Law and Ethics in the Business Environment International Edition 7th by Terry Halbert – Test Bank
LAW & ETHICS IN THE BUSINESS ENVIRONMENT
Marketing and Technology: Choice and Manipulation
1. Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1840s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not “materially affect” its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.
IV. The Prescription Information Law expressly allows the transmission or use of both patient-identifiable data and prescriber-identifiable data for certain commercial purposes.
a. I only
b. II only
c. III only
d. I and III
ANSWER: A PAGE: 243
2. According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
a. I only
b. I and II
c. III only
d. II and III
ANSWER: D PAGE: 250
3. Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.
ANSWER: B PAGE 250
4. Obesity in children has continued to rise since 1976 and approximately ¾ of all teens and youth are overweight.
ANSWER: FALSE PAGE: 262 – approximately 1/3 of all youth and teens are overweight.
5. The “creative revolution” in advertising refers to
a. The move from black and white to color advertising
b. The move from talking about a product to showing what a product can do
c. The move from showing what a product can do to making the product a status symbol
d. The move from making a product a status symbol to using subliminal messaging to “force” consumers to buy the product.
ANSWER: C PAGE: 266
6. The debate over advertising fast food and other “junk foods” to kids is a well settled debate after federal and state laws have put limits on that advertising.
ANSWER: FALSE PAGE: 267
7. Branding and advertising are really the same thing and should be used interchangeably. Each is about making sure that consumers recognize a product and have a favorable opinion of it.
ANSWER: False PAGE: 275
8. Of product promotion techniques, which is the most influential according to author Naomi Klein?
d. Word-of –mouth promotion
ANSWER: C PAGE: 277-78
9. In the case of IMS Health, Inc., et. al. v. Kelly Ayotte, Attorney General of New Hampshire, what is involved in “detailing” a drug?
ANSWER: “Detailing” a drug involves the provision of promotional and educational information during face-to-face contact between sales representatives and doctors.
10. According to District Judge Barbadora in the case of IMS Health, Inc., et al v. Kelly Ayotte, Attorney General of New Hampshire, is the Prescription Information Law more extensive than necessary to serve the State’s interests? Explain your answer.
ANSWER: Pharmaceutical detailing is sometimes used in ways that benefit public health. The Prescription Information Law, however, does not distinguish between beneficial detailing and harmful detailing. Instead, it imposes a ban of the use of prescriber-identifiable information to enhance the effectiveness of all detailing.