Question 1

_____ regulate the importing and exporting activities of American firms.

Accepted Answer

A)  Tying agreements 
B)  Trade agreements 
C)  Zoning laws 
D)  Unfair trade practices 
E)  Blue laws 
A)  Tying agreements 
B)  Trade agreements 
C)  Zoning laws 
D)  Unfair trade practices 
E)  Blue laws

Question 2

Identify the correct statement about the changing market conditions defense which buyers and sellers use that enable some types of price discrimination to occur.

Accepted Answer

A)  The burden of such a defense is with the buyer. 
B)  This defense would attempt to justify the price differential based on the danger of imminent deterioration of perishable goods. 
C)  The seller can attempt to show that its lower price to a purchaser was made in good faith in order to meet an equally low price of a competitor, provided that this "matched price" did actually exist and was lawful itself. 
D)  Such a defense would attempt to show that a differential in price could be accounted for on the basis of differences in cost to the seller in the manufacture, sale, or delivery arising from differences in the method or quantities involved. 
E)  This defense would attempt to justify the price differential based on the obsolescence of seasonal goods. 
A)  The burden of such a defense is with the buyer. 
B)  This defense would attempt to justify the price differential based on the danger of imminent deterioration of perishable goods. 
C)  The seller can attempt to show that its lower price to a purchaser was made in good faith in order to meet an equally low price of a competitor, provided that this "matched price" did actually exist and was lawful itself. 
D)  Such a defense would attempt to show that a differential in price could be accounted for on the basis of differences in cost to the seller in the manufacture, sale, or delivery arising from differences in the method or quantities involved. 
E)  This defense would attempt to justify the price differential based on the obsolescence of seasonal goods.

Question 3

Because retailers usually do not produce the goods they offer for sale,they are not responsible for the safety of these products.

Accepted Answer

A) True 
 B)False

Question 4

Entertainment City advertised,in its Christmas circular,a portable compact disc player on sale for $45.Sales clerks were informed that they were to attempt to persuade customers interested in the "on-sale" CD player to purchase the higher quality,$115 model.In addition,no commission will be paid on the lower priced CD player.Entertainment City is engaged in the practice of:

Accepted Answer

A)  palming off. 
B)  legal advertising. 
C)  sale advertising. 
D)  puffery. 
E)  bait-and-switch advertising. 
A)  palming off. 
B)  legal advertising. 
C)  sale advertising. 
D)  puffery. 
E)  bait-and-switch advertising.

Question 5

Horizontal price fixing violates Section 1 of the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 6

The Sherman Antitrust Act allows manufacturers and retailers to establish territorial responsibilities that exclude all other retailers from handling the products within a given market area.

Accepted Answer

A) True 
 B)False

Question 7

Generally,predatory pricing charges are difficult to prove in federal court.

Accepted Answer

A) True 
 B)False

Question 8

Various cities have passed "Green River Ordinances" restricting door-to-door selling.

Accepted Answer

A) True 
 B)False

Question 9

The retailer needs to understand the potential legal and ethical constraints within each country in which it does business.

Accepted Answer

A) True 
 B)False

Question 10

Retailers are the only channel members responsible for insuring product safety and reporting unsafe products.

Accepted Answer

A) True 
 B)False

Question 11

In order for a deceptive advertising charge to hold up,it must be shown that:

Accepted Answer

A)  there was no intent to deceive. 
B)  the total damage exceeded $100. 
C)  the consumer was misled. 
D)  the advertisement was paid for by multiple members of the channel. 
E)  competition was heightened. 
A)  there was no intent to deceive. 
B)  the total damage exceeded $100. 
C)  the consumer was misled. 
D)  the advertisement was paid for by multiple members of the channel. 
E)  competition was heightened.

Question 12

A retail chain's practice of charging different prices in different geographical areas in order to eliminate competition is known as predatory pricing.

Accepted Answer

A) True 
 B)False

Question 13

Pricing laws influence retailers in determining what price they should pay for a product.

Accepted Answer

A) True 
 B)False

Question 14

This new law was the aftermath of a public outcry over imports of tainted toothpaste and pet food,as well as the infamous importation of lead-laden toys from Asia,especially China.

Accepted Answer

A)  The Consumer Protection from Unfair Trading Regulations Act 
B)  The ADA Amendments Act 
C)  The Emergency Economic Stabilization Act 
D)  The Consumer Product Safety Improvements Act 
E)  The Economic Cooperation Framework Agreement Act 
A)  The Consumer Protection from Unfair Trading Regulations Act 
B)  The ADA Amendments Act 
C)  The Emergency Economic Stabilization Act 
D)  The Consumer Product Safety Improvements Act 
E)  The Economic Cooperation Framework Agreement Act

Question 15

Retailers often must deal with building safety regulations that vary from state to state.

Accepted Answer

A) True 
 B)False

Question 16

An explicit code of ethics is written but well understood set of rules or standards of moral responsibility.

Accepted Answer

A) True 
 B)False

Question 17

Intel sold Pentium III computer processing chips to Gateway Computer for $12 per chip.Four days earlier,before the announcement of the new Pentium IV computer processor,Intel sold the Pentium III to Dell Computer for $22 per chip.Intel may attempt to justify its prices with a:

Accepted Answer

A)  meeting competition defense. 
B)  cost justification defense. 
C)  preferable customer defense. 
D)  good faith defense. 
E)  changing market conditions defense. 
A)  meeting competition defense. 
B)  cost justification defense. 
C)  preferable customer defense. 
D)  good faith defense. 
E)  changing market conditions defense.

Question 18

In order for price discrimination to be legal,what conditions must be met? Explain each condition and then discuss the ways a retailer can defend itself against price discrimination.

Accepted Answer

For price discrimination to be considere

Question 19

Price discrimination is often justifiable,if it can be shown that there was a significant change in market conditions.

Accepted Answer

A) True 
 B)False

Question 20

_____occurs when a retail chain charges different prices in different geographic areas in order to eliminate competition in those areas.

Accepted Answer

A)  vertical price fixing 
B)  bait-and-switch pricing 
C)  palm-off pricing 
D)  horizontal price fixing 
E)  predatory pricing 
A)  vertical price fixing 
B)  bait-and-switch pricing 
C)  palm-off pricing 
D)  horizontal price fixing 
E)  predatory pricing

_____ regulate the importing and exporting activities of American firms.

Identify the correct statement about the changing market conditions defense which buyers and sellers use that enable some types of price discrimination to occur.

Because retailers usually do not produce the goods they offer for sale,they are not responsible for the safety of these products.

Horizontal price fixing violates Section 1 of the Clayton Act.

The Sherman Antitrust Act allows manufacturers and retailers to establish territorial responsibilities that exclude all other retailers from handling the products within a given market area.

Generally,predatory pricing charges are difficult to prove in federal court.

Various cities have passed "Green River Ordinances" restricting door-to-door selling.

The retailer needs to understand the potential legal and ethical constraints within each country in which it does business.

Retailers are the only channel members responsible for insuring product safety and reporting unsafe products.

In order for a deceptive advertising charge to hold up,it must be shown that:

A retail chain's practice of charging different prices in different geographical areas in order to eliminate competition is known as predatory pricing.

Pricing laws influence retailers in determining what price they should pay for a product.

This new law was the aftermath of a public outcry over imports of tainted toothpaste and pet food,as well as the infamous importation of lead-laden toys from Asia,especially China.

Retailers often must deal with building safety regulations that vary from state to state.

An explicit code of ethics is written but well understood set of rules or standards of moral responsibility.

Intel sold Pentium III computer processing chips to Gateway Computer for $12 per chip.Four days earlier,before the announcement of the new Pentium IV computer processor,Intel sold the Pentium III to Dell Computer for $22 per chip.Intel may attempt to justify its prices with a:

In order for price discrimination to be legal,what conditions must be met? Explain each condition and then discuss the ways a retailer can defend itself against price discrimination.

Price discrimination is often justifiable,if it can be shown that there was a significant change in market conditions.

_____occurs when a retail chain charges different prices in different geographic areas in order to eliminate competition in those areas.

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

_____ regulate the importing and exporting activities of American firms.

Identify the correct statement about the changing market conditions defense which buyers and sellers use that enable some types of price discrimination to occur.

Because retailers usually do not produce the goods they offer for sale,they are not responsible for the safety of these products.

Horizontal price fixing violates Section 1 of the Clayton Act.

The Sherman Antitrust Act allows manufacturers and retailers to establish territorial responsibilities that exclude all other retailers from handling the products within a given market area.

Generally,predatory pricing charges are difficult to prove in federal court.

Various cities have passed "Green River Ordinances" restricting door-to-door selling.

The retailer needs to understand the potential legal and ethical constraints within each country in which it does business.

Retailers are the only channel members responsible for insuring product safety and reporting unsafe products.

In order for a deceptive advertising charge to hold up,it must be shown that:

A retail chain's practice of charging different prices in different geographical areas in order to eliminate competition is known as predatory pricing.

Pricing laws influence retailers in determining what price they should pay for a product.

This new law was the aftermath of a public outcry over imports of tainted toothpaste and pet food,as well as the infamous importation of lead-laden toys from Asia,especially China.

Retailers often must deal with building safety regulations that vary from state to state.

An explicit code of ethics is written but well understood set of rules or standards of moral responsibility.

Intel sold Pentium III computer processing chips to Gateway Computer for $12 per chip.Four days earlier,before the announcement of the new Pentium IV computer processor,Intel sold the Pentium III to Dell Computer for $22 per chip.Intel may attempt to justify its prices with a:

In order for price discrimination to be legal,what conditions must be met? Explain each condition and then discuss the ways a retailer can defend itself against price discrimination.

Price discrimination is often justifiable,if it can be shown that there was a significant change in market conditions.

_____occurs when a retail chain charges different prices in different geographic areas in order to eliminate competition in those areas.

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