Deck 9: Ethics and Competition

Question 1

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

Answer 1

True

Question 2

A whistleblower at Trinity notified the federal government of the company's design change in the guard rails.

Answer 2

False

Question 3

Trinity had no competitors in the guardrail market.

Answer 3

False

Question 4

The doctrine of inevitable disclosure requires the same elements as a covenant not to compete to be enforceable.

Question 5

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

Question 6

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

Question 7

Tortious interference is not available as a protection unless there is an underlying noncompete agreement.

Question 8

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

Question 9

There were several employees at Boeing who were aware of the documents brought in from Lockheed.

Question 10

A covenant not to compete cannot be enforced unless it is restricted to one city.

Question 11

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

Question 12

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 13

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

Question 14

In Moral Sentitments Adam Smith wrote that we judge others by our own feelings and views.

Question 15

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

Question 16

Confidentiality agreements are different from covenants not to compete.

Question 17

Apple worked with publishers to control electronic book prices.

Question 18

It is a violation of antitrust laws for a manufacturer to terminate a retailer for charging prices that are too low.

Question 19

Powdr Corporation lost its lease of the Park City slopes.

Question 20

A covenant not to compete cannot be enforced unless it is limited to one year.

Question 21

Granny's Cookies is a bakery located in a small town in Nebraska. However, Granny's has a strong Internet presence and ships cookies throughout the United States. Granny's recipes for its cookies are a trade secret. The employees at the Nebraska store who need to know the recipes to bake the cookies are aware of the recipe. The employees have signed a nondisclosure agreement. Jim Bradford, one of Granny's bakers, just took a job with Chippers, a cookie company located in San Diego, California. Chippers also has a strong Internet presence. Which of the following is a correct statement?

A) Granny's can probably not stop Jim from taking the job.
B) Granny's probably can stop Jim from taking its recipes to Chippers.
C) Granny's has no remedy because the recipes are in Jim's head and he does not have to take any records with him to have the recipes.
D) None of the above

Question 22

Boeing was banned from being considered for federal contracts as a result of its use of Lockheed documents.

Question 23

Price-fixing is a violation of federal law.

Question 24

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

Question 25

Granny's Cookies is a bakery located in a small town in Nebraska. However, Granny's has a strong Internet presence and ships cookies throughout the United States. Granny's recipes for its cookies are a trade secret. The employees at the Nebraska store who need to know the recipes to bake the cookies are aware of the recipe. The employees have signed a nondisclosure agreement. Jim Bradford, on of Granny's bakers, just took a job with Chippers, a cookie company located in San Diego, California. Chippers also has a strong Internet presence. S uppose that before he left Jim went into Granny's mailing list, which had been compiled from orders filled for people around the country. Jim changed the e-mail and mailing addresses so that the list was no longer accurate. Jim did not keep a copy of the original list for himself. Which of the following is true?

A) Granny's would have a basis for recovery against Jim.
B) Without a covenant not to compete, there is little that Granny's can do to stop Jim.
C) Granny's would have an action against Chippers.
D) Both b and c

Question 26

Mattel eventually won the Bratz property litigation.

Question 27

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

Question 28

Whose behavior was described by a judge as "adolescent behavior in the worst form"?

A) Martha Stewart
B) Jeff Bezos
C) JCPenney
D) Macy's

Question 29

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

Question 30

Hilton hired only two former Starwood employees.

Question 31

Which of the following require(s) a covenant not to compete to be enforceable?

A) A nondisclosure agreement
B) Doctrine of inevitable disclosure
C) Tortious interference
D) None of the above require a covenant not to compete to be enforceable

Question 32

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

Question 33

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

Question 34

Martha   Stewart's first franchising deal was with JCPenney.

Question 35

Louis Vuitton has lost most of its trademark battles.

Question 36

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

Question 37

The NCAA won the right to use college athletes' images in ads.

Question 38

Apple was required to have a monitor in its company as part of the findings in an antitrust case.

Question 39

Hilton hired Starwood employees who brought Starwood plans and designs with them to Hilton.

Question 40

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

Question 41

What did the Wall Street Journal recommend Louis Vuitton do about the use of its products and name in films such as The Hangover ?

A) Litigate in order to stop the use
B) License it to certain studios in Hollywood
C) Trademark the line from the movie and use it in their ads
D) None of the above

Question 42

Powdr Corporation lost its lease for the actual ski slopes in Park City because of its failure to give notice of renewal, but had negotiating power with the landlord because:

A) The owner of the slopes was experiencing a cash deficit.
B) The owner of the slopes felt that it should have asked Powdr about the renewal.
C) Powdr owns the parking lots and the land at the foot of the slopes.
D) Both a and c

Question 43

What was the reason for Boeing employees being willing to use the Lockheed documents brought to them when they hired a former Lockheed employee?

A) Boeing was under pressure because of missing strategic opportunities
B) There was little risk because the Lockheed employee did not have a noncompete clause
C) There was no competition between Lockheed and Boeing
D) None of the above

Question 44

The suit by Macy's against JCPenney involved:

A) Martha Stewart's covenant not to compete.
B) JCPenney signing Martha Stewart for endorsements.
C) JCPenney copying its products.
D) Both b and c

Question 45

What was the culture of Boeing like at the time of the Lockheed document use?

A) Ethics was a high priority for everyone, including the executive team
B) The Boeing board was worried about the behavior of the CEO
C) The CFO was fired because of the Darlene Druyon issues
D) Both b and c

Question 46

What indicated that there might have been some intent on the part of Costco to capitalize on the Tiffany name?

A) They used Tiffany-colored boxes for the rings
B) They only offered the rings in some stores, and not online
C) They had a Tiffany ring on display for comparison purposes
D) Both a and c

Question 47

What changes did Leegin want to make in selling its Brighton product lines?

A) Be sure that customers had an experience different from Sam's or Costco
B) It wanted to charge maximum prices
C) There were too many knock-off Brighton products
D) Both a and c

Question 48

Selling the same goods at different prices depending on location:

A) Is a violation of the Robinson-Patman Act.
B) Is legal if the pricing is designed to meet the competition.
C) Was how Staples was charged with antitrust violations.
D) Both a and c

Question 49

What did the publishers who met with Apple do about the antitrust charges?

A) They settled before the charges were made public
B) They were not charged, so there was nothing to settle - Apple was the defendant in the case
C) They were exonerated because they had done nothing wrong
D) None of the above

Question 50

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 51

In Theory of Moral Sentiments, Adam Smith: A) Says that not everyone is happy for our success.
B) Says that everyone can see situations in the same way.
C) That success is best earned gradually.
D) Both a and b
E) Both b and c
F) Both a and c

Question 52

How many CEOs did Boeing lose to ethical lapses?

A) None
B) One
C) Two
D) Three

Question 53

What additional legal battle did Apple have after the antitrust price-fixing case?

A) The book publishers sued Apple for compensation
B) Apple challenged the presence of a monitor at its company
C) Apple faced litigation over sharing trade secrets of the publishers
D) Both a and c

Question 54

In the Trinity guardrail litigation, who was awarded the damages from the False Claims Act?

A) The Department of Transportation
B) The state governments that had installed the guardrails
C) Trinity's competitor
D) Both a and c

Question 55

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 56

Why can't advertisers for the NCAA games use images of the college players?

A) Because the players would lose their amateur status if they appeared in commercials
B) Because the NCAA owns the rights and had never allowed their images to be used
C) Because the players refused to give those rights to the NCAA
D) Both b and c

Question 57

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 58

Which of the following songs is no longer copyrighted?

A) "God Bless America"
B) "Happy Birthday to You"
C) "Macarena"
D) All of the above are no longer copyrighted

Question 59

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 60

Why did the Powdr CEO say he agreed to sell Powdr's land to the landlord?

A) He did not want a long legal battle to change the law.
B) He felt Powdr owed a duty to the communities and employee stability.
C) He got a good deal.
D) Both a and b

Question 61

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 62

Which of the following would be a breach of trust and ethics?

A) Sharing a new product idea with a prospective employer
B) Leaving your current employment for a higher paying job
C) Leaving your current employment for a job with more flexibility
D) Taking the skills you have learned at a current job to a new job
E) All of the above are breaches of trust and ethics

Question 63

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 64

Who eventually raised concerns about the documents at Boeing?

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

Question 65

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 66

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 67

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 68

Into which of the following categories do patent and copyright infringement fall?

A) Conflict of interest
B) Balancing ethical dilemmas
C) Organizational abuse
D) Interpersonal abuse
E) Taking things that don't belong to you

Question 69

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 70

The term "Tiffany setting":

A) Is a generic one that competitors could use in describing a ring's setting.
B) Is a trademark that is protected.
C) Is not a trademark because it is a description, not unique.
D) Both a and c

Question 71

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 72

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 73

Steve has been disgruntled with his firm for some time and is secretly planning to leave and start his own manufacturer representative firm with the contacts he has made. Steve has been making copies of the firm's file-secured customer lists, supplier lists, pricing guides, and financial information which is routinely circulated to the staff.

A) If Steve leaves and contacts the customers of his former firm, there is a good chance that he will be liable for damages caused by his taking this information.
B) Steve shouldn't have made copies on the old firm's copy machine but taken the originals to an outside copy service.
C) Steve's former firm will have a difficult time stopping Steve because it did not protect its information.
D) Customers who switch to Steve's new firm will be liable to Steve's former firm for lost profits.

Question 74

Karen Bridgestone is a student in a masters of accountancy course. The professor has selected an electronic textbook for use in the course. In meeting with her group, Karen offers to purchase the textbook online, take the print option, and then make copies of the text to give to the other group members for the cost of the copies as a way of saving them money in their expensive graduate program. Which of the following is correct?

A) Because there was no commercial use, there is no copyright infringement.
B) Because they paid for the copies of the text, there is no infringement.
C) As long as they do not sell the copies to anyone for the next semester, there are no copyright issues.
D) None of the above

Question 75

Stephen Ambrose, a popular historian with many books to his credit, admitted that some segments of one of his recent books had language taken from the books of other historians that was not in quotes. Mr. Ambrose did footnote the work of authors he relied upon in doing his book.

A) The work of an author is protected by copyright laws.
B) The use of quotes without attribution is not a violation of the law.
C) The use of the material is fair use and need not be footnoted.
D) Both b and c
E) None of the above

Question 76

How many Lockheed Martin documents did Boeing have?

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

Question 77

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 78

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 79

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 80

What happened to the suits for wrongful termination against Boeing?

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