FIN 3054 Exam 1 CH's. 2,3,8
T/F: An appeals court can rule that a trial court's ultimate ruling was correct even if the trial court made some minor errors during the trial.
True
T/F: An investor who wants to comply with her ethical choice to follow Islamic law could invest in the Amana Fund, which will not invest in holdings that earn interest.
True
T/F: Congress revised and reauthorized the Patriot Act, but the revised national security letter provisions were found unconstitutional by a federal court.
True
T/F: Criminal defendants have the right to a lawyer at all the important stages of the criminal process.
True
T/F: Entrapment can be a defense to a criminal act.
True
T/F: Ethics is the study of how people should act.
True
T/F: Generally, ethical managers have happier, more satisfying lives.
True
T/F: In order for the government to obtain a criminal conviction, it must prove its case beyond a reasonable doubt.
True
T/F: Researchers who study happiness find that people expect material goods to make them happier than they actually do.
True
T/F: Summary judgment is appropriate when there are no essential facts in dispute.
True
T/F: Taking a service without paying for it is a common type of larceny.
True
T/F: The parties to a criminal trial are the government and the defendant.
True
T/F: There are values, such as integrity, that are generally considered universal.
True
T/F: There is strong evidence that ethical behavior pays off financially for businesses.
True
T/F: Wever, Inc. is considering relocating a facility to Mexico. The interests of the various stakeholders affected by this decision may conflict.
True
T/F: Generally, mandatory arbitration provisions in a contract are valid.
True- generally, arbitration decisions are binding (Judge Judy)
T/F: A prospective juror was excused from serving after being questioned by the plaintiff's attorney. No reason was given for the rejection. This would be accomplished by the use of a peremptory challenge.
True- peremptory challenge is when an attorney questions someone on the jury before the case and kicks them off.
A misdemeanor is distinguished from a felony based upon: a. the rules of evidence. b. the length and place of possible imprisonment. c. the burden of proof. d. the type of intent.
B) The length and place of possible imprisonment.
T/F: Primary methods of alternative dispute resolution include litigation and mediation.
False- Negotiation, Mediation, or Arbitration.
T/F: If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100.
False- anything over $500 is entitled a jury.
T/F: In a civil case, the plaintiff must prove the case beyond a reasonable doubt.
False- criminal case must be proved beyond a reasonable doubt
T/F: If interrogatories are being used as a form of discovery, the opposing party must generally answer all the questions orally under oath.
False- discover is informal, just getting story together with lawyer
T/F: Disputants Martin and Daulton have hired Thurman to mediate their disagreement. Although Martin and Daulton must accept whatever decision Thurman makes, the mediation has the advantage of keeping Martin and Daulton out of court.
False- they do not have to accept the decision because mediation is non-binding
T/F: Judge Abbott can serve as both a federal judge and a state court judge at the same time.
False- you cannot be both
T/F: After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint.
True
T/F: Actus reus means the "guilty act" and is one element the prosecution must prove in a criminal case.
True
There are four amendments from the bill of rights that protect criminal defendants. Which are they?
4th: prohibits against unreasonable searches and seizure requiring a search warrant. 5th: protections of due process double jeopardy, and the prohibition of being forced to testify against yourself. 6th: guarantee of legal representation at all important stages of the criminal process 8th: prohibition against cruel and unusual punishment.
Sid burned his own warehouse in order to collect on a fire insurance policy. Sid has committed: a. arson. b. larceny since he committed an act intended to wrongfully obtain money from his insurance company. c. a crime called "burning to defraud insurers" since the crime of arson only applies to property owned by another person. d. an intentional tort, but not a crime since a person has a right to destroy his own property.
A) Arson
Which of the following values are considered almost universal? a. Courage. b. Pusillanimity. c. Solifidianism. d. All the answers are correct.
A) Courage
Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she shines a flashlight into the passenger compartment of Tim's car and sees evidence of drug paraphernalia. Which statement is correct? a. Diane may search the passenger compartment of the car and any place else in the car, including the trunk, without Tim's consent. b. Diane may search the passenger compartment of the car without Tim's consent; however, she may not search the trunk of the car without his consent or without a search warrant. c. Diane may not search the passenger compartment of the car (nor any place else) without Tim's consent or a search warrant. However, she can require Tim to remain parked until the search warrant is brought to her. d. Under the above circumstances, Diane can write Tim a traffic citation but cannot search the vehicle.
A) Diance may search the passenger compartment of the car and any place else in the car, including the trunk, without Tim's consent.
Don runs a construction company. He hires people to work on his projects and tells them they are all "independent contractors." Legally, they are not independent contractors since Don tells the workers when to come to work, how long to work, what days to work, what they are to do each day, and so forth. At the end of each week, Don pays his workers in cash rather than with a check. Also, he does not withhold any state, federal or local withholding tax (since he claims the workers are independent contractors). Which statement is correct? a. Don has committed both unethical and illegal conduct. b. Don has committed unethical conduct, but it is legal. c. Don has committed ethical conduct but it is illegal. d. Don has committed both ethical and legal conduct.
A) Don has committed both unethical and illegal conduct.
One result of the Gillette Co. sale to Procter & Gamble Co. discussed in the textbook was that: a. four percent of the Gillette workforce, or about 6,000 employees, were fired. b. ten percent of the Gillette workforce, or about 35,000 employees, were fired. c. Gillette's stock price went down 13 percent in one day when the sale was announced. d. Kilts, the CEO of Gillette, became unemployed.
A) Four percent of the Gillette workforce, or about 6,000 employees, were fired.
Which of the following is NOT a question in the ethics checklist? a. How much profit will an alternative earn for my company? b. Who are the stakeholders? c. Is more than one alternative right? d. What are the facts?
A) How much profit will an alternative earn for my company?
John discovered his company's accountant was "skimming" money from the business. The accountant agreed to pay John a one-time payment of $25,000 not to report the skimming to company officials. The accountant promised she would pay the money back when she could. John accepted the money and never reported what he knew. A year later the accountant was fired when the embezzlement was discovered. She was also prosecuted for theft. The payment to John was never discovered. Which statement is correct? a. John's act was unethical and illegal. b. John's act was unethical but not necessarily illegal. c. John's act was ethical since he believed the accountant would return the money; however, it was illegal. d. Based on the facts, John's conduct was both ethical and legal given the special circumstances of this case.
A) John's act was unethical and illegal.
Lois is running for political office. She trails the incumbent and decides to start running a series of "attack ads." The attack ads are very effective and one week before the election it appears that she has drawn even with her opponent. Lois admits that the attack ads were exaggerations and contained some distortions. Which statement is correct? a. Lois has engaged in unethical behavior. b. Lois has engaged in ethical behavior since she has an obligation to her supporters to run a campaign that will help her get elected. c. It is not possible to determine whether Lois's attack ads were ethical or unethical. d. Assuming Lois's attack ads were unethical, her conduct is justified and proper if she to gets elected.
A) Lois has engaged in unethical behavior.
15. Eric was charged with attempted murder. His defense was that he was insane at the time of the act. A jury accepted Eric's defense. Eric will: a. probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released. b. be declared guilty, but will have to serve his sentence in a mental hospital rather than in prison. c. have to be committed to a mental hospital until he regains his sanity, at which time he will be retried. d. be sent to prison once he is released from the mental ward.
A) Probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released.
Roger assaulted Jim in a tavern, causing medical expenses and lost wages. a. Roger can be prosecuted by the state for a criminal offense and Jim may sue him for money damages. b. If Roger is convicted of criminal assault, Jim is not allowed to sue him for money damages since that would violate the double jeopardy clause of the Constitution. c. If Jim refuses to press charges against Roger, the state cannot initiate a criminal proceeding against him. d. Jim can elect to sue for money damages or proceed with criminal charges.
A) Roger can be prosecuted by the state for a criminal offense and Jim may sue for money damages.
The primary purpose of RICO was: a. to be a tool against organized crime. b. to raise revenue. c. to prosecute non-citizens. d. to prosecute those engaged in tax fraud.
A) To be a tool against organized crime.
Sara sent letters to 1,000 people offering to send them information that would guarantee them a profit in the stock market if they sent her $99.95. If they sent her the money, the brief, generally known information she sent them was: "Buy stocks when their prices are low, and sell when the prices are high." Sara is guilty of: a. mail fraud. b. larceny. c. embezzlement. d. nothing. She merely thought of and executed a clever way to make money.
A) mail fraud
Important steps in the criminal process, in the proper order, include: a. probable cause hearing, search, arrest, indictment, arraignment, plea bargain, and trial. b. arraignment, booking, bail hearing, trial, and grand jury indictment. c. arrest, probable cause hearing, motion to suppress, booking, and trial. d. indictment, arrest, probable cause hearing, plea bargain, arraignment, trial, and appeal.
A) probable cause hearing, search, arrest, indictment, arraignment, plea bargain, trial
Jeffrey Sachs, a leading economist and adviser to developing nations, has expressed concern that: a. there are too few sweatshops. b. there are too many sweatshops. c. children are being forced to work in developing nations. d. the United States is not involved enough in forcing developing nations to eliminate both child labor and sweatshops.
A) there are too few sweatshops.
T/F: Unethical behavior is a bar to financial success.
False
T/F: When measured in dollars, street crime costs society more than twice as much as white-collar crime.
False
The most accurate statement regarding appellate courts is: a. appellate courts often hear new evidence and testimony. b. appellate courts generally accept the factual findings of the trial court. c. only the federal court system has appellate courts. d. appellate courts hear only criminal cases.
B) Appellate courts generally accept the factual findings of the trial court.
The criminal penalties under RICO include all EXCEPT: a. imprisonment. b. capital punishment. c. confiscation of property acquired through the criminal activity. d. fines.
B) Capital punishment.
Kent needed to reduce his workforce by five people. Before notifying them, he thought about how he would feel if he were the one receiving the news and he tried to find ways to help the employees in their transition. Kent was exercising the value of: a. courage. b. compassion. c. fairness. d. responsibility.
B) Compassion.
Chelvam is the director of quality control. Chelvam rejected some parts as non-conforming to the specifications. Chelvam's supervisor directs him to accept the parts. Which value might give Chelvam the strength to oppose his supervisor? a. Consideration. b. Courage. c. Greed. d. Pusillanimity.
B) Courage.
Illegally obtained evidence is not permitted to be used at a criminal trial based upon the: a. silver plate doctrine. b. exclusionary rule c. fair play doctrine. d. Eighth Amendment.
B) Exclusionary rule
Ethics is the study of: a. sovereign immunity. b. how people should act. c. "respondeat superior". d. victimization.
B) How people should act.
Paul decided he did not want the new jeans he had purchased from a large discount department store. He had worn them three times and decided he just did not like them. The jeans fit him fine and there is nothing wrong with them. He takes the jeans back to the store and, as is its policy, the store gave him a full refund of his money. Which statement is correct? a. Paul's conduct was not unethical since the store's policy of giving full cash funds applied. b. Paul's conduct was unethical. c. Paul's conduct was unethical, even though the store had a legal obligation to return his money. d. Paul's conduct was ethical since the store has a legal duty to return his money when he returned the jeans.
B) Paul's conduct was unethical.
When a judge orders a criminal defendant to reimburse the victim, it is called: a. reimbursement. b. restitution. c. restraint. d. reformation.
B) Restitution
The Miranda warning insures that the criminal suspects understand their constitutional rights relating to: a. search and seizure. b. self incrimination. c. double jeopardy. d. res judicata.
B) Self incrimination.
Jurisdiction is: a. the study of law. b. the authority of a court to decide a particular type of case. c. a federal court concept. d. applicable only to appeals courts.
B) The authority of a court to decide a particular type of case.
Which of the following statements is correct? a. Street crime (muggings, homicide, etc.) results in a greater monetary loss to society than white-collar crime. b. White-collar crime results in a greater monetary loss to society than street crime. c. Studies are not able to calculate the estimated value of white-collar crime since most white-collar crime is never publicly disclosed. d. Studies are not able to accurately calculate the estimated value of either street crime or white-collar crime.
B) White-collar crime results in a greater monetary loss to society than street crime.
Unethical behavior in an organization can create: a. a cynical workforce. b. a resentful workforce. c. an unproductive workforce. d. All of the above.
B) an unproductive workforce.
Mulcare Corp. started a compliance program to prevent and detect criminal conduct within the company and had specific, high-level officers in charge of overseeing the program. The company effectively communicated the program to its employees and monitored those employees who were in a position to cheat. It promptly disciplined anyone who broke the law. One effect of having this program is: a. federal investigators would no longer investigate the company since Mulcare could take care of any problems internally. b. federal investigators might be convinced to limit any prosecution to those directly involved rather than attempting to get a conviction against high-ranking officers or against the company itself. c. the Federal Sentencing Guidelines no longer apply. d. any cases would be prosecuted in state, rather than federal, court.
B) federal investigators might be convinced to limit any prosecution to those directly involved rather than attempting to get a conviction against high-ranking officers or against the company itself.
Does ethical behavior maximize profitability? a. Yes, there is concrete evidence that ethical behavior maximizes profitability. b. No, there is concrete evidence that unethical companies outperform ethical companies. c. Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially. d. There is strong evidence that ethical behavior pays financially in the long run, but not in the short run.
C) Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.
The burden of proof required in a criminal case is: a. clear and convincing. b. a preponderance. c. beyond a reasonable doubt. d. highest degree of honesty.
C) Beyond a reasonable doubt.
In analyzing a situation to determine how to act ethically, a business manager should: a. gather background information by either talking firsthand with the people involved or by talking to those who gained information informally through the company "grapevine." b. narrowly focus on a single issue. c. determine whether an alternative violates important values. d. All of the answers are correct.
C) Determine whether an alternative violates important values.
The fraudulent conversion of property which is already in the defendant's possession is: a. money laundering. b. exclusion. c. embezzlement. d. trespassory taking.
C) Embezzlement
A manager making a decision without fraud, prejudice, or favoritism is exhibiting the value of: a. compassion. b. integrity. c. fairness. d. responsibility.
C) Fairness
Jeff picks up a piece of metal pipe and swings it at Gary, hitting him across the back of the head. In a case for criminal assault, the prosecution must prove what "mens rea"? a. Specific intent. b. Jeff voluntarily hit Gary. c. Jeff intended to hit Gary. d. Jeff intended to cause serious injury to Gary.
C) Jeff intended to hit Gary.
The fastest growing method of dispute resolution in the United States is: a. arbitration. b. negotiation. c. mediation. d. litigation.
C) Mediation.
The observation that "The one and only social responsibility of business is to increase its profits" can be attributed to: a. Justice Potter Stewart. b. John Akers. c. Milton Friedman. d. Jeffrey Sachs.
C) Milton Friedman.
Approximately how much merchandise is stolen from United States retail stores every day? a. $1 million b. $5 million c. $2 million d. $25 million
D) $25 million
Sarah, an employee of Amex Corporation, committed a serious criminal act in an attempt to obtain a large sales order for her employer. A court found her guilty of the felony and also found the corporation guilty of criminal conduct. The company was fined $1 million. The court: a. erred in fining the company since finding both Sarah and the corporation guilty violates the Double Jeopardy Clause of the Constitution. b. acted properly if this were a federal proceeding; however, it did not act properly if this were a state proceeding. c. acted properly if this were a state proceeding but not if this were a federal case. d. acted properly in this case.
D) Acted properly in this case.
Nortron Corporation wants to create an ethical environment in its company. Which of the following has been found to help foster a sense of ethics within an organization? a. The company may develop a formal, written ethics code. b. The company may institute a formal ethics training program for the employees. c. The top executives may provide good examples by behaving ethically themselves. d. All of the above alternatives have been used by U.S. companies to create an ethical environment in their organizations.
D) All of the above alternatives have been used by U.S. companies to create an ethical environment in their organizations.
Advantages of Alternative Dispute Resolution (ADR) include: a. ADR is faster than litigation. b. ADR keeps the parties talking rather than fighting. c. ADR is less expensive than litigation. d. All of the above are advantages of ADR.
D) All of the above are advantages of alternative dispute resolution.
Which of the following are alternatives in dealing with issues of ethics in advertising? a. Try, in a general way, to minimize racism, sexism, and other exploitation. b. Include, as part of the development process, a systematic, focused review of the underlying messages contained in advertisements. c. Refuse to create ads that are potentially demeaning, insensitive, or dangerous, recognizing that such a stand may lead to a loss of clients. d. All of the above are alternatives in dealing with issues of ethics in advertising.
D) All of the above are alternatives in dealing with issues of ethics in advertising.
Why do many major corporations actively encourage ethical behavior? a. Unethical behavior always damages a business. b. Unethical behavior can quickly destroy a business. c. Unethical acts are always illegal. d. All of the above are reasons that corporations actively encourage ethical behavior.
D) All of the above are reasons that corporations actively encourage ethical behavior.
E-presto, Inc. has established an EthicsLine. EthicsLine is a toll-free phone number that employees can call any time of the day, any day of the week to discuss ethics and report suspected unethical or improper conduct. Why would E-presto establish the EthicsLine? a. Ethical behavior improves productivity. b. Ethical behavior increases job stability. c. Unethical behavior can destroy a business. d. All of the above are reasons that would justify establishing an EthicsLine.
D) All of the above are reasons that would justify establishing an EthicsLine
Zeno, Inc. is considering relocating its manufacturing facility from Illinois to Mexico City. The stakeholders in this decision might include: a. Zeno's shareholders. b. customers. c. the Illinois community in which Zeno operates. d. All of the above.
D) All of the above are stakeholders in this decision.
The Chief Executive Officer of Ticor, Inc. must decide about the disposal of toxic waste materials. Which of the following considerations should help the CEO reach an ethical business decision? a. Toxic waste disposal law. b. The harm the disposal could cause to the environment. c. The impact on the business if the decision is publicly disclosed through the news media. d. All of the above.
D) All of the above.
Barden Corporation was convicted of violating federal RICO laws. Accordingly: a. the government may file criminal charges against both the company and the individuals associated with the criminal acts. b. the government may file a civil lawsuit against the company to obtain injunctions and other relief. c. individuals may file civil lawsuits against the company for violating the RICO statute to recover losses sustained by the criminal act. d. All the above are correct.
D) All the above are correct.
Why should ethics be a concern to business? a. Society as a whole benefits from ethical behavior. b. People feel better when they behave ethically. c. Unethical behavior can be very costly. d. All of the above.
D) All the above.
Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware. Tony is a resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy does not do business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue Mega Toy Store: a. he may file the lawsuit in an Arizona state court. b. he may file the lawsuit in a federal district court in Arizona. c. he must file the lawsuit in a federal district court because the federal courts would have diversity jurisdiction in this case. d. Either a or b.
D) Either a or b.
Tina is an undercover police officer. One evening she is posing as a prostitute in a bar. Larry, a salesman who is attending an out-of-state convention, begins talking with Tina. After about ten minutes, Tina suggests going to her room for a good time but points out he will need to "donate" $100 to her. Arriving at Tina's hotel room, Larry asks if she is a policewoman. Tina lies and says she is not. When Larry gives her $100, Tina shows him her identification and arrests him. a. Larry appears to have been the victim of entrapment since Tina lied about being a police officer. b. Larry appears to have been the victim of entrapment since Tina was the one who suggested the activity that resulted in Larry's arrest. c. Both of the above are correct. d. None of the above.
D) None of the above.
Research has shown that the least important motivation for managers in behaving ethically is: a. they want to feel good about themselves. b. they want to feel good about the decisions they make. c. they value their reputation. d. profitability.
D) Profitability
A successful insanity defense: a. results in the defendant's being back on the streets within a much shorter time than if the defendant were convicted and sent to prison. b. is used in about ten percent of all criminal cases. c. is a favorite outcome for juries since they ordinarily dislike convicting felons and sending them to prison. d. results in a "not guilty" verdict, even if the prosecution proves the defendant committed the criminal act.
D) Results in a "not guilty" verdict, even if the prosecution proves the defendant committed the criminal act.
The intent required to commit a burglary would be: a. general intent. b. reckless conduct. c. strict liability. d. specific intent.
D) Specific Intent
Ethical companies: a. tend to earn higher returns than companies that engage in wrong-doing. b. tend to have more creative employees than companies that engage in wrong-doing. c. are guaranteed to be more profitable in the long run than companies that engage in wrong-doing. d. All of the above.. e. Both (a) and (b).
E) Both (a) and (b)
T/F: Because of the increasing medical concern over obesity in the United States, federal regulation of advertising has effectively reduced to one-tenth of all advertising during children's television programs advertisements for foods high in fat, sugar, and salt and low in nutrition.
False
T/F: Bieber v. People considered the intent requirement in an armed robbery case.
False
T/F: Emails and their attachments are not subject to pretrial discovery.
False
T/F: Every criminal defendant has a right to a jury trial.
False
T/F: General deterrence is intended to teach a specific defendant not to repeat criminal conduct.
False
T/F: German philosopher Immanuel Kant believed there was only one valid reason to punish, which was deterrence.
False
T/F: Hankrin Corp. is incorporated under Delaware law and has its principal place of business in Annapolis. For diversity purposes, it is considered a resident only of Maryland.
False
T/F: In analyzing ethical dilemmas using the ethics checklist presented in the textbook, it is best to narrow your focus to encompass only one or two major issues.
False
T/F: In order for a federal court to have jurisdiction, there must be a federal question involved and at least $75,000 in dispute.
False
T/F: Society is hurt when business managers behave ethically.
False
T/F: The Sixth Amendment declares that a person cannot be tried twice for the same criminal offense.
False
T/F: The behavior of top executives regarding ethical issues has little effect on the behavior of the employees of the organization.
False
T/F: The ethics checklist provided in the textbook serves two purposes: it helps clarify the issues and it produces the one correct answer to an ethical dilemma.
False
T/F: The ethics checklist provided in the textbook was created by Supreme Court Justice Potter Stewart to aid business managers in finding solutions to difficult ethical problems.
False
T/F: Under the laws of most states, a corporation cannot be held criminally responsible.
False
T/F: A company that engages in unethical behavior may suffer severe consequences.
True
T/F: A crime is a violation of statutory law.
True
T/F: A summons is a paper ordering a defendant to answer a complaint within a certain time.
True
