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B. constraints placed on businesses specifically for activities that are legal but unethical.C. limits placed on the amount of money a business may charge or the amount of money a business may generate.D. requirements concerning which customers a firm may serve or not serve.E. the formal definition of what is considered ethical and what is not.Key term definition—regulationAACSB: 3LL: 1Learning Objective: 03-06 Explain the major legislation that ensures competition and regulates the elements of the marketing mix3-156
Chapter 03 - Scanning the Marketing Environment156.(p. 82)In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S. This is an example of how __________ forces affect the marketing environment. A. economicB. ecologicalC. technologicalD. socialE.regulatoryRegulation consists of restrictions state and federal laws place on business with regard to the conduct of its activities. The fines and other punishments were levied as a result of price-related legislation.AACSB: 3LL: 3Learning Objective: 03-06 Explain the major legislation that ensures competition and regulates the elements of the marketing mix157.(p. 82)A car collector, Mr. F. Hansen, who said his 1975 Chevrolet Corvette was certified as the last Corvette convertible to be produced, sued General Motors to stop it from manufacturing any more of the convertible sports cars. The suit also requested $1.5 million in damages. Hansen claimed he bought the car for its collector's value. It came with a letter from GM dated August 25, 1975, that said the car was "the last Corvette convertible that General Motors Corp. would ever manufacture." Hansen said the value of his car has been decreasing ever since GM resumed manufacturing Corvette convertibles in 1985. If the court ruled in favor of Mr. Hansen, what general type of regulation would such a ruling represent? A. Protecting companies from one anotherB.Protecting consumers from unfair trade practicesC. Protecting the future interests of society from dangerous business practicesD. Protecting consumers from one anotherE. Protecting businesses from unfair consumer practicesRegulation consists of restrictions state and federal laws place on business with regard to the conduct of its activities. For consumers, the focus of legislation is to protect them from unfair trade practices and ensure their safety. GM advertised the "last convertible" in 1975 to help sell cars then. By resuming production in 1985, GM likely deceived consumers, in particular, Mr. Hansen.AACSB: 3LL: 3Learning Objective: 03-06 Explain the major legislation that ensures competition and regulates the elements of the marketing mix3-157
Chapter 03 - Scanning the Marketing Environment158.