REVIEW QUESTIONS

1. What are the two most common types of unethical practices of business establishments as far
as the products or customers are concerned?

2. Give and explain briefly at least three ways of directly misrepresenting products.

3. How is indirect misrepresentation of a product undertaken?

4. What does “caveat emptor” means

5. When does over-persuasion become unethical?

6. What is “Interlocking directorship” and why could it lead to unethical actions of a member of
the board of directors?

7. Insider tracking is considered an unethical practice. Why?

8. What are some of the unethical practices that executive officers may be guilty of?

9. Cite some unethical practices of employees to their employers.

10. Distinguish between direct misrepresentation and indirect misrepresentation.

REVIEW QUESTIONS AND EXERCISES

1. Describe an ethical dilemma. How does a person resolve an ethical dilemma?

2. Why is there special need for ethical behavior by professionals?

3. After accepting an engagement, a consultant discovers that the client’s industry is more
technical than he realized and that he is not competent in certain areas of operation. What are
the consultant’s options?

EXERCISE 1

Identify and discuss the ethical implications of David’s act.

EXERCISE 2

Required: Use the six-step approach to resolve the ethical dilemma.