Deck 10: Crimes by the Corporate System

Question 1

One of the four views that define the concept of a corporation is which of the following?

A) Corporations exist in a physical or structural presence.
B) Investors create corporations.
C) There is a corporate name.
D) It has an executive board.

Answer 1

A

Question 2

Business activities that are covered by antitrust laws include which of the following?

A) deceptive sales
B) labor practices
C) consumer products
D) intellectual property use

Answer 2

D

Question 3

Which of the following is an antitrust offense?

A) group pricing
B) price increases
C) false advertising
D) market allocation

Answer 3

D

Question 4

What type of antitrust offense is holding prices firm, fixing warranties, and eliminating discounts considered?

A) price gouging
B) price fixing
C) price discrimination
D) bid rigging

Question 5

When parties from different levels of production, manufacturing, and distribution agree to set prices at a certain level, they are committing what type of offense?

A) horizontal price fixing
B) vertical price fixing
C) price gouging
D) market allocation

Question 6

Competitors who conspire to submit artificially high bids or estimates so that a specific competitor with a low price will be selected for a job are committing what type of collusion?

A) bid suppression
B) bid rotation
C) complementary bidding
D) subcontracting

Question 7

Which of the following factors indicates a higher likelihood for bid rigging to occur?

A) more competitors
B) new competitors
C) businesses submit bids at different times
D) standardized products or services

Question 8

Under which circumstance is price discrimination illegal?

A) it decreases competition
B) it increases competition
C) different buyer and seller pairs are dealt with
D) it suppresses competition

Question 9

What type of offense was seen in the aftermath of Hurricane Katrina when gas prices were raised significantly?

A) price discrimination
B) price fixing
C) price gouging
D) market allocation

Question 10

When drug dealers divide a neighborhood into territories to sell drugs and respond violently when other dealers sell in their neighborhood, what type of antitrust offense is this analogous to?

A) price fixing
B) price discrimination
C) market allocation
D) group boycotts

Question 11

Why are antitrust offenses difficult for officials to detect or identify?

A) Antitrust offenses do not affect the prices of goods significantly.
B) Agreements can be made without verbal or written evidence.
C) The effects of these offenses are not seen right away.
D) Some of these offenses are well-hidden from authorities.

Question 12

Which of these statements about false advertising is not true?

A) False advertising laws require advertisers to have evidence to back up their claims.
B) Advertisements featuring celebrities do not necessarily have to reflect their true beliefs about a product, as long as they are aware of this.
C) Advertising claims about health and safety receive more scrutiny.
D) Changes in the economic system have increased the number of false advertising incidents.

Question 13

In 2004 when a large college was caught lying to students about the transfer ability of its credits, what type of offense were they committing?

A) false advertising
B) market allocation
C) antitrust fraud
D) deceptive sales

Question 14

An employer who asks a worker to stay late and help clean up without being paid is committing what type of offense?

A) exploitation
B) fraud
C) unfair labor discrimination
D) deception

Question 15

What has the government done to try to address the working conditions and exploitation of workers in sweatshops?

A) Given tax breaks to corporations to minimize low profit margins
B) Established the Fair Labor and Standards Act targeting unfair labor practices such as exploitation and discrimination
C) Increased regulatory oversight of corporations with vulnerable populations
D) Imposed regular fines for lack of improvement in the work environment in sweatshops.

Question 16

Which of the following is not a cost associated with workplace injuries and illnesses?

A) higher worker compensation rates
B) negative publicity
C) stricter policies relating to the work environment
D) increased attention from government agencies

Question 17

Which of the following is not a right given to workers under the Occupational Safety and Health Act?

A) receive proper training
B) observe safety testing
C) refuse to work if they feel conditions are unsafe
D) request OSHA inspect their workplace

Question 18

Which type of harmful products is often found to be the most unsafe?

A) toys
B) foods
C) automobiles
D) construction material

Question 19

With nursing home neglect, what type of offense is being committed?

A) harmful treatment of consumers
B) harmful consumer products
C) exploitation
D) unfair labor practices

Question 20

In regards to the corporate crime dynamics, what does the breadth of victimization refer to?

A) Victims don't know if they've been victimized.
B) Single offenses can affect millions of people.
C) Small offenses can result in death.
D) A corporation's crimes hurt only their customers.

Question 21

Why is there so little attention given to reporting on corporate crimes?

A) Corporate crime is less frequent than traditional crime.
B) The public already believes that corporate crime is rampant.
C) Corporate crime is not as sensational as other types of crime.
D) The public has no interest in corporate crime.

Question 22

Which offense do some question whether it is a true corporate crime?

A) price discrimination
B) exploitation
C) unsafe work environment
D) harmful treatment of consumers

Question 23

What category of offense do bait and switch practices fall under?

A) unfair labor practices
B) antitrust offenses
C) false advertising
D) deceptive sales

Question 24

What is one important reason for the creation and persistence of sweatshops?

A) low wages that created high profit margins for the industry
B) shorter work weeks were possible due to a large labor force
C) the existence of a large vulnerable and exploitable population
D) government regulation that helped fuel their growth.

Question 25

Which type of offense is likely to go unnoticed by victims?

A) false advertising
B) food poisoning
C) deceptive sales
D) unfair labor practices

Question 26

In the 1990s, U.S. officials tried to apply criminal sanctions to businesses in other countries that committed corporate crimes, but the Supreme Court prevented it.

Question 27

Prior to the creation of the Occupational Safety and Health Administration, 14,000 people died in the U.S. everyday while working.

Question 28

Food poisoning is considered a corporate crime.

Question 29

With globalization and unsafe goods, the U.S. is doing a better job at tracking which goods and parts come from which countries so that they can be held responsible in the case of an unsafe product.

Question 30

When 100 people died in a nightclub fire, the club had committed the offense of providing an unsafe product.

Question 31

Even if they get caught, many corporations believe the benefits outweigh the costs when it comes to committing corporate crimes

Question 32

Secondary victims include members of the community harmed by victimization.

Question 33

The public is often aware of corporate crimes committed by companies, but do not realize the actions they can take to stop it.

Question 34

The media pays little attention to corporate crimes.

Question 35

Deceptive sales occur when businesses make inaccurate statements about their products or services in order to facilitate the sale of those items/services.

Question 36

List and define three antitrust offenses that can be committed by corporations

Question 37

What is the difference between false advertising and deceptive sales?

Question 38

Give an example of exploitation as an unfair labor practice.

Question 39

What are three rights given to workers under the Occupational Safety and Health Act?

Question 40

What are the three levels of intent involved in committed corporate offenses?

Question 41

Identify two types of antitrust offenses and their impact on the economy.

Question 42

Define two types of false advertising and discuss the consequences for consumers.

Question 43

Discuss consequences of harmful consumer products.