Exam Questions Crimes By The Corporate System Payne Ch.10

Chapter 10: Crimes by the Corporate System

Test Bank

Multiple Choice

1. One of the four views that define the concept of a corporation is which of

the following?

1. Corporations exist in a physical or structural presence.
2. Investors create corporations.
3. There is a corporate name.
4. It has an executive board.

Learning Objective: 10-1: Explain the characteristics that define a corporation.

Cognitive: Comprehension

Answer Location: Conceptualizing Corporate Crime

Difficulty Level: Medium

1. Business activities that are covered by antitrust laws include which of the

following?

1. deceptive sales
2. labor practices
3. consumer products
4. intellectual property use

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Antitrust Offenses

Difficulty Level: Medium

1. Which of the following is an antitrust offense?
   1. group pricing
   2. price increases
   3. false advertising
   4. market allocation

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Market Allocation

Difficulty Level: Medium

1. What type of antitrust offense is holding prices firm, fixing warranties, and

eliminating discounts considered?

1. price gouging
2. price fixing
3. price discrimination
4. bid rigging

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Price Fixing

Difficulty Level: Medium

1. When parties from different levels of production, manufacturing, and

distribution agree to set prices at a certain level, they are committing what type of offense?

1. horizontal price fixing
2. vertical price fixing
3. price gouging
4. market allocation

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Price Fixing

Difficulty Level: Medium

1. Competitors who conspire to submit artificially high bids or estimates so that

a specific competitor with a low price will be selected for a job are committing what type of collusion?

1. bid suppression
2. bid rotation
3. complementary bidding
4. subcontracting

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Bid Rigging

Difficulty Level: Medium

1. Which of the following factors indicates a higher likelihood for bid rigging

to occur?

1. more competitors
2. new competitors
3. businesses submit bids at different times
4. standardized products or services

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Bid Rigging

Difficulty Level: Medium

1. Under which circumstance is price discrimination illegal?
2. it decreases competition
3. it increases competition
4. different buyer and seller pairs are dealt with
5. it suppresses competition

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Price Discrimination

Difficulty Level: Medium

1. What type of offense was seen in the aftermath of Hurricane Katrina when

gas prices were raised significantly?

1. price discrimination
2. price fixing
3. price gouging
4. market allocation

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Price Gouging

Difficulty Level: Medium

1. When drug dealers divide a neighborhood into territories to sell drugs and

respond violently when other dealers sell in their neighborhood, what type of antitrust offense is this analogous to?

• 1. price fixing
  2. price discrimination
  3. market allocation
  4. group boycotts

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Market Allocation

Difficulty Level: Medium

1. Why are antitrust offenses difficult for officials to detect or identify?
2. Antitrust offenses do not affect the prices of goods significantly.
3. Agreements can be made without verbal or written evidence.
4. The effects of these offenses are not seen right away.
5. Some of these offenses are well-hidden from authorities.

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Dynamics Surrounding Antitrust Offenses

Difficulty Level: Medium

1. Which of these statements about false advertising is not true?
   1. False advertising laws require advertisers to have evidence to back up

their claims.

• 1. Advertisements featuring celebrities do not necessarily have to reflect

their true beliefs about a product, as long as they are aware of this.

• 1. Advertising claims about health and safety receive more scrutiny.
  2. Changes in the economic system have increased the number of false

advertising incidents.

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: False Advertising

Difficulty Level: Medium

1. In 2004 when a large college was caught lying to students about the transfer

ability of its credits, what type of offense were they committing?

• 1. false advertising
  2. market allocation
  3. antitrust fraud
  4. deceptive sales

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Comprehension

Answer Location: Deceptive Sales

Difficulty Level: Medium

1. An employer who asks a worker to stay late and help clean up without being

paid is committing what type of offense?

1. exploitation
2. fraud
3. unfair labor discrimination
4. deception

Learning Objective: 10-2: Describe the categories of misdeeds committed by

corporations.

Cognitive Domain: Application

Answer Location: Unfair Labor Practices

Difficulty Level: Medium

1. What has the government done to try to address the working conditions and

exploitation of workers in sweatshops?

1. Given tax breaks to corporations to minimize low profit margins
2. Established the Fair Labor and Standards Act targeting unfair labor practices

such as exploitation and discrimination

1. Increased regulatory oversight of corporations with vulnerable populations
2. Imposed regular fines for lack of improvement in the work environment in

sweatshops.

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Unfair Labor Practices

Difficulty Level: Medium

16. Which of the following is not a cost associated with workplace injuries and illnesses?

• 1. higher worker compensation rates
  2. negative publicity
  3. stricter policies relating to the work environment
  4. increased attention from government agencies

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Unsafe Work Environments

Difficulty Level: Medium

17. Which of the following is not a right given to workers under the Occupational Safety and Health Act?

• 1. receive proper training
  2. observe safety testing
  3. refuse to work if they feel conditions are unsafe
  4. request OSHA inspect their workplace

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Unsafe Work Environments

Difficulty Level: Medium

18.Which type of harmful products is often found to be the most unsafe?

• 1. toys
  2. foods
  3. automobiles
  4. construction material

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Toys

Difficulty Level: Medium

19. With nursing home neglect, what type of offense is being committed?

1. harmful treatment of consumers
2. harmful consumer products
3. exploitation
4. unfair labor practices

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Treatment of Consumers

Difficulty Level: Medium

20. In regards to the corporate crime dynamics, what does the breadth of victimization refer to?

• 1. Victims don’t know if they’ve been victimized.
  2. Single offenses can affect millions of people.
  3. Small offenses can result in death.
  4. A corporation’s crimes hurt only their customers.

Learning Objective: 10-4: Analyze four dynamics of corporate crime common to the various types of corporate offending.

Cognitive Domain: Analysis

Answer Location: Dynamics of Corporate Offending

Difficulty Level: Medium

21. Why is there so little attention given to reporting on corporate crimes?

1. Corporate crime is less frequent than traditional crime.
2. The public already believes that corporate crime is rampant.
3. Corporate crime is not as sensational as other types of crime.
4. The public has no interest in corporate crime.

Learning Objective: 10-5: Discuss how public concern about corporate crime is influenced by the media.

Cognitive Domain: Comprehension

Answer Location: Public Concern about Crimes by the Corporate System

Difficulty Level: Medium

22. Which offense do some question whether it is a true corporate crime?

• 1. price discrimination
  2. exploitation
  3. unsafe work environment
  4. harmful treatment of consumers

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Price Discrimination

Difficulty Level: Medium

23. What category of offense do bait and switch practices fall under?

• 1. unfair labor practices
  2. antitrust offenses
  3. false advertising
  4. deceptive sales

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: False Advertising

Difficulty Level: Medium

24. What is one important reason for the creation and persistence of sweatshops?

1. low wages that created high profit margins for the industry
2. shorter work weeks were possible due to a large labor force
3. the existence of a large vulnerable and exploitable population
4. government regulation that helped fuel their growth.

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Unfair Labor Practices

Difficulty Level: Medium

25. Which type of offense is likely to go unnoticed by victims?

1. false advertising
2. food poisoning
3. deceptive sales
4. unfair labor practices

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Consumer Products

Difficulty Level: Medium

True/False

1. In the 1990s, U.S. officials tried to apply criminal sanctions to businesses in

other countries that committed corporate crimes, but the Supreme Court prevented it.

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Dynamics Surrounding Antitrust Offenses

Difficulty Level: Medium

1. Prior to the creation of the Occupational Safety and Health Administration,

14,000 people died in the U.S. everyday while working.

Learning Objective: 10-2: Describe the categories of misdeeds committed by corporations.

Cognitive Domain: Comprehension

Answer Location: Unsafe Work Environments

Difficulty Level: Medium

1. Food poisoning is considered a corporate crime.

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Consumer Products

Difficulty Level: Medium

1. With globalization and unsafe goods, the U.S. is doing a better job at tracking

which goods and parts come from which countries so that they can be held responsible in the case of an unsafe product.

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Consumer Products

Difficulty Level: Medium

1. When 100 people died in a nightclub fire, the club had committed the offense

of providing an unsafe product.

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Comprehension

Answer Location: Harmful Treatment of Consumers

Difficulty Level: Medium

1. Even if they get caught, many corporations believe the benefits outweigh the

costs when it comes to committing corporate crimes

Learning Objective: 10-4: Analyze four dynamics of corporate crime common to the various types of corporate offending.

Cognitive Domain: Comprehension

Answer Location: Dynamics of Corporate Offending

Difficulty Level: Medium

1. Secondary victims include members of the community harmed by

victimization.

Learning Objective: 10-4: Analyze four dynamics of corporate crime common to the various types of corporate offending.

Cognitive Domain: Comprehension

Answer Location: Dynamics of Corporate Offending

Difficulty Level: Medium

1. The public is often aware of corporate crimes committed by companies, but

do not realize the actions they can take to stop it.

Learning Objective: 10-5: Discuss how public concern about corporate crime is influenced by the media.

Cognitive Domain: Comprehension

Answer Location: Public Concern about Crimes by the Corporate System

Difficulty Level: Medium

1. The media pays little attention to corporate crimes.

Learning Objective: 10-5: Discuss how public concern about corporate crime is influenced by the media.

Cognitive Domain: Comprehension

Answer Location: Public Concern about Crimes by the Corporate System

Difficulty Level: Medium

1. Deceptive sales occur when businesses make inaccurate statements

about their products or services in order to facilitate the sale of those items/services.

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Comprehension

Answer Location: Deceptive Sales

Difficulty Level: Medium

Short Answer

1. List and define three antitrust offenses that can be committed by corporations

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: Antitrust Offenses

Difficulty Level: Medium

1. What is the difference between false advertising and deceptive sales?

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: False Advertising

Difficulty Level: Medium

1. Give an example of exploitation as an unfair labor practice.

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: Unfair Labor Practices

Difficulty Level: Medium

1. What are three rights given to workers under the Occupational Safety and

Health Act?

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: Unsafe Work Environments

Difficulty Level: Medium

1. What are the three levels of intent involved in committed corporate offenses?

Learning Objective: 10-4: Analyze four dynamics of corporate crime

common to the various types of corporate offending.

Cognitive Domain: Analysis

Answer Location: Dynamics of Corporate Offending

Difficulty Level: Medium

Essay

1. Identify two types of antitrust offenses and their impact on the economy.

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: Antitrust Offenses

Difficulty Level: Medium

1. Define two types of false advertising and discuss the consequences for

consumers.

Learning Objective: 10-2: Describe the categories of misdeeds committed

by corporations.

Cognitive Domain: Analysis

Answer Location: False Advertising

Difficulty Level: Medium

1. Discuss consequences of harmful consumer products.

Learning Objective: 10-3: Summarize the harm caused to the public by harmful products and treatment of consumers.

Cognitive Domain: Analysis

Answer Location: Harmful Consumer Products

Difficulty Level: Medium