Business Ethics

Q: One of the main criticisms of the total quality movement is that it has done nothing to define quality. Philosophers have also wrestled with the definition of quality (see Pirsig, Zen and The Art of Motorcycle Maintenance). Define quality in your own words. How difficult is this task? What implications does the task of defining quality have for the business/consumer relationship?

Q: Tort reform is a high profile issue in current business and political discussions. Should tort reform be instituted? Support your answer with sound reasoning.

Q: Chapter 9 in the textbook discussed business ethics and technology, and this chapter describes the legal doctrine of absolute liability. Discuss the relationship between bioethics and absolute liability. What implications does this relationship have for business?

Q: What are the main problems in the Johnson & Johnson talc power case?

Q: There are three ethical theories based on the concept of duty that speak to the ethical dimensions of quality. Describe and evaluate each of these theories.

Q: What have been the impacts of new leadership in the CPSC?

Q: What has caused the expansion of the doctrine of strict liability concept?

Q: Describe the major contributions that Six Sigma can make to the business/consumer relationship.

Q: Summarize the total quality management process.

Q: What is the controversy over "pink slime"?

Q: How has business responded to consumer stakeholders over the years? What do you think made business respond more effectively to consumers?

Q: The Food Safety Modernization Act (FSMA) gives the FDA a mandate to develop a science-based food safety system that addresses hazards from farm to table, putting greater emphasis on the prevention of food-borne illness - a major concern of consumers. Has this law been effective? How has it changed food safety?

Q: Describe the effectiveness of the Consumer Product Safety Commission over the years. What has been the primary influence on its effectiveness?

Q: Why do businesses want a uniform product liability code?

Q: Describe the legal doctrine of absolute liability.

Q: What main issues hurt Takata when the public learned of its recalls of defective airbags? What does this illustrate?

Q: Why are the food and manufacturing industries particularly susceptible to product liability suits?

Q: TQM must emphasize all of the following except? a. leadership b. individualism c. recognition d. communication

Q: Customer service is provided by all of the following except? a. passing the buck b. offices of consumer affairs c. warranties d. money back guarantees

Q: Today, the FDA regulates all of these except a. vaccines b. blood products c. prescription drugs d. medical care

Q: The Consumer Product Safety Improvement Act of 2008 does not cover which of the following? a. ATVs b. toy safety c. cotton d. phthalates

Q: Which of the following is not impacted by tort risk? a. relocation of a new plant b. selling products c. expanding operations d. introducing a new product

Q: The driving force behind guidelines for product liability is which of the following? a. legal responsibility b. selling products c. ethical reasoning d. immoral people

Q: With respect to service, consumers are concerned with which of the following? a. performance b. building time c. provider attributes d. durability

Q: Essential aspects of quality include which of the following? a. advertising b. color c. attributes d. durability

Q: Six Sigma practitioners believe in fixing the ____ rather than the ____. a. practice; theory b. product; worker c. process; product d. worker; customer

Q: One of the strengths of Six Sigma program's has been its a. laser-like focus on worker satisfaction. b. increase in customer loyalty. c. contribution to research in production quality. d. clarity of process and the steps companies must take to adopt it.

Q: The body of methodologies and techniques for achieving quality that focuses on the number of defects is called a. Seven Standards. b. Six Smith. c. Six Sigma. d. Seven Severance.

Q: An important criticism of total quality management is that it a. tried to do too much. b. quality means different things to different people. c. actually took focus off of the customer. d. focused too much on adherence to standards, taking the enjoyment out of work.

Q: The initial part of the total quality management process is to a. define quality in terms of customer expectations and requirements. b. develop standards and specifications for quality. c. design efficient production processes. d. develop customer satisfaction surveys.

Q: The focus of total quality management programs is a. quality. b. the customer. c. efficiency. d. worker satisfaction.

Q: Programs that attempt to blend all of the functions of a business into a holistic, integrated philosophy built around teamwork, productivity, and customer satisfaction are called a. Six Sigma programs. b. total care programs. c. total quality management programs. d. customer focus programs.

Q: Businesses have responded to consumer activism with all of the following efforts except a. toll-free hot lines. b. user-friendly Web sites. c. rebate and discount programs. d. consumer representatives.

Q: Business's response to consumerism over time has been one of a. benign neglect. b. rapid response. c. ineffective action, followed by improved responses. d. extreme care.

Q: The Food and Drug Administration is involved in the regulation of a. pet food. b. weight loss programs. c. dietary supplements. d. fast foods.

Q: Which of the following is not a strategic priority of the Food and Drug Administration? a. regulatory science b. promotion c. safety and quality d. globalization

Q: The Food and Drug Administration is part of a. Housing and Urban Development. b. the Health and Human Services Department. c. the Interstate Commerce Commission. d. the Federal Trade Commission.

Q: Which of the following is not part of the FDA's mission? a. to help identify and develop new foods and drugs b. to support better informed decisions about FDA-regulated products c. to protect the public health d. to enhance oversight of FDA-regulated products

Q: The Food and Drug Administration regulates all of the following except a. food. b. drugs. c. cosmetics. d. personal care products.

Q: Early research conducted in the organization later known as the Food and Drug Administration fed small doses of poison to a. rats. b. chimpanzees. c. the "Death Squad." d. the "Poison Squad."

Q: The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except a. banning consumer products. b. passing legislation outlawing products. c. obtaining recall of products. d. informing and educating consumers.

Q: Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products? a. developing voluntary standards within an industry b. issuing and enforcing mandatory standards c. lobbying Congress to pass new consumer protection laws d. conducting research on potential product hazards

Q: Business claims that current product liability law suffers from all of the following problems except a. inefficiency. b. bias. c. raising the costs of litigation. d. imposition of a hidden tax on consumers.

Q: The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of a. product extortion. b. product liability. c. product tampering. d. product packaging.

Q: A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to a. strict liability. b. absolute liability. c. relative liability. d. market share liability.

Q: The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called a. strict liability. b. absolute liability. c. historical liability. d. market share liability.

Q: Due diligence means that a company a. has done sufficient preparatory work to produce a safe product. b. the company has successfully passed an OSHA safety audit. c. has taken every possible precautionary step possible and followed all industry standards. d. has studied the problem extensively.

Q: The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is a. strict liability. b. absolute liability. c. relative liability. d. market share liability.

Q: Reasons to be concerned about product liability include all of the following except a. the sheer number of cases. b. the number of trial attorneys being licensed. c. the propensity of people to sue when they are unhappy. d. the growing size of financial awards.

Q: Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment? a. sports and recreational activities b. home maintenance and construction c. toys and children's products d. automobiles

Q: The primary responsibility for product safety lies with the a. consumer. b. government. c. producer. d. Consumer Product Safety Commission.

Q: Which of the following is not an allegation commonly made in product liability suits? a. The product was improperly manufactured. b. The product's design was defective. c. The manufacturer failed to provide satisfactory instructions. d. The product was produced under inhumane conditions.

Q: All of the following are in the top ten principles of safety except a. fully investigate product safety incidents. b. encourage customers to try out the product before purchasing it. c. report product safety defects promptly. d. track your product's safety performance.

Q: Which of the following is not on the top ten list of safety principles? a. Build safety into product design. b. Educate consumers about product safety. c. Allow a margin of error for the consumer. d. Learn from your and others' mistakes.

Q: The current legal view of "let the seller beware" is a. caveat vendor. b. e pluribis unum. c. norvus ordo seclorum. d. caveat emptor.

Q: The legal view of "let the buyer beware" that prevailed throughout most of history was a. caveat vendor. b. e pluribus unum. c. norvus ordo seclorum d. caveat emptor.

Q: The ethical theory based on the concept of duty that suggests that if a product causes harm, the firm should pay the costs of any injury is a. contractual theory. b. due care theory. c. social costs view. d. caveat vendor.

Q: The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat vendor.

Q: The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat emptor.

Q: All of the following are dimensions of quality except a. features. b. conformance. c. serviceability. d. objectivity.

Q: Which of the following is not a dimension of quality listed in the textbook? a. performance b. durability c. status d. aesthetics

Q: All of the following are reasons given for the current obsession with quality except a. the average consumer demands more. b. global competitiveness. c. the Internet. d. employee satisfaction.

Q: The two central issues of goods and services are a. price and warranties. b. reliability and durability. c. quality and safety. d. value and function.

Q: Which of the following is not a driver of the quest to improve product and service quality? a. the demands of a competitive marketplace b. cost controls c. an increasingly sophisticated consumer base d. the threat of product liability lawsuits

Q: The meaning of product quality is uniform to all. a. True b. False

Q: A basic premise of Total Quality Management (TQM) is that the product designer is the final judge of quality. a. True b. False

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