Business Law

Q: What was the inspiration for the invention of the intermittent windshield wiper?a. A Ford Galaxyb. A popped Champaign cork that resulted in Champaign in the eyes of Kearns, the inventord. A group of engineers working together at Ford who created defective wipers that did not work regularlyc. None of the above

Q: Where did spring-break alcohol advertisements and promotions recently shift to? a. College campuses b. College sports broadcasts c. Foreign destinations d. Both b and c e. All of the above

Q: Which company has a campaign directed at children and teens that warns them not to begin smoking? a. RJR b. Philip Morris c. Camel d. None of the above

Q: What tobacco company is known for its phenomenal atmosphere for diversity? a. RJR b. Philip Morris c. Camel d. None of the above

Q: What did internal documents at tobacco companies reveal? a. That the companies were not targeting young people b. That the companies were targeting age groups ranging from 14-24 c. That the companies were losing sales d. Both b and c

Q: Because of advertising campaigns, with which of the following did children have equal familiarity? a. Mickey Mouse and Joe Camel b. Mickey Mouse and the Kool Penguin c. Mickey Mouse and the Marlboro Man d. None of the above

Q: Who first raised the issue of cigarette advertising directed at children? a. U.S. Surgeon General b. FTC c. AMA d. None of the above

Q: Property owners have begun to post signs warning potential buyers of knock-offs goods being sold by tenants.

Q: Courts are beginning to hold landlords liable for the trademark infringement activities of their tenants.

Q: Hilton hired only two former Starwood employees.

Q: There were few similarities between the Starwood's W hotels and Hilton's Denizen.

Q: Hilton's legal counsel turned over the Starwood documents that were discovered in Hilton's files.

Q: Hilton was under intense financial pressure at the time it hired former Starwood employees.

Q: Television commentators who recommend stocks have no conflict if they own the stock.

Q: Pump and dump can be done by analysts or in chat rooms.

Q: Pump and dump is a means of taking unfair advantage.

Q: Jonathan Lebed has been shunned because of his youthful stock trading.

Q: Slotting fees are legal.

Q: Slotting fees can lead to under-the-table payments to individuals.

Q: Slotting is the collection of fees by grocery retailers from wholesalers and manufacturers.

Q: Only those who actually made the agreements to fix prices are liable under the criminal law.

Q: Price-fixing is a violation of federal law.

Q: Competitors cannot agree on prices for their products without violating the law.

Q: The use of patented or copyrighted materials without permission entitled the owner to royalties for use.

Q: Copyright owners cannot control the use of copyrighted materials by charities.

Q: Copyright owners have the exclusive rights to control use of the copyrighted material.

Q: Alcohol ads carry the additional issues of safety for the users.

Q: Prescription drug ads carry the additional issues of safety of the users.

Q: The types of ads a newspaper and TV network accept have social responsibility issues.

Q: It is unethical to introduce a product with deceptively similar packaging to that of a major competitor.

Q: Ethical advertising requires an examination of unintended impact and effects of ad content.

Q: Leaking proprietary information to the media is not an ethical breach.

Q: Hiring an employee from a competitor firm who has brought with her proprietary information is ethical so long as the employee has not breached an employment contract with that competitor.

Q: In some grocery chains, slotting fees are the net profits.

Q: Slotting fees are always disclosed.

Q: Slotting fees are illegal.

Q: Slotting fees are the fees paid for a shelf position or distribution access.

Q: Some countries make it a crime to buy and use a knock-off product.

Q: Gray market goods are not a form of infringement.

Q: A landlord cannot be held vicariously liable for the infringing sales of a tenant.

Q: Subprime mortgages are now illegal.

Q: The large, inflatable beer bottles have disappeared from spring break destinations.

Q: Who is Edward Ivey? a. The drunk driver in the Malibu accident case b. CEO of General Motors c. Engineer who performed a cost-benefit analysis on the Malibu and its gas tank issues d. None of the above

Q: How did Patricia Anderson's car get rear-ended? a. The car stalled on the freeway and she was trying to get off the freeway when she was rear-ended b. She was rear-ended by a car going 70 mph as she sat at a stop sign c. She was not rear-ended; her car exploded at a stop sign d. None of the above

Q: Which car that GM manufactured had issues similar to the Pinto? a. Malibu b. Corvette c. Cadillac d. Both a and b

Q: What did the state of Indiana do with regard to Ford's Pinto? a. Banned the sale of the Pinto in the state b. Indicted Ford for reckless homicide c. Filed suit to recover damages for burn victims d. Fined Ford $200,000 per accident

Q: Who is Richard Grimshaw? a. Ford engineer who did the cost-benefit analysis on the Pinto b. A teen who was severely burned when the Pinto he was riding in exploded into flames following a rear-end collision c. CEO of Ford Motor d. Secretary of the Department of Transportation

Q: What happened to Mrs. Gray when her Pinto was rear-ended by a Galaxie? a. She managed to escape from the car b. Nothing; the gas tank survived the impact c. She was burned severely and died of congestive heart failure d. None of the above

Q: What value did Ford put on human life in its analysis of its Pinto issue? a. $2 million b. $1 million c. $200,000 d. $100,000

Q: What did the memo entitled, "Fatalities Associated with Crash Induced Fuel Leakage and Fires" analyze? a. Other auto manufacturers' cars and their risks b. The cost-benefit analysis of producing the Pinto as is or changing its design/components c. The history of rear-end auto collisions in the U.S. d. None of the above

Q: What was the cost of partially or completely fixing the Pinto gas tank to better withstand rear-end collision impact? a. The costs of the changes ranged from $1.80 to $15.30 b. The costs were over 10% of the cost of the car c. The costs were too great because the car had to be redesigned d. None of the above

Q: In addition to the crush space issues, what other problems did the Pinto design have? a. None, the only problem was the crush space b. The price of the car was too high c. Protruding flanges and bolt heads d. None of the above

Q: What dictated the placement of the Pinto gas tank? a. Safety b. Style c. Weight d. Government regulations

Q: What was Lee Iacocca's objective in designing the Pinto? a. A car less than 2,000 pounds that cost less than $2,000 b. A carefully designed competitor for small imports c. Safety d. None of the above

Q: If Firestone establishes that Ford provided incorrect instructions for owners on inflation of tires and that the tires were underinflated at the time of the accidents: a. Ford is liable if it was aware of the underinflation. b. Ford is not liable because of Firestone's failure to anticipate the inflation issue. c. Ford is liable. d. None of the above

Q: For Ford to be held solely liable for the accidents: a. Firestone can show that the condition of its tires was changed by use and operation on the Explorers. b. Firestone must show that Ford was aware of a problem with the Explorer. c. Ford cannot be held solely liable to the Explorer owners. d. None of the above

Q: Ford and Firestone have been named as defendants in lawsuits brought by owners of Ford Explorers who have been involved in rollover accidents in their vehicles. For Firestone to be held solely liable for the accidents: a. Ford must establish that there was no defect in design or manufacture or warning with its Explorer. b. Firestone cannot be held liable to the Explorer owners because they did not buy their tires directly from Firestone. c. Ford must show that Firestone was aware of defects in its tires. d. None of the above

Q: Tylenol's competitors were able to win customers when Tylenol's quality control problem was revealed.

Q: Tylenol did a rapid recall of its products when consumers reported black flecks were present in the liquid product forms of the company's analgesics.

Q: Kellogg's was forced to remove its claims that Rice Krispies increased children's attentiveness from its cereal boxes.

Q: The FDA declined to regulate General Mills and Cheerios ads.

Q: Toyota was clear on the cause of accidents in its vehicles from the first complaint of sudden acceleration.

Q: Releasing a product with known safety problems for sale to the public is an ethical breach.

Q: The failure to redesign a product with a safety flaw is a product liability issue.

Q: The failure to provide safe packaging is a product liability issue.

Q: You are in marketing for one of the three U.S. auto manufacturers. You have just received a notice from your seat belt buckle supplier that the buckles shipped to you and used in the cars made between June 94 and September 94 are defective. The defect means that the buckles will come undone if pressure is placed on the belts at any speed over 10 miles per hour. You must encourage your firm to issue a recall.

Q: The sale of a product with known, but undisclosed dangers, is unethical.

Q: The suits against McDonald's for plaintiffs' obesity have been dismissed.

Q: Compare and contrast the cases of Peanut Corporation of America and the Tylenol Quality Control problem.

Q: Refer back to Unit Four and discuss why Tylenol (McNeil) behaved so differently in the quality control situation as opposed to the poisoning situation.

Q: Why does the DEA want to revoke the licenses of several drug store chains to issue controlled substances medications?a. There are too many pharmacies in Floridab. The chains failed to establish adequate internal controls for dispensation of controlled substancesd. The chains failed to submit proper paperwork for licensingd. Both b and c

Q: What theories could the parents of a child injured by ingesting Buckyballs use for recovery of damages from the company? a. Strict tort liability b. Implied warranty of fitness for a particular purpose c. Express warranty d. None of the above because there is assumption of risk with children's toys

Q: Buckyballs have been: a. Recalled and will be required to be reissued with a new warning. b. Permanently recalled. c. Made safer through new sizes and shapes. d. Moved to off-shore production.

Q: How did McNeil resolve its problem that occurred between 2010 and 2012? a. They are not resolved and litigation is ongoing b. It entered into a consent decree with the FDA c. It entered a guilty plea to violations of manufacturing standards d. Both b and c

Q: What problems did Tylenol experience between 2010 and 2012? a. A phantom recall b. Shoddy manufacturing practices c. A drop of 55% in Tylenol sales d. All of the above

Q: Which of the following was not in the e-mails found in Peanut Corporation of America's internal e-mail system? a. "We at least need to turn the raw peanuts on the floor into money." b. "Clean "˜em up and ship them." c. "I can sign without running the tests." d. "This time lapse is costing us $$$$."

Q: The criminal charges involving Peanut Corporation of America relating to Salmonella:a. Involve both insiders and an outside food broker.b. Are likely to be dismissed because of lack of proof.c. Involve criminal fraud.d. Both a and c

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