BLAW 2080 - Chapter 2.1 Quiz PDF

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BLAW 2080 - Chapter 2.1 Quiz...

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1 1.) Bernard is the owner and manager of a small auto-parts store. He thinks that talking about business ethics with employees takes time that would be better spent paying attention to customers. He also does not believe that he has a right to tell other people how they should behave. Is Bernard likely to create an ethical workplace with this way of thinking? Why or why not? Answer: Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics. 2.) Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should Answer: consider their actions in light of the consequences if everyone in society acted the same way. 3.) The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider Answer: the costs and benefits of retaining a nonproductive employee. 4.) Robert was employed as a sales representative by the United States Steel Corporation. It had a "whistleblowing" policy and procedure by which employees could make complaints about company policies and products. Robert, who was not a safety expert, believed that one of the company's products had not been adequately tested and posed a serious danger. In accordance with company policy, Robert notified his supervisor of his concerns. The product was successfully tested and marketed and caused no harm. Robert had Answer: fulfilled his ethical obligations as a salesperson because he followed company policy concerning unsafe products. 5.) Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering Answer: how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand. 6.) Ted product law and filed a

is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has lawsuit against him for deceptive advertising. Ted's best defense is that

Answer: he acted in good faith. 7.) Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of Answer: Acme's shareholders 8.) Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is Answer: permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures. 9.) Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations? Answer: No, because legal compliance is regarded as the moral minimum. 10.) Sanderson worked in a travel service office and had access to the reservation systems of several airlines. Sanderson accessed the system and replaced the names of passengers with fictitious names. She also enrolled the fake names in the airlines' frequent-flyer programs. Her husband set up mailboxes under those names for the delivery of free airline tickets "earned" under

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2 the frequent-flyer programs. Real passengers were not harmed by and did not complain of the deception. The Sandersons' behavior was Answer: unethical and illegal, because their actions constituted theft from the airlines. 11.) Under state law, a manufacturer must design a dangerous product so as to avoid harm to people who are using the product as intended or in an unintended but foreseeable way. Bennett, a six-year-old, placed a Bic cigarette lighter under his shirt and lit the lighter. His shirt caught on fire, causing him severe burns. His mother sued Bic, contending it was liable because the lighter was a dangerous product and Bennett's use of the lighter was unintended but foreseeable. The court is most likely to find that Bic was Answer: liable, because it was foreseeable that a child would have access to and try to use a lighter. 1.) Robert was employed as a sales representative by the United States Steel Corporation. It had a "whistleblowing" policy and procedure by which employees could make complaints about company policies and products. Robert, who was not a safety expert, believed that one of the company's products had not been adequately tested and posed a serious danger. In accordance with company policy, Robert notified his supervisor of his concerns. The product was successfully tested and marketed and caused no harm. Robert had a. b. c. his d.

failed to fulfill his fulfilled his ethical failed to fulfill his own principles. fulfilled his ethical

ethical obligations because he did not stop the manufacturing of the product. obligations under a cost-benefit analysis. ethical obligations because he followed company policy concerning unsafe products rather than following obligations as a salesperson because he followed company policy concerning unsafe products.

Answer: fulfilled his ethical obligations as a salesperson because he followed company policy concerning unsafe products. 2.) Bernard is the owner and manager of a small auto-parts store. He thinks that talking about business ethics with employees takes time that would be better spent paying attention to customers. He also does not believe that he has a right to tell other people how they should behave. Is Bernard likely to create an ethical workplace with this way of thinking? Why or why not? a. Bernard's attitude will have no particular effect on workplace ethics, because management has no ability to affect employee behavior. b. Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics. c. Bernard's attitude will have no particular effect on workplace ethics, because ethics is strictly a private matter best left to individual employees. d. Bernard is unlikely to create an ethical workplace and so is likely to get into legal trouble, because business laws require him to compel his employees to follow an ethical code. Answer: Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics. 3.) Sanderson worked in a travel service office and had access to the reservation systems of several airlines. Sanderson accessed the system and replaced the names of passengers with fictitious names. She also enrolled the fake names in the airlines' frequent-flyer programs. Her husband set up mailboxes under those names for the delivery of free airline tickets "earned" under the frequent-flyer programs. Real passengers were not harmed by and did not complain of the deception. The Sandersons' behavior was a. b. c. d.

unethical and illegal, because their actions constituted theft from the airlines. unethical but legal. ethical, because the other passengers did not suffer monetary damages. ethical, because no passengers complained.

Answer: unethical and illegal, because their actions constituted theft from the airlines. 4.) Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should a. follow all city ordinances and state and federal law, and no more.

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3 b. consider or weigh all of the costs and all of the benefits of their actions before making decisions. c. consider their actions in light of the consequences if everyone in society acted the same way. d. follow the Golden Rule. Answer: consider their actions in light of the consequences if everyone in society acted the same way. 5.) Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of a. b. c. d.

Acme's shareholders. the state courts. the city council. Acme's competitors.

Answer: Acme's shareholders 6.) Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations? a. b. c. d.

Yes, because legal standards are stricter than ethical standards. Yes, because ethical obligations require only legal behavior. No, because ethics is too hard to define. No, because legal compliance is regarded as the moral minimum.

Answer: No, because legal compliance is regarded as the moral minimum 7.) Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is a. b. c. d.

prohibited by U.S. law under all circumstances. permitted by U.S. law if the payment is made to government officials for the purpose of securing advantageous contracts. prohibited by U.S. law if the contract price exceeds $20,000. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures.

Answer: permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures. 8.) The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider a. b. c. d.

the costs and benefits of retaining a nonproductive employee. how all other employees in the company would feel about Andy's firing. how Andy and his family might suffer if Andy were to lose his job. Andy's fundamental rights.

Answer: the costs and benefits of retaining a nonproductive employee. 9.) Ted product law and filed a a. b. c. d.

is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has lawsuit against him for deceptive advertising. Ted's best defense is that

the law is unfair. his firm made a profit on the product. his attorney was incompetent. he acted in good faith.

Answer: he acted in good faith.

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10.) Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering a. b. c. d.

the cost of losing employees and the benefit of the profit he could earn. how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand. whether the expansion violates his employees' principles. how society would be affected if everyone expanded their businesses against the advice of their employees.

Answer: how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand. 11.) Under state law, a manufacturer must design a dangerous product so as to avoid harm to people who are using the product as intended or in an unintended but foreseeable way. Bennett, a six-year-old, placed a Bic cigarette lighter under his shirt and lit the lighter. His shirt caught on fire, causing him severe burns. His mother sued Bic, contending it was liable because the lighter was a dangerous product and Bennett's use of the lighter was unintended but foreseeable. The court is most likely to find that Bic was a. b. c. d.

not liable, because lighters cannot be designed so that children cannot use them. liable, because it was foreseeable that a child would have access to and try to use a lighter. not liable, because children should never have access to lighters. liable, because all lighters are dangerous.

Answer: liable, because it was foreseeable that a child would have access to and try to use a lighter. 12.) Ethics Answer: Moral principles and values applied to social behavior. 13.) Business ethics Answer: What constitutes right or wrong behavior and the application of moral principles in a business context. 14.) triple bottom line Answer: Focuses on a corporation's profits, its impact on people, and its impact on the planet. 15.) moral minimum Answer: The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law. 16.) Duty-based ethics Answer: An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet. Those duties may be derived from religious principles or from other philosophical reasoning. 17.) Outcome-based ethics Answer: An ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders. 18.) categorical imperative Answer: An ethical guideline developed by Immanuel Kant under which an action is evaluated in terms of what would happen if everybody else in the same situation, or category, acted the same way. 19.) cost-benefit analysis Answer: A decision-making technique that involves weighing the costs of a given action against the benefits of that action.

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5 20.) Corporate social responsibility (CSR) Answer: The idea that corporations can and should act ethically and be accountable to society for their actions. 1.) Choose the flow chart below that represents the ordering of most court systems (state and federal). Answer: Trial Courts → Intermediate appellate Courts → Supreme Courts 2.) John and Stacy have a disagreement that involves an item worth less than $5,000. Their dispute may be a candidate for: Answer: small claims court. 3.) The question of whether commercial advertising is a form of speech protected by the First Amendment of the U.S. constitution is a Answer: Questions of law 4.) The Supreme Court hears all cases sent to it for review. Answer: False 5.) Which of the following does the Supreme Court have to issue before it hears a case? Answer: A writ of certiorari. 6.) Which of the following is not a form of ADR? Answer: litigation 7.) In a mediation, a ______ third party meets with the parties and emphasizes points of agreement to bring them toward ________ of their dispute. Answer: Neutral resolution 8.) Johnson Marine, Inc. and Westport Co. are involved in a maritime shipping dispute. Their contract has an arbitration clause. The arbitration clause _____ be enforced because of provisions in the ________ , which was enacted in ______ . Answer: will Federal arbitration act 1925 9.) Cybersettle.com is an example of an organization that provides Answer: Online Dispute Resolution 10.) Resolving the issue of ________ involves a court deciding whether a matter is one that must be resolved through arbitration. Answer: Arbitrability 11.) Forum Selection Clauses Answer: Designation of jurisdiction (court or country) where any dispute will be litigated 12.) choice-of-law clause Answer: designates which nation's law will be applied if there is a dispute over a contract 13.) Acme Devices supplies their devices to a buyer in Germany. If Acme designates in the contract that any dispute will be litigated in the United States, this is an example of a choice of law clause.

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