MBA Final

13. Which of the following is a correct statement about union activities? a. A sympathetic strike occurs when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others. b. A corporate campaign occurs when people refuse to patronize companies that handle products of struck companies. c. The 1947 Taft-Hartley Act forbids individual states from outlawing union shops. d. Labor historians generally consider the American Federation of Labor (AFL) the first truly national trade union.

a. A sympathetic strike occurs when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others.

3. Which of the following is an accurate statement about employment law in the workplace? a. It's illegal to fire workers because of union membership. b. Courts at all levels and in all states now agree that employees cannot be dismissed without just cause. c. The civil liberties of employees have to be restricted for corporations to run efficiently. d. More and more companies are moving toward "employment at will".

a. It's illegal to fire workers because of union membership.

3. Which statement is accurate in its description of consumer protection? a. The Consumer Product Safety Commission has the power to order recalls. b. Statistics show that, in fact, safety regulations rarely succeed in increasing safety. c. Critics agree that the cost of safety regulations and product recalls are negligible. d. Safety regulations permit people to choose to save money by purchasing riskier (but less expensive) products.

a. The Consumer Product Safety Commission has the power to order recalls.

16. Which statement is true from an ethical perspective? a. The argument for strict liability is basically utilitarian. b. Strict liability is identical with absolute liability. c. The concept of due care is identical with that of caveat emptor. d. The argument for due care is basically Kantian.

a. The argument for strict liability is basically utilitarian.

8. Sexual comments that one woman appreciates might distress another women. Who decides when such behavior is inappropriate? a. The person to whom the comments are directed. b. The person accused of harassment. c. The hypothetical "reasonable person." d. The common law as modified by legislation.

a. The person to whom the comments are directed.

7. Which of the following is an example of sexual harassment? a. Unwelcome sexual offers a female employer gives to a male employee. b. A female employee hugging a co-worker when he announces his engagement. c. A manager enforcing a dress code for a work environment. d. An employee pinning up comic strips in an office cubicle.

a. Unwelcome sexual offers a female employer gives to a male employee.

12. Critics of advertising generally agree that a. advertising rarely gives consumers much useful information. b. brand loyalty increases price competition. c. restrictions on advertising violate the moral rights of advertisers. d. advertising can only influence us if we want it to.

a. advertising rarely gives consumers much useful information.

17. Many Americans oppose what issue because they fear it will lead to illegal quotas, preferential treatment of African Americans and women, and even reverse discrimination against white men? a. affirmative action c. sexual harassment b. sexual diversity d. age discrimination

a. affirmative action

16. Employers have the right to fire an employee who performs inadequately, but they should do so a. as painlessly as possible. c. in a public display so all can learn. b. with vengeance. d. in humiliation.

a. as painlessly as possible.

9. Harvard business professor Theodore Levitt has a. drawn an analogy between advertising and art. b. proven the possibility of effective subliminal advertising. c. argued that the process of production today creates the very wants it then satisfies. d. invented the concept of "puffery".

a. drawn an analogy between advertising and art.

19. People generally speak of two kinds of warranties. What are these two kinds of warranties? a. express and implied c. limited and unlimited b. positive and negative d. legal and moral

a. express and implied

4. Legal paternalism is the doctrine that the law a. may justifiably restrict the freedom of the individual for his or her own good. b. may justifiably forbid lawsuits against those who act paternalistically. c. should encourage business to develop a paternal sense of responsibility for consumers. d. should only restrict people's freedom in order to protect other people.

a. may justifiably restrict the freedom of the individual for his or her own good.

18. Over the last two decades, how many sexual-harassment claims have emerged? a. over 12,000 annually. c. over 25,000 annually. b. over 15,000 annually. d. over 50,000 annually.

a. over 12,000 annually.

1. The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts a. permitted consumers to sue manufacturers with whom they had no contractual relationships. b. adopted the principle of caveat emptor. c. permitted consumers to sue the retailer from whom they had purchased the product. d. adopted the principle of strict liability.

a. permitted consumers to sue manufacturers with whom they had no contractual relationships.

24. The terms "best, finest, and most" are examples of a. puffery. c. truth in advertising. b. psychological appeals. d. trust building statements.

a. puffery.

13. What quality is more important in predicting who gets fired than job-performance ratings or even prior disciplinary history? a. race c. age b. sexual orientation d. gender

a. race

20. To answer the question of who determines what is objectionable or offensive in sexual harassment, the courts use what kind of hypothetical person? a. reasonable person c. hysterical person b. sensual person d. management person

a. reasonable person

7. According to David Ewing, a. the corporate invasion of employees' civil rights is rampant. b. sympathetic strikes ought to be made illegal. c. employers have the right to fill the positions of striking workers with other workers.

a. the corporate invasion of employees' civil rights is rampant.

5. Groups of 18th century skilled artisans formed secret societies for two basic reasons. Which of the following is one of those reasons? a. to equalize their relationship with their employers b. to distinguish themselves from carpenters and shoemakers c. to gain control of the German government d. to avoid having to set minimal standards for their crafts

a. to equalize their relationship with their employers

22. The goal of advertising is a. to persuade people to purchase the product. b. to provide information about goods and services. c. to provide information about prices. d. to subsidize the media.

a. to persuade people to purchase the product.

25. In union terms, a direct strike occurs a. when an organized body of workers withholds its labor to force the employer to comply with its demands. b. when union members and their supporters refuse to buy products from a company being struck. c. when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others. d. when people refuse to patronize companies that handle products of struck companies.

a. when an organized body of workers withholds its labor to force the employer to comply with its demands.

22. The English philosopher Francis Bacon (1561-1626) called conscious and unconscious biases and stereotypes a. "plagues of interviewing." c. "the best tools." b. "idols of the mind." d. "mind benders."

b. "idols of the mind."

4. Of these four arguments, which of the following is the most plausible argument FOR affirmative action? a. It evens the score with young white men, who have had it good for too long. b. It is necessary to break the cycle that keeps minorities and women locked into low-paying, low-prestige jobs. c. It ignores the principle of equality. d. It is a color-blind policy.

b. It is necessary to break the cycle that keeps minorities and women locked into low-paying, low-prestige jobs.

20. Which of the following is an example of price gouging? a. Selling World Series Tickets for $300. b. New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks. c. Having to pay above the seller's original asking price for a home. d. Increasing the price of lawn movers in the spring and summer.

b. New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks.

22. What should a female employee do if she encounters sexual harassment? a. She must decide if she likes the attention. b. She should try to document it by keeping a record of what has occurred, who was involved, and when it happened. c. Keep it to herself and never tell a soul. d. Go on a talk show and tell her story.

b. She should try to document it by keeping a record of what has occurred, who was involved, and when it happened.

2. A historical view indicates which of the following is correct? a. Statistical evidence is irrelevant to proving discrimination. b. Women and blacks are sometimes victimized by stereotypes. c. The idea that women may have difficulties fitting into a "male" work environment is outdated. d. On average women earn between 1/3 and 1/2 of what men make for doing the very same work.

b. Women and blacks are sometimes victimized by stereotypes.

14. Since Congress passed the Americans with Disabilities Act in 1994, a. all disabled persons must be hired. b. employers must make "reasonable accommodations" for disabled workers. c. employees must try to "undo" their disabilities. d. employers must be careful to "screen" out disabled persons.

b. employers must make "reasonable accommodations" for disabled workers.

17. Fair personnel policies and decisions must be based on criteria that are clear, job related, and a. partial toward friends. c. ignore personality. b. equally applied. d. minimize nepotism.

b. equally applied.

5. "Puffery" is an example of which of the following deceptive or misleading advertising techniques? a. ambiguity c. psychological appeals b. exaggeration d. concealed facts

b. exaggeration

21. In the interview process, the interview should avoid rudeness, coarseness, condescension, and a. giddiness. b. hostility. c. sternness. d. questions.

b. hostility.

24. Of the four types of discharge, firing a. results from an employee's poor performance¾that is, from his or her failure to fulfill expectations. b. is for-cause dismissal¾the result of employee theft, gross insubordination, release of proprietary information, and so on. c. usually refers to the temporary unemployment experienced by hourly employees and implies that they are "subject to recall." d. designates the permanent elimination of a job as a result of workforce reduction, plant closing, or departmental consolidation.

b. is for-cause dismissal¾the result of employee theft, gross insubordination, release of proprietary information, and so on.

23. According to Shaw and Barry, companies clearly have what kind of obligation to provide a work environment in which employees are free from sexual harassment? a. legal b. moral c. environmental d. personal

b. moral

25. Statistically, there is strong evidence that exposure to television advertising is strongly associated with a. criminal behavior. b. obesity in children under twelve. c. low ethical sensitivity in children under ten. d. liberal attitudes in children under nine.

b. obesity in children under twelve.

9. The Wagner Act of 1935 a. established the Food and Drug Administration. b. prohibits employers from interfering with employees trying to organize unions. c. guaranteed employers the right of refusing to bargain with union representatives. d. guaranteed the right to work and outlawed union shops.

b. prohibits employers from interfering with employees trying to organize unions.

12. When investigators sent equally qualified young white and black men¾all of them articulate and conventionally dressed¾to apply for entry-level jobs in Chicago and Washington, D.C., the results clearly showed a. sexual discrimination against young African-American men. b. racial discrimination against young African-American men. c. sexual discrimination against young white men. d. racial discrimination against young white men.

b. racial discrimination against young African-American men.

16. Fill in the blank. Today most large corporations not only accept the necessity of affirmative action but also find that ____ benefits when they make themselves more diverse? a. the morale of the company c. the law department b. the bottom line d. the managers

b. the bottom line

14. Before the case of MacPherson v. Buick Motor Car in 1916, the law based a manufacturer's liability for injuries due to a defective product on a. the principle of strict liability. b. the direct contractual relationship between the producer and the consumer. c. the principle of the reasonable person. d. whether or not the manufacturer exercised due care.

b. the direct contractual relationship between the producer and the consumer.

1. According to David Ewing, two factors explain the absence of civil liberties and the prevalence of authoritarianism in the workplace. Which of the following is one of them? a. discriminatory employment practices due to strict constructionist interpretations of the Constitution b. the rise of personnel engineering and professional management c. the common law doctrine of eminent domain d. employer resistance to unionization

b. the rise of personnel engineering and professional management

7. The case of FTC v. Standard Education was important in the legal transition a. toward the principle of caveat emptor. b. toward something like the ignorant consumer standard. c. toward the reasonable-person standard. d. that removed power from the Federal Trade Commission (FTC).

b. toward something like the ignorant consumer standard.

9. The 1984 Supreme Court decision in Memphis Firefighters v. Stotts a. treated sexual harassment as a form of discrimination. b. upheld seniority over affirmative action. c. upheld the legality of hiring quotas. d. upheld the legality of mandatory drug testing.

b. upheld seniority over affirmative action.

8. To be successful any test used by a corporation must be a. sound. b. valid. c. created outside the corporation using the test. d. one that can be used by any organization for any position.

b. valid.

11. Which statement is true about the hiring and employment process? a. A job description permits employers to rely on the preferences of their customers as a reason for discriminatory employment practices. b. A job specification describes the qualifications an employee needs, such as skills, educational experience, appearance, and physical attributes. c. According to common law, unless there is an explicit contractual provision to the contrary, every employment is employment "at will." d. In validating job specifications, a firm lists all pertinent details about a job, including its duties, responsibilities, working conditions, and physical requirements.

c. According to common law, unless there is an explicit contractual provision to the contrary, every employment is employment "at will."

5. Of these four arguments, which of the following is the most plausible argument AGAINST affirmative action? a. Compensatory justice forbids affirmative action. b. Blacks and whites are already equal in socioeconomic terms. c. Affirmative action violates the rights of white men to equal treatment. d. Affirmative action is the same thing as fixed numerical quotas.

c. Affirmative action violates the rights of white men to equal treatment.

6. Choose the most accurate statement concerning the workplace: a. If wages conform with the law, they are fair wages. b. Employers have no obligation to dismiss workers as painlessly as possible. c. An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees. d. All instances of nepotism raise serious moral concerns.

c. An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees.

15. What do affirmative action programs involve? a. Firms should prepare an oral equal-employment policy and an affirmative action commitment. b. Firms should appoint an administrative assistant to direct and implement their program and to publicize their policy and affirmative action commitment. c. Firms are expected to survey current female and minority employment by department and job classification. d. Whenever underrepresentation of females or minorities is evident, firms are to try a little harder.

c. Firms are expected to survey current female and minority employment by department and job classification.

11. Which of the following statements is accurate? a. Men cannot be victims of sexual harassment. b. The Supreme Court has established a hard and fast line between permissible and impermissible affirmative action plans. c. The law treats sexual harassment as a form of sexual discrimination. d. Differences in levels and types of education explain why, on the average, men earn more than women.

c. The law treats sexual harassment as a form of sexual discrimination.

8. In deciding whether an ad is deceptive, today the FTC basically follows a. the reasonable consumer standard. b. the ignorant/gullible consumer standard. c. a "modified" ignorant-consumer standard. d. none of these choices.

c. a "modified" ignorant-consumer standard.

23. Terms like "can be," "as much as," and "help," are examples of a. concealment of facts. c. ambiguity. b. truth in advertising. d. consumer confidence.

c. ambiguity.

10. In 1987, the Supreme Court affirmed, in the case of Johnson v. Transportation Agency, that a. affirmative action is unconstitutional. b. quotas based on considerations of race are unconstitutional. c. considerations of sex are permissible as one factor in deciding whom to promote. d. racially segregated schooling is unconstitutional.

c. considerations of sex are permissible as one factor in deciding whom to promote.

18. The hiring process needs to include screening, testing, and a. safety awareness. c. interviewing. b. eliminating candidates. d. job descriptions.

c. interviewing.

13. Caveat emptor means a. strict product liability b. due care c. let the buyer beware d. the customer and manufacturer meet as equals

c. let the buyer beware

20. Tests are designed to measure the applicants' skills in verbal, quantitative, and a. ethical skills. b. empathy skills. c. logical skills. d. social skills.

c. logical skills.

18. Every year ____ of Americans require medical treatment from product related accidents. a. tens of thousands c. millions b. hundreds d. hundreds of thousands

c. millions

10. According to Galbraith's "dependence effect," a. production depends upon wants. b. advertising depends on the wants of the consumer. c. producers use advertising to shape consumer wants. d. advertising depends on consumerism.

c. producers use advertising to shape consumer wants.

15. Due care is a. based on the principle of caveat emptor. b. based on the principle "let the buyer beware." c. the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer. d. based on the principle of absolute liability.

c. the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.

4. Austin Fagothey and Milton Gonsalves believe a direct strike is justified a. when it is motivated by revenge. c. when it is a last resort. b. when workers are coerced into striking. d. under no conditions.

c. when it is a last resort.

19. There are two legal types of sexual harassment: a. male to female, female to male. b. male to male, female to female. c. boss to worker, worker to boss. d. "quid pro quo'' and "hostile work environment.''

d. "quid pro quo'' and "hostile work environment.''

15. Choose the factual statement concerning wages: a. An employer's financial capabilities are irrelevant to the question of fair wages. b. A fair wage is whatever an employee is willing to accept. c. Extrinsic, non-job-related considerations are often relevant to setting fair wages. d. A fair wage presupposes a fair work contract.

d. A fair wage presupposes a fair work contract.

17. In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the a. Securities and Exchange Commission. b. Federal Drug Administration Agency. c. Fair Packaging and Labeling Commission. d. Consumer Product Safety Commission.

d. Consumer Product Safety Commission.

3. Which of these statements is true concerning court cases about discrimination? a. Brown v. Board of Education upheld the principle of "separate but equal." b. The Bakke case outlawed affirmative action across the board. c. In the 2004 Holtz case, the Supreme Court ruled that "race-conscious" admissions policies are unconstitutional. d. In the recent University of Michigan cases (Gratz and Grutter), the Supreme Court upheld a moderate, flexible affirmative action program and rejected a rigid one.

d. In the recent University of Michigan cases (Gratz and Grutter), the Supreme Court upheld a moderate, flexible affirmative action program and rejected a rigid one.

24. Opponents of comparable worth insist which one of these ideas support their position? a. Most women want a rigid schedule. b. Most women want the most challenging job. c. Most women have chosen the higher paying occupations. d. Most women have freely chosen the lower paying occupations.

d. Most women have freely chosen the lower paying occupations.

1. Which of the following is true based on documented evidence of discrimination? a. African Americans have the third highest standard of living in the world. b. Today, men are just as likely as women to be in so-called "pink collar" occupations. c. There is little statistical evidence of job discrimination today. d. Relatively few women and minorities have made it to the very top of their professions.

d. Relatively few women and minorities have made it to the very top of their professions.

19. Which of these is a valid reason for not hiring a potential employee? a. The person is overqualified. b. There's a gap in the person's unemployment history. c. The person dresses poorly. d. The person has a lack of experience.

d. The person has a lack of experience.

2. According to the legal doctrine of strict product liability, a. the producer of a product is responsible for any injury the consumer suffers. b. consumers must assume all risk whenever they buy a product. c. product liability presupposes negligence by more than one party. d. a manufacturer need not be negligent to be held liable for a defective product.

d. a manufacturer need not be negligent to be held liable for a defective product.

14. Male managers frequently assume that women a. will not place family demands above work considerations. b. possess the necessary drive to succeed in business. c. take negative feedback professionally rather than personally. d. are too emotional to be good managers.

d. are too emotional to be good managers.

6. For years Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of a. ambiguity. c. exaggeration. b. psychological appeals. d. concealed facts.

d. concealed facts.

12. Griggs v. Duke Power Company, which prohibits a. tests given to employees or applicants to have inconsistent results. b. tests given to employees or applicants from being invalid. c. tests given to employees or applicants from being unreliable. d. employers from requiring a high school education as a prerequisite for employment or promotion without demonstrable evidence that the associated skills relate directly to job performance.

d. employers from requiring a high school education as a prerequisite for employment or promotion without demonstrable evidence that the associated skills relate directly to job performance.

23. The key moral ideal in promotions is a. loyalty. b. likeability. c. intelligence. d. fairness.

d. fairness.

25. Affirmative action, comparable worth, and sexual harassment are connected to a. job performance. c. job analysis. b. job discrimination. d. job description.

d. job discrimination

2. According to common law, to legally dismiss an employee, an employer a. cannot have bad motives. c. must have good cause. b. is obligated not to discriminate. d. need have no reason at all.

d. need have no reason at all.

21. One message that sexual harassment conveys is that managers view women as a. assets. b. equals. c. high potentials. d. playthings.

d. playthings.

10. Unions employ two kinds of boycotts to enforce their demands. These two kinds of boycotts are a. positive and negative. c. active and passive. b. corporate and private. d. primary and secondary.

d. primary and secondary.

11. Advertising a. makes the market more efficient. b. maximizes consumer well-being (thanks to the invisible hand). c. can't be restricted without violating the moral rights of advertisers. d. subsidizes the media.

d. subsidizes the media.

21. The consumer's main source of product information is a. testimonials of other customers. c. word of mouth. b. billboards. d. the label and package.

d. the label and package.

6. Advocates of "comparable worth" a. say that all women do their job just as well as men. b. base their doctrine on the free-market determination of wages. c. believe it is necessary for getting rid of sexual harassment. d. want women to be paid as much as men for jobs involving equivalent skill, effort, and responsibility.

d. want women to be paid as much as men for jobs involving equivalent skill, effort, and responsibility.