Exam 3

Question 1

chinese firewall

Answer 1

where one division in a firm cannot ethically reveal material info to another division

Question 2

mosaic analysis

Answer 2

method used by stock market analysts to gather info about a corporation’s character & financial stability

Question 3

most common unethical acts in marketing

Answer 3

deception, churning, unsuitability, bundling, dependence creation

Question 4

caveat emptor

Answer 4

(buyer beware) makes consumers responsible for transactions on the grounds that they know or should know all about the product they’re buying

Question 5

dependence effect

Answer 5

can manufacturers really create a new market demand simply through advertising?

Question 6

staple

Answer 6

produce whose life cycle can span many generations

Question 7

fad

Answer 7

public desire for product whose use is so superficial, the desire is based more on whim than need

Question 8

underpricing

Answer 8

large company uses price manipulation to drive a smaller competitor out of business

Question 9

discriminatory pricing

Answer 9

lobbying for laws that allow industry to sell at higher costs to certain buyers

Question 10

price fixing

Answer 10

conspiring with a competitor to divide a market

Question 11

marginal utility of money

Answer 11

increased quality to life brought on by last dollar spent

Question 12

marginal utility of a good

Answer 12

value to a consumer created by a good’s last unit of consumption

Question 13

shadow pricing

Answer 13

comparing of free market purchasing practices to assign $ values to quality of life goods or even to life itself

Question 14

ethos

Answer 14

accepted norms of one’s society

Question 15

morality

Answer 15

study of rules relating to interpersonal relationships

Question 16

moral philosophy

Answer 16

set of values governing social interactions which sustains accepted fundamental rights for all

Question 17

moral judgement

Answer 17

process of deciding what is fair and not fair with respect to people you know

Question 18

conformity expectations

Answer 18

governed by the unwritten rules of decorum and ethos

Question 19

3 influences of a company’s internal culture

Answer 19

visible artifacts, organization values, underlying beliefs

Question 20

organizational culture

Answer 20

set of informal shared values, norms, behavioral standards, and expectations that influence the ways in people interact to achieve goals

Question 21

cognitive limitation

Answer 21

only considering 2 paths, missing possible alternatives

Question 22

contractual inequality

Answer 22

though both parties legally have equal rights, one is in some way disadvantaged

Question 23

implicit contracts

Answer 23

defined by conformity expectations & organizational culture

Question 24

contract law

Answer 24

2 or more parties establish the rules by which they will interact with each other

Question 25

conflict of interest

Answer 25

when one holds to 2 contractual obligations, explicit or implicit, one to each of 2 competing parties

Question 26

fair contract

Answer 26

contractor fully discloses all material info to client

Question 27

due diligence

Answer 27

doing all one can to prevent harm

Question 28

dunning

Answer 28

methodically communicating with customers to collect receivables is unethical when it takes the form of harassment

Question 29

anticipatory repudiation

Answer 29

declaration of the client that he or she does not intend to live up to his/her obligations if unforeseen circumstances arise

Question 30

efficient breach of contract

Answer 30

voluntary breach with payment of damages by a party who concludes that they would incur greater economic loss if they performed under the c ontract

Question 31

contractor

Answer 31

anyone who is bound by the contracts at hand

Question 32

scienter

Answer 32

one who holds esoteric knowledge in something, or a party to a signing knew the contract was fraudulent

Question 33

esoteric

Answer 33

knowledge belonging only to those closest to a particular endeavor

Question 34

compensatory damages

Answer 34

reimburses a direct loss to the victim

Question 35

consequential damages

Answer 35

aka special damages, reimburses an indirect loss to the victim

Question 36

nominal damages

Answer 36

this assesses a small amount against the defendant where a misrepresentation is not material, but a point needs to be made

Question 37

meritor savings bank v. vinson

Answer 37

established that employers are liable for quid quo pro even if the victim prefers not to report it until a lawsuit

Question 38

hostile work environment

Answer 38

created by unwelcome verbal or physical conduct directed at a protected class or for retaliation purposes

Question 39

robinson v. jacksonville shipyards

Answer 39

employer is responsible for sexual harassment even if victim suffers no psychological harm

Question 40

tort

Answer 40

wrongful act, intentional or unintentional, for which the courts might award compensatory damages

Question 41

actionable

Answer 41

improper behaviors or acts that have crossed the line from something inappropriate to being a breach of contract, a tort, or a crime

Question 42

punitive damages

Answer 42

awarded when harm by a professional or company is accompanied by ethical misconduct

Question 43

strict liability

Answer 43

area of tort law carrying liability for compensatory damages where the linkage to harm is based merely upon an association with antecedent events

Question 44

pyramid scheme

Answer 44

investors buy into non-territorial franchise and make their money by selling franchises to other investors

Question 45

ponzi scheme

Answer 45

investors buy into an investment pool, whose profits appear to co me from the fund’s success but actually come from cash inputs form other investors

Question 46

disparate treatment

Answer 46

created by deliberate acts that deny minority access to the workplace

Question 47

disparate impact

Answer 47

created by common business practices that negatively impact minorities

Question 48

reasonable person standard

Answer 48

guideline commonly used by courts to determine fairness

Question 49

de facto

Answer 49

something that is actual, not by statute buy by practical necessity or outcome

Question 50

common law

Answer 50

de facto practices created by precedent torts that have yet to be formalized as statute laws

Question 51

bonafide occupational qualifier

Answer 51

an employer can argue that a job requires certain abilities to be properly done

Question 52

lochner v. new york

Answer 52

ruled that a law limiting the number of hours a baker can work violated one’s freedom to make contract

Question 53

west coast hotel v. parrish

Answer 53

ended the meaning of a business as a private enterprise, turning every business into an agency of govt

Question 54

perry v. sindermann

Answer 54

ruled that a job is a form of employee property for purposes of the 14th amendment

Question 55

problem of agency

Answer 55

use of one’s decision making power to direct the resources of an organization to one’s personal interests