BUS 475 Legal and Ethics Topics Answer Guide | June 2017

Managing Director: Our business has expanded over the past couple of years.

Managing Director: Our business has expanded over the past couple of years. The profit margin and revenue earned have both gone up. On careful analysis of our client base, we have found that all of our clients belong to the same culture as us. They also hold ethical values that are similar to ours. Based on this finding, it would be best if our company stops training our employees on cultural sensitivity and instead gives our employees specialized training in market research analysis. The Managing Director’s argument is flawed because it:

  • disregards the influence that a training on cultural sensitivity could have on the company’s profit margin.
  • takes for granted the continued increase in revenue that the company will experience.
  • assumes that training in market research analysis is less expensive than training in cultural sensitivity.
  • fails to consider that the suppliers for the company might belong to a different culture than the clients

Explanation: The managing director has not considered the possibility that the current training on cultural diversity is increasing profit margins.

Kwalkon Computing released a new software update for their calendar app

Kwalkon Computing released a new software update for their calendar app. The update synchronizes both personal and business calendars seamlessly. The update has all the relevant bug fixes and promises to make the app work faster. Since there have been no recent complaints about the software, the update must have solved all the customers’ issues. Which of the following questions would be most relevant in evaluating the argument?

  • Has enough time passed after the release of the update?
  • What is the memory required in order to install the update?
  • What is the pace at which the updated app will perform its functions?
  • Has Kwalkon released any updates for their other software applications?

Explanation: It may take time before new bugs arise in the software, therefore this should be investigated further to verify the argument claim.

After a series of thefts in an organization, the management is considering whether or not to install cameras inside the office

After a series of thefts in an organization, the management is considering whether or not to install cameras inside the office. The management is torn between violating the privacy of employees and preventing future thefts from taking place. This scenario illustrates an

ethical dilemma

Explanation: An ethical dilemma occurs when there is a tradeoff between two ethical concerns, which is happening between privacy and safety in this scenario.

When Ronike Ltd. decided to change its logo, it encouraged its employees to get involved in the decision-making process

When Ronike Ltd. decided to change its logo, it encouraged its employees to get involved in the decision-making process. Employees were asked to engage in brainstorming sessions by forming groups and working together in teams. Which the following is a likely outcome of their teamwork?

  • Team members are less likely to support the final decision regarding the change in logo.
  • Increased diversity of views among team members will help improve decision making
  • Team members who have hidden agendas will be automatically filtered and removed.
  • The dangers of groupthink will be reduced.

Explanation: In general, brainstorming sessions will increase the diversity of viewpoints for a given project.

LaBelle, a famous cosmetic brand, introduces a new skin cleanser. The company pays bloggers to write positive reviews about the product

LaBelle, a famous cosmetic brand, introduces a new skin cleanser. The company pays bloggers to write positive reviews about the product. The consumers who follow these blogs assume that the bloggers are sharing their personal experiences and decide to try the product. They are unaware that the blogs are part of a marketing campaign. After a few days of using the product, they complain of rashes and allergies. The bloggers can be charged with

 

negligence

Explanation: This type of crime is known as “failure to disclose” and it is a form of negligence. The bloggers did not intend harm, but they were negligent in disclosing their relationship with the brand.

MaxSale, a popular supermarket, is approached by Hartane’s

MaxSale, a popular supermarket, is approached by Hartane’s, an organic food producer, to sell its products through the supermarket’s stores. MaxSale demands a substantial amount of money to display these products for a minimum duration. MaxSale uses this strategy to charge premium amounts to a select few producers as a means to reduce competition. By doing so, which of the following consumer rights is MaxSale violating?

  • The right to be heard
  • The right to be informed
  • The right to safety
  • The right to choose

Explanation: This problem is based on the Consumer Bill of Rights. and it violates the principle of “to have available a variety of products and services at competitive prices”.

LaBelle, a famous cosmetic brand, introduces a new skin cleanser. Initially, the product does extremely well and reaps huge profits for the company

LaBelle, a famous cosmetic brand, introduces a new skin cleanser. Initially, the product does extremely well and reaps huge profits for the company. After using the product for few months, consumers having acne complain of rashes and allergies. An external chemical agency accuses that the company used a harsh chemical that causes allergies to people with acne, and it did not include it on the ingredients list displayed on the product’s label. These harsh chemicals did not cause allergies to people with normal skin. When enquired, the company’s CEO confesses that the products would have not done so well if they had listed the chemical. The company can be charged with

Fraud

Explanation: The company defrauded its customers by withholding information that was materially important to their purchase experience and their health.

Robert, an ardent blogger, is approached by the marketing manager of LaBelle

Robert, an ardent blogger, is approached by the marketing manager of LaBelle, a famous cosmetic brand, to write positive reviews about the company’s products. Robert knows that the company’s products cause allergic reactions and to positive reviews about the products would be unethical. Which of the following decisions will be considered an ethical lapse?

To write positive reviews about the product

Rodriquez works as a scriptwriter in an advertising agency

Rodriquez works as a scriptwriter in an advertising agency. He has been assigned the task of developing a script for a television commercial. He prepares a rough draft of the script and submits it to his manager, Carl. Carl reads the script but derives a different meaning from it than what Rodriquez intended. According to the basic communication model, which of the following will be the next step?

Carl will respond with his interpretation of the script.

Explanation: Carl will respond with his interpretation to confirm they are on the same page, which is the standard procedure in the basic sender receiver communication model.

 
  • Student: Dimitri Bush
  • Textbook: Variety
  • Course: BUS 475 – 2017/18
 

BUS/475 Answer Guide Contents

Check out our latest updated June 2017 Study Guide. 

 

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