Business Ethics Chapter 8

1. When approaching an ethical issue in marketing, the rights-based tradition would consider:

A. the degree to which individuals are respected as free and autonomous agents.

B. the benefits and costs of each exchange.

C. the consequences of the exchange.

D. personal characters of the parties that are involved in the exchange.

A

2. When approaching an ethical issue in marketing, the utilitarian tradition would want to know:

A. the degree to which individuals freely participate in an exchange.

B. the degree to which the transaction provided actual as opposed to merely apparent benefits.

C. the degree to which individuals are respected as free and autonomous agents.

D. about the personal characters of the parties that are involved in the exchange.

B

3. A consumer's consent to purchase a product is not informed if that consumer is:

A. unwilling to listen to the product details from the sales person.

B. injured after using the product and filed a product liability suit.

C. asked to buy a product at his/her own risk and no warranty is offered on the product.

D. being misled or deceived about the product

D

4. Greater consumption is likely to lead to unhappiness, a condition termed _____.

A. affluenza

B. caveat emptor

C. influenza

D. insomnia

A

5. The legal doctrine of strict liability is ethically controversial because:

A. it assumes that every purchase involves the informed consent of the buyer and therefore it is assumed to be ethically legitimate.

B. it shifts the burden of proof from consumers to producers by allowing consumers to assume that products were safe for use.

C. it holds that consumer demand depends upon what producers sell.

D. it holds a business accountable for paying damages whether or not it was at fault.

D

6. Identify the approach that understands marketing on a simple model of a contractual exchange between a buyer and seller, and therefore assumes that every purchase involves the informed consent of the buyer and is ethically legitimate.

A. Caveat lector approach

B. Cena maksymalna approach

C. Caveat emptor approach

D. Caveat venditor approach

C

7. In selling a product, a business implicitly offers assurances that the product is reasonably suitable for its purpose. The law refers to this as the:

A. doctrine of caveat emptor.

B. implied warranty of merchantability.

C. doctrine of caveat lector.

D. implied warranty of productivity.

B

8. Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the:

A. strict product liability standard.

B. actual foreseeability standard.

C. reasonable person standard.

D. consent and informed decision standard.

A

9. Which of the following ethical traditions would have the strongest objections to manipulation?

A. Economic

B. Virtual

C. Principle-based

D. Utilitarian

C

10. Marketing practices targeted at elderly populations for goods such as Medicare supplemental insurance, funerals etc. are subject to criticism since:

A. that population is vulnerable and could be susceptible to marketing abuse.

B. interest gained on such investments are not highly profitable.

C. they are recreational in nature.

D. it does not abide by the principles of welfare economics.

A

11. According to economist John Kenneth Galbraith, advertising and marketing were creating the very consumer demand that production then aimed to satisfy. The assertion that consumer demand relies upon what producers have to sell is termed:

A. the Hawthorne effect.

B. the dependence effect.

C. the reverse channel effect.

D. the supplemental effect.

B

12. Identify the major implications of the "dependence effect."

A. Unless a seller explicitly warrants a product as safe, buyers are liable for any harm they suffer.

B. Manipulation can be executed successfully without deception.

C. The court's ruling on product liability cases is dependent on the extent of manipulation used while marketing the product.

D. By creating consumer wants, advertising and other marketing practices violate consumer autonomy.

D

13. Consumer vulnerability occurs when:

A. a person has an impaired ability to make an informed consent to the market exchange.

B. someone is susceptible to some specific physical, psychological, or financial harm.

C. we are subject to directed commercial activity without our knowledge.

D. law of supply and demand is reversed.

A

14. We are vulnerable when we are not aware that we are subject to a marketing campaign. This type of campaign is called:

A. discreet marketing.

B. word-of-mouth marketing.

C. network marketing.

D. undercover marketing.

D

15. Which of the following statements regarding stealth marketing is false?

A. We are vulnerable when we are not aware that we are subject to a marketing campaign.

B. This type of campaign refers to those situations where we are subject to directed commercial activity without our knowledge.

C. We are subjected to numerous communications on a regular basis without paying much attention, such as a billboard, which is an example of stealth marketing.

D. It is an intentional effort to hide the true marketing element of the interaction.

C

16. Marketing experts consider stealth marketing extraordinarily effective because:

A. the consumer's guard is down; she is not questioning the message as she might challenge a traditional advertising campaign.

B. it targets customers who are susceptible to some specific physical, psychological, or financial harm.

C. it targets customers who lack the intellectual capacities, psychological ability, or maturity to make informed and considered consumer judgments.

D. the focus in this type of marketing is the concept of autonomous desires rather than autonomous behavior.

A

17. Identify the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.

A. Greenwashing

B. Redlining

C. Gentrification

D. Greenskinning

A

18. Which of the following refers to the growing marketing practice of taking back one's products after their useful life?

A. Reintermediation

B. Reverse channels

C. Disintermediation

D. Forward integration

B