BUS LAW Chapter 1

Which of the following do positive law theory and natural law theory have in common?

Both depend on an outside source for their understanding of law, morality, and rights.

____________ are values that govern a society's attitude toward right and wrong and toward good and evil.

Morals

Martin Luther King, Jr. refused to obey the injunction in Birmingham in the early 1960's that prohibited King from speaking publicly merely because he was black. He was jailed for his disobedience. King felt that there was a higher law than the law of the land. King's actions were most likely based on a(n) ____________ ethical model

Natural Law

____________ sees law and morality as united in a common and fundamental bond.

Natural Law

____________ is a vision of society in which competition for wealth is the only recognized value and virtually all social decisions are left to unregulated markets... It is a world in which... "everything [is] for sale."

Neoliberalism

If the only question a corporate manager asks before she takes an action is whether the benefit to the shareholders will outweigh the cost to the corporation, she would most likely using a(n) ____________ ethical model.

Utility Thinking

A prescriptive theory explains how to create values that benefit society

true

In terms of social responsibility, which of the following arguments is true?

Corporate decisions have an impact on more people than just the shareholders and managers

Which of the following is true of ethical and legal harmony?

Ethics can lead the way in difficult situations where the law has yet to venture.

All business entities are considered "legal persons" under federal and state statutes

False

Ethical rules of conduct developed by various professions are often easy to understand and follow.

False

If Sally believed in natural law, she would believe that right and wrong are measured by the obligations imposed on each individual by an implied agreement among all individuals within a particular social system.

False

In his essay, Politics as a Vocation, Max Weber argues that national leaders must practice the "ethic of ultimate ends" to govern correctly.

False

In the Classic Cases—Declaration of Independence, the text argues that Jefferson derived his four central truths of social contract from John Locke's famous book, Leviathan.

False

Joe believes that there are absolute standards of right and wrong. Joe's belief is an example of market value ethics

False

Living an ethical lifestyle means simply doing what is legal

False

Rational ethics, often referred to as objective ethics, states that people's ethical decisions can be judged only by understanding their situations.

False

The traditional legal view held that corporate managers could not be sued for making a decision that hurt the corporation's profits.

False

While the law protects our rights, only ethical principles can stop us from doing something that is wrong

False

If Samantha believes that the primary way to judge whether an action is right or wrong is to use quantification as the primary tool for determining value, she would believe in:

Market Value Ethics

Political scientist and philosopher, Michael Sandel, warns that our tendency to evaluate everything based on money creates two insidious results—injustice and corruption. Here, Sandel is most likely critiquing which ethical theory?

Market Value Ethics

____________ is a philosophical theory that says ethical values can be determined by a proper application of human reason

Rational ethics

Ethical theories are all based on the assumption that people want to live ethical lives

True

If Alfredo, a small business owner, engages in cost-benefit thinking, he will generally only focus on the benefits and problems his business will face as the result of a decision he makes.

True

In his book, What Money Can't Buy: The Moral Limits of Markets, author Michael Sandel reveals that market value ethics is the new ethical relativism.

True

Law is a means of civil management

True

Negative rights theory holds that rights are a human invention designed to help people escape moral law

True

Negative rights theory holds that rights are a human invention designed to help people escape moral law.

True

One of the problems with utility thinking is that it often results in actions that are clearly unethical and potentially illegal.

True

The law exercises the power of ____________ to confiscate privately owned land for community purposes.

eminent domain

The theory of the ____________ says that right and wrong have no intrinsic value, but instead are determined by circumstance, situation, or even personal preference

ethical relativism

Developing, formulating, and applying rules in line with our values is the job of:

ethics

Negative rights derive from an outside source that has emerged within society.

false

Until recently, the goal of making a profit for ____________ was the only view of corporate responsibility built into statutory and common law.

its shareholders

____________ consist of rules of conduct established by the government of a society to maintain harmony, stability, and justice.

laws

Matrix Corporation's board of directors decides not to outsource its U.S. jobs to China, even though it would cut labor costs by fifty percent. Shareholders subsequently sued the directors for failing to maximize profits. Under the traditional view, the directors would be:

liable to the shareholders, unless they can prove their decision not to outsource was made with the shareholders' profits interest above all other interests

If George believes in a "state of nature", where people must fend for themselves rather than give up the freedom to do as they please, and in return receive a guarantee that other individuals will curb their behavior, he would most likely be rejecting the ____________ ethical theory

social contract

Some argue that ____________ is actually in the long-term best interests of the corporation. This argument, referred to as ____________, is based on the notion that socially responsible corporations benefit by creating ____________ for themselves, thus motivating consumers to purchase their products, investors to buy their stock, and lawmakers to grant them further legal advantages

social responsibility; enlightened corporate self-interest; goodwill

The social contract ethical theory:

states that to live harmoniously, people must give up certain rights and freedoms

In the "Opening Case", the text notes that the FCC's new "net neutrality" regulations giving "fast lane service" to internet service providers are an example of the ongoing corruption of America based on neoliberal market value ethical models.

true

One of the problems with utility thinking is that it often results in actions that are clearly unethical and potentially illegal

true

The ethic of ____________ must be practiced by individuals because individuals can never foresee the result of their actions.

ultimate ends

According to ____________, whether an action is moral or not depends on the ultimate effects of that action.

utilitarianism