. E. industrial bribes.
a
58. Recently, certain toys that were manufactured in China were found to have unsafe levels of lead in the paint and were recalled. This action protected consumers' right to A. safety. B. be informed. C. be heard. D. choose. E. be treated courteously.
a
6. Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who drink beer, environmentalists, ABRC, shareholders, and underage children who might think "drinking is cool." The primary reason for its desire to satisfy these needs is consistent with the idea of social responsibility because A. all of these people or groups are its stakeholders. B. if Anheuser-Busch is not profitable, too many people will lose their jobs. C. the larger Anheuser-Busch's profits, the more taxes they will be able to pay. D. contrary to popular belief, alcohol can be good for you if consumed in moderation. E. the more highly thought of by potential consumers, the higher company's sales would be.
a
62. Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common: A. economic espionage and bribery. B. price fixing and copyright infringement. C. bribery and extortion. D. price fixing and economic espionage. E. economic espionage and antitrust infractions.
a
64. 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
a
69. Jay Bloom's Pet Assure, a national pet health-care provider network based in Dover, N.J., recently took advantage of a rival's naïveté. When a West Coast provider of catastrophic pet coverage "preannounced" the addition of a wellness component (Pet Assure's specialty) in an interview with a tiny community newsweekly six months prior to launching it, Bloom was notified immediately through a web-based news monitoring service. This not only gave him time to add catastrophic benefits to one of his own wellness products, but also enabled him to get his offering to the market first. Jay Bloom relied on to keep him abreast of his competitors' activities. A. legal environmental scanning B. economic espionage C. the use of kickbacks D. corporate piracy E. primary market research
a
77. 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.
a
86. All of the following are addressed by an organization's code of ethics EXCEPT: A. the dress, sayings, and work manner of employees. B. contributions to political parties and government officials. C. customer and supplier relationships. D. accurate recordkeeping. E. conflicts of interest.
a
96. 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. ombudsman.
a
60. When Toysmart.com filed for bankruptcy in June 2000, it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party. People who had purchased products from Toysmart and were a part of its database were upset when they learned their private information was being treated as property that was for sale. These customers believed that according to the Consumer Bill of Rights, they should know how their private information would be used. In other words, Toysmart's former customers had a right to A. choose. B. be informed. C. be heard. D. safety. E. happiness.
b
68. Michael Smolensky is CEO of Lifeway Foods, Inc., based in Skokie, IL. The company sells kefir, a cultured milk product popular in Smolensky's native Russia. Recently, Smolensky, who had developed his own secret recipe, got a call from his supplier, saying, "Michael, someone is trying to steal your secrets." Smolensky discovered later that a prospective rival had called to ask the supplier for certain ingredients by their secret codes, known only to Smolensky and the supplier. The rival had picked them out of Lifeway's refuse. This is an example of A. corporate shadowing. B. economic espionage. C. clandestine trade secrets. D. industrial sleuthing. E. competitive surveillance.
b
82. 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.
b
85. 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 and moral conduct. D. the written 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.
b
9. Laws refer to A. a specific set of behaviors a given society considers 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.
b
91. The American Marketing Association Statement of Ethics is centered on three general norms: marketers must: (1) do no harm; (2) foster trust in the marketing system; and (3) . A. initiate fair and honest dialogues in developing markets Bembrace, communicate, and practice the fundamental ethical values that will improve consumer . confidence in the integrity of the marketing exchange system C. champion new legislation that protects ethical business firms and punish those who abuse consumer trust D.support governmental agencies in their quest to identify and prosecute those who break the laws of ethical marketing E. contribute to society's well-being through charitable contributions and cause-related marketing efforts
b
99. Which of the following statements best describes 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 hardware wholesaler tries to sell insurance to his regular customers in order to earn some extra income. D. An employee loses his/her retirement fund due to a downturn in the stock market. E.An employee spends the afternoon studying at work for her test rather than counting inventory as she was supposed to be doing.
b
1. The Family Talk about Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of A. consumerism. B. preemptive marketing. C. ethical behavior in marketing. D. the social marketing concept. E. cause marketing.
c
101.Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its sales force to search confidential medical records in physician's offices in an attempt to find names of patients that would benefit from the use of Amgen's drug Enbrel, a treatment for psoriasis. After reporting this practice, these two people sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. Soon after, one of the reps was fired and the other resigned after receiving a poor performance review. These two people are A. scabs. B. cronies. C. whistle-blowers. D. contrarians. E. ombudsmen.
c
104.Two prominent personal moral philosophies that have direct bearing on marketing practice are A. existentialism and pragmatism. B. pragmatism and idealism. C. moral idealism and utilitarianism. D. social responsibility and personal ethics. E. moral behaviorism and secular ethics.
c
15. Enron's Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on a charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company's expense. Fastow, in his tenure with Enron, acted A. ethically but illegally. B. ethically and legally. C. unethically and illegally. D. unethically but legally. E. in a socially responsible manner.
c
19. According to public opinion surveys, occupations in the United States. A. insurance company professionals B. legal professionals C. advertising practitioners D. members of the U.S. Congress E. the news media are considered to be among the LEAST ethical
c
31. The unauthorized use of intellectual property can severely affect the owners of that property. This practice also A. levels the playing ground for developing nations by eliminating years of research time. B. accelerates innovation in that industry, as new and improved offerings enter the marketplace. C. has a negative impact on the economy through the loss of jobs, royalties, wages, or tax revenue. D. has a positive impact on an entire nation's cultural value system. E. ensures that the prices to consumers are minimized as a result of increased competition.
c
33. 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 it international law E. organizational culture and expectations
c
35. 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.
c
37. 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.
c
44. The Consumer Bill of Rights refers to a law that A.codified the ethics of exchange between manufacturers, distributors, and suppliers, including the right to be paid. Bcodified 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. Dguaranteed 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.
c
48. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) to be informed; (3) ; and (4) to be heard. A. to have legal representation in a court of law B. to exchange or return products within a reasonable period of time C. to choose D. to demand "rain checks" if advertised goods are out of stock E. to be compensated for product defects
c
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 public policy makers regarding complaints about fraudulent consumer practices. E. consumers should have access to public policy makers regarding new product ideas.
c
57. 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.
c
65. All of the following are examples of economic espionage EXCEPT: A. wiretapping. B. misrepresentation. C. bribery. D. "dumpster diving" or searching a competitor's trash. E. employment contract violations.
c
67. Economic espionage is most likely to occur in which type of industries? A. fashion design and textiles B. entertainment C. high-tech electronics and aerospace D. intellectual property (print) E. beverage industry (alcoholic and nonalcoholic)
c
76. 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 nations worldwide according to their perceived use of bribery. 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.
c
8. 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.
c
80. 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.
c
83. A code of ethics is a formal statement of rules of conduct and A. legal restrictions. B. moral laws. C. ethical principles. D. core values. E. cultural values.
c
87. Which of the following statements describes one of the major reasons codes of ethics are violated? A. Most companies do not have a formal code of ethics. B. Most companies overlook infractions if the action is unethical but legal. C. Many codes of ethics lack specificity. D There is often a discrepancy between the written code of ethics of a firm and the personal and moral . beliefs of individual employees. E. There are very few violations in firms with written codes of ethics.
c
92. The American Marketing Association Statement of Ethics identifies six key aspirational ethical values. These include: , responsibility, fairness, respect, openness, and citizenship. A. diversity B. integrity C. honesty D. perseverance E. charity
c
98. An employee who reports illegal accounting procedures is an example of a(n) A. crony. B. scab. C. whistle-blower. D. corporate snitch. E. ombudsman.
c
56. Recently, a project team for Cosco, the world's largest children's products company, developed 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. Its design could be made and sold for $49. The marketing manager, in consultation with other middle managers, decided to have the prototypes checked out by Cosco employees who had small children. This was the only product testing performed on the product. Before Cosco pulled the unsafe chair from the market, 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.
d
66. Economic espionage includes such activities as . A. two firms hiring the same musician to write their company jingle B.hiring people who ever 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
d
7. 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. society's values and standards 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 individual or a group's beliefs of nations or religions.
d
78. 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. a 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.
d
89. HomeWorRx Referral Network profiles home service companies for homeowners looking for a contractor or handyman. To ensure that companies they recommend are reliable, HomeWorRx checks the business licenses, insurance coverages, Better Business Bureau records, and three trade references. The recommended home service company also has to agree to a(n) , which includes maintaining professionalism and guaranteeing the quality of its work. A. statement of cultural values B. statement of values and beliefs C. industry endorsement D. code of ethics E. contract due diligence
d
90. In 2001, 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 U.S. to work at Tyson plants. Based on this information, one could conclude that Tyson's violations are the result of , one of the major reasons why some company employees engage in ethical 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
d
94. Even though his business is very small, the owner of a LAN center wants to follow the American Marketing Association Statement of Ethics. Every month there is a "company cookout." At the end of the meal, the employee (from president to members of the cleaning staff) who had the best idea for improving the center is honored and given a $25.00 gift certificate plus a T-shirt that reads, "Great Minds Think Like Me." This action exhibits which key AMA ethical value? A. honesty B. responsibility C. fairness D. respect E. openness
d
95. A recent study of business executives reported that had been implicitly or explicitly rewarded for engaging in ethically troubling behavior. A. 7% B. 12% C. 25% D. 40% E. 62%
d
