Deck 9: Ethics and Competition

Question 1

Prescription drug ads carry the additional issues of safety of the users.

Answer 1

True

Question 2

Some countries make it a crime to buy and use a knock-off product.

Answer 2

True

Question 3

Hiring an employee from a competitor firm who has brought with her proprietary information is ethical so long as the employee has not breached an employment contract with that competitor.

Answer 3

False

Question 4

It is unethical to introduce a product with deceptively similar packaging to that of a major competitor.

Question 5

Slotting fees are always disclosed.

Question 6

Taking information from a confidential file accidentally left on your desk is not unethical.

Question 7

Subprime mortgages are now illegal.

Question 8

The types of ads a newspaper and TV network accept have social responsibility issues.

Question 9

If you are fired from your job, you can use any information you gained while employed to help your next employer.

Question 10

A landlord cannot be held vicariously liable for the infringing sales of a tenant.

Question 11

If I discovered that I unintentionally violated a federal environmental regulation, I should just wait and see if anything happens before taking any action.

Question 12

Slotting fees are illegal.

Question 13

In some grocery chains, slotting fees are the net profits.

Question 14

Leaking proprietary information to the media is not an ethical breach.

Question 15

The large, inflatable beer bottles have disappeared from spring break destinations.

Question 16

Slotting fees are the fees paid for a shelf position or distribution access.

Question 17

Ethical advertising requires an examination of unintended impact and effects of ad content.

Question 18

The failure to disclose relevant information about a product or service is unethical.

Question 19

Gray market goods are not a form of infringement.

Question 20

Alcohol ads carry the additional issues of safety for the users.

Question 21

Competitors cannot agree on prices for their products without violating the law.

Question 22

Copyright owners have the exclusive rights to control use of the copyrighted material.

Question 23

Taking your current employer's supply chain management system to a prospective employer is not a breach of trust.

Question 24

The use of patented or copyrighted materials without permission entitled the owner to royalties for use.

Question 25

Hilton hired only two former Starwood employees.

Question 26

Property owners have begun to post signs warning potential buyers of knock-offs goods being sold by tenants.

Question 27

Slotting fees are legal.

Question 28

Price-fixing is a violation of federal law.

Question 29

Pump and dump is a means of taking unfair advantage.

Question 30

Pump and dump can be done by analysts or in chat rooms.

Question 31

There were few similarities between the Starwood's W hotels and Hilton's Denizen.

Question 32

Jonathan Lebed has been shunned because of his youthful stock trading.

Question 33

Hilton's legal counsel turned over the Starwood documents that were discovered in Hilton's files.

Question 34

Copyright owners cannot control the use of copyrighted materials by charities.

Question 35

Only those who actually made the agreements to fix prices are liable under the criminal law.

Question 36

Television commentators who recommend stocks have no conflict if they own the stock.

Question 37

Hilton was under intense financial pressure at the time it hired former Starwood employees.

Question 38

Slotting fees can lead to under-the-table payments to individuals.

Question 39

Courts are beginning to hold landlords liable for the trademark infringement activities of their tenants.

Question 40

Slotting is the collection of fees by grocery retailers from wholesalers and manufacturers.

Question 41

Why was it important for ASCAP to confront the children's summer camps on the use of members' songs without license arrangements?

A)ASCAP members stand to lose their copyright if they do not control use
B)ASCAP members simply wanted the royalty payments
C)ASCAP members did not want their songs used at camps
D)Both b and c

Question 42

What level of the federal court system did the Kearns case reach?

A)Federal district court
B)U.S.Court of Appeals
C)U.S.Supreme Court
D)The case never went to court; it was settled

Question 43

Because of advertising campaigns, with which of the following did children have equal familiarity?

A)Mickey Mouse and Joe Camel
B)Mickey Mouse and the Kool Penguin
C)Mickey Mouse and the Marlboro Man
D)None of the above

Question 44

When did Kearns finally end his infringement case against Ford?

A)1990
B)1977
C)1971
D)None of the above

Question 45

How much was Ford required to pay to Kearns?

A)$0.30 per car
B)$0.40 per car
C)$0.90 per car
D)None of the above

Question 46

Profit margins at grocery stores are:

A)9 to 10%.
B)20-20%.
C)1 to 2%.
D)About the same as other retailers, or 50%.

Question 47

How much had Kearns originally asked for from the companies for infringement?

A)$3.00 to $30.00 per car
B)$15 million
C)$14.97 million
D)None of the above

Question 48

When was the intermittent windshield wiper first installed in cars?

A)1969
B)1970
C)1971
D)None of the above

Question 49

What were the personal costs to Kearns of the decades-long litigation?

A)Failed marriage
B)Near nervous breakdown
C)He had none; his story is one of triumph of right over might
D)Both a and b

Question 50

Other forms of slotting fees include:

A)Key money.
B)Negative allowances.
C)Kickbacks.
D)Both a and b
E)All of the above

Question 51

Why did Kearns have to pay sanctions?

A)He withheld information during discovery
B)His son dated a paralegal and gained information from defense lawyers
C)He disappeared for days during jury deliberations
D)None of the above

Question 52

What was the inspiration for the invention of the intermittent windshield wiper?

A)A Ford Galaxy
B)A popped Champaign cork that resulted in Champaign in the eyes of Kearns, the inventor
C)None of the above
D)A group of engineers working together at Ford who created defective wipers that did not work regularly

Question 53

What did internal documents at tobacco companies reveal?

A)That the companies were not targeting young people
B)That the companies were targeting age groups ranging from 14-24
C)That the companies were losing sales
D)Both b and c

Question 54

How many law firms had represented Kearns?

A)One
B)Two
C)Three
D)Four

Question 55

Where did spring-break alcohol advertisements and promotions recently shift to?

A)College campuses
B)College sports broadcasts
C)Foreign destinations
D)Both b and c
E)All of the above

Question 56

Who first raised the issue of cigarette advertising directed at children?

A)U.S.Surgeon General
B)FTC
C)AMA
D)None of the above

Question 57

Taking your current employer's customer list to a prospective employer is a breach of trust.

Question 58

Which company has a campaign directed at children and teens that warns them not to begin smoking?

A)RJR
B)Philip Morris
C)Camel
D)None of the above

Question 59

What tobacco company is known for its phenomenal atmosphere for diversity?

A)RJR
B)Philip Morris
C)Camel
D)None of the above

Question 60

How much had Ford offered to settle the case for?

A)$10 million
B)$20 million
C)$30 million
D)None of the above

Question 61

Who said, "I was hired to win ...and I was going to do whatever it took to do it"?

A)Kenneth Branch
B)William Erskine
C)Frank Slazer
D)Tom Alexiou

Question 62

Who is Kenneth Branch?

A)An employee of NASA
B)An employee of Lockheed Martin
C)An employee of the defense department
D)An employee of McDonnell Douglas

Question 63

How many Lockheed Martin documents did Boeing have?

A)Two bid proposals
B)One file folder
C)Three boxes
D)Eleven boxes

Question 64

Who said, "Competition can be fierce, but must also be fair and legal"?

A)Adam Smith
B)Milton Friedman
C)Pepsi
D)Marsh McLennan

Question 65

One resulting problem from slotting fees is:

A)A lack of transparency in accounting.
B)Antitrust issues.
C)Kickbacks.
D)All of the above

Question 66

Who encouraged Boeing employees to develop a more effective competitive assessment of Lockheed Martin?

A)Kenneth Branch
B)William Erskine
C)Frank Slazer
D)Tom Alexiou

Question 67

What was the effect of Boeing's merger with McDonnell Douglas and Lockheed Martin's merger with Marietta?

A)The merger meant the two companies could work together
B)The merger would be set aside for antitrust violations
C)The merger meant the government had only two major contractors
D)None of the above

Question 68

How much did Boeing pay to settle the criminal investigation into the use of the documents and other issues?

A)$1 billion
B)$615 million
C)$1.1 billion
D)$5 billion in lost contracts

Question 69

What was the defense department penalty for Boeing for using the Lockheed Martin documents?

A)$1 billion fine
B)$300 million fine
C)$500 million fine
D)$1 billion in lost contracts

Question 70

What happened to the suits for wrongful termination?

A)They were dismissed in 2002
B)The employees won damages against Boeing
C)The records in the case were sealed
D)None of the above

Question 71

What happened to the Boeing employee who raised questions about the use of the Lockheed Martin documents?

A)She was recognized for her efforts
B)She was reprimanded
C)She was terminated
D)She was transferred

Question 72

Who eventually raised concerns about the documents at Boeing?

A)The CEO
B)A project specialist
C)Erskine
D)Lockheed Martin employees

Question 73

How much did Boeing have to restate its earnings as a result of the document issue?

A)$1 billion
B)$615 million
C)$1.1 billion
D)$5 billion in lost contracts

Question 74

Who served as an ethics consultant to Boeing following the document issue coming to light?

A)The author of the text
B)Marianne Jennings
C)Both a and b
D)Dean Philip Regier

Question 75

Jeff Sanders, head of finance for Components, Inc.has just interviewed Laura Dern, an employee from the finance department of InChip, Components' chief competitor.Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market.As Laura is leaving she whispers to Jeff, "Look, I have no contract at InChip that obligates me in anyway.I can begin immediately.Further, I have been able to obtain copies of our newest computer chip designs.You'll have them before InChip even begins production."

A)Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract.
B)Jeff's hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct.
C)Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's conduct to InChip.
D)Jeff should not hire Laura and need not worry about Laura's conduct and its impact on InChip.

Question 76

What was Marisa Baridis's job at Morgan Stanley?

A)She was a clerk
B)She was the legal compliance officer
C)She was a trader
D)She was a broker

Question 77

Which company had to issue financial restatements because of promotional fees accounting?

A)Royal Ahold
B)U.S.Foodservice
C)K-Mart
D)All of the above

Question 78

When did Boeing employees first see Lockheed Martin's proposed bid for the project?

A)During the interview with the Lockheed Martin employee
B)After hiring the former Lockheed Martin employee
C)After they asked for the documents from the former Lockheed Martin employee
D)Boeing employees never did see the proposed bid

Question 79

What project were Boeing and Lockheed Martin competing for?

A)Jets for the Gulf War
B)EELV
C)Air Force One contract
D)They were not competing for the same project

Question 80

Who was fired when the company and government learned of the use of the Lockheed Martin documents?

A)The former Lockheed Martin employee who brought the documents
B)The supervisor who knew of the use of the documents
C)The employee who reported the document use
D)Both a and b