BUS 404 Stern Midterm

The United States Congress and the Trump administration dramatically changed America's corporate tax profile in 2017 by enacting a $__________ tax cut.

1.5 trillion

Which of the following elements are included in the basic test for establishing defamation?

A false statement purporting to be fact; publication to a third person; fault; and damages

The proper balance between __________ remains the central public policy debate in American life.

open markets and government intervention

The triple bottom line calls for attention to the three Ps:

people, planet, and profit

According to commentator Nicholas Kristof, the real welfare cheats in America are __________.

prosperous corporations

Former employers providing references for a job applicant are protected by a(n) __________ privilege.

qualified

According to Ayn Rand, __________, that is, maximizing one's own interests through reliance on reason and rejection of sacrifice, is the only path to a just, meaningful life.

rational selfishness

The Business Roundtable, a group of the nation's top chief executive officers, issued a statement of purpose in 2019 that __________.

renounces the primacy of shareholder value and commits its companies to serving all constituents

Jenny is the chief executive officer of a company that has been affected by an economic downturn. She realizes that the only way for her company to remain in business during the period of recession is to cut costs drastically. She believes it would be better if all company employees took a 10 percent pay cut instead of laying off 10 percent of the workforce. She feels this is the correct decision, as it would benefit the company and all of its employees. Jenny's approach is consistent with __________.

rule-utilitarianism

Sweden's form of market socialism is also known as __________.

social democracy

The Rana plaza eight-story garment factory collapse outside Dhaka, Bangladesh in 2013 arguably created a new global awareness of __________.

sweatshop working conditions and careless, if not abusive, international supply chains

According to Cambridge University lecturer Clare Chambers, __________

the state should entirely remove itself from the marriage institution

Intentionally touching another person in a harmful or offensive way without legal justification or the consent of that person is a(n) __________.

Battery

Whose colossal Ponzi scheme stole as much as $65 billion from his clients before he was caught and sent to prison in 2009?

Bernard Madoff

The historic rule that any contribution by the plaintiff to his or her own harm constitutes a complete bar to recovery is called __________.

Contributory negligence

Which of the following is a traditional humanist value?

Cooperation

Corporate social responsibility is also referred to as which of the following?

Corporate citizenship

A father may be morally committed to saving his son from a burning building rather than saving another person who might do more total good for society. The action of the father would be primarily dictated by the __________ ethical system.

Deontological

Which of the following responsibilities fall under the "desired" category of professor Archie Carroll's social responsibility pyramid?

Discretionary/philanthropic

Which of the following is an integral part of "stage 4" of Kohlberg's theory of moral development?

Doing right is one's duty

Deontology is derived from the Greek work meaning __________.

Duty

T/F For years, the Nordic states of Sweden, Norway, Denmark, and Finland have practiced their form of communism with such success that it is labeled a "Third Way" between the harsher extremes of capitalism and socialism.

False

T/F France is pursuing the world's most aggressive privatization program.

False

T/F If you run an advertisement defaming a fast-food competitor by saying its food processing does not meet government standards, but you cannot prove the truth of your allegations, you may have committed the intentional tort of commercial assault.

False

T/F In all nations, the payment of bribes is considered an unlawful way of doing business.

False

T/F In terms of United States public policy, the proper balance between open markets and government intervention has been largely resolved.

False

T/F In the context of libertarianism, justice and fairness, right and wrong are measured by equality of results rather than from encouraging equal opportunity for all to engage in informed choices about their own welfare.

False

T/F Intentional torts involve voluntary acts that harm the public at large.

False

T/F Libel is the spoken form of the tort of defamation.

False

T/F Maximizing right rather than good is the teleological standard.

False

T/F Microsoft is America's largest employer, with 1.5 million employees in the United States.

False

T/F Mounting evidence shows an ongoing shift in the distribution of United States national income from owners to workers

False

T/F Nike regularly tops the Reputation Institute's worldwide corporate responsibility rankings.

False

T/F Psychologist Lawrence Kohlberg established a comprehensive theory of moral development in which he claimed that moral judgment, at least as applied to judgments of justice, is irreversibly established at a young age.

False

T/F Res ipsa loquitur requires proof beyond a reasonable doubt that the accident happened due to the defendant's negligence.

False

T/F Section 406 of the Sarbanes-Oxley Act does not require publicly traded companies to adopt a code of ethics for senior financial officers.

False

T/F Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of generally accepted accounting principles (GAAP).

False

T/F Social enterprise is a movement in which people launch businesses using entrepreneurial and managerial skills for the exclusive purpose of advancing the profit-making motive of capitalism.

False

T/F Socialism embraces totalitarianism while calling for aggressive government intervention to correct economic and social ills.

False

T/F State-owned firms account for about 65 percent of the Chinese economy.

False

T/F The emotion or intuition approach differs from the biological theory which claims that moral decision making is an automatic, non-reflective process in which our minds, when confronted with a moral question, instantaneously generate feelings of approval or disapproval.

False

T/F The federal False Claims Act rewards those who disclose fraud in the workplace with reduced prison sentences.

False

T/F The term individualism embraces communism, socialism and associated philosophies on the left side of the political/economic spectrum.

False

T/F The triple bottom line calls for attention to the three Ps: productivity, perseverance, and performance.

False

T/F To establish a successful negligence claim, a plaintiff must establish that the defendant intentionally breached a duty of due care to the plaintiff.

False

T/F To pay for its comprehensive welfare benefits, the United States takes 50.1 percent of its national income in taxes, the highest rate of any industrialized nation.

False

T/F Trespass to personal property occurs with the intentional entry onto the land of another without consent.

False

T/F Victims of negligence in a product liability case can bring actions against only manufacturers of the defective product.

False

T/F Virtue ethics applauds the person who is motivated by faith to build absolute and universal standards.

False

T/F Warranties are governed primarily by the Uniform Contracts Code.

False

The five "conservative" justices in theCitizens United majority saw political spending limits as a direct denial of liberty guaranteed by the __________ Amendment to the United States Constitution.

First

Osbaldo, the owner of a dry-cleaning store, refuses to return an expensive tuxedo to his customer Mason. He keeps the tuxedo for a day, mistakenly believing that Mason has not paid for the services provided by the store. These facts are an example of a(n) __________ personal property.

trespass to

Digi V, Incorporated, an electronics company, focuses on striking a balance between its profits and its environmental responsibility. It uses biodegradable substances to manufacture its products and over the years has attracted many loyal customers who are concerned about the environment. The strategy used by Digi V, Incorporated is an example of the __________ approach to corporate citizenship.

triple bottom line

Wright Corporation, an American firm, is establishing an office in Africa with Mary as its manager. After two months of fruitless efforts trying to obtain electricity for the office, Mary is told that in order to do so, she must give some money to the government-based electric company agent as an "encouragement", just as all other businesses have done. Under the Foreign Corrupt Practices Act, which of the following is true regarding the payment?

The payment is legal, since it is money paid merely to expedite or secure performance of a routine government action

Which of the following is true regarding the American middle class?

The portion of Americans living in middle-class circumstances declined from 61 percent in 1971 to 51 percent in 2011.

Mirabella purchased a vacuum cleaner the seller promotes as "top of the line". Upon using it for the first time, however, Mirabella realizes that the vacuum cleaner is only average at best. In the context of warranty liability, which of the following is most likely correct?

The seller did not breach a warranty, since its "top of the line" reference amounts to puffing.

T/F A danger in the ethic of care is that it might be interpreted to restore and legitimize the stereotype of women as care-giving subordinates not deserving of moral autonomy.

True

T/F A full warranty requires free repair of any defect.

True

T/F According to Milton Friedman, the firm that maximizes its profits is necessarily maximizing its contribution to the society.

True

T/F According to act-utilitarianism, our goal is to identify the consequences of a particular act to determine whether it is right or wrong.

True

T/F According to philosopher and novelist Ayn Rand, big government suppresses individual rights and personal freedom and improperly transfers wealth from the highly productive to those who are less so.

True

T/F According to the comparative negligence defense, a plaintiff's recovery is reduced by a percentage equal to the percentage of the plaintiff's fault in the case.

True

T/F Critics contend that the power of the business community has become so encompassing that virtually all dimensions of American life have absorbed elements of the business ethic.

True

T/F Critics have long argued that the public interest has not been well served by America's big corporations.

True

T/F Formalism requires us to follow our own categorical imperative.

True

T/F From the critics' point of view, extravagant wealth, side-by-side with punishing poverty, is perhaps the greatest disappointment and injustice in the global advance of capitalist principles.

True

T/F Germany has been able to balance a rather generous social safety net with a very robust and highly skilled manufacturing sector.

True

T/F Immanuel Kant believed that every rational creature can act according to his or her categorical imperative because all such persons have "autonomous, self-legislating wills" that permit them to formulate and act on their own systems of rules

True

T/F In her book Brands of Faith, Professor Mara Einstein says that religion has become a product.

True

T/F In many states, a plaintiff who willingly enters a dangerous situation and is injured will be barred from recovery even if the dangerous condition is not his fault.

True

T/F In order to keep its economy healthy, Sweden has followed a policy of a comparatively low corporate tax rate of 22 percent.

True

T/F In the United States, increasing government revenue problems suggest that infrastructure privatization will continue.

True

T/F Karl Marx felt that the pursuit of wealth and self-interest would erode society's moral core.

True

T/F Measured by sales revenue, Walmart is the largest company in America.

True

T/F North Korea continues to practice communism.

True

T/F Puffing is an opinion expressed by the seller and generally does not create an express warranty.

True

T/F Raising one's hand as if to strike another person, even though the blow never occurs, constitutes the tort of assault if the victim reasonably thought herself to be in immediate danger.

True

T/F Real wages for blue-collar workers are almost unchanged over the past 35 years.

True

T/F Some statements are so inherently damaging that actual injury need not be shown. Those statements are labeled slanderper se.

True

T/F Strict liability does not require proof of the defendant's negligence.

True

T/F The Foreign Corrupt Practices Act (FCPA) requires rigorous internal accounting controls and careful recordkeeping to ensure that bribes cannot be concealed via "slush funds" and other devices.

True

T/F The risk-utility test holds that a product is negligently designed if the benefits of a product's design are outweighed by the risks that accompany that design.

True

T/F The triple bottom-line/sustainability approach employs free-market principles and recognizes the necessity for financial success but also argues that social and environmental responsibilities are of equal importance.

True

T/F To stakeholder advocates, simply maximizing profits to satisfy shareholders would not satisfy the corporation's social duties.

True

T/F To the deontologist, principle is primary and the end or result is the secondary measure of the ethical quality of a decision or act.

True

T/F Under strict liability, coverage generally extends to personal injuries and property damage.

True

German philosopher Immanuel Kant proposed the __________, the notion that every person should act on only those principles that he or she, as a rational person, would prescribe as universal laws to be applied to the whole of humankind.

categorical imperative

Socialists seek a(n) __________ approach to life.

communitarian

Which of the following is not a defense to an intentional tort?

contributory negligence

The 2010Citizens United case allows __________.

corporations and labor unions to spend unlimited organization funds for candidates and causes so long as they do not coordinate that spending with parties and/or candidates

In the United States Supreme Court'sCitizens United decision, the four "liberal" dissenting justices argued that __________.

corporations and labor unions, in many other ways, are not treated as people and doing so in the case of political contributions could allow those organizations to dominate and further corrupt the political process

Injurious falsehood, sometimes called trade libel, is a form of __________ that is directed against the __________ of a person.

defamation; property

A(n) __________ ethical system emphasizes a duty directed toward what ought to be right.

deontological

The rapid creation and trading of __________ was a significant contributor to the collapse of the financial services industry, which triggered the Great __________.

derivatives; Recession

With regard to professor Archie Carroll's social responsibility pyramid, which responsibilities serve as the foundation on which all other responsibilities rest?

economic

According to sociologist David Callahan, America is a nation increasingly falling into two groups: a __________ class and a(n) __________ class.

winning; anxious

According to a 2016 study of supply chain sustainability plans in 50 large American firms, __________.

few companies seem to be embracing sustainability initiatives in a meaningful way

T/F A 2011 study of 392 international companies found no correlation between the quality of codes of conduct and ethical performance.

False

T/F A description of goods which is made part of the basis of a bargain creates an implied warranty that the goods shall conform to the description.

False

T/F A moral rule is "categorical" rather than "hypothetical" in that its prescriptive force is dependent on the consequences of the rule.

False

T/F A stronger sense of moral identity occurs if that identity is centered on one's own creativity.

False

T/F According to American commentator and social activist Jeremy Rifkin, the "American Dream" focuses on sustainable development, while the "European Dream" focuses on growth.

False

T/F According to a 2016 Oxfam study, for each dollar they paid in federal taxes between 2008 and 2014, America's 50 largest companies received $3 in federal loans, loan guarantees, and bailouts.

False

T/F According to stakeholder advocates, simply maximizing the financial interests of the shareholders of a corporation would satisfy a corporation's social duties.

False

T/F Among its major provisions, the False Claims Act raises penalties for whistleblowers to as much as 25 years of imprisonment along with heavy fines.

False

T/F Capitalism features economic cooperation and varying degrees of centralized control.

False

T/F Capitalists are convinced that problems of market failure mean that the free market is simply incapable of meeting the needs of all segments of society.

False

T/F Capitalists consider class distinctions a relic of the past and seek to diminish any class differences.

False

T/F Capitalists fear the "irrationality" of a society based on competition and unrestrained pursuit of industrial growth.

False

Which of the following ethical systems believes that the consequence of a decision or act is primary?

Teleology

T/F Commentator Nicholas Kristof argues that the real welfare cheats in America are poorer citizens.

False

T/F Corporations cannot lawfully establish political action committees.

False

T/F False imprisonment occurs when someone is negligently confined against his or her will.

False

T/F Few big companies have voluntarily developed ethics codes.

False

According to the textbook, a recentHarvard Business Review article argues that the principal goal of corporate social responsibility must be to __________.

"align a company's social and environmental activities with its business purpose and values"

According to the federal False Claims Act, whistleblowers are typically entitled to __________ to __________ percent of the recovery from the wrongdoer.

10;30

State-owned firms account for approximately what percentage of the Chinese economy?

25%

According to a 2016 Oxfam study, for each dollar they paid in federal taxes between 2008 and 2014, America's 50 largest companies received $__________ in federal loans, loan guarantees, and bailouts.

27

In fiscal year 2015, federal false claims recoveries totaled approximately $__________.

3.5 billion

As of 2019, approximately __________ facilities employing over __________ employees in more than __________ countries have been certified by Social Accountability Accreditation Services in New York City.

4,300; 2.1 million; 60

Approximately what percentage of the Russian economy is controlled by the Russian government?

55%

In fiscal year 2015, for their assistance in identifying fraud against the federal government, whistleblowers were paid approximately $__________.

600 million

According to a recent survey cited in the textbook, what percentage of respondents believe that U.S. moral values are getting worse?

77%

Which of the following is correct regarding the tort of strict liability?

A seller who is free of actual fault may be liable for injuries caused by a defective and unreasonably dangerous product.

Which of the following is a market-based approach to education where parents/students "spend" their taxpayer-provided dollars on the school of their choice?

A voucher system

Psychologist Lawrence Kohlberg set forth a comprehensive theory of moral development in which he claimed that moral judgment evolves and improves primarily as a function of __________ and __________.

Age; education

What are the two (2) major branches of utilitarianism?

Act and rule

Of the six universal stages of moral development identified by Kohlberg, which of the following traits is a manager most likely to display if she is at "stage 3"?

Adhere to stereotypical images

Intentionally causing another person to reasonably believe that she is about to be the victim of a battery is__________.

An assault

Which of the following is true regarding a comparison between the United States and Sweden?

As of 2019, life expectancy in Sweden is higher than life expectancy in the United States.

In many states, a plaintiff who willingly enters a dangerous situation and is injured will be barred from recovery. The central defense for negligence in this case is ___________.

Assumption of risk

Which of the following defenses can act as a complete bar to strict liability recovery in many states?

Assumption of the risk

Which of the following doctrines contends that business has enjoyed a central and favored role in American life and as a result, must assume a portion of the burden for the welfare of all society?

CSR

Which of the following is one of Marx's criticisms of capitalism, according toThe Economist magazine?

Capitalists basically expropriate the wealth of others.

In its 2010 __________ decision, the United States Supreme Court held that federal laws limiting corporate campaign contributions violated corporate __________ rights.

Citizens United; free speech

Colleen informs a sales clerk at a local electronics store that she needs a computer that can maintain a 12-hour battery charge. The sales clerk sells a computer to Colleen and withholds the fact that it cannot maintain a 12-hour battery charge. Colleen later discovers that the computer can maintain only a 6-hour battery charge. Which of the following is likely correct in this scenario?

Colleen can successfully sue the store for breach of the implied warranty of fitness for a particular purpose.

The term collectivism embraces which of the following economic philosophies?

Communism and socialism

Warren is involved in an accident when he misses a stop sign and crashes into another car whose driver is drunk. Despite having sustained $10,000 worth injuries, Warren is able to recover only $7,000 as his own negligence is found to have contributed thirty (30) percent to his injury. The type of negligence defense most likely availed in this case is __________.

Comparative negligence

Which of the following is an integral part of "stage 3" of kohlberg's theory of moral development

Conform to meet the expectations of others

Teleological ethical systems are often referred to as __________ ethical systems.

Consequentialist

Which of the following tests imposes a duty on a manufacturer to design its products so that they are safe not only for their intended use but also for any reasonably foreseeable use?

Consumer expectations

Which of the following proposals has not been suggested by advocates of tort reform?

Eliminating the tort of strict liability

With regard to professor Archie Carroll's social responsibility pyramid, which responsibilities involve doing what is right, just, and fair?

Ethical

Which of the following is an integral part of "stage 6" of Kohlberg's theory of moral development?

Follow self-chosen universal ethical principles

TheNew York Times has described one seemingly healthy commercial venture as a "profound shift in American education: the __________ of the classroom".

Googlification

Which of the following countries is pursuing the world's most aggressive privatization program?

Greece

Section 406 of the Sarbanes-Oxley Act is designed to promote which of the following?

Honest conduct

An intentional invasion of a person's solitude is labeled a(n) __________ if it would be highly offensive to a reasonable person.

Intrusion

Which of the following describes the tort of nuisance?

It arises when enjoyment of one's land is impaired because of some tortious interference.

Which of the following is true regarding the triple bottom line approach?

It contends that profit and social/environmental responsibility are of equal importance.

Which of the following is true regarding the Magnuson-Moss Warranty Act?

It does not require the seller to offer an express written warranty.

Which of the following is correct regarding the tort of false imprisonment?

It involves a restriction of the victim's freedom of movement.

Which of the following is correct regarding the tort of strict liability?

It offers the prospect of holding all of those in the chain of distribution liable for damages from a defective product.

Which of the following is false regarding the Foreign Corrupt Practices Act?

It requires all publicly traded companies to develop ethics codes for senior management.

Which of the following states has largely privatized its government-run hospitals?

Louisiana

Strict liability in tort offers the prospect of holding which of the following parties liable for damages resulting from a defective product?

Manufacturers and sellers

Which of the following economists was the most prominent advocate of the profit maximization view?

Milton Friedman

Which of the following is true regarding ethics codes in the workplace?

Most big companies have voluntarily developed ethics codes.

Which of the following are the three (3) major product liability causes of action?

Negligence, breach of warranty, and strict liability

The residents of a suburban region are unable to enjoy fresh air due to the foul smell coming from a pig farm located nearby. In this case, the owners of the pig farm can be sued for __________.

Nuisance

What did author Robert Putnam call the community and commitment bonds that seem to emerge in a culture where people regularly interact with one another?

Social capital

Which of the following believe a society's broad directions should be carefully planned rather than left to the "whimsy" of the market?

Socialists

Which of the following is true regarding socialism and capitalism?

Socialists consider class distinctions anathema.

Which of the following is correct regarding a false light claim?

Published claims about another that may show someone in a false light must be highly offensive to the reasonable person.

Which of the following is true of Robert Putnam's observations on social capital?

Putnam observed that virtually every measure of social interaction fell significantly from roughly 1975 to 2000.

According to American commentator and social activist Jeremy Rifkin, which of the following is a characteristic of the European "Dream"?

Quality of life

In general, the standard of care applied in a negligence action to determine whether the defendant satisfied his or her duty of care to the plaintiff is the __________ standard.

Reasonable person

In her book Brands of Faith, Professor Mara Einstein says that __________ has become a product.

Religion

Which of the following doctrines permits the court in some cases to infer the defendant's negligence even though that negligence cannot be proved?

Res ipsa loquitur

In his book The Greening of America, author Charles Reich addressed the loss of __________.

Self

Which of the following is true regarding socialism?

Socialists fear the irrationality of a society based on competition and unrestrained pursuit of industrial growth.

Under the __________ model of social responsibility, the corporation identifies all of the groups that may significantly affect the firm's performance or be affected by it.

Stakeholder

China's economic system is sometimes labeled __________.

State capitalism

Which of the following countries followed the "Third Way" and navigated a path between the harsher extremes of capitalism and communism?

Sweden

Which of the following is true regarding gender equality in Sweden?

Sweden aggressively encourages gender equality.

Which of the following is the first global standard which measures a company's social and environmental record?

The Social Accountability 8000

Which of the following is correct regarding an intentional tort?

The defendant is liable for all reasonably foreseeable injuries resulting from his intentional act.

Which of the following principles is most likely to be followed by a utilitarian?

The greatest good for the greatest number determines the proper course of action.

Jorge decides to use a lawn mower to trim his ornamental hedges. He lifts the mower and in the process is seriously injured. Which of the following is the most likely result if Jorge files a lawsuit against the lawn mower manufacturer based on the tort of strict liability?

The lawn mower manufacturer will win if it can prove that using a lawn mower to trim hedges is an improper and unforeseeable use.

Which of the following is true regarding today's democratic socialists?

They tend to accept private property and market-based economic practices while calling for government intervention to correct the market's failures.

Which of the following is true regarding capitalists and socialists?

To the capitalist, individual freedom suffers under socialism.

Sweden, Norway, Denmark, and Finland have practiced their form of market socialism with such success that it is labeled __________.

a "Third Way" between the harsher extremes of capitalism and communism

If a seller of goods provides a sample or model of the goods which is made a part of the basis of the bargain, __________ exists.

an express warranty

Both Kohlberg and Gilligan take the position that moral decision making is the controlled product of __________.

analysis, deliberation, and experience

Stephanie, a water sports enthusiast, goes surfing despite warnings of rough weather conditions from the lifeguards on duty. As a result, she is injured because of rough tides. Stephanie is barred from recovering damages from the lifeguards because of her __________.

assumption of risk

According to Nobel Prize winner Jean-Paul Sartre, __________ precedes __________.

existence; essence

According to sustainability advocates, corporations giving close attention to social and economic duties, in addition to the bottom line, __________.

have competitive advantage

In the context of economic systems, the "Third Way" refers to __________.

market socialism

When an individual's name or image is wrongfully used without permission for commercial purposes, it is called a(n) __________.

misappropriation of one's name or likeness

Chantel's neighbor, Corey, is away on a week-long tour. Chantel sees smoke rising from Corey's house one day and, fearing a possible outbreak of fire, breaks in through the front door only to find that the smoke was from outside and not from within the house as she had thought. In this case, Chantel can avail the defense of __________

necessity

Ayn Rand's philosophy of __________ contends that only free market principles can produce a rational, moral life.

objectivism