Deck 3: Crimes in Sales-Related Occupations

Question 1

The success of the economy is tied through relativism to which system?

A) retail
B) sales
C) entertainment
D) insurance

Answer 1

A

Question 2

According to a 2020 National Retail Security Survey, an estimated $61.7 billion was lost in the retail system in 2019 to which of the following?

A) high employee turnover
B) shrinkage
C) loss of business
D) the economy

Answer 2

B

Question 3

Which of the following is an example of employee theft in the retail system?

A) buying goods at a lower price
B) not giving customers sale prices
C) giving sweetheart deals
D) billing for services not provided

Answer 3

C

Question 4

What type of retail prevention strategies do drug tests and audits fall into, respectively?

A) internal, importation
B) Importation, internal
C) technological, awareness
D) awareness, technological

Question 5

How do organizational culture strategies work to prevent employee theft in the retail business?

A) With an organized system for employees to anonymously report colleague wrongdoings, people are more likely to come forward
B) With an organized structure, or ladder, with employees and managers always having someone right above them to hold them responsible for their actions, theft is less likely to occur
C) With managers promoting a sense of community in the workplace and highlighting the company values from the start, employees are less likely to steal
D) With police targeting organized crime families who develop large complex employee theft schemes, employee theft drops on large levels

Question 6

Which system attributes the typical young age of its employees and low wages to employee theft?

A) insurance
B) retail
C) sales
D) entertainment

Question 7

When a restaurant routinely sells its customers smaller portions of food than it advertises, it is engaging in what type of theft?

A) adulterating food
B) short weighing
C) billing for food not provided
D) false advertising of prices

Question 8

Which of the following are examples of prevention strategies for the restaurant business?

A) inventory control, controlled exits, and inspections
B) inventory control, controlled exits, and background checks
C) inventory control, anonymous tip lines, and inspections
D) background checks, controlled exits, and anonymous tip lines

Question 9

To what are the majority of crimes committed in a hotel attributed?

A) theft by guests
B) fraud
C) employee theft
D) there is no one major type of crime in hotels

Question 10

How does the sales/service system differ from the retail system?

A) Sales system sells all types of goods, whereas the retail system sells luxuries.
B) Retail system sells various goods, whereas the sales system sells basic goods and services.
C) They are the same system.
D) Retail system sells smaller goods, whereas the sales system sells larger item in price, like homes.

Question 11

What type of auto sales fraud occurs when mechanics and car dealers collaborate to cheat customers?

A) price fraud
B) odometer fraud
C) stolen car fraud
D) battery fraud

Question 12

Who do door-to-door scam artists in the home repair industry target and why?

A) The elderly because they are home during the day and are more vulnerable.
B) Women because they are more vulnerable and know less about home repairs.
C) The wealthy because they are less likely to shop around for the best prices.
D) The poor because they are more likely to jump at what they think is a good deal.

Question 13

Why do home repair frauds fly under the radar as far as the public awareness is concerned?

A) It is hard to prove in court because faulty repairs are not the same as fraudulent repairs.
B) It is not as prevalent as fraud in the auto repair industry.
C) It is underreported because many times the homeowner does not even know they have been ripped off.
D) Home repair fraud is only dealt with in civil court, and many people cannot afford the legal fees to hold companies responsible.

Question 14

Which of the following is not an example of a consequence of home repair fraud?

A) additional damage to the home
B) additional costs for the homeowner
C) stress within the family and on family relationships
D) higher insurance rates

Question 15

What steps have been taken to reduce the home repair fraud scandals in the United States?

A) Criminal laws have been passed in some states.
B) The media has tried to increase public awareness.
C) Consumer review websites have been made to alert people to fraudulent companies.
D) People do their own home repairs.

Question 16

Which type of auto repair fraud can go undetected unless the driver has a serious accident?

A) billing for services not provided
B) airbag fraud
C) insurance fraud
D) unnecessary repairs

Question 17

What category of auto repair fraud does enhancing or creating damage fall under?

A) unnecessary repairs
B) airbag fraud
C) insurance fraud
D) billing for services not provided

Question 18

What were the results of Paul Jesilow's experiment, in which he sought services in over 300 auto repair shops in California?

A) Women are more commonly victimized by mechanics.
B) Smaller repair shops are more honest than larger repair shops.
C) Shops located in cities with a high degree of public awareness about repair fraud were more honest.
D) He found that shops often get consumers to sign documents that relieve them of liability.

Question 19

Instances of what type of fraud increased in the aftermath of natural disasters?

A) auto repairs
B) home repairs
C) auto sales
D) home sales

Question 20

The emergence of a legalized marijuana industry in 33 states has brought white-collar crimes to the industry by and against whom?

A) customers against other businesses
B) marijuana business owners against their customers
C) employees against marijuana business owners
D) marijuana business owners against other marijuana business owners

Question 21

Why do criminologists rarely study insurance fraud?

A) It is not as common as home or auto fraud.
B) It is hard to find examples of insurance fraud.
C) It is hard to define insurance fraud and many companies are just considered to have poor deals.
D) It is hard to understand and people don't know they've been victimized.

Question 22

Viatical settlement fraud and promissory note fraud are examples of which type of insurance fraud?

A) crimes by agents against the company
B) investment focused crimes
C) crimes by agents against the consumers
D) sales-directed crimes against the consumers

Question 23

Insurance fraud occurs when agents misrepresent the types of returns their clients would receive from which type of investment?

A) annuities
B) promissory notes
C) viatical settlements
D) insurance plans

Question 24

Embezzlement, forgery, and falsifying account information are all examples of which type of insurance fraud?

A) crimes by agents against the company
B) investment focused crimes
C) crimes by agents against consumers
D) sales-directed crimes against consumers

Question 25

Which type of sales-directed insurance crime is defined as "persuading the customer to cancel an old policy and replace it with a more expensive 'better' policy?"

A) stacking
B) misrepresentation
C) rolling over
D) sliding

Question 26

The CEO of a major hiring agency proposed that a rigorous hiring process is one way that employers can prevent employee theft.

Question 27

Shrinkage refers to the act of downsizing by a business in order to account for theft by employees

Question 28

Sweetheart deals and shortchanging are examples of fraud that occurs in the entertainment/services system.

Question 29

Ninety percent of all crimes committed in hotels are due to employee theft.

Question 30

The legalization of marijuana has increased the crime of underage sales.

Question 31

Criminal laws made targeting home repair fraud have proved ineffective and confusing for victims who used to seek retribution in civil court.

Question 32

Insurance fraud can occur in the sales/services system as a type of repair fraud.

Question 33

Unlicensed marijuana businesses are a concern because they may be selling product that is harmful to users.

Question 34

Insurance fraud is studied thoroughly by criminologists because it is hard for the public to understand, and people do not typically know if they have been victimized.

Question 35

Viatical settlement fraud, promissory note fraud, and repair fraud are all types of fraud found in the insurance system.

Question 36

Explain the differences between the retail system and the sales/service system, as well as provide an example of crime or fraud in each system.

Question 37

Explain the advantages to passing criminal laws targeting home repair fraud.

Question 38

Explain the difference between insurance fraud in the insurance system and auto insurance fraud in the sales/service system.

Question 39

Explain the factors the contribute to high levels of employee theft in the restaurant business.

Question 40

Describe two prevention strategies for employee theft in the retail system.

Question 41

Compare and contrast the different types of employee theft.

Question 42

What are some of the more common theft prevention strategies in the retail system and what are the advantages to each strategy?

Question 43

Discuss the factors that contribute to high theft in the restaurant industry. Give examples.