Test Bank for Business Ethics: Case Studies and Selected Readings, 9th Edition, Marianne M. Jennings
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True / False
1. One of the FCC complaints against T-Mobile involved “bait and switch.”
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:48 PM
DATE MODIFIED: 9/8/2017 1:49 PM
2. The sale of a product with known, but undisclosed dangers, is unethical.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Evaluate
DATE CREATED: 9/8/2017 1:49 PM
DATE MODIFIED: 9/8/2017 1:50 PM
3. You are in marketing for one of the three U.S. auto manufacturers. You have just received a notice from your seat belt buckle supplier that the buckles shipped to you and used in the cars made between June 94 and September 94 are defective. The defect means that the buckles will come undone if pressure is placed on the belts at any speed over 10 miles per hour. You must encourage your firm to issue a recall.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 1:51 PM
DATE MODIFIED: 9/8/2017 1:52 PM
4. The failure to provide safe packaging is a product liability issue.
a. True
b. False
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ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 1:52 PM
DATE MODIFIED: 9/12/2017 6:50 PM
5. The failure to redesign a product with a safety flaw is a product liability issue.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 1:53 PM
DATE MODIFIED: 9/12/2017 6:51 PM
6. Releasing a product with known safety problems for sale to the public is an ethical breach.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 1:53 PM
DATE MODIFIED: 9/12/2017 6:51 PM
7. T-Mobile was not required to pay anything to settle the FTC complaints against it; it just promised to change its ads.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Advertising Content
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KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:54 PM
DATE MODIFIED: 9/8/2017 1:55 PM
8. In the Pacquiao-Mayweather fight, the fighters both threw fewer punches than in their previous fights.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:55 PM
DATE MODIFIED: 9/8/2017 1:55 PM
9. Fans who paid to watch the Pacquiao-Mayweather fight were not told about Pacquiao’s injury before the fight.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:56 PM
DATE MODIFIED: 9/8/2017 1:56 PM
10. Tylenol did a rapid recall of its products when consumers reported black flecks were present in the liquid product forms of the company’s analgesics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:56 PM
DATE MODIFIED: 9/8/2017 1:57 PM
11. Tylenol’s competitors were able to win customers when Tylenol’s quality control problem was revealed.
a. True
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b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 1:58 PM
DATE MODIFIED: 9/8/2017 1:58 PM
12. The implied warranty of fitness for a particular purpose is also known as the salesperson warranty.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 1:58 PM
DATE MODIFIED: 9/8/2017 1:59 PM
13. Privity of contract is required under tort law for product liability recovery.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 1:59 PM
DATE MODIFIED: 9/8/2017 2:00 PM
14. The implied warranty of merchantability is given in every sale of goods.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
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TOPICS: Product Safety
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 2:00 PM
DATE MODIFIED: 9/8/2017 2:00 PM
15. A sample or a model is an express warranty.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 2:01 PM
DATE MODIFIED: 9/8/2017 2:01 PM
16. Ralph Nader changed the nature of the liability of manufacturers for their products.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:01 PM
DATE MODIFIED: 9/8/2017 2:02 PM
17. The failure to provide adequate warnings for products can result in manufacturer liability.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 2:02 PM
DATE MODIFIED: 9/8/2017 2:03 PM
18. In the Peanut Corporation of America case, no senior managers were convicted of crimes.
a. True
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b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:03 PM
DATE MODIFIED: 9/8/2017 2:04 PM
19. Wells Fargo corporate headquarters was not aware of the sham accounts problems at the branches until 2016.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:04 PM
DATE MODIFIED: 9/8/2017 2:05 PM
20. One way to determine whether there are excess controlled substance prescriptions is by checking the addresses on the prescriptions.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 2:06 PM
DATE MODIFIED: 9/8/2017 2:06 PM
21. Employee surveys are a good way to determine what the company culture is like.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
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TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:07 PM
DATE MODIFIED: 9/8/2017 2:07 PM
22. Incentive programs often undermine culture in organizations.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:07 PM
DATE MODIFIED: 9/8/2017 2:08 PM
23. The government was unable to get a guilty verdict on the Silk Road case.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:08 PM
DATE MODIFIED: 9/8/2017 2:09 PM
24. Commissions for the sale of mutual funds vary significantly.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:09 PM
DATE MODIFIED: 9/8/2017 2:09 PM
Multiple Choice
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25. Who said, “Why would somebody send something out that would ruin his own company"?
a. Ralph Nader
b. The owner of Bucky Balls
c. Hugh Parnell Sr.
d. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:10 PM
DATE MODIFIED: 9/8/2017 2:14 PM
26. What product was Ralph Nader concerned about that led to congressional hearings on product liability and safety?
a. The Ford Pinto
b. The Chevrolet Corvair
c. The GM Malibu
d. The Ford Crown Victoria
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:12 PM
DATE MODIFIED: 9/8/2017 2:20 PM
27. Which of the following was not an issue with the FCC and T-Mobile?
a. Ads on unlimited data
b. Cell phone insurance
c. No-contract ads
d. Quality of T-Mobile phones
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:15 PM
DATE MODIFIED: 9/8/2017 2:17 PM
28. What was Lee Iacocca’s objective in designing the Pinto?
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a. A car less than 2,000 pounds that cost less than $2,000
b. A carefully designed competitor for small imports
c. Safety
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:17 PM
DATE MODIFIED: 9/8/2017 2:19 PM
29. What dictated the placement of the Pinto gas tank?
a. Safety
b. Style
c. Weight
d. Government regulations
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:20 PM
DATE MODIFIED: 9/8/2017 2:21 PM
30. In addition to the crush space issues, what other problems did the Pinto design have?
a. None, the only problem was the crush space
b. The price of the car was too high
c. Protruding flanges and bolt heads
d. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:21 PM
DATE MODIFIED: 9/8/2017 2:23 PM
31. What was the cost of partially or completely fixing the Pinto gas tank to better withstand rear-end collision impact?
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a. The costs of the changes ranged from $1.80 to $15.30
b. The costs were over 10% of the cost of the car
c. The costs were too great because the car had to be redesigned
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:23 PM
DATE MODIFIED: 9/8/2017 2:25 PM
32. What did the memo entitled, “Fatalities Associated with Crash Induced Fuel Leakage and Fires” analyze?
a. Other auto manufacturers’ cars and their risks
b. The cost-benefit analysis of producing the Pinto as is or changing its design/components
c. The history of rear-end auto collisions in the U.S.
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:25 PM
DATE MODIFIED: 9/8/2017 2:27 PM
33. What value did Ford put on human life in its analysis of its Pinto issue?
a. $2 million
b. $1 million
c. $200,000
d. $100,000
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:27 PM
DATE MODIFIED: 9/8/2017 2:28 PM
34. What happened to Mrs. Gray when her Pinto was rear-ended by a Galaxie?
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a. She managed to escape from the car
b. Nothing; the gas tank survived the impact
c. She was burned severely and died of congestive heart failure
d. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:28 PM
DATE MODIFIED: 9/8/2017 2:29 PM
35. Who is Richard Grimshaw?
a. Ford engineer who did the cost-benefit analysis on the Pinto
b. A teen who was severely burned when the Pinto he was riding in exploded into flames following a rear-end collision
c. CEO of Ford Motor
d. Secretary of the Department of Transportation
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:29 PM
DATE MODIFIED: 9/8/2017 2:31 PM
36. What did the state of Indiana do with regard to Ford’s Pinto?
a. Banned the sale of the Pinto in the state
b. Indicted Ford for reckless homicide
c. Filed suit to recover damages for burn victims
d. Fined Ford $200,000 per accident
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:31 PM
DATE MODIFIED: 9/8/2017 2:32 PM
37. Which car that GM manufactured had issues similar to the Pinto?
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a. Malibu
b. Corvette
c. Cadillac
d. Both a and b
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:32 PM
DATE MODIFIED: 9/8/2017 2:33 PM
38. How did Patricia Anderson’s car get rear-ended?
a. The car stalled on the freeway and she was trying to get off the freeway when she was rear-ended
b. She was rear-ended by a car going 70 mph as she sat at a stop sign
c. She was not rear-ended; her car exploded at a stop sign
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:34 PM
DATE MODIFIED: 9/8/2017 2:36 PM
39. Who is Edward Ivey?
a. The drunk driver in the Malibu accident case
b. CEO of General Motors
c. Engineer who performed a cost-benefit analysis on the Malibu and its gas tank issues
d. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:36 PM
DATE MODIFIED: 9/8/2017 2:37 PM
40. What did the GM internal memo estimate the cost of the exploding gas tanks would be to GM?
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a. $2.40 per car
b. The memo did not do that analysis because it did not put a value on human life
c. GM had learned from the Ford Pinto case and did not have such a memo
d. $200,000 per car
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:37 PM
DATE MODIFIED: 9/8/2017 2:39 PM
41. What memo did GM have that was different from the Ford Pinto situation?
a. There was no GM memo
b. A memo from a lawyer advising against releasing any internal company analysis of the Malibu design
c. A memo that fired engineers who worked on the Malibu
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:39 PM
DATE MODIFIED: 9/8/2017 2:40 PM
42. What was the original verdict against GM in the LA Malibu case?
a. $1.2 billion
b. $2 billion
c. $4.9 billion
d. $5.0 billion
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:40 PM
DATE MODIFIED: 9/8/2017 2:41 PM
43. What temperature was Jack-in-the-Box cooking its burgers at when the E-Coli illnesses and deaths occurred?
a. 140 degrees
b. 150 degrees
c. 155 degrees
d. 160 degrees
e. 165 degrees
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:42 PM
DATE MODIFIED: 9/8/2017 2:43 PM
44. What was the required legal temperature for cooking burgers at the time of the E-Coli illnesses and deaths?
a. 140 degrees
b. 150 degrees
c. 155 degrees
d. 160 degrees
e. 165 degrees
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:43 PM
DATE MODIFIED: 9/8/2017 2:44 PM
45. What temperature were most fast-food chains using at the time of the Jack-in-the-Box E-Coli illnesses and deaths?
a. 140 degrees
b. 150 degrees
c. 155 degrees
d. 160 degrees
e. 165 degrees
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:44 PM
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DATE MODIFIED: 9/8/2017 2:45 PM
46. Why was Jack-in-the-Box cooking at a different temperature from other fast food chains?
a. Jack-in-the-Box had higher safety standards
b. Cost
c. Jack-in-the-Box lost the memo
d. Both a and b
e. Both b and c
f. a, b, and c
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:45 PM
DATE MODIFIED: 9/8/2017 2:47 PM
47. What was the impact of the E-Coli poisonings on Jack-in-the-Box sales?
a. Sales remained the same, unaffected
b. Sales dropped 10%
c. Sales dropped 20%
d. Jack-in-the-Box was closed so there were no sales
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:47 PM
DATE MODIFIED: 9/8/2017 2:49 PM
48. How many Jack-in-the-Box customers were affected by the E-Coli poisonings?
a. 100
b. 150
c. 300
d. 600
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
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KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:49 PM
DATE MODIFIED: 9/8/2017 2:50 PM
49. How much did Jack-in-the-Box have to have set aside for payments in the suits filed against it?
a. $20 million
b. $50 million
c. $100 million
d. $200 million
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:50 PM
DATE MODIFIED: 9/8/2017 2:51 PM
50. What changes did Jack-in-the-Box make after the E-Coli poisonings?
a. Changed meat suppliers
b. Increased cooking temperature
c. Added extra meat inspections
d. a and b only
e. a, b, and c
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:51 PM
DATE MODIFIED: 9/8/2017 2:53 PM
51. The sale of a product with a known defect or with knowledge of its potentially harmful impact on users:
a. Is illegal.
b. Is unethical.
c. Exposes the manufacturer to strict and negligent product liability.
d. Both b and c
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
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TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:54 PM
DATE MODIFIED: 9/8/2017 2:55 PM
52. Jack-in-the-Box, Inc. cooked its hamburgers according to the temperature required by law. Other chains cooked their hamburgers at a higher temperature and for longer. Jack-in-the-Box:
a. Made a decision that resulted in liability and the moral responsibility for deaths and injuries of its customers.
b. Was in compliance with the law and ethical in its conduct.
c. Has no liability because it was in compliance with the law.
d. Both b and c
e. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:55 PM
DATE MODIFIED: 9/8/2017 2:57 PM
53. What was Coke’s strategy for expanding fountain sales?
a. Sign up new fast-food franchises
b. Move Frozen Coke into fast-food franchises
c. Eliminate Frozen Coke from convenience stores
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 2:59 PM
DATE MODIFIED: 9/8/2017 3:01 PM
54. Why did Burger King want a test market?
a. The product was new
b. Its marketing campaigns recently had been disasters
c. It did not trust Coke
d. Both a and b
e. a, b and c
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:04 PM
DATE MODIFIED: 9/8/2017 3:06 PM
55. What area was picked for the test market?
a. Richmond, Virginia
b. Tallahassee, Florida
c. Atlanta, Georgia
d. Orlando, Florida
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:06 PM
DATE MODIFIED: 9/8/2017 3:08 PM
56. How did Coke get better numbers in the test market?
a. It seasonalized the numbers
b. It altered the numbers
c. A marketing consultant used the Boys and Girls Clubs to get customers into Burger King to buy Frozen Coke value meals
d. Its own employees bought Frozen Coke value meals
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:08 PM
DATE MODIFIED: 9/8/2017 3:09 PM
57. Who is Matthew Whitley?
a. The account manager for Burger King
b. The Coke retail vice president
c. A Coke employee who questioned the invoices from the marketing consultant
d. CEO of Coke
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:09 PM
DATE MODIFIED: 9/8/2017 3:11 PM
58. How did Coke managers react when an employee brought the Boys and Girls Club issue to their attention?
a. It went to Burger King and apologized
b. It fired the employee
c. It asked the employee to conduct a complete investigation
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:11 PM
DATE MODIFIED: 9/8/2017 3:12 PM
59. How much did the Boys and Girls Club plan increase sales in Richmond, Virginia?
a. 2%
b. 6%
c. 10%
d. 15%
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:12 PM
DATE MODIFIED: 9/8/2017 3:13 PM
60. Which of the following resulted from the Burger King Frozen Coke issues?
a. Coke had an earnings restatement
b. The FBI investigated Coke
c. The SEC investigated Coke
d. Both b and c
e. All of the above
ANSWER: e
POINTS: 1
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DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:14 PM
DATE MODIFIED: 9/8/2017 3:16 PM
61. What did Coke do to the employees involved in the Burger King/Frozen Coke activities?
a. They were terminated or resigned
b. They are still with the company, but were demoted
c. They are still with the company, but lost their bonuses
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:16 PM
DATE MODIFIED: 9/12/2017 6:52 PM
62. How much did Coke pay to the employee who filed suit alleging wrongful termination?
a. $540,000: $100,000 in cash, $140,000 in benefits including health insurance, and $300,000 in lawyer’s fees
b. $9,000,000 plus $300,000 lawyer’s fees
c. $37,000,000 plus lawyer’s fees
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:17 PM
DATE MODIFIED: 9/8/2017 3:19 PM
63. Coca-Cola’s test marketing of Frozen Coke:
a. Took unfair advantage of Burger King.
b. Involved stating things known not to be true.
c. Gave a false impression.
d. All of the above
ANSWER: d
POINTS: 1
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DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:19 PM
DATE MODIFIED: 9/8/2017 3:21 PM
64. Which of the following is not an example of an express warranty?
a. “This toothpaste makes teeth the whitest around.”
b. “This water heater holds 50 gallons.”
c. “Preshrunk jeans”
d. “This jacket is lined.”
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 3:21 PM
DATE MODIFIED: 9/8/2017 3:23 PM
65. Sal was at home going through his normal workout when he bent his barbell bar. Sal is a professional bodybuilder. Sal went to his local sporting-goods store and was approached by a clerk wishing to assist him. Sal told the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was located. The clerk presented Sal with a bar that the clerk said "is just what you need for your type of weight requirements." Sal paid for the bar and was returning home when he stopped at a health food restaurant. The drink that he ordered had an unusual taste, but the food establishment refused a refund. Sal became ill from the drink, which, as it turned out, had a toxic substance in it. Sal had to be hospitalized. When Sal was able to work out again, he attached the weights to the new bar and lifted the bar under his chin. The bar snapped in the middle and severely cut Sal. Sal is angry about the drink and the barbell.
With regard to the barbell bar:
a. Sal is not entitled to any recovery for his injury or the broken second barbell because he did not buy all of the components, including the weights, from the same store.
b. Sal is not entitled to any recovery for his injury or the broken second barbell because he is knowledgeable himself in weightlifting and should have known which barbell to use.
c. Sal is entitled to recovery because there has been a breach of an express warranty.
d. Sal is entitled to recovery because of the warranty of fitness for a particular purpose.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 3:23 PM
DATE MODIFIED: 9/8/2017 3:25 PM
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66. Which of the following would not be a basis for a negligence product liability suit?
a. A recall by Toyota of certain of its cars for problems with the floor mat interfering with the driver’s ability to apply the brakes quickly
b. A highly explosive gas tank installed in a car with the manufacturer’s knowledge of its dangers
c. The continued sale of sunglasses to baseball teams knowing that the sunglasses were not shatterproof and had caused players eye injuries
d. All of these would be a basis for a negligence product liability suit
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 3:26 PM
DATE MODIFIED: 9/8/2017 3:27 PM
67. At the heart of the Marsh McLennan mess was:
a. Price-fixing.
b. Insider trading.
c. Conflicts of interest.
d. Both a and c
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:28 PM
DATE MODIFIED: 9/8/2017 3:29 PM
68. “Conscious parallelism” is:
a. The prices of competitors running in tandem with changes.
b. Illegal per se.
c. An issue in the vertical distribution of goods.
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 3:30 PM
DATE MODIFIED: 9/8/2017 3:31 PM
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69. What was not part of the alleged deception in the Pacquiao-Mayweather fight?
a. Failure to disclose Pacquiao’s injury
b. Few punches thrown and landed than in previous fights
c. Use of performance-enhancing drugs by the fighters
d. All of the above were part of the deception
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:32 PM
DATE MODIFIED: 9/8/2017 3:34 PM
70. How was Peanut Corporation able to convince customers to accept product that was testing positive for salmonella?
a. Fictitious certifications
b. Assurances that Mr. Parnell was dumbfounded about the positive tests
c. That tests were completed every day at Peanut Corporation
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Understand
DATE CREATED: 9/8/2017 3:34 PM
DATE MODIFIED: 9/8/2017 3:36 PM
71. To whom was President Reagan referring when he said, “You have lived up to the very highest ideals of corporate responsibility and grace under pressure”?
a. Stewart Parnell
b. Ralph Nader
c. Jim Burke
d. Lee Iacocca
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:37 PM
DATE MODIFIED: 9/8/2017 3:39 PM
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72. Why did Audi enter into a settlement with 8 Mile and Eminem?
a. Audi had copied the color scheme on one of Eminem’s CD covers
b. Audi had run an ad with the look and feel of Chrysler’s “Lose Yourself” ad
c. Audi had used Eminem’s photo in one of its ads
d. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Advertising Content
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:39 PM
DATE MODIFIED: 9/8/2017 3:41 PM
73. The criminal charges involving Peanut Corporation of America relating to Salmonella:
a. Involve both insiders and an outside food broker.
b. Are likely to be dismissed because of lack of proof.
c. Involve criminal fraud.
d. Both a and c
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:42 PM
DATE MODIFIED: 9/8/2017 3:43 PM
74. Which of the following was not in the e-mails found in Peanut Corporation of America’s internal e-mail system?
a. “We at least need to turn the raw peanuts on the floor into money.”
b. “Clean ‘em up and ship them.”
c. “I can sign without running the tests.”
d. “This time lapse is costing us $$$$.”
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:44 PM
DATE MODIFIED: 9/8/2017 3:46 PM
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75. What problems did Tylenol experience between 2010 and 2012?
a. A phantom recall
b. Shoddy manufacturing practices
c. A drop of 55% in Tylenol sales
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:46 PM
DATE MODIFIED: 9/8/2017 3:47 PM
76. How did McNeil resolve its problem that occurred between 2010 and 2012?
a. They are not resolved and litigation is ongoing
b. It entered into a consent decree with the FDA
c. It entered a guilty plea to violations of manufacturing standards
d. Both b and c
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:48 PM
DATE MODIFIED: 9/8/2017 3:49 PM
77. Buckyballs have been:
a. Recalled and will be required to be reissued with a new warning.
b. Permanently recalled.
c. Made safer through new sizes and shapes.
d. Moved to off-shore production.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:50 PM
DATE MODIFIED: 9/8/2017 3:51 PM
78. What theories could the parents of a child injured by ingesting Buckyballs use for recovery of damages from the
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company?
a. Strict tort liability
b. Implied warranty of fitness for a particular purpose
c. Express warranty
d. None of the above because there is assumption of risk with children’s toys
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:51 PM
DATE MODIFIED: 9/8/2017 3:52 PM
79. Why does the DEA want to revoke the licenses of several drug store chains to issue controlled substances medications?
a. There are too many pharmacies in Florida
b. The chains failed to establish adequate internal controls for dispensation of controlled substances
c. The chains failed to submit proper paperwork for licensing
d. Both b and c
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:53 PM
DATE MODIFIED: 9/8/2017 3:54 PM
80. Which company responded to customer complaints and fixed its products before a regulatory agency became involved?
a. Chrysler
b. Ford
c. GM
d. Procter & Gamble
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:55 PM
DATE MODIFIED: 9/8/2017 3:57 PM
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81. Which product could not be sold even with adequate warnings?
a. The Ford Pinto
b. Buckyballs
c. Tide Pods
d. Workout powders
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:57 PM
DATE MODIFIED: 9/8/2017 3:59 PM
82. What is the FDA’s concern about workout powders?
a. The amount of caffeine in them
b. Unknown ingredients in the powders
c. Use of the powders with alcohol
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 3:59 PM
DATE MODIFIED: 9/8/2017 4:18 PM
83. What ethical category is involved in steering wealth management customers into in-house investment products?
a. Taking unfair advantage
b. Saying things that are not true
c. Conflict of Interest
d. Giving false impressions about fund performance
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 4:01 PM
DATE MODIFIED: 9/8/2017 4:04 PM
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84. Rachel Murphy works for a major time-share resort company. Rachel has been very successful in selling time-share properties to customers. Rachel has noticed that her fellow sales representatives have a name for the last five days of the month, “The Say-Any-Friggin’-Thing Days”. Sales reps are given bonuses for the number of customers they bring in each month. At the end of the month, sales reps are promising customers that they can get out of their contract at any time (they cannot) and that the company will sell the time-share property for them (the company does not). Which of the following cases was similar to what Rachel is experiencing?
a. CVS Pharmacies and oxycodone sales
b. Peanut Corporation of America
c. Wells Fargo
d. Tide Pod sales in Europe
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Evaluate
DATE CREATED: 9/8/2017 4:04 PM
DATE MODIFIED: 9/12/2017 6:53 PM
85. When did Wells Fargo corporate office receive the first report of sham accounts being created?
a. 2001
b. 2005
c. 2010
d. 2012
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 4:06 PM
DATE MODIFIED: 9/8/2017 4:08 PM
86. Management mantras:
a. Can be misinterpreted by employees.
b. Are effective in maintaining an ethical culture.
c. Are an essential part of a good ethical infrastructure.
d. All of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Understand
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DATE CREATED: 9/8/2017 4:09 PM
DATE MODIFIED: 9/8/2017 4:11 PM
87. How many employees did Wells Fargo have to terminate as a result of its new accounts and services compensation program?
a. 23
b. 670
c. 1,260
d. 5,300
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 4:12 PM
DATE MODIFIED: 9/8/2017 4:13 PM
88. “No exceptions. No excuses.” That is Franco’s Pizza’s motto. Every customer gets a Franco’s pizza on time and as it was ordered – no exceptions, no excuses. Ronnie delivers Franco’s pizza and is known in the area around Franco’s for his reckless driving. “I have to get the pizza to the customers on time.” If the pizza is not on time, Ronnie has to pay for it out of his tip money. When Franco is told about Ronnie’s driving by the owner of a pet store nearby he responds, “Sorry. That is not who Franco’s is. We work hard, but we would never put others at risk.” Which of the following is correct about Franco’s?
a. Franco is not responsible for Ronnie’s driving because he never instructed him to do that.
b. Franco’s culture is a good one for performance and customer satisfaction.
c. Franco’s mantra has countermanded its culture.
d. All of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Evaluate
DATE CREATED: 9/8/2017 4:13 PM
DATE MODIFIED: 9/8/2017 4:15 PM
89. Doreen and Al are sales reps for competing product lines of school desks in the same state. They run into each other at the Expo Hall for a state convention of high school principals and other education administrators. During a slow period in the Expo Hall, Doreen and Al talk about their upcoming sales pitches a various schools. They discover that they are both pitching to the same schools. Al proposes the following to Doreen, “Why don’t you take Winterbury Elementary and I will take Red Stone Middle School? Just submit a higher bid on Red Stone and I will submit a high bid on Winterbury. That way we both get one contract each.” Which of the following statements is correct?
a. As long as they both bid, there is no problem with their agreement.
b. As long as they do not mention their prices to each other, there is no problem with their agreement.
c. This arrangement is a violation of antitrust laws.
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d. Throwing a bid is not an antitrust violation; it is their decision.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Evaluate
DATE CREATED: 9/8/2017 4:15 PM
DATE MODIFIED: 9/8/2017 4:17 PM
90. On-Wheels is a meal delivery service. On-Wheels advertises as follows:
I. Always hot
II. Always on time
III. Just like you remember at home
IV. You will be healthier
Which of the above would be express warranties?
a. I, II
b. I, II, IV
c. II only
d. I, II, III, IV
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 4:18 PM
DATE MODIFIED: 9/8/2017 4:23 PM
91. What was Ulbricht’s defense in the Silk Road criminal case?
a. He was unaware of how his site was being used
b. He said he was not the founder or owner of Silk Road
c. He placed others in charge of the site
d. a and c only
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Remember
DATE CREATED: 9/8/2017 4:24 PM
DATE MODIFIED: 9/8/2017 4:25 PM
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Essay
92. Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer. Their study, published in the American Journal of Epidemiology, concludes that the use of the fertility drugs, Pergonal and Serophene, may increase the risk of ovarian cancer by three times. The lead author of the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs is by no means certain. It is based on very small numbers and is really very tenuous."
FDA Commissioner David Kessler would like the infertility drug manufacturers to disclose the study findings and offer a warning on the drug packages. He notes, "Even though the epidemiology study is still preliminary, women have a right to know what is known. We're not looking to make more of this than there is."
If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?
ANSWER: Given the history of asbestos, the breast implants, and other products covered in the text, it is not difficult to spot a similar pattern here. Although the law may not require disclosure, the ethical tests of balance and "how would you want to be treated?" point manufacturers in the direction of disclosure. Full market information requires that buyers make choices based on full disclosure. Without the study information, making those decisions becomes one-sided. The drug firm has more information that is not available to their purchasers. Further, the history of the cases mentioned demonstrates that firms are always better off financially if they make the disclosure and allow the market to function than if they withhold the information and must later defend product liability suits. The disclosure should be made not only from an ethical perspective but also from a financial and litigation perspective.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Evaluate
DATE CREATED: 9/8/2017 4:26 PM
DATE MODIFIED: 9/8/2017 4:27 PM
93. Refer back to Unit Four and discuss why Tylenol (McNeil) behaved so differently in the quality control situation as opposed to the poisoning situation.
ANSWER: Students should focus on the culture. In the quality control issue, those in the company were trying to avoid a formal recall and were working to preserve the company’s high standing without any public disclosure. They believed that they could manage the situation. The leaders may not have tolerated dissent and become isolated. The employees may have been driven by the numbers and poor decision making resulted from not looking at the issue from a 360-degree perspective.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Apply
DATE CREATED: 9/8/2017 4:28 PM
DATE MODIFIED: 9/8/2017 4:29 PM
94. Compare and contrast the cases of Peanut Corporation of America and the Tylenol Quality Control problem.
ANSWER: Similarities:
In both they were trying to manage a problem in a way that minimized cost and damage to reputation.
Neither company acted decisively on the side of safety.
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Both companies suffered tremendous reputation loss. Both companies were investigated – Tylenol by Congress. Both continued to sell and/or produce the product after notices of issues had been received.
Differences:
Peanut Corporation went bankrupt and Tylenol will survive. Peanut Corp had one decision maker and Tylenol had a team of executives. Peanut Corp had one product and stood to lose more when it lost its reputation.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Analyze
DATE CREATED: 9/8/2017 4:29 PM
DATE MODIFIED: 9/12/2017 6:55 PM
95. Explain how shunning played a role in assuring product quality before there was product liability?
ANSWER: Because buyers knew their sellers, if anything went wrong with the goods sold, the buyers were able to return to the seller and ask to be made whole. If the seller did not address the issue, others would hear about the seller’s conduct and the result would be others in the community refusing to do business with the seller. There were no statutes, laws, or regulatory agencies to handle poor product quality. The issue was handled as an ethical issue and the market then took care of the seller with defective goods – the public no longer purchased from that seller. There was an ethical foundation of an expectation that you treat customers as you would want to be treated.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Analyze
DATE CREATED: 9/8/2017 4:32 PM
DATE MODIFIED: 9/12/2017 6:55 PM
96. Using what you learned in Units 1 and 2, explain why Stewart Parnell was willing to send out product that contained salmonella.
ANSWER: He was framing the issue in such a way that he was saving his business and was not thinking through the possible consequences of his decision, including the loss of human life. He framed the issue as saving his business. He also was responding to the financial pressure that he was feeling at the time. He also had a diagnosis bias that the likelihood of harm was small. He underestimated the risk and overestimated how it would all turn out.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Analyze
DATE CREATED: 9/8/2017 4:34 PM
DATE MODIFIED: 9/8/2017 4:35 PM
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97. Discuss the similarities between the Ford Pinto case and the GM Malibu case.
ANSWER:
• They both involved defective product designs
• The design issues related to the location of the gas tank
• Both had engineers who expressed concerns about the design
• The concerns of the engineers were not addressed and the cars were simply sold without fixes
• There were substantial injuries and deaths before there was a recall
• There were substantial recall costs
• The value of human life was discounted in both
• The companies were experiencing financial pressures at the time of the production of the cars
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Analyze
DATE CREATED: 9/8/2017 4:35 PM
DATE MODIFIED: 9/8/2017 4:36 PM
98. Discuss the similarities between the GM Malibu Case and the GM engine switch case.
ANSWER:
• There were defective design issues
• Those within the company were aware of the problems with the cars
• The information and warnings from various sources about the design problems were not addressed
• Lawyers tried to keep the information under wraps and not provide access to the engineers who knew about the problems
• There were deaths and injuries because of the defects
• There were substantial recall costs
• There were cultural issues within GM that existed through the time period of both defects that prevented problem-solving and admissions that there were issues that had to be addressed
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Analyze
DATE CREATED: 9/8/2017 4:37 PM
DATE MODIFIED: 9/8/2017 4:38 PM
99. What cases should Chrysler have studied before making its initial decision not to recall? Why?
ANSWER: The Ford Pinto, The GM Malibu, The GM Switch case. All three cases illustrate that regardless of what you believe about the design or what is causing the problem, you have to get to the heart of the issue before more customers are harmed. Stonewalling and stalling make the problem worse and then there are the issues with the defect as well as the loss of trust. Chrysler could have learned that there is more liability from digging in than there is from admitting a mistake and just moving on.
POINTS: 1
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DIFFICULTY: Hard
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Safety
KEYWORDS: Bloom's: Create
DATE CREATED: 9/8/2017 4:38 PM
DATE MODIFIED: 9/12/2017 6:56 PM
100. If you worked for a company that had a chain of pharmacies, what processes and procedures would you put into place to be sure that controlled medication prescriptions were not being filled in excess of monthly allowances?
ANSWER:
• Do audits of the numbers of prescriptions filled for controlled substances
• Check the number of prescriptions from the same addresses
• Review the prescription documentation and sources
• Check your security cameras to see who is filling the prescriptions
• Check the number of prescriptions per person
• Do onsite visits to pharmacies to observe those getting and those filling the prescriptions
• Train pharmacists and pharmacy personnel on what to look for to spot prescription abuses
• Set up a reporting program so that pharmacy employees can report issues anonymously
POINTS: 1
DIFFICULTY: Hard
QUESTION TYPE: Essay
HAS VARIABLES: False
TOPICS: Product Sales
KEYWORDS: Bloom's: Create
DATE CREATED: 9/8/2017 4:40 PM
DATE MODIFIED: 9/8/2017 4:41 PM
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