BUL 2241 CH3

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Businesses that act irresponsibly in response to ethical challenges:

may have to face the arbitrariness of legislation.

The Latin phrase that means "above all, do no harm" is:

primum non nocere.

In the context of the importance of business ethics, good business relationships are produced through a reliance on __________.

promises

Laws that mandate restaurant inspections exist primarily for the protection of:

public health, safety, and morals.

Which of the following constitutes a breach of confidentiality?

A banking employee discloses information about the bank's customers to a rival bank. An employee in a merchandise company sells customer lists to a competitor. A senior employee of a company reveals the proprietary technology of the company through a transaction made on a payment platform. All of these choices are correct.

In the context of the categories of ethical behavior, which of the following most likely constitutes a violation of the ethical value of integrity?

A business fails to follow through on a contract because of the possibility of a better deal.

Which of the following situations is an example of a conflict of interest in the workplace?

Amrita, an employee, hires her brother's catering company to furnish lunch at the annual meeting of her company without special permission. Sam, an employer, hires his college friend for a company position although another candidate is more qualified. Jenny, a purchasing agent, accepts a gift from her supplier. All of these choices are correct.

Which of the following is a consequence of a company's breach of ethics?

Distrust in the company Possible fines A drop in earnings All of these choices are correct.

Emma is an engineer who works for a company that designs and manufactures airplanes. She discovers a potentially fatal design flaw in the model for a new airplane that the company is working on. Emma notifies her superiors about this flaw, but they ignore her warning and approve the design. Which of the following ethical duties are Emma's superiors violating?

Doing no harm

Columbia Health Care's share price dropped by 58 percent, and it experienced a 93 percent drop in earnings after it was charged with overbilling for Medicare reimbursements. Its share price dropped from $40 to $18. The company had to spin off 100 of its hospitals and had to pay record fines to settle the charges. Which of the following theories is most likely to have influenced the company's decision to overbill for Medicare reimbursements?

Ethical egoism

In applying the Laura Nash test to a contemplated course of conduct, which of the following series of questions should one ask?

Have I defined the problem accurately? How would I define the problem if I stood on the other side of the fence? How did this situation occur? What is my intention in making this decision? How does my intention compare with the probable results?

In their book Building and Growing a Business Through Good Times and Bad, Louis Grossman and Marianne Jennings studied companies that have paid 100 years of consistent dividends. Which of the following was one of the factors linked with the long-term growth and profitability of these business organizations?

High standards for product quality High standards for employee welfare High standards for customer service All of these choices are correct

Which of the following is a question business ethicist Laura Nash has developed to help business people reach the right decision in ethical dilemmas?

How would you define the problem if you stood on the other side of the fence?

Which of the following is an example of laws created with protection from exploitation as the primary goal?

Laws that provide special protections permitting minors to disaffirm their contracts

Andrea works for an internationally renowned restaurant known for its barbecue sauce. As a condition of her employment, Andrea signed a nondisclosure agreement in which she agreed not to disclose any trade secrets of the restaurant. However, Andrea discloses the restaurant's barbecue sauce recipe to one of her company's competitors for a price. Which of the following ethical duties does her behavior violate?

Maintaining confidentiality and loyalty

Google decided to do business in China despite the restrictions the Chinese government places on the use of the Internet and the content of search engines as well as human rights and religious freedom violations in that country. Such restrictions and behaviors in the United States would be an unconstitutional violation of fundamental rights. Google weighed the conflicting values, concluding that they would use the standard of honoring the law of China despite the censorship and, as a result, that access might foster and facilitate movements for change of government actions and policies. Which of the following theories most likely influenced Google's decision?

Moral relativism

John has a 6-year-old son and a low-paying job at a small grocery store. His son falls ill, which leads to several medical bills. As a result, John runs out of money after paying his rent and clearing all the bills. John decides to steal some eggs and a loaf of bread from the store he works at to feed his son. Which of the following ethical theories is most likely influencing John's behavior?

Moral relativism

A buyer purchases a used car, but the transmission falls apart the day after the purchase. When the buyer requests the seller to repair the transmission, the seller refuses. The seller's justification is that the phrase "AS IS" is present in the contract and thus the seller has no legal obligation to repair the car. Which of the following ethical standards is the seller's justification most likely based on?

Positive law

Sam brings a civil suit to recover royalties he lost because someone infringed his copyrighted material. This civil suit is based on federal laws that afford him rights to protect his work. What is the underlying goal that these laws were created to protect?

Protection of property

Sarah Ellis operates a retail store that almost always hires skilled workers who are college graduates. Currently, however, her business does have a holiday opening for an unskilled worker. Sarah is considering hiring an uneducated welfare recipient. To ensure her decision is ethical, Sarah asks herself the following three questions: Is the decision legal? Is the decision balanced? How does the decision make me feel? Which model is she using to resolve her ethical dilemma?

The Blanchard and Peale model

Sidney has access to several unsecured wireless networks in her building. Instead of paying for her own wireless service, Sidney decides to use her neighbor's unprotected connection. She reasons that it is not wrong for her to do this since her neighbor has not bothered to secure his connection with a password. Which of the following theories is most likely influencing Sidney's decision?

The ethical egoism theory

Mr. Gerard is suffering from a fatal and incurable disease and is in excruciating pain. His doctor says that he only has a few months to live. Mr. Gerard has asked his doctor to administer euthanasia (the practice of intentionally ending a life in order to relieve pain and suffering) even though it is illegal in the United States. Which of the following principles of ethics is Mr. Gerard most likely using when he asks the doctor to do this?

The rights theory

A masked man with a gun enters a busy shopping mall and screams that he is going to kill everyone. Diaz, an off-duty police officer, throws himself in front of the gunman and stops him but is shot and killed in the process. Which of the following ethical theories most likely influenced Officer Diaz's actions?

The utilitarian theory

In United States v. O'Hagan, a lawyer in a firm representing the issuer of a tender offer traded in the stock of the target company (using insider information) for personal profit. If the court's ruling was based on the social contract theory, which of the following justifications would it use?

Trading in securities for personal profit using confidential information is in breach of a fiduciary duty to the source of information.

Max, a toy designer, devotes his time to designing toys that are safe for children. Max believes that he and his employer have a duty to provide the public with safe toys. Max's approach to his work is most likely influenced by __________.

the social contract theory

The theory of ethics based on doing the most good for the most people in making decisions is known as __________.

the utilitarian theory


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