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The legal concept of negligence focuses on the conduct and state of mind of the producers and holds them responsible for harms only
when they fail to act in ways that could have prevented the harm.
 
TRUE
FALSE
   
Even though parties freely engage in an exchange of goods or services, we cannot be sure that autonomy has been respected
(the Kantian requirement) and that mutual benefit has been achieved (the utilitarian requirement).
           
TRUE
FALSE
   
Need for a product, or anxiety and other stress experienced during a business transaction, or price-gouging may make a consumer’s
choice less voluntary, and misleading advertising or incomplete understanding of a product’s complexity may make his or her consent less informed.
           
TRUE
FALSE
   
Given that business transactions between two parties are mutually beneficial and freely entered into, social norms of equal treatment
and fairness or questions as to what social goods are promoted or threatened are not ethically relevant to the transactions.
           
TRUE
FALSE
   
The contract model of the marketing relationship that offers a consumer only a limited or expressed warranty on a product is not
really one-sided nor does it fail to meet the standards of truly informed consent because the consumer agrees to these limitations.
           
TRUE  
FALSE
   
In claiming that the concept of negligence should include the standard of the “reasonable” person who is a thoughtful, reflective,
and judicious decision maker, we are surely asking no more of the average consumer than he or she is capable of giving.
           
TRUE  
FALSE
   
The legal doctrine of strict products liability is controversial because it unfairly holds a business accountable for paying damages
in cases where it was not at fault.
           
TRUE  
FALSE
   
According to McCall’s fairness argument, holding the manufacturer liable under the strict product liability doctrine is fair because
the injuries caused by a product are externalities that fairness requires to be internalized in the exchange between producer and consumer.
           
TRUE
FALSE
   
Because the efficiency benefits of large retailers can be passed on to consumers in the form of lower prices, and because a
competitive market should drive out uncompetitive firms, there is no persuasive rationale for claiming that it is unethical,
unfair, to force smaller stores out of businesses by temporarily pricing products under cost.
           
TRUE  
FALSE
   
Even if there are social costs involved in a transaction, costs not reflected in the price agreed to by the parties to the transaction,
the fact that the price is freely agreed to means that it must still be accepted as fair and beneficial.
           
TRUE  
FALSE
   
Which ethical question is not relevant to the process of marketing a product?
                       
 A. What responsibility do producers have for the quality and safety of their products?
 B. Who is responsible for harms caused by a product?
 C. Is the customer's willingness to pay the only ethical constraint on fair pricing?
 D. Can producers discriminate in favor of, or against, some consumers?    
 E. All of the above.
 F. None of the above.
   
Identify the statement that fails to reinforce the idea that the purchases made by consumers may not be truly voluntary:
                       
 A. The more consumers need a product, the less free they are to choose.
 B. The consumer may experience anxiety and stress, e.g., when purchasing an automobile.
 C. Price-fixing and price-gouging may restrict the consumer's freedom.
 D. There may be marketing practices aimed at vulnerable populations such as children or the elderly.
 E. All of the above.    
 F. None of the above.
             
Select the statement that represents a situation where informed consent is not operative:
                       
 A. The complexity of a product has been fully explained to a consumer.    
 B. The customer is not clear about the calculation of the interest rate on a leased product transaction.           
 C. The extended warranty conditions on a product have been fully disclosed to a consumer.       
 D. Warning labels on a product have pointed out any potential hazards associated with operating it.      
 E. All of the above.    
 F. None of the above.
             
Choose the statement that does not challenge the assumptions commonly found in economic textbooks that customers are
benefited, almost by definition, whenever their preferences are satisfied in the market:
                       
 A. Impulse buying cannot be justified by appeal to consumer interests.
 B. The exchange is prima facie ethically legitimate because it assumes that the individuals involved in the transaction act as free,
      autonomous agents capable of pursuing their own ends.        
 C. The ever-increasing number of bankruptcies suggests that consumers cannot purchase happiness.    
 D. Empirical studies provide evidence that greater consumption can lead to unhappiness.
             
Select the question that is most likely never relevant to the examination of business' responsibility for its products:
                       
 A. What caused an event to happen?
 B. Who is to blame for any harms caused, who is liable?    
 C. What was the agent's motive?
 D. Who was responsible for "caring for" a situation, accountable without any suggestion of culpability, fault, or blame?
   
The strict products liability standard requires a manufacturer to compensate injured consumers:
                       
 A. Only if it can be shown that the manufacturer was at fault in causing or failing to prevent a harm.
 B. Even if the manufacturer was not at fault, even if there was nothing the manufacturer could have done to prevent the harm.
 C. Only if the manufacturer used fraud or coercion at the time the contract for the product was agreed to by the consumer.            
 D. Only if the product's features were described in a deceptive manner in advertising copy.
   
Select the statement that doesn't challenge the claim that producers should not be held strictly liable for harms not caused
by their negligence:
                       
 A. Strict liability adds significant hidden costs to every consumer product.            
 B. Strict liability places domestic producers at a competitive disadvantage with foreign businesses.        
 C. If it is unfair to penalize businesses for harms they couldn't prevent, it is equally unfair to penalize consumers
      for harms they could not prevent.
 D. Strict liability discourages product innovation and encourages frivolous and expensive lawsuits.
   
Identify the statements that George Brenkert claims represent justifications that juries use to hold manufacturers strictly
liable but that are not fully convincing:
                       
B. Manufacturers are best able to pay for the damages caused by their products.
D. Strict liability creates an added incentive for producing safe products.
           
 F. Answers B and D are correct.
             
It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom.
Which statement does not support that allegation?
                       
 A. Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.         
 B. From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers
      from low prices with the benefits to sellers of high prices is the only ethical pricing issue.
 C. Monopolistic pricing limits the variety of products available to consumers.
 D. The more uniformity of prices one finds within an industry, the less likely it is that competition exists.
   
Select the statement that is at odds with the idea that pricing strategies may be unfair:
                       
A.      Large stores in competition with smaller stores can absorb losses from undercutting the smaller stores on price, an option
not available to the smaller ones.          
B.      Distribution systems are established that reward large retailers with lower costs per unit than the cost per unit smaller stores
must carry. As a result, the smaller ones may be driven from the market.       
 C. A competitive market should drive out uncompetitive firms by driving prices down.
 D. Government subsidies of one industry may keep alternative industries from competing on price.
 
Privacy is important because it serves to define one's individuality.
True
 
The right to privacy, which is founded on a universal right to autonomy, is restricted by a prevalent social contract in our culture.
True
 
Values that are determined within moral free space are hypernorms.
False
 
According to Donaldson and Dunfee, the right to vote is an example of a hypernorm.
False
 
The value of privacy to civilized society is as great as the value of hypernorms to civilized existence.
True
 
The concept of property rights involves a determination of who maintains control over tangibles, and therefore, excludes personal information.
False
 
The Constitution's Fourth Amendment protection against an unreasonable search and seizure governs only the private sector workplace.
False
 
The 'invasion of privacy' claim is one that developed through case law called "intrusion into seclusion."
True
 
The European Union's Directive on Personal Data Protection doesn't prohibit E.U. firms from transferring personal information to non-E.U. firms.
False
 
The most prevalent subject of monitoring is videotaping.
False
 
Managing their workplaces to place workers in appropriate positions is one reason why employers choose to monitor the technology used.
True
 
Under GINA, your genetic information is not merely information about you, but also your family's medical history, including any disease or disorder, or genetic test results of a family member. The term "family member" includes your dependents and relatives all the way to the fourth degree of kinship.
True
 
One of the problems associated with giving prior notice of monitoring is the 'Hawthorne Effect.'
True
 
Employers are prohibited from making employment decisions on the basis of weight, even if they are not in violation of the American with Disabilities Act (ADA).
False
 
Discrimination laws do not protect workers against adverse action based on the identity of the person they married.
True
 
Discrimination laws do not protect individuals against discrimination on the basis of political involvement.
False
 
Two general and connected understandings of privacy have been identified. Privacy as a right to be 'let alone' within a personal zone, and privacy as the:
A. right to understand one's emotions.
B. fundamental duty of every citizen.
C. right to control information about others.
D. right to control information about oneself.
 
Values that are fundamental across culture are called:
A. authentic norms.
B. hypernorms.
C. global norms.
D. executive norms
 
According to Donaldson and Dunfee, examples of hypernorms include:
A. right to a safe workplace.
B. right to public information.
C. right to personal freedom.
D. right to vote.
 
Privacy can be legally protected by all of the following except:
A. the constitution.
B. affirmative action.
C. federal and/or state statutes.
D. common law.
 
_____ refers to the body of law comprised of the decisions handed down by courts, rather than specified in any particular statutes or regulations.
A. Statutory law
B. Common law
C. Civil law
D. Constitutional law
 
The Constitution's Fourth Amendment protection against an unreasonable search and seizure governs only the public sector workplace because:
A. unions exist only in private sector organizations.
B. the private organization does not cater to appeals of unreasonable search or seizure.
C. the Constitution applies only to state action.
D. it is illegal by common law to trespass on private property..
 
Which of the following prohibits the "interception" or unauthorized access of stored communications?
A. Electronic Communications Privacy Act of 1986
B. Computer Security Act of 1987
C. Privacy Act of 1974
D. Computer Fraud and Abuse Act of 1986
 
The impact of the ECPA is to punish electronic monitoring only by third parties and not by employers because courts have ruled that "interception" applies only:
A. to messages that have actually reached company computers.
B. when monitoring is done without consent.
C. when employees file a case.
D. to messages in transit.
 
Identify the correct statement about Electronic Communications Privacy Act of 1986 (ECPA).
A. Courts have ruled that the "interception" of stored communications applies only to messages that have actually reached company computers.
B. A firm that secures employee consent to monitoring at the time of hire is immune from ECPA liability.
C. The impact of the ECPA is to punish electronic monitoring only by employers.
D. The ECPA does not allow interception even when consent has been granted.
 
This legal violation occurs when someone intentionally interferes on the private affairs of another when the interference would be "highly offensive to a reasonable person."
A. Calumny
B. Vilification
C. Intrusion into seclusion
D. Defamation
 
If the basis for finding an invasion of privacy is often the employee's legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when the:
A. employee has actual notice.
B. employer is covered under the ECPA.
C. work requires transference of sensitive data.
D. employee belongs to a minority group.
 
Which of the following states in the U.S. is the only one that requires employers to notify workers when they are being monitored?
A. Ohio
B. Illinois
C. Michigan
D. Connecticut
 
Why did the U.S. Department of Commerce negotiate a 'Safe Harbor exception?'
A. U.S. needed to qualify as having adequate protection as per the EU directive on personal data protection.
B. Because it's naval fleet is the best in the world.
C. U.S. wanted to collaborate with EU's free market profits.
D. The law required that all imports to the European Union meet the Safe Harbor standards
 
Google scans user e-mail in order to target advertisements based on the contents. If one's personal information on e-mails is respected as property, it can be said that:
A. firms that store external information also have the right to monitor them.
B. users are aware that personalized advertisements are possible only through scanning.
C. Google can use individual property rights because it stores all the e-mails.
D. Google uses individual property rights without consent.
 
According to economist Antonio Argandona, identify the element that would include issues relating to company secrets, espionage, and intelligence gathering?
A. Truthfulness and accuracy
B. Respect for property and safety rights
C. Respect for privacy
D. Accountability
 
Identify the incorrect statement about technology and its usage.
A. It allows access to information that was never before possible.
B. It allows one to work from almost anywhere on this planet.
C. Facelessness that results from its usage is a challenge.
D. It allows us to be careful with our communications.
 
When we do not get to know someone because we do not have to see that person in order to do our business, we often do not take into account the impact of our decisions on him or her. This is the challenge posed by:
A. the facelessness that results from the use of new technology accessible in the workplace.
B. the knowledge gap that exists between people who do understand the technology and others do not understand it.
C. lack of knowledge about how technology really works.
D. the assumption by users of technology that the Internet is safe.
 
The definition of 'should have known' expanding to include an expectation of monitoring is attributed to businesses:
A. protecting proprietary information and guarding against thefts.
B. protecting their investment in equipment and bandwidth.
C. protecting against legal liability.
D. administering workplace benefits.
 
From a utilitarian perspective, individual rights to privacy or right to control information about oneself may be outweighed by in cases where:
A. public safety is at risk.
B. the employee compensation package is very high.
C. the proposed benefit to the employer is high.
D. productivity of employees directly depends on the number of hours they put in.
 
Which of the following stipulates that employers cannot use "protected health information" in making employment decisions without prior consent?
A. Personal Information Protection and Electronic Documents Act
B. Federal Information Security Management Act
C. Personal Information and Health Documents Act
D. Health Insurance Portability and Accountability Act
 
Identify the correct statement about The Genetic Information Non-Discrimination Act of 2009 (GINA).
A. Under GINA, an employer can collect genetic information in order to monitor the biological effects of toxic substances in the workplace.
B. GINA mandates that employers be extremely careful because they are subject to similar conditions to the Health Insurance Portability and Accountability Act (HIPAA).
C. Under GINA, an employer cannot collect genetic information in order to comply with the Family Medical Leave Act.
D. Under GINA, an employer cannot release genetic information about an employee to a public health agency.
 
Identify a situation prohibited by The Genetic Information Non-Discrimination Act of 2009 (GINA).
A. An employer releases genetic information about an employee in response to a court order.
B. An employer releases genetic information about an employee in connection with the employee's compliance to the certification provisions of the Family and Medical Leave Act.
C. An employer releases genetic information about an employee to a health researcher.
D. An employer releases genetic information about an employee to a government official investigating the accounting practices of the company.
 
Which of the following statements is true about monitoring?
A. It reduces workers' right to control their environment without reducing the level of worker autonomy and respect.
B. It has the potential to cause physical disorders such as carpal tunnel syndrome.
C. It does not have a negative impact on performance.
D. It can lead to mental pressures, but health problems have not been reported
 
Employees will be on their best behavior during calls if they know that those calls are being monitored. Identify this effect of employee monitoring.
Hawthorne effect
 
An employer can resolve the "Hawthorne Effect" through:
random, anonymous monitoring.
 
Ann Svendsen, director of the Center for Innovation in Management, has ascertained that in the bigger picture, _____ appears to minimize shareholder risk, enhance reputation, and deepen brand loyalty.
social capital
 
If an employee's weight is evidence of or results from a disability, the employer must explore whether the worker is otherwise qualified for the position. Under the American with Disabilities Act (ADA), the individual is considered "otherwise qualified" if she or he:
can perform the functions of the position with or without reasonable accommodations.
 
Some companies have a(n) _____ policy under which an employer refuses to hire or terminates a worker on the basis of the spouse's working at the same firm.
anti-nepotism
 
Identify the policy under which employer refuses to hire or terminates a worker whose spouse works at a competing firm.
Conflict-of-interest policy
 
Most statutes or common law decisions, provide for employer defenses for all of the following except:
those rules that treats one group differently from another considering lifestyle practices.
 
Identify the act that expanded states' rights with regard to Internet surveillance technology, including workplace surveillance, and amended the Electronic Communications Privacy Act.
USA PATRIOT Act
 
Which of the following act grants access to sensitive data with only a court order rather than a judicial warrant and imposes or enhances civil and criminal penalties for knowingly or intentionally aiding terrorists?
USA PATRIOT Act
 
Title II of the USA PATRIOT Act provides roving surveillance authority under the:
Foreign Intelligence Surveillance Act to track individuals.