Deck 8: Ethics and Competition

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Slotting fees are illegal.

Question 7

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

Question 8

Slotting fees are always disclosed.

Question 9

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

Question 10

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

Question 11

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

Question 12

Subprime mortgages are now illegal.

Question 13

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.

Question 14

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

Question 15

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

Question 16

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

Question 17

Gray market goods are not a form of infringement.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

Slotting fees are legal.

Question 25

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

Question 26

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

Question 27

Hilton hired only two former Starwood employees.

Question 28

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

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

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

Question 32

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

Question 33

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 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

Price-fixing is a violation of federal law.

Question 41

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 42

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 43

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

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

Question 44

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 45

When was the intermittent windshield wiper first installed in cars?

A) 1969
B) 1970
C) 1971
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

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 48

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 49

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 50

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 51

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 52

When did Kearns finally end his infringement case against Ford?

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

Question 53

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 54

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 55

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 56

How many law firms had represented Kearns?

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

Question 57

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 58

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 59

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 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 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

Question 63

Ms. Baridis compared herself to:

A) Michael Milken.
B) Darlene Druyun.
C) Harry Stonecipher.
D) Jose Canseco.

Question 64

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 65

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 66

The "Chinese Wall" is:

A) The corruption barrier for businesses based outside of China.
B) The firewall in a company business.
C) The barrier between the deal brokers and the trading brokers of an investment banker.
D) None of the above

Question 67

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 68

How many Lockheed Martin documents did Boeing have?

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

Question 69

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 70

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 71

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 72

A professor for one of your courses has assigned reading materials from various publications. He tells you that the materials are on reserve and that each student should go and copy the materials individually. He notes that for him to copy the materials for students and then sell them or distribute them would be a violation of copyright law. The professor's conduct:

A) Is unethical and violates copyright law as well.
B) Is something everyone does and is accepted behavior.
C) Does not really harm anyone.
D) Is acceptable in an academic setting.

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 eventually raised concerns about the documents at Boeing?

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

Question 75

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 76

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 77

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 78

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 79

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 80

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