Q&A Hero

Q: The claims in the Skecher shoe ads: a. Involved a breach of an express warranty. b. Involved a breach of implied warranty of habitability. c. Were not warranty claims. d. Allowed only statutory remedies.

Q: Why did Audi enter into a settlement with 8 Mile and Eminem? a. Audi had copied the color scheme on one of Eminem's CD covers b. Audi had run an ad with the look and feel of Chrysler's "Lose Yourself" ad c. Audi had used Eminem's photo in one of its ads d. None of the above

Q: Which of the following is a continuing form of tobacco regulation? a. No-smoking ordinances b. Requirements that tobacco companies launch "don"t smoke" campaigns directed at teens c. Prohibitions on tobacco company funding for lung cancer research d. All of the above

Q: Which of the following claims were made in Skecher's ads for its Shape-Up Athletic shoes? a. "Shape up while you walk!" b. "Get in shape without setting a foot in a gym!" c. A promise of weight loss d. All of the above

Q: Which of the following categories was involved in the Skecher's ads for its Shape-Up Athletic shoes? a. Saying things that are not true b. False impression c. Conflict of interest d. All of the above

Q: "Conscious parallelism" is: a. The prices of competitors running in tandem with changes. b. Illegal per se. c. An issue in the vertical distribution of goods. d. None of the above

Q: At the heart of the Marsh McLennan mess was: a. Price-fixing. b. Insider trading. c. Conflicts of interest. d. Both a and c

Q: Which of the following would not be a basis for a negligence product liability suit? a. A recall by Toyota of certain of its cars for problems with the floor mat interfering with the driver's ability to apply the brakes quickly b. A highly explosive gas tank installed in a car with the manufacturer's knowledge of its dangers c. The continued sale of sunglasses to baseball teams knowing that the sunglasses were not shatterproof and had caused players eye injuries d. All of these would be a basis for a negligence product liability suit

Q: Sal was at home going through his normal workout when he bent his barbell bar. Sal is a professional bodybuilder. Sal went to his local sporting-goods store and was approached by a clerk wishing to assist him. Sal told the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was located. The clerk presented Sal with a bar that the clerk said "is just what you need for your type of weight requirements." Sal paid for the bar and was returning home when he stopped at a health food restaurant. The drink that he ordered had an unusual taste, but the food establishment refused a refund. Sal became ill from the drink, which, as it turned out, had a toxic substance in it. Sal had to be hospitalized. When Sal was able to work out again, he attached the weights to the new bar and lifted the bar under his chin. The bar snapped in the middle and severely cut Sal. Sal is angry about the drink and the barbell. With regard to the barbell bar: a. Sal is not entitled to any recovery for his injury or the broken second barbell because he did not buy all of the components, including the weights, from the same store. b. Sal is not entitled to any recovery for his injury or the broken second barbell because he is knowledgeable himself in weightlifting and should have known which barbell to use. c. Sal is entitled to recovery because there has been a breach of an express warranty. d. Sal is entitled to recovery because of the warranty of fitness for a particular purpose.

Q: Which of the following is NOT an example of an express warranty? a. "This toothpaste makes teeth the whitest around." b. "This water heater holds 50 gallons." c. "Preshrunk jeans" d. "This jacket is lined."

Q: Coca-Cola's test marketing of Frozen Coke: a. Took unfair advantage of Burger King. b. Involved stating things known not to be true. c. Gave a false impression. d. All of the above

Q: How much did Coke pay to the employee who filed suit alleging wrongful termination? a. $540,000: $100,000 in cash, $140,000 in benefits including health insurance, and $300,000 in lawyer's fees b. $9,000,000 plus $300,000 lawyer's fees c. $37,000,000 plus lawyer's fees d. None of the above

Q: What did Coke do to the employees involved in the Burger King/Frozen Coke activities? a. They were terminated or resigned b. They are still with the company, but were demoted c. They are still with the company but lost their bonuses d. None of the above

Q: Which of the following resulted from the Burger King Frozen Coke issues? a. Coke had an earnings restatement b. The FBI investigated Coke c. The SEC investigated Coke d. Both b and c e. All of the above

Q: How much did the Boys and Girls Club plan increase sales in Richmond, Virginia? a. 2% b. 6% c. 10% d. 15%

Q: How did Coke managers react when an employee brought the Boys and Girls Club issue to their attention? a. It went to Burger King and apologized b. It fired the employee c. It asked the employee to conduct a complete investigation d. None of the above

Q: Who is Matthew Whitley? a. The account manager for Burger King b. The Coke retail vice president c. A Coke employee who questioned the invoices from the marketing consultant d. CEO of Coke

Q: How did Coke get better numbers in the test market? a. It seasonalized the numbers b. It altered the numbers c. A marketing consultant used the Boys and Girls Clubs to get customers into Burger King to buy Frozen Coke value meals d. Its own employees bought Frozen Coke value meals

Q: What area was picked for the test market? a. Richmond, Virginia b. Tallahassee, Florida c. Atlanta, Georgia d. Orlando, Florida

Q: Why did Burger King want a test market? a. The product was new b. Its marketing campaigns recently had been disasters c. It did not trust Coke d. Both a and b e. a, b and c

Q: What was Coke's strategy for expanding fountain sales? a. Sign up new fast-food franchises b. Move Frozen Coke into fast-food franchises c. Eliminate Frozen Coke from convenience stores d. None of the above

Q: Jack-in-the-Box, Inc. cooked its hamburgers according to the temperature required by law. Other chains cooked their hamburgers at a higher temperature and for longer. Jack-in-the-Box: a. Made a decision that resulted in liability and the moral responsibility for deaths and injuries of its customers. b. Was in compliance with the law and ethical in its conduct. c. Has no liability because it was in compliance with the law. d. Both b and c e. None of the above

Q: The sale of a product with a known defect or with knowledge of its potentially harmful impact on users: a. Is illegal. b. Is unethical. c. Exposes the manufacturer to strict and negligent product liability. d. Both b and c

Q: What changes did Jack-in-the-Box make after the E-Coli poisonings? a. Changed meat suppliers b. Increased cooking temperature c. Added extra meat inspections d. a and b only e. a, b, and c

Q: How much did Jack-in-the-Box have to have set aside for payments in the suits filed against it? a. $20 million b. $50 million c. $100 million d. $200 million

Q: How many Jack-in-the-Box customers were affected by the E-Coli poisonings? a. 100 b. 150 c. 300 d. 600

Q: What was the impact of the E-Coli poisonings on Jack-in-the-Box sales? a. Sales remained the same, unaffected b. Sales dropped 10% c. Sales dropped 20% d. Jack-in-the-Box was closed so there were no sales

Q: Why was Jack-in-the-Box cooking at a different temperature from other fast food chains?a. Jack-in-the-Box had higher safety standardsb. Costc. Jack-in-the-Box lost the memod. Both a and be. Both b and cf. a, b, and c

Q: What temperature were most fast-food chains using at the time of the Jack-in-the-Box E-Coli illnesses and deaths? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees

Q: What was the required legal temperature for cooking burgers at the time of the E-Coli illnesses and deaths? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees

Q: What temperature was Jack-in-the-Box cooking its burgers at when the E-Coli illnesses and deaths occurred? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees

Q: What was the original verdict against GM in the LA Malibu case? a. $1.2 billion b. $2 billion c. $4.9 billion d. $5.0 billion

Q: What memo did GM have that was different from the Ford Pinto situation? a. There was no GM memo b. A memo from a lawyer advising against releasing any internal company analysis of the Malibu design c. A memo that fired engineers who worked on the Malibu d. None of the above

Q: What did the GM internal memo estimate the cost of the exploding gas tanks would be to GM? a. $2.40 per car b. The memo did not do that analysis because it did not put a value on human life c. GM had learned from the Ford Pinto case and did not have such a memo d. $200,000 per car

Q: List all who were affected by the Kodak employee's deal on the valuation of Kodak's property.

Q: An engineer for the Shaw Group managed a project that Shaw was doing for the U.S. government. Under the terms of the contract, Shaw stood to earn a $2.2 million bonus on the contract if it kept the reportable injuries and lost-work days below certain levels during the course of the project. The project engineer, who received a bonus if the company met the federal bonus goals, misclassified injuries, failed to report others, and made those who were injured wait to seek medical treatment so that he could meet quarterly injury goals. Discuss the engineer's behavior in light of what you learned in Unit 4 on culture.

Q: Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental health care each year for eligible patients. Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded. One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest. Does Ms. Caldwell have a conflict of interest?

Q: Discuss the impact when researchers do not disclose their financial ties to companies whose products they are researching.

Q: Discuss the ethics of the pension accounting processes companies used prior to the Pension Protection Act of 2006.

Q: Discuss the similarities between a teen's decision to text-message whilst driving and an executive's decision to not perform routine maintenance in the interest of saving on costs at a plant.

Q: An environmentalist stated, following the BP Prudhoe Bay pipe problems, "These companies simply cannot behave responsibly," and went on to voice objection to opening up ANWR for drilling. Discuss the long-term implications of BP's decision to keep maintenance costs low.

Q: Explain the findings of the government and private reports on BP operations at its Texas refinery.

Q: List those at BP who were aware of maintenance and inspection issues with respect to the Prudhoe Bay pipeline.

Q: Company A's executives are members of the board of a charity. Company A may even itself be a major donor to the charity. The charity may even benefit many of the company's customers. The charity holds a golf tournament to raise money. The executives participate in the tournament. In some cases, Company A even pays the executives' participation fees (good for company image). Company B is a supplier to Company A or a vendor that would like to be a supplier. Enter the desire for face time. In some tournaments, Company A executives turns to every Company B executive in the supply chain and asks for participation. And participate they do. They pay their entry fees because Company A executives ask. But sometimes Company B folks want and get more. Company B antes up the dough for primo participation in the tournament. Ifa VP of Company A is playing a round with a celebrity, Company B pays enough to get its VP in the same foursome. Discuss the ethical issues.

Q: Kyphon employees sold, sold, sold Kyphon's products for spinal fracture repairs. One rep took his territory's sales from $16,000 a month to $200,000 per month in less than a year. Incentive programs do produce miracles. Kyphon, now Medtronics Spine, faced Medicare fraud allegations when two former employees brought suit under the False Claims Act. Medtronics acquired Kyphon in 2007 while the former employee suits for Medicare fraud were pending. According to documents in the case, Kyphon sales reps didn"t just tout the benefits of Kyphon products, and indeed there are many. The sales reps offered the doctors and hospitals a way to keep patients overnight. Helping docs and hospitals bill Medicare for an overnight stay on what was only a one-hour, walk-away outpatient procedure was a boon. Kyphon created a mutually beneficial triangle: more sales for Kyphon, more commissions and bonuses for reps, and more revenue for docs and hospitals. Discuss the ethical issues in this scenario. Was it a violation of the law in terms of Medicare reimbursement?

Q: Discuss the similarities between the Westland/Hallmark case and the Cintas and OSHA case.

Q: Alan S. Noonan was fired from his job as a salesman at Staples, Inc. for allegedly padding expense reports. A Staples executive then sent a mass e-mail to about 1,500 employees informing them that Noonan had been fired for violating the company's travel and expense policy. Staples also denied Noonan his severance benefits and refused to allow him to exercise his stock options, claiming that, under the terms of the agreements setting forth the right to these benefits, Noonan was ineligible because he had been fired "for cause." Discuss the ethical issues of both the employer and the employee.

Q: What factors contribute to the failure in necessary confrontation?

Q: Discuss the risks of avoiding confrontation of a problem employee.

Q: Where did Ms. Druyun first cross an ethical line in her relationship with Boeing? a. When she mentioned she was retiring b. When her daughter was hired at Boeing c. When her daughter mentioned to Mr. Sears that her mother was retiring d. None of the above

Q: Why was Ms. Druyun's sentenced increased from six- to nine-months? a. The judge had not applied the sentencing law correctly b. Because Mr. Sears was sentenced to nine months c. Because she had lied to federal investigators d. Both a and c

Q: In the Darlene Druyun/Boeing case, what laws were violated? a. Federal procurement statutes b. Antitrust laws c. Federal securities laws d. Both a and b

Q: The Kodak employee had an arrangement with: a. An appraiser. b. An assessor. c. Both a and b d. None of the above

Q: What was Medtronic's involvement in the research on its Infuse bone product? a. It was paying the physicians involved in the research b. It was involved in drafting the articles on the research for publication in medical journals c. It released all the data from the research for further study d. All of the above

Q: What did hospital administrators report to the editors of Bone and Joint Surgery that resulted in the withdrawal of a previously published article? a. That the researcher who conducted the studies was not really a physician b. That the researcher who conducted the studies was paid by a competitor of Medtronics, the maker of the bone product, Infuse c. That the researcher had psychological problems d. That the researcher had falsified the data on patients

Q: What was the problem with the research and resulting publication on aspirin resistance? a. The researchers had falsified the data b. The researchers had received funding from pharmaceutical companies that sold drugs to aspirin resistant patients c. The researchers owned stock in the pharmaceutical companies that sold drugs to aspirin resistant patients d. The researchers owned stock in the companies that produced aspirin

Q: Which of the following activities by Taser resulted in newspaper reports about company practices? a. Taser was hiding safety data about the problems with Taser products b. Taser was paying police officer consultants with stock options c. Taser had established a foundation for fallen police officers and their families d. Taser was bribing city council members in order to have cities adopt the use of Tasers by police officers

Q: What motivated Sandy Weill's offer to do a favor for Jack Grubman? a. He wanted to be on the board at WorldCom b. He wanted Grubman to issue a positive report on WorldCom c. He wanted to oust his co-CEO d. He wanted to oust C. Michael Armstrong

Q: What company did Jack Grubman of Citi write a positive evaluation of in order to obtain a favor from Sandy Weill? a. Citi b. WorldCom c. Walmart d. AT&T

Q: Jack Grubman was involved in which of the following activities at Citi? a. Embezzlement b. IPO allocations to clients c. Negative analysis of WorldCom stock and performance d. All of the above

Q: Why did the SEC require Peter Lynch of Fidelity to pay a fine? a. He was involved in a bachelor party that got out of control b. He was not registered to be on the trading desk c. He obtained show and concert tickets through the trading desk d. He accepted gifts from traders at the trading desk

Q: What did Hughie Elbert Stover do at the Upper Big Branch mine that resulted in criminal charges against him and Massey Coal? a. He took federal mine inspectors on tours that avoided certain areas b. He instructed others to destroy mine document records c. He trained security guards to provide warnings over the radio about the presence of federal mine inspectors d. All of the above

Q: Which of the following influenced the behaviors of Cintas employees? a. Per-piece goals b. That managers ignored safety policies c. That other plants ignored safety policies d. All of the above

Q: Which of the following is a correct statement about employer liability for sleepy employees who fall asleep on the way home and cause accidents? a. Employers have no liability for these accidents b. Employers have been held liable for such accidents c. Employers are liable only if they pay the employees during their travel time to and from work d. Employers are not liable if employees volunteer for extra work hours

Q: Which of the following has been documented as an employer practice in order to meet safety numbers on injuries? a. Refusing medical treatment for an employee b. Wheeling an employee with a broken leg onto a construction site to avoid a lost work-day report c. Asking OSHA for a change in definitions d. All of the above

Q: The perks furnished by pharmaceutical companies to physicians: a. Are simply direct advertising methods. b. Are conflicts of interest. c. Do not influence the doctors decisions and are ethical. d. None of the above

Q: Jack Grubman, a financial analyst, committed which ethical breach(es) in order to earn a slot for his children in a preschool? a. Allowing a false impression b. Conflicts of interest c. Taking unfair advantage d. All of the above

Q: What is at issue when government officials take gifts from those they regulate? a. Conflicts of interest b. Corruption c. Public trust d. All of the above

Q: The Oil Spill Act: a. Requires oil companies to obtain environmental clearance from the federal government and the city before entering a city's port. b. Requires double-hulled boats. c. Imposes generic liability tax for oil tankers. d. Existed before the Exxon Valdez spill. e. None of the above

Q: What issue affected Grubman's relationship with Bernie Ebbers? a. His desire to get his children into a preschool b. IPO allocations c. His negative analysis of WorldCom d. None of the above

Q: How was the Grubman/Weill deal discovered? a. Grubman confessed b. Weill confessed c. E-mails from Grubman were discovered in other investigations d. None of the above

Q: Jack Grubman made his deal with Sandy Weill on his stock analysis: a. In order to obtain funding for WorldCom. b. In order to obtain funding for Citigroup. c. In order to gain a promotion at Salomon. d. None of the above

Q: Jack Grubman made a deal with Sandy Weill that affected his analysis of what company? a. Citigroup b. Salomon c. AT & T d. None of the above

Q: Evaluate the following statement from a doctor, "I always do what's best for my patients, and these gifts and dinners do not influence me." a. The doctor has established that there is no conflict of interest b. The doctor has established that there is a conflict of interest c. The doctor has eliminated the conflict of interest with this disclosure d. None of the above

Q: What was Captain Hazelwood's condition when the Valdez ran into a reef? a. He was asleep b. He had been drinking c. He had been working excessive hours d. a and b only e. All of the above

Q: Which of the following did Malden Mills not do in 2004? a. Partner with a Chinese factory b. Expand its military contracts c. Sell on QVC d. Both a and b e. Malden did all of the above

Q: What was the total cost to Malden Mills of paying Malden employees for six months while the factory was down? a. $10 million b. $25 million c. $300 million d. $430 million

Q: One newspaper headline, following Prudhoe Bay and the refinery explosion read, "BP = Big Problems for Oil Giant." Who of the following would feel a connection with the headline test? a. Peter Drucker b. Warren Buffett c. Albert Carr d. Robert Halfon

Q: What industry practice had BP failed to follow for its Prudhoe Bay pipeline maintenance? a. Smart-pigging b. Pipe flow tests c. Pipe inspections d. BP did all of the above

Q: Who named BP the world's most admired company? a. Fortune b. Business Ethics c. Business Week d. Forbes