Law

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

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%

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