Question 1

Nike engaged in dual distribution when it began:

Accepted Answer

A)  to sell through its own retail outlets as well as independent retailers. 
B)  to sell to retailers competing with its existing retailers. 
C)  to encourage two different distributors to serve the same retailer. 
D)  to offer two different prices to retailers, based on volume purchased. 
E)  to produce private label brands for the retailers currently selling Nike shoes. 
A)  to sell through its own retail outlets as well as independent retailers. 
B)  to sell to retailers competing with its existing retailers. 
C)  to encourage two different distributors to serve the same retailer. 
D)  to offer two different prices to retailers, based on volume purchased. 
E)  to produce private label brands for the retailers currently selling Nike shoes. A

Question 2

_____ price fixing occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed upon price.

Accepted Answer

A)  Deceptive 
B)  Horizontal 
C)  Vertical 
D)  Negotiated 
E)  Coordinated 
A)  Deceptive 
B)  Horizontal 
C)  Vertical 
D)  Negotiated 
E)  Coordinated C

Question 3

Omitting key facts during a sales presentation is considered a type of deceptive sales practice.

Accepted Answer

A) True 
 B)False  True

Question 4

Since 1995,slotting fees are illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 5

Deceptive pricing occurs when retailers:

Accepted Answer

A)  state that their lower prices were made in good faith in order to meet an equally low price of a competitor. 
B)  ban "fair trade" items from their store. 
C)  advertise merchandise at an artificially low price and then try to add hidden, or extra, charges. 
D)  tell lies about a competitor's price in an attempt to make a sale. 
E)  sell merchandise above the manufacturer's cap. 
A)  state that their lower prices were made in good faith in order to meet an equally low price of a competitor. 
B)  ban "fair trade" items from their store. 
C)  advertise merchandise at an artificially low price and then try to add hidden, or extra, charges. 
D)  tell lies about a competitor's price in an attempt to make a sale. 
E)  sell merchandise above the manufacturer's cap.

Question 6

What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition.Do you agree or disagree? Explain your answer.

Accepted Answer

Dual distribution occurs when a manufact

Question 7

After an individual leaves one retailer to work for another,that person no longer has any ethical responsibility to the previous employer.

Accepted Answer

A) True 
 B)False

Question 8

A supplier sells two identical shipments of clothing to two different retailers at different prices.This is a clear violation of the _____ Act.

Accepted Answer

A)  Sherman Antitrust 
B)  Robinson-Patman 
C)  Federal Trade Commission 
D)  Lanham 
E)  Truth in Lending 
A)  Sherman Antitrust 
B)  Robinson-Patman 
C)  Federal Trade Commission 
D)  Lanham 
E)  Truth in Lending

Question 9

Which of the following statements is FALSE?

Accepted Answer

A)  An implicit code of ethics is learned as employees become socialized into the organization and the corporate culture of the retailer 
B)  Ethics are a set of rules for moral human behavior 
C)  All retailers must have a written explicit code of ethics 
D)  When buying merchandise, the retailer can face at least four ethical dilemmas; these relate to product quality, sourcing, slotting fees, and bribery 
E)  Ethical standards can influence the retailer-employee relationship in three ways: misuse of company assets, job-switching, and employee theft 
A)  An implicit code of ethics is learned as employees become socialized into the organization and the corporate culture of the retailer 
B)  Ethics are a set of rules for moral human behavior 
C)  All retailers must have a written explicit code of ethics 
D)  When buying merchandise, the retailer can face at least four ethical dilemmas; these relate to product quality, sourcing, slotting fees, and bribery 
E)  Ethical standards can influence the retailer-employee relationship in three ways: misuse of company assets, job-switching, and employee theft

Question 10

Green River Ordinances restrict selling:

Accepted Answer

A)  via the Internet. 
B)  environmentally unsafe products. 
C)  door-to-door. 
D)  obscene material. 
E)  dangerous products. 
A)  via the Internet. 
B)  environmentally unsafe products. 
C)  door-to-door. 
D)  obscene material. 
E)  dangerous products.

Question 11

As a rule,truly one-way exclusive dealing arrangements between vendors and retailers are:

Accepted Answer

A)  legal. 
B)  illegal. 
C)  illegal only if they involve a chain store. 
D)  legal in every state but Minnesota. 
E)  illegal if they involve a weak manufacturer. 
A)  legal. 
B)  illegal. 
C)  illegal only if they involve a chain store. 
D)  legal in every state but Minnesota. 
E)  illegal if they involve a weak manufacturer.

Question 12

Two types of implied warranties are "warranties of merchantability" and "warranties of fitness."

Accepted Answer

A) True 
 B)False

Question 13

Unethical actions may be legal.

Accepted Answer

A) True 
 B)False

Question 14

The three most common defenses available to suppliers charged with price discrimination are:

Accepted Answer

A)  changing market conditions, meeting competition, and good faith actions. 
B)  ignorance of law, unprofitability of the supplier, and cost justification. 
C)  cost justification, changing market conditions, and meeting competition. 
D)  unprofitability of supplier, cost justification, and meeting competition. 
E)  changing market conditions, meeting competition, and ignorance of law. 
A)  changing market conditions, meeting competition, and good faith actions. 
B)  ignorance of law, unprofitability of the supplier, and cost justification. 
C)  cost justification, changing market conditions, and meeting competition. 
D)  unprofitability of supplier, cost justification, and meeting competition. 
E)  changing market conditions, meeting competition, and ignorance of law.

Question 15

Three product constraints that influence a retailer's product decisions are:

Accepted Answer

A)  product safety, express warranties, and implied warranties. 
B)  product safety, trademarks, and warranties. 
C)  product safety, product liability, and warranties. 
D)  product liabilities, warranties, and trademarks. 
E)  trademarks, product liabilities, product safety 
A)  product safety, express warranties, and implied warranties. 
B)  product safety, trademarks, and warranties. 
C)  product safety, product liability, and warranties. 
D)  product liabilities, warranties, and trademarks. 
E)  trademarks, product liabilities, product safety

Question 16

All of the following EXCEPT _____ are included in the top categories for counterfeit products sold in the United States.

Accepted Answer

A)  video games 
B)  apparel 
C)  handbags 
D)  watches 
E)  golf clubs 
A)  video games 
B)  apparel 
C)  handbags 
D)  watches 
E)  golf clubs

Question 17

Bribery occurs when a retail buyer is offered an inducement,which the IRS considers to be anything with a value greater than $25,for purchasing a vendor's products.

Accepted Answer

A) True 
 B)False

Question 18

While only written warranties are covered by state laws,many types of warranties are subject to federal laws.

Accepted Answer

A) True 
 B)False

Question 19

Burger Blaster claims on its website that it uses only the best beef in making its burgers,unlike Burger Barn,its largest competitor.Actually,Burger Blaster and Burger Barn buy exactly the same type of beef from the same wholesaler,and Burger Blaster's management knows it.As a result of Burger Blaster's claims,Burger Barn's sales fall.Burger Blaster is probably guilty of:

Accepted Answer

A)  deceitful diversion of patronage. 
B)  bait advertising. 
C)  deceptive advertising. 
D)  puffery. 
E)  deceptive sales practices. 
A)  deceitful diversion of patronage. 
B)  bait advertising. 
C)  deceptive advertising. 
D)  puffery. 
E)  deceptive sales practices.

Question 20

In order for price discrimination to be considered illegal,it must involve a retailer and a manufacturer operating in the same state.

Accepted Answer

A) True 
 B)False

Nike engaged in dual distribution when it began:

_____ price fixing occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed upon price.

Omitting key facts during a sales presentation is considered a type of deceptive sales practice.

Since 1995,slotting fees are illegal in the United States.

Deceptive pricing occurs when retailers:

What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition.Do you agree or disagree? Explain your answer.

After an individual leaves one retailer to work for another,that person no longer has any ethical responsibility to the previous employer.

A supplier sells two identical shipments of clothing to two different retailers at different prices.This is a clear violation of the _____ Act.

Which of the following statements is FALSE?

Green River Ordinances restrict selling:

As a rule,truly one-way exclusive dealing arrangements between vendors and retailers are:

Two types of implied warranties are "warranties of merchantability" and "warranties of fitness."

Unethical actions may be legal.

The three most common defenses available to suppliers charged with price discrimination are:

Three product constraints that influence a retailer's product decisions are:

All of the following EXCEPT _____ are included in the top categories for counterfeit products sold in the United States.

Bribery occurs when a retail buyer is offered an inducement,which the IRS considers to be anything with a value greater than $25,for purchasing a vendor's products.

While only written warranties are covered by state laws,many types of warranties are subject to federal laws.

In order for price discrimination to be considered illegal,it must involve a retailer and a manufacturer operating in the same state.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 6: Legal and Ethical Behavior

Nike engaged in dual distribution when it began:

_____ price fixing occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed upon price.

Omitting key facts during a sales presentation is considered a type of deceptive sales practice.

Since 1995,slotting fees are illegal in the United States.

Deceptive pricing occurs when retailers:

What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition.Do you agree or disagree? Explain your answer.

After an individual leaves one retailer to work for another,that person no longer has any ethical responsibility to the previous employer.

A supplier sells two identical shipments of clothing to two different retailers at different prices.This is a clear violation of the _____ Act.

Which of the following statements is FALSE?

Green River Ordinances restrict selling:

As a rule,truly one-way exclusive dealing arrangements between vendors and retailers are:

Two types of implied warranties are "warranties of merchantability" and "warranties of fitness."

Unethical actions may be legal.

The three most common defenses available to suppliers charged with price discrimination are:

Three product constraints that influence a retailer's product decisions are:

All of the following EXCEPT _____ are included in the top categories for counterfeit products sold in the United States.

Bribery occurs when a retail buyer is offered an inducement,which the IRS considers to be anything with a value greater than $25,for purchasing a vendor's products.

While only written warranties are covered by state laws,many types of warranties are subject to federal laws.

In order for price discrimination to be considered illegal,it must involve a retailer and a manufacturer operating in the same state.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters