Ch 5 & 6

Which of the following actions by the parties are events of termination of an offer? I. Revocation. II. Rejection. III. Death of the offeror. IV. Lapse of reasonable time.

I and II.

Which of the following are appropriate to address in a code of ethics? I. Respect. II. Trustworthiness. III. Dress code. IV. Ban on use of company property for personal reasons

I and II.

All of the following are reasons why attention to business ethics is important, except business ethics ___________________. I. teach people right and wrong. II. sensitize business owners and managers in terms of how they should act. III. is a useful tool for preventing legal liability. IV. help managers retain a strong moral compass in times of turmoil.

I only.

Homer hires Frida to paint his portrait. Frida paints the portrait and delivers a painting to Homer in exchange for $5,000. Which of the following source(s) of law govern(s) the contract? I. Common. II. Statutory. III. Constitutional. IV. Secondary.

I only.

On Monday, Shelley sends Keats an offer via e-mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats receives the e-mail on Monday, but waits until Saturday to reply: "I accept. Shelley receives the e-mail response on Saturday. Which of the following is true? I. No contract exists because the lapse of time. II. A contract exists as of Saturday. III. No contract exists because of the statute of frauds. IV. No contract exists because of the mirror image rule.

I only.

Which of the following schools of thought define CSR in practice? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand.

I, III, and IV.

In his classic condemnation of the CSR movement, Nobel Prize-winning economist Milton Friedman advocated which CSR view?

Narrow

The owner of a warehouse contracts with Satellite Services for the purchase and installation of satellite dishes at the warehouse. The contract allocated $8,000 for the satellite dishes and $2,000 for installation. Which source of law governs this contract?

Statutory (UCC), because of the allocation of price.

___ emphasizes prioritizing moral principles in the organization and ensuring behaviors are aligned with those values.

Values management

In the Raffles v. Wichelhaus case, the court held:

there was no mutual assent between the parties due to mistake by ambiguity.

A contract that meets all of the statutory requirements to form a contract but is subject to a legal defense is a(n) ____________ contract.

unenforceable

In Grimshaw v. Ford Motor Company, the court _______

upheld the lower court's award of $3.5 million to Grimshaw

Evidence indicates that management teams who embrace ________________ promote profitability and contribute to sound public policy.

values management

Managing ethics in the workplace involves identifying and prioritizing moral principles to guide behaviors of the organization. This is called ____________

values management

Hyde hires an arsonist to set a warehouse on fire for $1,000. This agreement is legally ____________.

void

A contract in which one party may either disaffirm or enforce a contract is ______

voidable

Abel sends Baker a letter: "I offer to perform consulting services for six months at $100/month." Baker signs "I agree." This contract fits into which category?

Bilateral

Abel sends Baker a text message: "I will provide landscaping for your office park for $500 per trip." Baker calls Abel and says, "I agree to your landscaping offer." The Abel-Baker contract fits into which category?

Bilateral

Abel sends Baker an e-mail: "I will provide computer networking services for $100 per hour." Baker calls Abel and replies, "I agree to your networking services offer." This contract fits into which category?

Bilateral

Abel sends Baker an e-mail: "I will provide computer networking services for $100 per hour." Baker calls Abel and says, "I agree to your networking services offer." What source of law governs this contract?

Common

Which of the following are appropriate to address in a code of ethics? I. Responsibility and accountability. II. Citizenship and civic virtue. III. Caring. IV. Ban on use of company property for personal reasons.

I, II, and III.

Digital signatures are recognized under state statutes that have passed which of the following acts?

Uniform Electronic Transactions Act

A company is considering shutting down one of its plants. In this decision, employees are _______.

primary stakeholders

A company is considering shutting down one of its plants. In this decision, managers are ______.

primary stakeholders

Which of the following is the appropriate "reality response" to the following business ethics challenge: "Business ethics cannot be taught. It's religion, not management?"

Altering people's values isn't the objective of ethics. Managing values and conflict is the goal.

Holden calls Caulfield, a private detective, and tells him: "I need a private detective to find Tippy, my prize-winning pup." Caulfield informs him of his $100 day fee and Holden agrees to pay him once per week. What is the category of contract between Holden and Caulfield?

Bilateral

Abel sends Baker a letter: "I offer to perform consulting services for six months at $100/month." Baker signs "I agree." What source of law governs this agreement?

Common

Abel sends Baker a text message: "I will provide landscaping for your office building for $500 per trip." Baker calls Abel and says, "I agree to your landscaping offer." What source of law governs this contract?

Common

The owner of an office building hires an architect to produce renovation plans for a $5,000 fee. The owner retains the plans once the fee is paid. What source of law governs this contract?

Common, because it is a contract for services.

The owner of a warehouse contracts with Satellite Services for the purchase and installation of special satellite dishes at the warehouse. The contract allocated $8,000 for the installation services and $2,000 for the satellite dishes. Which source of law governs this contract?

Common, because of the allocation of price.

Selecting the course of action that results in the most benefits for the most individuals is an example of what approach to moral philosophy?

Consequences-based

In the Lucy v. Zehmer case, the court held:

Even if the seller had no subjective intent to sell his property, a reasonable person would have concluded that the parties had a serious intent to contract.

Holmes Hats agrees to sell 100 top hats to a formal wear store and deliver them no later than April. This agreement falls into which of the following categories of contracts?

Express

Which schools of thought emphasize maximizing shareholder wealth as a corporation's only moral responsibility? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand

I only.

A company is considering whether to expand its facilities. If the company has integrated corporate social responsibility principles, which of the following stakeholders will it consider when making its decision? I. Owners of residential property in the neighborhood. II. Its employees. III. Its suppliers. IV. Its shareholders.

I, II, III, and IV.

Finn the manager at Yachts Are Us (YAU), a ship-building company along the Mississippi River, is told to cut overhead costs. If Finn's company incorporates CSR principles, what stakeholder(s) would Finn take into consideration when determining his strategy? I. Owners of local restaurants where YAU employees eat lunch. II. YAU employees. III. YAU suppliers. IV. YAU shareholders.

I, II, III, and IV.

Yankee Antiques Unlimited (YAU) is a company considering the fate of a local plant. The principals can either invest more to upgrade the plant's technology or shut down the plant entirely. If YAU has adopted a broad view of corporate social responsibility, what stakeholders would they consider when making the decision? I. Owners of local restaurants where YAU employees eat lunch. II. YAU employees. III. YAU suppliers. IV. YAU shareholders.

I, II, III, and IV.

Which of the following are reasons why attention to business ethics is important? I. Helps managers retain a strong moral compass in times of turmoil. II. Sensitizes business owners and managers in terms of how they should act. III. Useful tool for preventing legal liability. IV. Teaches people right and wrong.

I, II, and III.

Which of the following are events of termination of an offer via operation of law? I. Death of the offeror. II. Rejection. III. Destruction of the subject matter of the contract before acceptance. IV. Lapse of reasonable time.

I, III, and IV.

Which of the following are not schools of thought that define CSR in practice? I. Narrow view: Invisible hand. II. Statutory view: State's hand. III. Moderate view: Government's hand. IV. Broad view: Management's hand. V. Individualist's view: Individual's hand.

II and V.

Adams hires WindCo. to erect a windmill to power his manufacturing plant for $100,000. The contract allocates 80% of the price to the windmill and 20% of the price for the labor it will take to erect the equipment. Which of the following source(s) of law govern(s) the contract? I. Common. II. Statutory. III. Constitutional. IV. Secondary.

II only.

Which of the following are appropriate to address in a code of conduct? I. Respect. II. Trustworthiness. III. Dress code. IV. Ban on use of company property for personal reasons.

III and IV.

Which of the following are events of termination of an offer via operation of law? I. Revocation. II. Rejection. III. Death of the offeror. IV. Lapse of reasonable time.

III and IV.

On Monday morning, Shelley sends Keats an offer via e-mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats receives the e-mail on Monday afternoon, and immediately replies "We already have a web designer. Thanks." On Tuesday, Keats learns that the web designer position is actually open, so he e-mails Shelley "Sorry for the confusion. I accept your offer of Monday. When can you start?" Which of the following is true? I. No contract exists because the lapse of time. II. A contract exists as of Tuesday. III. No contract exists because of operation of law. IV. No contract exists because Shelley's original offer was rejected.

IV only.

Shelley sends Keats an offer via U.S. mail: "I offer to manage your website at a rate of $100 per hour. You must accept by Friday." Keats signs: "I accept, but I'll only pay you $90" and puts it in the mailbox on Friday. Shelley receives the letter Saturday. Which of the following is true? I. A contract exists on the day Shelley sent the offer to Keats. II. A contract exists as of Friday. III. No contract exists because of the statute of frauds. IV. No contract exists because of the mirror image rule.

IV only.

Helsel goes to see a physician concerning a particularly harsh flu. The doctor examines him, prescribes medication, and gives him a bill for medical services. This agreement falls into which of the following categories of contracts?

Implied

Holden brings Tippy to Caulfield, a veterinarian, for treatment. No payment or other agreement terms were discussed. After the treatment, Caulfield presents Holden with a bill for $500. What is the category of contract between Holden and Caulfield?

Implied

Which of the following is the appropriate "reality response" to the following challenge of business ethics: "Ethics cannot be managed?"

Management inherently incorporates a value system because priorities can be influenced by ethics.

Which CSR school of thought follows the view that market efficiencies guide morality and responsibility in business?

Narrow

Which CSR school of thought relies on the invisible hand of economic efficiency as a sufficient guide for social responsibility?

Narrow

Ethical decisions made on the basis of religious tenets or codes are an example of what approach to moral philosophy?

Principles-based

An ethical decision made on the basis of inherent moral rights is an example of which approach to moral philosophy?

Principles-based Correct

Which of the following is the appropriate "reality response" to the following challenge of business ethics: "Complying with the law is the only guide for ethical conduct?"

The law is a baseline for ethical decision making, but unethical acts can occur within legal limits.

Best thought of as procedural model law, the _____________ applies to transactions where the parties have expressly agreed to use electronic methods to facilitate an agreement.

Uniform Electronic Transactions Act

When two parties agree to use an electronic-commerce method for a transaction, the _____________ sets out procedural guidelines that recognize electronic records and signatures under the law.

Uniform Electronic Transactions Act

Holden puts up a poster around his neighborhood, "Missing: My Dog Tippy. Reward $100 if you find Tippy and bring him to my house." Caulfield finds Tippy and presents the dog to Holden. What is the category of contract between Holden and Caulfield?

Unilateral

In the Leonard v. Pepsico, Inc. case, the court held:

although certain advertisements could be an offer if the promise is clear, definite, and explicit, such was not the case in this particular television advertisement.

In the Grimshaw v. Ford Motor Company case, the court found that Ford's conduct ___________.

constituted corporate malice

Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) profitable, while 2) considering potential destruction to the __________, and 3) adding social value.

environment

Attention to business ethics is important because ____

ethics is a useful tool for preventing legal liability

Cardozo Candies agrees to sell 100 boxes of chocolates to a retail store and deliver them in one week. This agreement falls into which of the following categories of contracts?

express

In Grimshaw v. Ford Motor Company, the evidence showed that Ford ________________.

needed to spend only $15.30 per car to fix the defect

Business organizations committed to corporate social responsibility (CSR) aim to achieve commercial success in ways that honor ethical values and respect ______

people, communities, and the natural environment

Business organizations that integrate corporate social responsibility (CSR) principles in their decision making plan to achieve commercial success while still honoring ethical values and respecting ___________.

people, communities, and the natural environment

Corporate Social Responsibility (CSR) is defined as corporations that aim to achieve commercial success through ways that honor ethical values and respect for:

people, communities, and the natural environment.

Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) ______, while 2) considering potential destruction to the environment and 3) adding social value.

profitable

Clintonville Power (a hypothetical power plant) is considering shutting down one of its plants. In this decision, the surrounding neighbors are ________.

secondary stakeholders

Some ethicists refer to the triple bottom line to put CSR into perspective. The triple bottom line consists of being 1) profitable, while 2) considering potential destruction to the environment, and 3) adding _____ value.

social