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The FTC is concerned about the amount of personal information that is collected through Web sites because the consumer is not made aware of how this information is being used.Over 92 percent of Web sites polled collect personal information, yet only about __________ of Web sites make their customer aware of how that information is being used.


A) 25%
B) 33%
C) 50%
D) 66%
E) 75%

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Anheuser-Busch's commitment to saving the environment indicates that it would act in accordance with __________, the view that an organization should discover and satisfy the needs of its consumers in a way that provides for society's well-being.


A) utilitarianism
B) social responsibility
C) Consumer Bill of Rights
D) the BBB merchant pledge
E) cause marketing

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Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty.They had a vision of giving thousands of kids a leg up into a reality.Cadbury's worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school.In the spring of 2009 Cadbury's Canada launched a program which encouraged consumers to enter the bar codes on their candy and chocolate bars online.Each entry represented one bicycle part, and 100 parts "built" one bike.The biggest-ever shipment of bicycles to Ghana - 5,000 in total, is helping thousands of kids get to school - and get a head start on a brighter future.The is an example of


A) cause marketing.
B) philanthropic marketing.
C) consumer-based leadership.
D) public relations marketing.
E) transactional marketing.

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Dell Inc.learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers.The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted.Dell was most likely concerned with consumers'


A) right to choose.
B) right to be informed.
C) right to be treated courteously.
D) right to safety.
E) right to happiness.

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Home Works Referral Network is a premier home service referral network of dependable, highly skilled home improvement professionals who profile home service companies for homeowners looking for a contractor or handyman.To assure the companies they work with are reliable, they check licenses and insurance coverage, their record with the Better Business Bureau, and three trade references.The home service company also has to agree to a __________, which includes maintaining professionalism and guaranteeing the quality of work.


A) statement of cultural values
B) statement of values and beliefs
C) an industry endorsement
D) code of ethics
E) contract of vigilance

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Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed.Its design could be made and sold for $49.Cosco rushed the chair into production to beat its competition before it was properly safety tested and when some children were injured as a result of this chair, Cosco denied culpability by saying that only a few consumers had had any trouble with the chair.These consumers had not read the instructions that came with the chair and had assembled it improperly.Cosco's actions exemplify which of the following philosophies?


A) existentialism
B) moral idealism
C) communism
D) socialism
E) utilitarianism

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Two former sales representatives of Amgen, the biotech company, alleged the company strongly encouraged its sales force to search confidential medical records in physician's offices in an attempt to find names of patients that would benefit from the use of Amgen's drug Enbrel, a treatment for psoriasis.These two people are suing Amgen and allege they did not go along with the scheme because they objected to it.Soon after, one of the reps was fired and the other resigned after receiving a poor performance review.These two people are


A) scabs.
B) conies.
C) whistle-blowers.
D) contrarians.
E) ombudsmen.

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Describe the difference between ethics and laws.

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Ethics are the moral principles and valu...

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Most paint is not biodegradable and not friendly to the environment because it is made with petroleum solvents.A builder who decided to build a subdivision with 500 homes and paint each with an environmentally-friendly soy-based paint (even though it costs more) would be practicing


A) profit responsibility.
B) cause marketing.
C) stakeholder responsibility.
D) mass marketing.
E) societal responsibility.

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An increasing percentage of turkeys are now being marketed as "free range." Consumers typically pay $1 more per pound for free-range turkeys, which are thought to have lived more humane lives--and as a result, to taste better-than their conventionally raised counterparts.The USDA defines a free-range bird as one that has been allowed "access to the out-of-doors." Are turkey growers who allow their birds "access to the out-of-doors" only moments before they are killed acting socially responsible?

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To answer this question, students will n...

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In 1962, President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right (1) to be safe, (2) to be informed, (3) to choose, and (4) to __________.


A) legal representation in a court of law
B) exchange or return of goods within a reasonable period of time
C) fair prices for both goods and services
D) demand "rain checks" if advertised goods are out of stock
E) be heard

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As the use of the Internet grows around the world, understanding between countries must be reached so that there can be an easy exchange of ideas and information.One important issue is opt-in versus opt-out.In general, European websites have opt-in policies, and U.S.websites have opt-out policies.Opt-in means customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be included.Europeans and European businesses believe it is unethical to invade someone's privacy.American businesses do it all the time because Americans are not nearly as protective of their right to privacy.What ethical factor is illustrated by this example?


A) industry practices
B) social legislation
C) societal culture and norms
D) changes it international law
E) organizational culture and expectations

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Factors influencing personal, moral, philosophy, and ethical behavior include societal culture and norms, business culture and industry practices, and


A) religious beliefs and practices.
B) corporate culture and expectations.
C) national and regional legislation.
D) personal moral philosophy and ethical behavior.
E) the universal concept of good vs.evil.

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Recently certain toys that were manufactured in China were found to have unsafe levels of lead in the paint and were recalled.This action protected the consumers' right to


A) choose.
B) be informed.
C) happiness.
D) safety.
E) be treated courteously.

Correct Answer

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A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as


A) utilitarianism.
B) existentialism.
C) moral idealism.
D) socialism.
E) hedonism.

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The group primarily served by a firm exhibiting profit responsibility include


A) general public, public interest groups, and the environment.
B) consumers, employees, supplier/distributors.
C) owners and stockholders.
D) general public, owners, and stockholders.
E) government, owners, and stockholders.

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Stakeholder responsibility refers to the


A) obligation of a firm to price its goods or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
B) duty of a firm to maximize profits for its owners or stockholders.
C) view that an organization has an obligation to those constituencies that can affect achievement of its objectives.
D) view that the first and foremost obligations of a firm is to meet the objectives set by its stockholders and board of directors.
E) view that a portion of profit (after taxes) should be reinvested in a socially or environmentally beneficial endeavor.

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Identify and describe the two types of personal moral philosophy.

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Moral idealism and utilitarianism are tw...

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A moral philosophy that considers individual rights or duties as universal, regardless of the outcome is referred to as


A) ethical aspiration.
B) moral idealism.
C) utilitarianism.
D) hedonism.
E) religion.

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is a law designed to protect consumers'


A) right to choose.
B) right to be informed.
C) right to be treated courteously.
D) right to safety.
E) right to happiness.

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