Question 1

All forms of price discrimination are illegal.

Accepted Answer

A) True 
 B)False

Question 2

"Like grade and quality" has been interpreted by the courts to mean identical physical and chemical properties.

Accepted Answer

A) True 
 B)False

Question 3

Explain the difference between an explicit code of ethics and implicit code of ethics.Why is it important for retailers to develop a code of ethics?

Accepted Answer

An explicit code of ethics is a written

Question 4

Identify the incorrect statement about expressed warranties.

Accepted Answer

A)  They are the result of the interaction between the retailer and the customer. 
B)  They may be either written into the contract or verbalized. 
C)  They are based on custom, norms, or reasonable expectations. 
D)  They can cover all characteristics or attributes of the merchandise or only one attribute. 
E)  An expressed warranty can be created without the use of the words warranty or guarantee. 
A)  They are the result of the interaction between the retailer and the customer. 
B)  They may be either written into the contract or verbalized. 
C)  They are based on custom, norms, or reasonable expectations. 
D)  They can cover all characteristics or attributes of the merchandise or only one attribute. 
E)  An expressed warranty can be created without the use of the words warranty or guarantee.

Question 5

Ethics is a set of rules for moral human behavior.

Accepted Answer

A) True 
 B)False

Question 6

In recent years,the practice of counterfeiting trademarked products has had very little impact on U.S.firms.

Accepted Answer

A) True 
 B)False

Question 7

As a general rule,most states have "unfair trade practices" laws that regulate the competitive behavior of retailers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about dual distribution is incorrect?

Accepted Answer

A)  It may have an adverse effect on manufacturer-retailer relationships. 
B)  It can take place when a manufacturer opens it own retail store in a market area when it feels that the current retailers handling the product line are not doing an adequate job. 
C)  All dual distribution arrangements are illegal. 
D)  It is legal for a manufacturer to manage a corporately owned vertical marketing system that competes with independent retailers that the manufacturer also supplies. 
E)  It occurs when a manufacturer sells to independent retailers and also through its own retail outlets. 
A)  It may have an adverse effect on manufacturer-retailer relationships. 
B)  It can take place when a manufacturer opens it own retail store in a market area when it feels that the current retailers handling the product line are not doing an adequate job. 
C)  All dual distribution arrangements are illegal. 
D)  It is legal for a manufacturer to manage a corporately owned vertical marketing system that competes with independent retailers that the manufacturer also supplies. 
E)  It occurs when a manufacturer sells to independent retailers and also through its own retail outlets.

Question 9

Which of the following is NOT an ethical dilemma that a retailer faces when buying merchandise?

Accepted Answer

A)  The manufacturer's country of origin 
B)  Whether to accept a slotting fee 
C)  The issue of product quality 
D)  The source of the merchandise 
E)  Whether to use or accept a bribe 
A)  The manufacturer's country of origin 
B)  Whether to accept a slotting fee 
C)  The issue of product quality 
D)  The source of the merchandise 
E)  Whether to use or accept a bribe

Question 10

The question of who makes the best pizza came to blows when Pizza Hut sued Papa John's over Papa John's slogan "Better ingredients,better pizza." This slogan is known as:

Accepted Answer

A)  overstating. 
B)  guaranteeing. 
C)  deceptive advertising. 
D)  puffery. 
E)  understating. 
A)  overstating. 
B)  guaranteeing. 
C)  deceptive advertising. 
D)  puffery. 
E)  understating.

Question 11

Tying agreements occur when a manufacturer with a strong product or service forces the retailer to buy a weak product or service as a condition for buying the strong one.

Accepted Answer

A) True 
 B)False

Question 12

Identify the incorrect statement about an implied warranty of merchantability.

Accepted Answer

A)  The notion of implied warranty applies only to new merchandise. 
B)  Every retailer selling goods makes an implied warranty of merchantability. 
C)  By offering the goods for sale, the retailer implies that they are fit for the ordinary purpose for which such goods are typically used. 
D)  Because of the potential legal liability that accompanies an implied warranty, many retailers will expressly disclaim at the time of sale any or all implied warranties and seek to mark a product "as is." 
E)  Some retailers will not be able to avoid implied warranties of merchantability. 
A)  The notion of implied warranty applies only to new merchandise. 
B)  Every retailer selling goods makes an implied warranty of merchantability. 
C)  By offering the goods for sale, the retailer implies that they are fit for the ordinary purpose for which such goods are typically used. 
D)  Because of the potential legal liability that accompanies an implied warranty, many retailers will expressly disclaim at the time of sale any or all implied warranties and seek to mark a product "as is." 
E)  Some retailers will not be able to avoid implied warranties of merchantability.

Question 13

Price discrimination occurs when two retailers buy identical amounts of "like grade and quality" merchandise from the same supplier but pay different prices.

Accepted Answer

A) True 
 B)False

Question 14

The implied warranty of fitness for a particular purpose arises when the customer relies on the retailer to assist or make the selection of goods to serve a particular purpose,usually because the consumer is unfamiliar with the merchandise.

Accepted Answer

A) True 
 B)False

Question 15

Two-way exclusive dealing arrangements potentially violate the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 16

The Clayton Act:

Accepted Answer

A)  adds to the Sherman Act by prohibiting specific practices. 
B)  establishes the Federal Trade Commission. 
C)  amends the Robinson-Patman Act. 
D)  requires large companies to notify the government of their intent to merge. 
E)  amends Section 7 of the Celler-Kefauver Antimerger Act. 
A)  adds to the Sherman Act by prohibiting specific practices. 
B)  establishes the Federal Trade Commission. 
C)  amends the Robinson-Patman Act. 
D)  requires large companies to notify the government of their intent to merge. 
E)  amends Section 7 of the Celler-Kefauver Antimerger Act.

Question 17

To collect damages under charges of deceitful diversion of patronage,a retailer must demonstrate that actual damage to its business has occurred.

Accepted Answer

A) True 
 B)False

Question 18

The specific content of these laws varies,but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.

Accepted Answer

A)  Taxing laws 
B)  Unfair trade practices laws 
C)  Zoning laws 
D)  Franchise laws 
E)  Blue laws 
A)  Taxing laws 
B)  Unfair trade practices laws 
C)  Zoning laws 
D)  Franchise laws 
E)  Blue laws

Question 19

A salesperson tells a customer,"Ninety percent of the people we've sold these tires to over the past five years have gotten at least 25,000 miles of use out of them without any problems.Therefore,I can assume that you should get no less than 30,000 miles with them given the way you drive." The salesperson:

Accepted Answer

A)  may be creating an expressed warranty. 
B)  is engaging in false advertising. 
C)  could never be held responsible for the tire's longevity. 
D)  may be creating an implied warranty of merchantability. 
E)  is creating a warranty of title. 
A)  may be creating an expressed warranty. 
B)  is engaging in false advertising. 
C)  could never be held responsible for the tire's longevity. 
D)  may be creating an implied warranty of merchantability. 
E)  is creating a warranty of title.

Question 20

In today's environment,even so-called "reasonable" people may disagree as to what is "right" and "wrong" behavior in certain retail situations.

Accepted Answer

A) True 
 B)False

All forms of price discrimination are illegal.

"Like grade and quality" has been interpreted by the courts to mean identical physical and chemical properties.

Explain the difference between an explicit code of ethics and implicit code of ethics.Why is it important for retailers to develop a code of ethics?

Identify the incorrect statement about expressed warranties.

Ethics is a set of rules for moral human behavior.

In recent years,the practice of counterfeiting trademarked products has had very little impact on U.S.firms.

As a general rule,most states have "unfair trade practices" laws that regulate the competitive behavior of retailers.

Which of the following statements about dual distribution is incorrect?

Which of the following is NOT an ethical dilemma that a retailer faces when buying merchandise?

The question of who makes the best pizza came to blows when Pizza Hut sued Papa John's over Papa John's slogan "Better ingredients,better pizza." This slogan is known as:

Tying agreements occur when a manufacturer with a strong product or service forces the retailer to buy a weak product or service as a condition for buying the strong one.

Identify the incorrect statement about an implied warranty of merchantability.

Price discrimination occurs when two retailers buy identical amounts of "like grade and quality" merchandise from the same supplier but pay different prices.

The implied warranty of fitness for a particular purpose arises when the customer relies on the retailer to assist or make the selection of goods to serve a particular purpose,usually because the consumer is unfamiliar with the merchandise.

Two-way exclusive dealing arrangements potentially violate the Clayton Act.

The Clayton Act:

To collect damages under charges of deceitful diversion of patronage,a retailer must demonstrate that actual damage to its business has occurred.

The specific content of these laws varies,but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.

In today's environment,even so-called "reasonable" people may disagree as to what is "right" and "wrong" behavior in certain retail situations.

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

All forms of price discrimination are illegal.

"Like grade and quality" has been interpreted by the courts to mean identical physical and chemical properties.

Explain the difference between an explicit code of ethics and implicit code of ethics.Why is it important for retailers to develop a code of ethics?

Identify the incorrect statement about expressed warranties.

Ethics is a set of rules for moral human behavior.

In recent years,the practice of counterfeiting trademarked products has had very little impact on U.S.firms.

As a general rule,most states have "unfair trade practices" laws that regulate the competitive behavior of retailers.

Which of the following statements about dual distribution is incorrect?

Which of the following is NOT an ethical dilemma that a retailer faces when buying merchandise?

The question of who makes the best pizza came to blows when Pizza Hut sued Papa John's over Papa John's slogan "Better ingredients,better pizza." This slogan is known as:

Tying agreements occur when a manufacturer with a strong product or service forces the retailer to buy a weak product or service as a condition for buying the strong one.

Identify the incorrect statement about an implied warranty of merchantability.

Price discrimination occurs when two retailers buy identical amounts of "like grade and quality" merchandise from the same supplier but pay different prices.

The implied warranty of fitness for a particular purpose arises when the customer relies on the retailer to assist or make the selection of goods to serve a particular purpose,usually because the consumer is unfamiliar with the merchandise.

Two-way exclusive dealing arrangements potentially violate the Clayton Act.

The Clayton Act:

To collect damages under charges of deceitful diversion of patronage,a retailer must demonstrate that actual damage to its business has occurred.

The specific content of these laws varies,but usually they prohibit the retailer from seeking wrongful advantages from vendors or selling merchandise below cost with the intent of using profits from another geographic area or from cash reserves to destroy or hurt competition.

In today's environment,even so-called "reasonable" people may disagree as to what is "right" and "wrong" behavior in certain retail situations.

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