Business Operations & Ethics Flashcards
7 cards from real AARC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Operations & Ethics flashcards as text
What does the ARA's '5-Star Recycler' designation primarily evaluate?
Answer: Environmental compliance, safety, business practices, and customer service standards
The ARA 5-Star designation evaluates recyclers across environmental compliance, safety, business practices, and customer service to recognize operational excellence.
A recycler is approached by a competitor offering to divide local salvage vehicle sources between them. Accepting this arrangement would violate:
Answer: Federal antitrust laws prohibiting market allocation
Market allocation agreements between competitors violate federal antitrust laws, specifically the Sherman Antitrust Act.
When advertising used auto parts, what claim could expose a recycler to consumer fraud liability?
Answer: Advertising a used transmission as 'certified new replacement quality'
Advertising used parts as 'new quality' without substantiation constitutes deceptive advertising and exposes recyclers to consumer fraud claims.
In a recycling business, what is the purpose of a 'core charge' policy?
Answer: To incentivize return of rebuildable cores for remanufacturing by charging a refundable deposit
A core charge is a refundable deposit charged to motivate customers to return worn cores that can be remanufactured, supporting the circular economy.
Which of the following is an example of an ethical obligation AARC recyclers have toward employees?
Answer: Providing a safe workplace and complying with OSHA standards
Ethical recyclers must maintain safe working conditions and comply with OSHA requirements, reflecting their duty of care toward employees.
What is the risk of consistently underpricing used parts below market value in a recycling operation?
Answer: Eroding profit margins and potentially threatening business sustainability
Chronic underpricing reduces margins, undermines the business's financial health, and can make the operation unsustainable long-term.
An automotive recycler is asked to provide a reference for a fellow ARA member they know has had repeated customer complaints. What is the ethical response?
Answer: Decline to provide a reference or give an honest, factual account
Ethical conduct requires honesty; providing false positive references could harm third parties and violates professional ethics standards.