chapter 7 - blowing the whistle

The Dodd-Frank Wall Street Reform and Protection Act stipulated that if more than $1 million is collected, the whistle-blower is entitled to _____ of the monies collected.

between 10 and 30 percent

Prior to 2002, legal protection for whistle-blowers existed only through legislation that:

encouraged the moral behavior of employees who felt compelled to speak out.

The False Claims Act was strengthened in 1986 to:

make it easier and safer for whistle-blowers to come forward.

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(n) _____.

whistle-blower

A(n) _____ is a telephone line where employees can leave messages to alert a company of suspected corporate misconduct without revealing their identity.

whistle-blower hotline

The two types of whistle-blowing, internal and external, are categorized based on:

whom the whistle-blower chooses to inform.

Which of the following employees is an external whistle-blower?

Benjamin, who alleges to the federal government that the company he works for is fixing prices with its competitors

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the _____ of 1863

Civil False Claims Act

Whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered under the federal _____.

Civil False Claims Act

Which of the following is true of corporate whistle-blowing?

Corporate whistle-blowing has considerable potential for financial gain in some areas.

The _____ introduced a reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

Dodd-Frank Wall Street Reform and Protection Act

Which of the following statements is true of the federal Civil False Claims Act?

It did not offer whistle-blowers protection from retaliatory behavior aimed at them.

Which of the following is true of the Whistleblower Protection Act of 1989?

It imposed specific performance deadlines in processing whistle-blower complaints.

Which of the following is true of a whistle-blower hotline?

It is a telephone line that employees use to anonymously alert a company of suspected misconduct.

Which of the following statements is true of the Sarbanes-Oxley Act?

It prohibits retaliation against whistleblowers and encourages the act of whistle-blowing itself.

Which of the following statements is true of the False Claims Act of 1863?

It was designed to prevent profiteering from the Civil War.

The "Office of the Whistleblower" was created by the _____.

Securities and Exchange Commission

Ken reported misconduct in his organization to the Securities and Exchange Commission. He was able to provide substantial evidence and won the case. The amount recovered was over $1 billion. Which of the following laws states that Ken is eligible to receive between 10 and 30 percent of the amount recovered?

The Dodd-Frank Wall Street Reform and Consumer Protection Act

Which of the following statements is true of whistle-blowers?

They are often criticized and considered troublemakers.

Which of the following statements is true of qui tam lawsuits?

They establish whistle-blowers as deputized petitioners for the government in a case.

Which of the following is a major risk faced by whistle-blowers by speaking out about an organization's misconduct?

They risk losing their career and financial stability.

Which of the following is a difference between internal and external whistle-blowing?

Unlike external whistle-blowing, the examples of internal whistle-blowing receive no media attention.

The _____ of 1989 guaranteed the anonymity of federal employees, but not that of other employees.

Whistleblower Protection Act

The _____ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

Whistleblower Protection Act of 1989

In _____ whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of law enforcement agencies and/or the media.

external

Sandra, an executive officer of a company, has collected reports which prove that the CEO has been misappropriating company and investor funds. She takes the matter public and issues a statement against the CEO. Sandra is an _____ whistle-blower.

external

In internal whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

his or her manager or supervisor.

Alan, an employee at Urania Corp., finds a major discrepancy in the company's inventory list. Upon further investigation, he discovers that his department head has been tampering with the inventory data for personal profits. He immediately reports it to a higher authority within the organization with proof. In this scenario, Alan plays the role of an _____ whistle-blower.

internal

_____ whistle-blowing involves an employee bringing corporate misconduct to the attention of his or her manager or supervisor, who then follows established procedures to address the misconduct within the organization.

internal

It is difficult to track the history of internal whistle-blowing because:

it rarely receives attention from the media.

The original reason for the enactment of the Civil False Claims Act was to:

protect the government from fraudulent defense contractors.

A _____ is a lawsuit brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.

qui tam lawsuit

The Whistleblower Protection Act of 1989 guaranteed the anonymity of the whistle-blower unless:

revealing the name would protect public safety.

The Sarbanes-Oxley Act of 2002 is also known as:

the Corporate and Criminal Fraud Accountability Act.

In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

the law enforcement agencies