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Ethics and Social Responsibilty Chapter Test 8
General Test Questions & Answers

Chapter  Test  01    02    03    04    05    06    07    08    09    10   11   12   13       Unit Test 01  02       Final exam   01   02


Manipulation of a person, considered as a process of subtle direction or management, does not entail total control of that person.
 
TRUE
FALSE
 

 
It is impossible to manipulate someone without deceiving them.
 
TRUE
FALSE
 

 
Even if most manipulation is done to further the manipulator's own ends at the expense of the person being manipulated,
utilitarians would not generally be inclined to think that such manipulation necessarily lessens overall happiness.
 
TRUE
FALSE
 

 
Ethical wrong is done either by intending to deceive consumers in order to manipulate their buying behavior, treating them as a
mere means to one's own ends (the Kantian approach) or by the harmful consequences for consumers, competitors and overall
market efficiency (the utilitarian approach) but not by both.
 
TRUE
FALSE
 

 
Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed
because it would mean punishing business on the basis of what the FTC thinks might happen rather than on what actually does happen.
 
TRUE
FALSE
 

 
The dependence effect is based on John Kenneth Galbraith's claim that consumer demand depends on what producers have to sell.
In effect, advertising, by creating wants, manipulates consumers, violates their autonomy.
 
TRUE
FALSE
 

 
Robert Arrington argues that marketing influences us by appealing to pre-existing and independent desires, and since marketing
does not prevent us from renouncing those desires, and as long as we don't renounce them, they must still be considered autonomous.
 
TRUE
FALSE
 

 
Both Gerald Dworkin and Roger Crisp would argue that critical reflection on a desire is not necessary for that desire to be autonomous.
 
TRUE
FALSE
 

 
Even if marketing practices are effective, even if marketing can and does influence consumer choice, there is no reason to believe
that marketing has any ethical responsibility for the consequences of choices made by consumers who are vulnerable to products
that may harm their health.
 
TRUE
FALSE
 

 
Sales, unlike marketing that is directed to general populations, are directed to individuals, and, as a result, any salesperson who
fails to stop a sales pitch when he or she suspects that a customer's decision-making is not autonomous, is acting unethically.
 
TRUE
FALSE
 

 
Identify the statement that provides a reason why manipulation of consumers is not relevant to marketing ethics:
 
A)     Knowing consumers' psychological profiles through marketing research, their motivations, interests, desires, beliefs,
anxieties and fears facilitates manipulation of their behavior.
 B) Some marketing practices target populations that are particularly susceptible to manipulation and deception.
 C) One need not necessarily deceive a person in order to manipulate him or her.
 D) Manipulation doesn't necessarily entail total control over a person; it may simply be a process of subtle direction or management.
 E) All of the above.
 F) None of the above.
 

 
Select the practice that is not a form of consumer manipulation:
 
 A) Cigarette advertising aimed at children.
 B) Ads aimed at elderly population for such goods as medicare supplementary insurance, casinos and gambling, nursing
homes, and funeral services.
 C) Researching the criteria that a typical buyer uses to select a particular make and model of automobile.
 D) Selling an extended automobile warranty or theft protection products to a customer who is anxious about the
whole process of buying an automobile.
 

 
What statement suggests that the Johnson and Johnson Tylenol ad stating that "last year hospitals dispensed 1times as much
Tylenol as the next four brands combined" was suspiciously deceptive?
 
 A) It was a simple statement of a valid claim about the product.
 B) It was an effort to call attention to the practice of selling the drug to hospitals at a deep discount.
 C) Johnson and Johnson wanted consumers to think that the medical profession and hospitals believed it was the most effective
 acetaminophen treatment on the market.
 D) Johnson and Johnson wanted to show its commitment to lowering medical costs to consumers.
 

 
Identify the statement that would not support the idea that determining precise standards for what constitutes deception and
how best to regulate it is problematical:
 
A)     The primary ethical wrong is in the intent to deceive, to intend to use someone's buying behavior for one's own ends. To prevent
this wrong from occurring, the Federal Trade Commission (FTC) would have to punish on the basis of what it thinks a marketing
practice will do to consumers rather that what it actually does to them.
B)     It is enough to prevent beforehand harms that deceptive practices might do rather than regulate them after the harms
have been done.
 C) Regulation might be too strong because it may well turn out that consumers are deceived by relatively trivial marketing practices.
 D) Regulation might be too weak if it places the burden on consumers to prove the deception.
 

 
Select the statement that correctly describes the dependence effect derived from John Kenneth Galbraith's ideas on consumer affluence:
 
 A) Consumers depend on the free market to learn about the products they may need and want.
 B) Supply follows and depends on demand; consumers are only getting what they want.
 C) Consumer demand depends on what producers have to sell. Demand is a function of supply. Advertising creates wants.
 D) Owners of productive capital depend on giving consumers what they want; otherwise they would lose their investment.
 

 
If consumers are being manipulated by advertising, what are some key ethical implications?
 
 A) Individual autonomy, the central element of Kantian respect for persons, would be violated by the creation of wants.
 B) If consumers pursue trivial and contrived products, market exchanges only appear to increase overall satisfaction.
 C) Consumer autonomy is violated by advertising's ability to create nonautonomus desires.
 D) The economy of the affluent society is contrived and distorted.
 E) All of the above.
 F) None of the above.
 

 
Identify the statement that does not challenge Robert Arrington's argument that because marketing doesn't prevent us
from renouncing our pre-existing and independent choices, our desires for them must be considered autonomous:
 
Even if some consumer choices are not autonomous, nothing in Dworkin's or Crisp's analysis shows that advertising is
responsible for violating autonomy, only that some consumers do not act in a fully self-conscious way.
 

 
Select the statements reflecting the general sense of vulnerability that is relevant to target marketing:
 
A)     A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and
voluntary participant in the market exchange.
 B) A person is vulnerable because he or she is the typical customer for a particular product.
 C) A person is vulnerable because he or she is susceptible to some physical, psychological or financial harm other than the
financial harm from an unsatisfactory market exchange.
 D) A person may be seen as vulnerable because he or she belongs to some ethnic group, or is poor, or is a resident of a particular neighborhood.
 E) Answers A and B are correct.
 F) Answers A and C are correct.
 

 
Which of the following examples are ways in which persons are vulnerable as consumers because they are vulnerable in some
more general sense?
 
 A) Elderly persons vulnerable to injuries and illnesses might be compelled to make consumer choices based on fear or guilt.
 B) A grieving family member might make choices for funeral services based on guilt or sorrow.
 C) An inner-city resident who is poor, uneducated, and chronically unemployed is unlikely to weigh the consequences of using drugs or alcohol.
 D) A person afflicted with a medical condition or disease might feel fear associated with the condition that can lead to uninformed consumer choices.
 E) All of the above.
 F) None of the above.
 

 
Select the statements that challenge the idea that marketers cannot be held liable for decisions that any individual makes:
 
A)     Marketing addresses populations, not, as sales do, individuals, so no direct causal connection can be demonstrated between a
marketing campaign and an individual's choices to buy a product.
 B) If marketing is ineffective in influencing consumer choice, the marketers selling their services to businesses are committing fraud.
 C) Any individual may choose not to buy a marketed product.
 D) If marketing is effective and does influence consumer choices, it cannot disavow responsibility for the consequences of those choices.
 E) Answers B and C are correct.
 F) Answers B and D are correct.
 
The 'Four Ps' of marketing include product, price, promotion, and placement.
True
 
While approaching an ethical issue in marketing, the utilitarian tradition would want to know the degree to which individuals freely
participate in an exchange.
False
 
A condition for respect requires that consent be not only voluntary, but also informed.
True
 
Virtue ethics places a heavy emphasis upon
human flourishing.
 
Which of the following constitutes a common criticism of virtue ethics?
Goodness in people is only a function of doing good.
 
In virtue ethics, the primary goal is
to be a good person.
 
The condition where lesser consumption leads to unhappiness is termed "affluenza".
False
 
Unsafe products do not further the utilitarian goal of maximizing overall happiness.
True
 
What does Aristotle say that humans have in common with plants?
We are all living beings.
 
What, in Aristotle's view, is the proper function of human persons?
The rational activity of the soul.
 
When someone wants to buy something and someone else is willing to sell it, the transaction is ethically legitimate.
False
 
Externalities show that even if both parties to the exchange receive actual benefits from the exchange, other parties external to the exchange might be adversely affected.
True
 
In a strict liability case, if it can be proved that a business was as careful as possible about its product or service, it is not held liable for the harm that results from its use.
False
 
The implied warranty of merchantability holds that in selling a product, a business implicitly offers assurances that the product is reasonably suitable for its purpose.
True
 
Courts allow a business to completely disclaim the implied warranty of merchantability.
False
 
Under a contract model, the duties that a person owes are not merely those explicitly promised to another party, but also those that are implied.
False
 
Negligence involves the concept of foreseeability.
True
 
What does it mean to say that virtue (or goodness) is the "mean" for Aristotle, and why is it important?
It means experiencing emotions at the right times in the right way for the right causes.
 
For Aristotle, virtue refers to a type of
excellence.
 
What, according to Aristotle, is the ultimate good of humans?
Happiness, or eudaimonia
 
When consumers are injured by a product in which no negligence is involved and no one is at fault, the legal doctrine of strict product liability holds manufacturers accountable.
True
 
The utilitarian tradition in ethics would have the strongest objections to manipulation.
False
 
Consumer vulnerability occurs when a person has an impaired ability to make an informed consent to the market exchange.
True
 
A Kantian could argue that we should develop virtues in ourselves and others because
it would make our behavior more universally fair, and less likely to involve the use of others for selfish ends.
 
How, according to Aristotle, do we acquire moral, as opposed to intellectual, virtues?
We acquire them by repeated virtuous acts, so they become habitual.
 
Foot believes that the virtues provide benefits to
both the virtuous person and to his or her community.
 
We are subjected to numerous communications on a regular basis without paying much attention, such as the billboards at which we might glance
sideways as we speed past on a highway. This is an example of undercover marketing.
False
 
"Reverse channels" refers to the marketing practice of taking back one's products after their useful life.
True
 
In what way does Foot think virtues are "corrective"?
They counteract natural human deficiencies and excesses.
 
What are the two basic types of virtue, or excellence, according to Aristotle?
intellectual and moral
 
Utilitarians might encourage the development of virtue for which of the following reasons?
Virtues are conducive to the maximization of happiness.
 
How is the approach taken by virtue ethics different from that taken by deontology and utilitarianism?
Virtue ethics is concerned with how we ought to be, while deontology and utilitarianism are concerned with what we ought to do.
 
Which of the following is not a category of the "Four Ps" of marketing?
A. Product
B. Promotion
C. Planning
D. Placement
 
The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties as upholding respect for individuals by treating them as autonomous agents capable of pursuing their own ends.
A. virtual
B. economical
C. utilitarian
D. deontological
 
The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties and would take the two parties' agreement as evidence that both are better off than they were prior to the exchange and thus conclude that overall happiness has been increased by any exchange freely entered into.
A. utilitarian
B. virtual
C. Kantian
D. deontological
 
The simple situation in which two parties come together and freely agree to an exchange is prima facie ethically legitimate because:
A. investigation proves that a simple exchange does not involve unethical situations.
B. a simple exchange involves the consent of both parties involved, which leaves no room for unethical acts.
C. certain conditions must be met before we can conclude that autonomy has been respected and mutual benefit has been achieved.
D. exchange occurs on mutual consent and for mutual benefit, parties involve in an exchange only if they see their benefit.
 
While approaching an ethical issue in marketing, the Kantian tradition would consider:
A. the degree to which individuals freely participate in an exchange.
B. the benefits and costs of each exchange.
C. other values that are affected by the exchange.
D. personal characters of the parties that are involved in the exchange.
 
While approaching an ethical issue in marketing, the utilitarian tradition would consider:
A. the degree to which individuals freely participate in an exchange.
B. the benefits and costs of each exchange.
C. other values that are affected by the exchange.
D. personal characters of the parties that are involved in the exchange.
 
A consumer's consent to purchase a product is not informed if that consumer is:
A. unwilling to listen to the product details from the salesperson.
B. injured after using the product and filed a product liability suit.
C. asked to buy a product at his/her own risk and no warranty is offered on the product.
D. being misled or deceived about the product.
 
"Affluenza" is a condition where:
A. greater consumption leads to unhappiness.
B. other parties external to the exchange is adversely affected by it.
C. a business is held liable without being at fault.
D. consumer demand depends upon what producers sell.
 
The legal doctrine of strict liability is ethically controversial because:
A. it assumes that every purchase involves the informed consent of the buyer and therefore it is assumed to be ethically legitimate.
B. it shifts the burden of proof from consumers to producers by allowing consumers to assume that products were safe for use.
C. it holds that consumer demand depends upon what producers sell.
D. it holds a business accountable for paying damages whether or not it was at fault.
 
Identify the approach that understands marketing on a simple model of a contractual exchange between a buyer and seller, and therefore assumes that every purchase involves the informed consent of the buyer and is ethically legitimate.
A. Caveat lector approach
B. Cena maksymalna approach
C. Caveat emptor approach
D. Caveat venditor approach
 
In selling a product, a business implicitly offers assurances that the product is reasonably suitable for its purpose. The law refers to this as the:
A. doctrine of caveat emptor.
B. implied warranty of merchantability.
C. doctrine of caveat lector.
D. implied warranty of productivity.
 
Which of the following statements is correct about the implied warranty of merchantability?
A. The law holds that business has a duty to insure that its products will accomplish their purpose through a verbal or written promise or contract.
B. This standard shifts the burden of proof from producers to consumers by allowing consumers to assume that products were safe for ordinary use.
C. Most courts allow a business to completely disclaim the implied warranty of merchantability.
D. Many businesses issue a disclaimer of liability, or offer an expressed and limited warranty to limit its liability against the implied warranty of merchantability.
 
How can we say that the use of an implied warranty solved a set of problems with the contract law approach to product liability?
A. Consumers would not need complex contracts in order to protect themselves from all possible harms that products might cause.
B. It shifts the burden of proof from producers to consumers by allowing consumers to assume that products were safe for ordinary use.
C. It forces businesses to issue a disclaimer of liability and offer limited warranties to limit its liability.
D. Buyers have the responsibility to look out for their own interests and protect their own safety when buying a product.
 
Which of the following statements is true about negligence as an avenue for consumers to hold producers responsible for their products?
A. It is a central component of the contract model.
B. One can be negligent by doing something that one should not.
C. One cannot be held negligent by failing to do something that one should have done.
D. It excludes acts of both commission and omission.
 
Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the:
A. strict product liability standard.
B. actual foreseeability standard.
C. reasonable person standard.
D. consent and informed decision standard
 
Which of the following statements is true about manipulation?
A. It involves total control, and lacks a process of subtle direction or management.
B. We cannot manipulate someone without deception.
C. Manipulating people implies guiding their behavior with their conscious understanding.
D. To manipulate something is to guide or direct its behavior.
 
Which of the following ethical traditions would have the strongest objections to manipulation?
A. Economic
B. Virtual
C. Deontological
D. Utilitarian
 
Assume that you are a strong supporter of the deontological ethical tradition. Identify the statement about manipulation that you would completely agree with.
A. Cases of paternalistic manipulation, in which someone is manipulated for their own good, are acceptable.
B. Manipulation executed without deception is acceptable.
C. Even unsuccessful manipulations are guilty of ethical wrong.
D. The ethical consequence of manipulation depends on the personal characteristics of the manipulator.
 
Marketing practices targeted at elderly populations for goods such as Medicare supplemental insurance, funerals etc. are subject to criticism since:
A. that population is vulnerable and could be susceptible to marketing abuse.
B. interest gained on such investments are not highly profitable.
C. they are recreational in nature.
D. it does not abide by the principles of welfare economics.
 
In his book, The Affluent Society, economist John Kenneth Galbraith claimed that advertising and marketing were creating the very consumer demand that production then aimed to satisfy. The assertion that consumer demand depended upon what producers had to sell is termed:
A. the Hawthorne effect.
B. the dependence effect.
C. the reverse channel effect.
D. the supplemental effect.
 
Identify the major implications of the "dependence effect."
A. Unless a seller explicitly warrants a product as safe, buyers are liable for any harm they suffer.
B. Manipulation can be executed successfully without deception.
C. The court's ruling on product liability cases is dependent on the extent of manipulation used while marketing the product.
D. By creating consumer wants, advertising and other marketing practices violate consumer autonomy.
 
Consumer vulnerability occurs when:
A. a person has an impaired ability to make an informed consent to the market exchange.
B. someone is susceptible to some specific physical, psychological, or financial harm.
C. we are subject to directed commercial activity without our knowledge.
D. law of supply and demand is reversed.
 
Which of the following is an example of consumer vulnerability?
A. Elderly people living alone are susceptible to injuries from falls, from medical emergencies, from expensive health care bills, from loneliness.
B. Alcoholics are susceptible to alcohol abuse.
C. Children are susceptible to any flashy, attractive items which do not have any practical value.
D. Single women walking alone at night are vulnerable to sexual assault.
 
General vulnerability occurs when:
A. a person has an impaired ability to make an informed consent to the market exchange.
B. someone is susceptible to some specific physical, psychological, or financial harm.
C. we are subject to directed commercial activity without our knowledge.
D. law of supply and demand is reversed.
 
We are vulnerable when we are not aware that we are subject to a marketing campaign. This type of campaign is called:
A. discreet marketing.
B. word-of-mouth marketing.
C. network marketing.
D. undercover marketing.
 
Undercover marketing is also referred to as:
A. word-of-mouth marketing.
B. network marketing.
C. stealth marketing.
D. discreet marketing.
 
Which of the following statements does not describe stealth marketing?
A. We are vulnerable when we are not aware that we are subject to a marketing campaign. This type of campaign is called stealth marketing.
B. This type of campaign refers to those situations where we are subject to directed commercial activity without our knowledge.
C. We are subjected to numerous communications on a regular basis without paying much attention, such as the billboards, which is an example of stealth marketing.
D. It is an intentional effort to hide the true marketing element of the interaction.
 
Marketing experts consider stealth marketing extraordinarily effective because:
A. the consumer's guard is down; she is not questioning the message as she might challenge a traditional advertising campaign.
B. it targets customers who are susceptible to some specific physical, psychological, or financial harm.
C. it targets customers who lack the intellectual capacities, psychological ability, or maturity to make informed and considered consumer judgments.
D. the focus in this type of marketing is the concept of autonomous desires rather than autonomous behavior.
 
An employer is held liable for damages caused by an accident involving an employee driving the company car on company business. Identify the law underlying this decision.
A. The doctrine of caveat emptor
B. The doctrine of respondent superior
C. Implied warranty of merchantability
D. The doctrine of caveat lector
 
Identify the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.
A. Greenwashing
B. Redlining
C. Gentrification
D. Greenskinning
 
Labeling products with such terms as "environmentally friendly," "natural," "eco," "energy efficient," "biodegradable" and the like, can help promote products that have little or no environmental benefits. This practice is known as:
A. greenskinning.
B. redlining.
C. gentrification.
D. greenwashing
 
Which of the following refers to the growing marketing practice of taking back one's products after their useful life?
A. Reintermediation
B. Reverse channels
C. Deintermediation
D. Forward integration


Chapter  Test  01    02    03    04    05    06    07    08    09    10   11   12   13       Unit Test 01  02       Final exam   01   02


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