Deck 8: Ethics and Marketing

Question 1

Most courts allow a business to completely disclaim the implied warranty of merchantability.

Answer 1

False
Explanation: Most courts will not allow a business to completely disclaim the implied warranty of merchantability.

Question 2

Which of the following is one of the "Four Ps" of marketing?

A)Purpose
B)Planning
C)Promotion
D)People

Answer 2

C
Explanation: The four general categories-product,price,promotion,placement-are sometimes referred to as the "Four Ps" of marketing.

Question 3

Unsafe products do not further the utilitarian goal of maximizing overall happiness.

Answer 3

True
Explanation: Unsafe products do not further the utilitarian goal of maximizing overall happiness.

Question 4

Consumer vulnerability occurs when a person has an impaired ability to make an informed consent to the market exchange.

Question 5

The condition where lesser consumption leads to unhappiness is termed "affluenza."

Question 6

A simple situation in which two parties come together and freely agree to an exchange is only prima facie ethically legitimate because:

A)research studies prove that a simple exchange does not involve unethical situations.
B)it involves the consent of both parties involved and leaves no room for unethical acts.
C)certain conditions must be met before it can be concluded that autonomy has been respected and mutual benefit has been achieved.
D)it rejects the assumption that individuals are capable of pursuing their own ends.

Question 7

The _____ ethical tradition would take an agreement between two parties as evidence that both are better off than they were prior to the exchange and thus conclude that overall happiness has been increased by any exchange freely entered into.

A)utilitarian
B)hedonic
C)consequential
D)deontological

Question 8

Under a contract model,the duties that a person owes are not merely those explicitly promised to another party,but also those that are implied.

Question 9

Which of the following is a set of processes for creating,communicating,and delivering value to customers and for managing customer relationships in ways that benefit an organization and its stakeholders?

A)Procuring
B)Branding
C)Marketing
D)Copywriting

Question 10

A condition for respect requires that consent be not only voluntary,but also informed.

Question 11

A transaction is ethically legitimate as long as someone wants to buy something and someone else is willing to sell it.

Question 12

The utilitarian tradition in ethics would have the strongest objections to manipulation.

Question 13

The implied warranty of merchantability holds that in selling a product a business implicitly offers assurances that the product is reasonably suitable for its purpose.

Question 14

When consumers are injured by a product and no one is at fault,the legal doctrine of strict product liability holds manufacturers accountable.

Question 15

While approaching an ethical issue in marketing,the utilitarian tradition would ask to what degree the participants are respected as free and autonomous agents rather than treated simply as means to the end of making a sale.

Question 16

Negligence involves the ability to foresee the consequences of one's acts and failing to take steps to avoid the likely harmful consequences.

Question 17

The "Four Ps" of marketing include product,price,promotion,and placement.

Question 18

The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties as upholding respect for individuals by treating them as autonomous agents capable of pursuing their own ends.

A)role-based
B)rights-based
C)rules-based
D)strategy-based

Question 19

In a strict liability case,if it can be proved that a business was as careful as possible about its product or service,it is not held liable for the harm that results from its use.

Question 20

Externalities show that even if both parties to an exchange receive actual benefits from the exchange,other parties external to the exchange might be adversely affected.

Question 21

The ethics implicit within the _____ approach assumes that when consumers adequately understand products well enough,they can reasonably be expected to protect themselves.

A)contract
B)caveat venditor
C)tort
D)caveat lector

Question 22

While 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 a transaction provided actual as opposed to merely apparent benefits.
C)about other values that are affected by the exchange.
D)about the personal characters of the parties that are involved in the exchange.

Question 23

In selling a product,a business offers tacit 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.

Question 24

Identify a true statement about strict product liability laws in the United States.

A)They are highly favored by the business community.
B)They hold that the government must pay consumers in situations where neither the producer nor the consumer is at fault.
C)They hold a business responsible for any harm from product use,even if it is not the result of business negligence.
D)They are similar to the strict liability standards adopted by the European Union.

Question 25

Unlike tort law,contract law states that:

A)the only duties that a person owes are those that have been explicitly promised to another party.
B)one owes other people certain general duties,even if one has not voluntarily assumed them.
C)no matter how careful a business is in its product,if harm results from use,the business is liable.
D)the reasonable person standard can be interpreted in various ways.

Question 26

The implied warranty of merchantability shifts the burden of proof from:

A)producers to consumers.
B)producers to suppliers.
C)consumers to producers.
D)suppliers to consumers.

Question 27

The strongest objections to manipulation come from:

A)pragmatic ethics.
B)virtue-based ethics.
C)principle-based ethics.
D)consequential ethics.

Question 28

Which of the following statements is true about negligence?

A)It is not a central component of tort law.
B)One can be negligent by doing something that one should not.
C)One cannot be held negligent by failing to do something that one should have done.
D)It excludes acts of both commission and omission.

Question 29

Which of the following is true of the rights-based tradition while approaching an ethical issue in marketing?

A)It asks to what degree the participants are respected as free and autonomous agents rather than treated simply as means to the end of making a sale.
B)It focuses on the benefits and costs of each exchange.
C)It attempts to find out about other values that are affected by an exchange.
D)It focuses on knowing the degree to which a transaction provided actual as opposed to merely apparent benefits for each participant.

Question 30

Identify a true statement about the legal doctrine of strict liability.

A)It frees manufacturers from any kind of liability as soon as a product is sold to a consumer.
B)It allows consumers to assume that products are safe for use.
C)It is favored by business corporations in the United States.
D)It holds a business accountable for paying damages whether or not it was at fault.

Question 31

Which of the following is the ethical basis for implied warranty of merchantability?

A)Manufacturers would not sell a product if they had reason to believe that their product would harm consumers during normal use.
B)Consumers would not consent to purchase a product if they had reason to believe that they would be harmed by it during normal use.
C)Consumers understand products fully,and they are free to choose not to purchase certain things.
D)A prudent business will never seek to limit its liability by explicitly disowning any promise or warranty.

Question 32

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 salesperson.
B)injured after using the product and filed a product liability suit.
C)asked to buy the product without a warranty.
D)being misled or deceived about the product.

Question 33

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.

Question 34

According to empirical studies,greater consumption is likely to lead to unhappiness.This condition is called _____.

A)affluenza
B)caveat emptor
C)caveat lector
D)merchantability

Question 35

Identify a true statement about the implied warranty of merchantability.

A)It assumes that every purchase involves the informed consent of a buyer.
B)It shifts the burden of proof from producers to consumers.
C)It allows a business to completely disown any promise or warranty.
D)It holds that a business has a duty to ensure that its products will accomplish their purpose.

Question 36

_____,a concept of tort law,provides an avenue for consumers to hold producers responsible for their products.

A)Extortion
B)Negligence
C)Malpractice
D)Battery

Question 37

Manipulation focuses on _____.

A)total control of direction or management
B)deceiving a person
C)taking total control over an individual's actions
D)guiding or directing the behavior of something

Question 38

Along with product safety,_____ is another area of marketing that has received significant legal and philosophical attention within business ethics.

A)customer service
B)distribution
C)advertising
D)manufacturing

Question 39

Tort law holds that:

A)the only duties that a person owes are those that have been explicitly promised to another party.
B)manufacturers are accountable in cases where consumers are injured by products and no one is at fault.
C)consumers need complex contracts to protect themselves from all harms that products might cause.
D)people do not owe other people any general duties,if they have not voluntarily assumed them.

Question 40

Which of the following approaches holds that the only responsibility of a business is to provide a good or service at an agreed-upon price?

A)The merchantability approach
B)The implied warranty approach
C)The caveat emptor approach
D)The caveat venditor approach

Question 41

Advertising distorts the economy by:

A)manipulating prices for promotion to gain a foothold in a market.
B)preventing free market economy.
C)internalizing market externalities.
D)creating irrational and trivial consumer wants.

Question 42

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.

Question 43

A behavioral psychologist is most likely to claim that advertising:

A)cannot create non-autonomous behavior in consumers.
B)cannot violate consumer autonomy by controlling consumer behavior.
C)can control consumer behavior by providing them with all the relevant information.
D)can control consumer behavior by controlling their choices.

Question 44

Marketing experts consider stealth marketing extraordinarily effective because:

A)a consumer does not question the message as she might challenge a traditional advertising campaign.
B)a consumer's guard is not down while accepting a message.
C)consumers do not see the communication as too personal and often tend to trust an advertisement or other marketing material much more than they would trust the communicator.
D)consumers seek out the communicator's vested interest.

Question 45

UniCo-a multinational corporation that specializes in designing,developing,and selling consumer electronics-outsources manufacturing products to a third-world country company.Human rights activists have criticized UniCo for operating inhumane sweatshops at the manufacturing plants to gain profits.Although UniCo is not directly liable for the labor exploitation,it threatens to pull out its business from the contracted company if the laborers are not provided with dignified wages and good working conditions.Which of the following responsibilities did the company fulfill in this scenario?

A)Caveat emptor
B)Implied merchantability
C)Respondent superior
D)Strict liability

Question 46

While approaching an ethical issue in marketing,the _____ tradition would want to know the degree to which a transaction provided actual as opposed to merely apparent benefits.

Question 47

Marketing practices targeted at elderly individuals for goods,such as supplemental health insurance,and funerals,are subject to criticism because:

A)that population is vulnerable.
B)interest gained on such investments are not highly profitable.
C)they target the considered and rational desires of the consumers.
D)they do not abide by the principles of welfare economics.

Question 48

An adequate ethical analysis of marketing must consider _____,those costs that are not integrated within the exchange of the buyer and the seller.

Question 49

Consumers are vulnerable when they are not aware that they are subject to a marketing campaign.This type of campaign is called:

A)imminent marketing.
B)word-of-mouth marketing.
C)network marketing.
D)undercover marketing.

Question 50

According to the _____ approach,every purchase involves the informed consent of the buyer and therefore it is assumed to be ethically legitimate.

Question 51

By creating consumer wants,advertising and other marketing practices violate:

A)rights-based ethical tradition.
B)consumer autonomy.
C)free market economy.
D)consumer demanD.

Question 52

Identify an example of consumer vulnerability.

A)Elderly people are susceptible to expensive health care bills.
B)Alcoholics are susceptible to alcohol abuse.
C)Children are susceptible to any bright,attractive items of no practical value.
D)Single women walking alone at night are susceptible to sexual assault.

Question 53

Consumer vulnerability occurs when:

A)a person has an impaired ability to make an informed consent to the market exchange.
B)a person has access to too much information about a product and the market exchange process.
C)the consumer is treated as an end in itself.
D)there are too many manufacturers in the market.

Question 54

Which of the following is true of general vulnerability?

A)It occurs when a person has an impaired ability to make an informed consent to the market exchange.
B)It occurs when a person is susceptible to some specific physical,psychological,or financial harm.
C)It results from an unsatisfactory market exchange.
D)It results from manufacturers' inability to satisfy consumer desires.

Question 55

An employer is held liable for damages caused by an accident involving an employee driving the company car on company business.Identify the law underlying this decision.

A)The doctrine of caveat emptor
B)The doctrine of respondent superior
C)Implied warranty of merchantability
D)The doctrine of caveat lector

Question 56

Which of the following is an implication of the "dependence effect"?

A)Advertising and marketing create consumer wants that result in supply being a function of demands.
B)Advertising and marketing create consumer wants that support the entire economy.
C)Consumer autonomy is being improved by advertising.
D)Consumers are being manipulated by advertising.

Question 57

The legal doctrine of strict liability is ethically controversial because it holds a(n)_____ accountable for paying damages whether or not it was at fault.

Question 58

Stealth marketing occurs when:

A)consumers receive too much information about a product or service.
B)consumers are subjected to directed commercial activity without their knowledge.
C)consumers fail to properly respond to advertising.
D)consumers understand the true marketing element of an interaction.

Question 59

Which of the following statements about manipulation would a strong believer of the principle-based ethical tradition most likely support?

A)Cases of paternalistic manipulation,in which someone is manipulated for their own good,are acceptable.
B)Manipulation executed without deception is acceptable.
C)Even unsuccessful manipulations are guilty of ethical wrong.
D)The ethical consequence of manipulation depends on the personal characteristics of the manipulator.

Question 60

_____ has received a great deal of attention in the medical ethics literature because patients are at a distinct informational disadvantage when dealing with health care professionals.

Question 61

Economist John Kenneth Galbraith claimed that advertising and marketing were creating the very consumer demand that production then aimed to satisfy.Dubbed the "_____," this assertion held that consumer demand relied on what producers had to sell.

Question 62

Explain the contractual standards for product safety.

Question 63

Discuss the ethical issues associated with advertising.

Question 64

Identify the "Four Ps" of marketing.

Question 65

Discuss the claims made by the defenders of the strict product liability standard to justify strict product liability.

Question 66

The _____ standard of tort law focuses on the sense of responsibility that involves liability or fault.

Question 67

Explain the concept of negligence.

Question 68

Describe the ethical manifestations associated with a contractual standard of product safety.

Question 69

Explain the rights-based and the utilitarian perspectives on the situation of an exchange between two parties coming together freely.

Question 70

According to the _____ tradition,there surely can be cases of paternalistic manipulation,in which someone is manipulated for his or her own good.

Question 71

Summarize the three issues pertaining to marketing ethically.

Question 72

_____ occurs when the harm is other than the financial harm of an unsatisfactory market exchange.

Question 73

Explain what the ethical and the unethical means of influencing others include.What is its impact in advertising?

Question 74

List out all the factors considered and the decisions made in the process of marketing.

Question 75

Outline the duties under a contract model,and the ethical perspective that underlies tort law.

Question 76

Explain the utilitarian perspective of manipulation.

Question 77

Discuss the constraints of the concept of negligence,and explain the reasonable person concept.

Question 78

The _____ standard implies that unthoughtful people cannot be negligent,since one escapes liability by not actually thinking about the consequences of one's acts.

Question 79

Outline how the "reasonable person" concept can be interpreted in different ways.How can it lead to one interpreting this concept normatively?

Question 80

Outline the implication of the social contract tradition within business.