BUS 404 MIDTERM
Which of the following statements is true of the tort of negligence? (A) A party's carelessness rather than his intent causes another to suffer an injury (B) Negligence applies only to unreasonably dangerous products that reach the customer without substantial change after leaving the manufacturer (C) Negligence is a no-fault concept where an individual is responsible for harm without proof of carelessness (D) The plaintiff needs to show that the harm itself was the actual cause but not the proximate cause of her injury
(A) A party's carelessness rather than his intent causes another to suffer an injury
Which of the following statements is true of corporate funds? (A) Although political action committees' contributions are voluntary, corporate employees often feel pressured to participate. (B) Corporations cannot solicit contributions from employees, shareholders, and others. (C) Corporations cannot lawfully establish political action committees to solicit and disburse voluntary campaign contributions. (D) Corporate funds can lawfully be given directly to candidates for federal office.
(A) Although political action committees' contributions are voluntary, corporate employees often feel pressured to participate.
Which of the following statements is false of large American corporations? (A) Expanding corporate power may make working life change for the better (B) The colossal size of corporations threatens America's economy rather than strengthening it. (C) Large corporations could morph into "mini-states" that fill the void if governments cannot provide essential services (D) The colossal size of corporations permits continuing abuse of the American public.
(A) Expanding corporate power may make working life change for the better
Free markets are more efficient decision makers than government rules. Which of the following is a result of the efficient decisions made by free markets? (A) Gains have been made with increased global standards of living. (B) National boundaries are becoming stronger. (C) Financial assets have stopped flowing freely across national boundaries (D) Less developed countries have seen their standards of living decrease
(A) Gains have been made with increased global standards of living
Which of the following statements is true about advertising in schools? (A) It is likely to discourage critical thinking (B) It is likely to discourage materialism (C) It is likely to celebrate reliable values (D) It is likely to advocate criminal behavior
(A) It is likely to discourage critical thinking
Which of the following proposals has not been suggested by advocates of tort reform? A) Limiting class actions B) Reducing or eliminating punitive damages C) Curbing attorneys' fees D) Getting rid of strict liability
D) Getting rid of strict liability
Taylor purchases a vacuum cleaner that the seller promoted as top of the line and best in its class. However, at the first use he realizes that the vacuum cleaner fails to function as he expected given that it was promoted as top of the line and best in its class. In the context of warranty, which of the following statements is true? A) An implied warranty of fitness for a particular purpose was breached. B) An implied warranty of merchantability was breached. C) An express warranty was breached. D) No breach of warranty occurred as it is a case of puffing.
D) No breach of warranty occurred as it is a case of puffing.
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?: A union's Political Action Committee (PAC) must support all different political agendas advocated by each union member.
False
T/F?: A warranty is simply a non-contract-based guarantee
False
T/F?: Although business has enjoyed a central and favored role in American life, it need not assume a measure of the burden for the welfare of the total society.
False
T/F?: Among its major provisions, the False Claims Act raises penalties for whistle-blowers to as much as 25 years' imprisonment along with heavy fines.
False
T/F?: An alternative and more arguably more "progressive" corporate approach to stakeholders empasizes the dominant goal of controlling all stake holder relationships.
False
T/F?: Capitalism features economic cooperation and varying degrees of centralized control
False
T/F?: Capitalism in America was built on the strong philosophical foundation of centralized control by the government
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
T/F?: China's reliance on cheap labor to drive its economy remains unchallenged as otehr nations are unable to undercut the Chinese advantage
False
T/F?: Communists 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?: Corporations cannot lawfully solicit campaign contributions from employees, shareholders, and others.
False
T/F?: Democratic capitalism and state capitalism create equal economic and political advantage making them economic and political allies
False
T/F?: Federal sentencing guidelines, issues by the US Sentencing Commission, provide ranges within which judges are required to impsoe sentences on all violations of teh Sarbanes-Oxley Act
False
T/F?: In all nations, the payment of bribes is considered as an unlawful way of doing business
False
T/F?: In the context of federal sentencing guidelines for corporate or white-collar crime, companies involved in crimes do not receive reduced penalties even if they have effective compliance programs in place
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?: It is a well-known fact that the United States ranks equally well on standard social measures and standard economic measures
False
T/F?: Labor Unions can lawfully use members' dues to establish politcal action committees
False
T/F?: Libel is the spoken form of the tort of defamation.
False
T/F?: Maximizing right rather than good is tge teleological standard.
False
T/F?: Organizational culture does not influence corporate misconduct
False
T/F?: Renewed corporate community engagement, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility.
False
T/F?: Res ipsa loquitur requires a showing that the accident happened due to the defendant's negligence
False
T/F?: Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of increased financial accountability.
False
T/F?: Socialism embraces totalitarianism while calling for aggressive government intervention to correct economic and social ills
False
T/F?: The American financial community's near collapse in late 2008 was most directly ignited by the government's flooding the market with cash
False
T/F?: The Sarbanes-Oxley Act forbids corporate executives to personally certify the accuracy of their financial reports
False
T/F?: The emotion or intuition approach differs from the biological theory which claims that moral decision making is an automatic, nonreflective 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 pure free market approach adds all forms of government including regulatory agencies, consumer protection, environmental rules, and antitrust law to our business system and our society
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?: Triple bottom-line advocates call for managerial practices that respect and measure a firm's social and environmental performance more than the firm's financial performance.
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?: 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 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 shareholder advocates, maximizing the financial interests of the shareholders of a corporation, would satisfy a corporation's social duties.
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?: American capitalism, despite its extraordinary success, is criticized for problems of poverty, inequality, and unfairness
True
T/F?: Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.
True
T/F?: Churches now routinely employ standard business practices including advertising, promotional giveaways, and marketing campaigns.
True
T/F?: Conversion is the situation in which a serious and extensive interference with someone's personal property is impaired because fo some tortious interference
True
T/F?: Corporate funds cannot lawfully be given directly to candidates for the United Staes Congress.
True
T/F?: Falsely claiming that a competitor's product is defective or harmful might constitute injurious falsehood
True
T/F?: Formalism requires us to follow our own categorical imperative.
True
T/F?: From 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?: 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?: 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 rules.
True
T/F?: Lobbying is not confined to the business community.
True
T/F?: Political scientist Benjamin Barber believes that capitalism drags us into decadence by encouraging us to buy as many unnecessary products as we can manage
True
T/F?: Privatization often brings substantially reduced costs and improved expertise
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 even though the blow never transpires constitutes the tort of assault if the victim reasonably thought herself to be in immediate danger
True
T/F?: Slander generally requires a showing of actual harm.
True
T/F?: Strict liability does not require proof of the defendant's negligence
True
T/F?: Sweden and the other Scandinavian states rely on wise government spending as their key ingredient in a successful market-based economy
True
T/F?: Taking the privatization moment a step further, state and local governments are selling or leasing existing roads to private companies
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 business community in America influences the electoral and law-making processes.
True
T/F?: The idea of social responsibility is a movement in which decision makers take actions to protect and improve the welfare of society as a whole along with their own interests.
True
T/F?: The outsourcing of good, high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in the country.
True
T/F?: The primary goal of the triple bottom-line approach is to employ free market principles that allow for financial success as well as social and environmental success.
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 term collectivism embraces communism and socialism and similar philosophies on the left side of the political or economic spectrum
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?: Torts are civil wrongs that arise from the defendant's breach of duty that causes an injury to a particular person.
True
T/F?: Under strict liability, coverage generally extends to personal injuries and property damage
True
T/F?: When managers are pushed to adopt a bigger and broader conception of social responsibility, the chances of establishing a sustainable, enduring global community where resources are not dangerously depleted or damaged are maximized.
True
Which of the following statements is not true of intentional infliction of emotional distress? (A) Testiony from a mental health professional is the only requirement needed to recover damages (B) Employment firings, drug tests, and sexual harassment have been the basis of intentional inflicton of emotional distress claims (C) Compelling evidence of outrageous conduct is normally required (D) Generally severe emotional distress and pain must be proved
(A) Testiony from a mental health professional is the only requirement needed to recover damages
Which of the following is an argument put forth by the liberal wing of the Supreme Court in the Citizens United case? (A) Treating corporations as people in cases of political contributions would allow these organizations to further corrupt the politcal process. (B) Limiting corporate campaign contributions would violate corporate free speech rights. (C) The growing influence of the business community would saturate and dominate all coners of American life. (D) By outsourcing of good, high-paid factory jobs from the United States, corporations are fundamentally challenging and changing life in the home country.
(A) Treating corporations as people in cases of political contributions would allow these organizations to further corrupt the politcal process.
Traditional humanist values include all the following except: (A) faith in growth (B) meaningful service to society (C) cooperation (D) individual dignity
(A) faith in growth
When an individual's name or image is wrongfully used without permission for commerical purposes, it is called a(n) _______________. (A) misappropriation of one's name or likeness (B) intrusion into one's solitude (C) false light one's reputation (D) public disclosure of private images
(A) misappropriation of one's name or likeness
Michael, the owner of a dry-cleaning store, refuses to return an expensive tuxedo to his customer Daniel. He keeps the tux for a day as he mistakenly believes that DAniel has not paid for the services rendered in the past three months. These facts are an example of a(n) _________________. (A) trespass to personal property (B) injurious falsehood about another's personal property (C) conversion of personal property (D) misappropriation of personal property
(A) trespass to personal property
Which of the following does not describe the historical view of business responsibilities through the first half of the 20th century? (A) Businesses were largely exempt from any affirmative duty of the resolution of social problems. (B) Businesses were expected to give close accounting attention to their social and environmental performance as well as financial performance (C) The conception of corporate duty was narrow. (D) The duty of businesses was the production and distribution of the best products and services at the lowest possible prices
(B) Businesses were expected to give close accounting attention to their social and environmental performance as well as financial performance
According to critics, which of the following is the impact of a concentrated economic structure? (A) The government has been able to regulate powerful companies without much trouble. (B) Companies and industries are no longer fully responsive to market commands. (C) Concentrated structure has helped increase meaningful competitiveness in the American market (D) A significant decrease in complaints about the corporate role in pollution hace resulted
(B) Companies and industries are no longer fully responsive to market commands.
According to the free market view, which of the following is considered the best measure of social responsibility? (A) Social and environmental performance (B) Profit maximization (C) Triple bottom line/sustainability (D) Long-term company interest
(B) Profit maximization
Which of the following statements is true of a false light claim? (A) It is wrongfully using a celebrity's name or likeness in a product (B) Published claims about another that may show someone in a false light must be highly offensive to the reasonable person (C) Disclosure of private facts about someone must be highly offensive to teh reasonable person (D) It involves a substantially unreasonable injury to one's reputation rather than emotional well-being
(B) 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 not necessary to establish the tort of slander? (A) A statement about the victim which is false (B) The victim's emotional well-being is harmed (C) A statement that damages the plaintiff's reputation and causes actual harm (D) A false statement is communicated to people other than the one being defamed
(B) The victim's emotional well-being is harmed
An intentional invasion of a person's solitude is labeled a(n) _________________ if it would be highly offensive to a reasonable person. (A) false light (B) intrusion (C) assault (D) fraud
(B) intrusion
Which of the following is a view professed by Nobel prize-winning economist Milton Friedman? (A) Socially responsible behavior, within reasonable bounds, is simply the "right thing" to do (B) A strong bottom line, in many cases, requires considerations beyond the immediate, short-run, profit-maximizing interests of a firm. (C) Any dilution of the profit-maximizing mode - such as charitable contributions - is a misuse of the stockholders' resources (D) In the environmental domain, sustainability will require attention to energy efficiency, waste minimization, recycling, and the total ecological agenda
(C) Any dilution of the profit-maximizing mode - such as charitable contributions - is a misuse of the stockholders' resources
Which of the following describes the tort of nuisance? (A) Nuisance occurs when an individual's name or image is inadvertently used without permission for commercial purposes (B) Nuisance is a form of defamation that is directed against a competitor's product (C) Nuisance arises when someone is unable to enjoy her land is impaired because of some tortious interference (D) Nuisance involves third party's intentional interference with a person's right to fully enjoy his or her personal property
(C) Nuisance arises when someone is unable to enjoy her land is impaired because of some tortious interference
Which of the following is an impact of the Supreme Court's highly controversial 5-4 ruling in the 2010 Citizens United Case? (A) The decision has permitted corporations and labor unions to coordinate organizational fund spending with parties or candidates. (B) The decision has recognized political spending as a direct acceptance of liberty guaranteed by the First Amendment (C) The decision has opened the door to gushers of personal and corporate money funneled through the Independent Expenditure politcal action committees. (D) The decision has restricted corporations and labor unions from spending unlimited organizational funds for candidates.
(C) The decision has opened the door to gushers of personal and corporate money funneled through the Independent Expenditure politcal action committees.
Intentionally touching another in a harmful or offensive way without legal justification or the consent of that person is a(n) _________________. (A) intentional infliction of emotional distress (B) assault (C) battery (D) negligent infliction of emotional distress
(C) battery
Which of the following is an intentional tort directed against a person's property? (A) Misappropriation of personal goods (B) Battery that causes fear of imminent an offensive touching (C) Libel that harms one's reputation (D) Injurious falsehood or trade libel
(D) Injurious falsehood or trade libel
Which of the following statements is true of lobbying in the United States? (A) It is illegal for lobbyists to approach politicians. (B) It is confined to the business community. (C) It has a negligible effect on political decisions (D) It is an essential ingredient in big business strategy.
(D) It is an essential ingredient in big business strategy.
Which of the following statements is true of political action committees (PACs)? (A) PACs can only contribute to national elections, and not state elections. (B) Corporations cannot solicit contributions from employees and shareholders. (C) The money disbursed by PACs is part of the general corporate accounts (D) PACs are only supposed to collect voluntary contributions.
(D) PACs are only supposed to collect voluntary contributions.
Which of the following falls under the "desired" category of Carroll's Social Responsibility Pyramid? (A) Economic responsibilities (B) Legal responsibilities (C) Ethical responsibilities (D) Philanthropic responsibilities
(D) Philanthropic responsibilities
The residents of a suburban region are unable to enjoy fresh air due to the foul smell coming from an unauthorized tannery located nearby. In this case, the owners of the tannery can be sued for ______________. (A) intrusion (B) conversion (C) trade libel (D) nuisance
(D) nuisance
Which of the following is a decisive argument Carol Gilligan's criticism against Kohlberg's proposition on moral development? (A) Kohlberg's initial experimental subjects were limited to young females. (B) Conceptions on morality are substantially based on gender. (C) Moral judgement evolves primarily as a function of age. (D) Moral judgement improves as a function of education.
B. Conceptions on morality are substantially based on gender.
The following doctrine permits the court in some cases to infer the defendant's negligence even though that negligence cannot be proved. A) The doctrine of res ipsa loquitur B) The doctrine of res judicata C) The doctrine of strict liability D) The doctrine of products liability
A) The doctrine of res ipsa loquitur
Angela, a water sports enthusiast, goes surfing despite warnings of rough weather conditions from lifeguards. Consequently, she is injured because of rough tides. Angela is barred from recovering damages as the lifeguards could not fully perform their duty of preventing harm because of her ________. A) assumption of risk B) mistake C) implied consent D) express consent
A) assumption of risk
Which of the following universal stages is grouped under the conventional level? (A) Adhering to stereotypical images (B) Obeying rules to avoid punishment (C) Following self-chosen universal ethical principles (D) Conforming to secure rewards
A. Adhering to stereotypical images
Identify the result of a growing gap in opportunities among socioeconomic classes of American children. (A) Children of the well-off express increasing trust in those around them. (B) Participation in extracurricular activities has fallen sharply for all children. (C) Young products of the less well-off have increased their community engagement. (D) The overall community engagement gap between all socioeconomic classes is narrowing.
A. Children of the well-off express increasing trust in those around them.
Which of the following involves making utilization of a service more expensive at times of peak demand in order to curb that demand? (A) Congestion pricing (B) Clearance pricing (C) Predatory pricing (D) Median pricing
A. Congestion pricing
Which of the following provides the foundation for a moral life built on religion? (A) Faith (B) Existentialism (C) Virtue ethics (D) Teleology
A. Faith
Of the six universal stages of moral development identified by Kohlberg, which of the following traits is a manager most likely to display if he were at stage three of teh conventional level? (A) Follow a rule only if it is in his or her own interest. (B) Adhere to stereotypical images. (C) Obey rules to avoid punishment. (D) Conform to secure rewards.
A. Follow a rule only if it is in his or her own interest
Which of the following is a highly controversial 5-4 ruling by teh US Supreme Court in the 2010 Citizens United case? (A) It held that limiting corporate campaign contributions violated corporate free speech rights. (B) It allowed corporations to coordinate organizational fund spending with parties or candidates. (C) It held that limiting organizational funds for candidates standing for elections is unlawful. (D) It allowed corporations to lawfully donate corporate funds to parties.
A. It held that limiting corporate campiagn contributions violated corporate free speech rights.
Which of the following ethical theories takes essentially a free market view of ethics? (A) Libertarianism (B) Existentialism (C) Formalism (D) Utilitarianism
A. Libertarianism
Which of the following is true of the criticisms of Robert Putnam's thesis? (A) Robert Putnam was criticized for focusing too much on older activities such as social clubs. (B) Robert Putnam was criticized for focusing too much on emerging interests such as Internet groups. (C) Robert Putnam was criticized for his belief that the necessary categories of government were only three in number: the police, the armed services, and the law courts. (D) Robert Putnam was criticized for his belief that state capitalism as practiced is Russia can succeed in the face of political repression, routine corruption, and abuse of the rule of law.
A. Robert Putnam was criticized for focusing too much on older activities such as social clubs.
Identify the underlying reason why socialists advocate income supports, free education, free health care, generous sick pay, and family planning. (A) Socialists believe that the economy must be directed toward the general interest of society rather than left free to multiply the welfare of successful capitalists. (B) Socialists seek an excessively individualistic approach to life where the communitarian approach of capitalism is muted by a concern for the welfare of all. (C) Socialists believe that communism harshly restrains individual freedom and creates a society based on unrestrained pursuit of industrial growth. (D) Socialists seek to embrace totalitarianism while calling for aggressive government intervention.
A. Socialists believe that the economy must be directed toward the general interest of society rather than left free to multiply the welfare of successful capitalists.
______________ in countries such as Russia, China, and Saudi Arabia employs the market to build wealth, which, in turn, is controlled and distributed by the state for its political purposes. (A) State capitalism (B) Democratic capitalism (C) Regional socialism (D) Religious socialism
A. State capitalism
Which of the following acts has caused improved financial reporting processes from publicly traded companies? (A) The Sarbanes-Oxley Act (B) The US Sentencing Commission Act (C) The Trust Indenture Act (D) The Dodd-Frank Refinancing Act
A. The Sarbanes-Oxley Act
In the context of state capitalism, explain why government is the dominant economic force. (A) The government intervenes in and shapes the market to further the state's political goals (B) The intensity of income disparity between the rich and the poor is relatively low. (C) State capitalism favors business to create wealth and government to regulate as needed. (D) State capitalism fails to blend a shrinking system of state-owned enterprise with the power of the free market.
A. The government intervenes in and shapes the market to further the state's political goals.
Which of the following views was advocated by Ayn Rand, the philosopher and novelist? (A) The necessary categories of government were only three in number: the police, the armed services, and the law courts. (B) The practice of free market principles is not needed for a rational, moral life. (C) The mode of production in material life determines the general character of the social, political, and spiritual processes of life. (D) The theory of market fundamentalism is a greater threat to open society today than communism.
A. The necessary categories of government were only three in number: the police, the armed services, and the law courts.
Identify the correct statement regarding socialists. (A) They aim to retain the benefits of industrialism while abolishing the social costs that often accompany the free market. (B) They reserve much of their concern for teh condition of the middle and higher classes. (C) They reject the need for aggressive government intervention to correct economic and social ills. (D) They embrace communist totalitarianism and reject democracy.
A. They aim to retain the benefits of industrialism while abolishing the social costs that often accompany the free market
Which of the following statements corresponds to Karl Marx's beliefs? (A) Unrestrained capitalism leads to economic abuses that threaten the welfare of workers. (B) Unrestrained capitalism makes society more productive. (C) Individual pursuit of wealth and self-interest continuously builds society's moral core. (D) Competition and unrestricted pursuit of industrial growth is necessary for the welfare of workers.
A. Unrestrained capitalism leads to economic abuses that threaten the welfare of workers.
Which of the following statements symbolizes the idea of a feminine "voice" in view of morality? (A) Women build a morality on the ethic of care. (B) Women conform to the expectation of others. (C) Women use the ethic of justice approach to morality. (D) Women give the highest priority to their own self-interests when making decisions.
A. Women build a morality on the ethic of care.
A(n) ____________ ethical system emphasizes a duty directed toward what ought to be right. (A) deontological (B) libertarian (C) teleological (D) existential
A. deontological
In terms of markets and governments, America (A) has greater faith in a more libertarian, cowboy-capitalism. (B) has greater faith in coordinated, stakeholder capitalism. (C) chose a quasi-socialist, democratic approach to life. (D) reflects a preference for greater central authority.
A. has a greater faith in more libertarian, cowboy-capitalism.
The proper balance between _____________________________________ remains the central public policy debate in American life. (A) open markets and government intervention (B) personal freedom and private property rights (C) natural resources and democracy (D) competition and unrestrained pursuit of industrial growth
A. open markets and government intervention
In the context of capitalism in America, which of the following most likely led the government to curb the power of big business? (A) Lack of natural resources (B) Emergence of monopolistic abuse (C) Lack of private property rights (D) Poor foundation of personal freedom
B. Emergence of monopolistic abuse
Jenny is the CEO of a company that has been affected by an economic meltdown. 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 employees took a 10 percent pay cut instead of laying off 10 percent of the workers. She feels this is the correct decision at it would benefit the company and all the employees. Her approach is primarily influenced by the ______________ ethical system. (A) rule-utilitarian (B) libertarian (C) deontological (D) formalist
A. rule-utilitarian
A(n) ____________ believes that good must be weighed against evil in reaching an ethical decision. (A) utilitarian (B) ethicist (C) naturalist (D) theologist
A. utilitarian
Carmen informs the sales clerk of an electronics store that she needs a computer that can maintain a 12-hour battery charge. The sales clerk sells a computer to Carmen and withholds the fact that it cannot maintain a 12-hour battery charge. Carmen find out that the computer can maintain only a 6-hour battery charge. Which of the following results is accurate in this scenario? A) Carmen can sue the store for breach of implied warranty of merchantability. B) Carmen can sue the store for breach of implied warranty of fitness for a particular purpose. C) Carmen cannot sue the store as no breach of warranty occurred because the clerk made no affirmative statement or promise about the computer. D) Carmen cannot sue the store as no breach of warranty occurred because the clerk has no responsibility for the way the Carmen used the computer.
B) Carmen can sue the store for breach of implied warranty of fitness for a particular purpose.
Those who argue that we cannot rely on the market and managerial ethics to protect us from dangerous products point to all but which of the following reasons? A) Many product improvements, such as air bags and seat belts, have been encouraged by product liability litigation. B) Lawyers' fees are not too high. C) Punitive damages are awarded in only 3.3 percent of the cases won by plaintiffs. D) The burden of tort liability is simply not of the magnitude suggested by critics.
B) Lawyers' fees are not too high.
Which of the following is not a defense to an intentional tort? A) Mistake B) Negligence C) Consent D) Necessity
B) Negligence
Which of the following statements is true of the Magnuson-Moss Warranty Act? A) Any limited warranties apply onto to household goods that cost more than $50. B) The act requires written warranties to be labeled full or limited. C) The act states that a limited warranty must include free repair for any defect. D) The act specifies an express warranty is required for all products purchased for commercial use.
B) The act requires written warranties to be labeled full or limited.
All but which of the following are requirements for a plaintiff to establish a successful negligence claim? A) The plaintiff must establish that the defendant owed the plaintiff a duty of due care. B) The plaintiff must show that the defendant breached its duty in a strictly liable manner. C) The plaintiff must show that the defendant's actions were sufficiently connected to the plaintiff's injuries. D) The plaintiff must establish that she was injured as a result of the defendant's unreasonable conduct.
B) The plaintiff must show that the defendant breached its duty in a strictly liable manner.
If a seller of goods provides a sample or model of the goods which is made a part of the basis of the bargain, a(n) ________ exists. A) implied warranty B) express warranty C) warranty for a particular purpose D) warranty of merchantability
B) express warranty
Rachel's neighbor, Ned, is away on a week-long tour. Rachel sees smoke rising from Ned'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 he had thought. In this case, Rachel can avail the defense of ________. A) consent B) necessity C) defense of others D) self-defense
B) necessity
Both Kohlberg and Gilligan shared which of the following perspectives on moral decision making? (A) Biological, unconscious, automatic processes that are involuntary and universal create moral decisions. (B) Analysis, deliberation, and experience create moral decision making. (C) Emotion or intuition creates moral decision making. (D) Automatic and nonreflective processes lead to moral decisions.
B. Analysis, deliberation, and experience create moral decision making.
Which of the following is identified as the post-conventional level of the six universal stages of moral development? (A) Pleasing others and adhering to stereotypical images. (B) Following self-chosen universal ethical principles. (C) Letting others follow rules in their self-interest while you follow rules that are in your self interest. (D) Obeying rules to avoid punishment
B. Follwoing self-chosen universal ethical principles.
Which of the following statements is true of the False Claims Act? (A) It creates new crimes and raises penalties to as much as 25 years of imprisonment along with heavy fines. (B) It forbids fraud in government contracts and rewards those who help stop fraud. (C) It requires publicly traded companies to establish internal control systems designed to assure the accuracy of financial information (D) It requires publicly traded companies to disclose whether they have adopted an ethics code for senior managment, and if not, why they have not done so.
B. It forbids fraud in government contracts and rewards those who help stop fraud.
Sweden has made what attempt to keep its economy healthy? (A) It has taken an aggressive market capitalism approach. (B) It has maintained a policy of comparatively low corporate taxes. (C) It has allowed private parties to buy or lease government property. (D) It has developed a significant private sector and permitted it to take limited control of several state-run companies.
B. It has maintained a policy of comparatively low corporate taxes.
All of the following are correct statements regarding Immanuel Kant's categorical imperative except: (A) It is the notion that each individual should act on only those principles that a rational person would prescribe as universal laws to be applied to the whole of humankind. (B) It states that one's goal is to identify the consequences of a particular act to determine whether it is right or wrong. (C) A moral rule is "categorical" rather than "hypothetical" because its prescriptive force is independent of the rule's consequences. (D) It states that what is right for one individual is right for all.
B. It states that one's goal is to identify the consequences of a particular act to determine whether it is right or wrong.
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. (A) teleological (B) deontological (C) utilitarian (D) consequentialist
B. deontological
A(n) _____________ believes the consequences of a decision or act is primary. (A) universalist (B) teleologist (C) existentialist (D) consequentialist
B. teleologist
Which of the following statements about the economic and political issues of China is true? (A) The per capita gross domestic product of China is the highest in the world. (B) China's free market liberalization policies of recent years have paced faster, making entry to the Chinese market and competition with Chinese companies easy. (C) China's gap between rich and poor is estimated to be the world's largest. (D) Interest in Buddhism has re-emerged after being suppressed during teh anti-intellectual Cultural Revolution of 1966-76.
C. China's gap between rich and poor is estimated to be the world's largest.
Which of the following is a strict liability defense? A) Contributory negligence B) Comparative negligence C) Assumption of risk D) Mistake
C) Assumption of risk
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? A) Chain of production test B) Risk-utility test C) Consumer expectations test D) Balancing-utility test
C) Consumer expectations test
Brian has an accident when he misses a stop sign and crashes into another car whose driver is drunk. Despite having sustained $10,000 worth injuries, Brian is able to recover only $7,000 as his own negligence is found to have contributed 30 percent to the injury. The type of negligence defense most likely availed in this case is A) contributory negligence. B) assumption of the risk. C) comparative negligence. D) mistake.
C) comparative negligence.
In a strict liability lawsuit, if someone is injured after either using a product he or she knows to be defective or misusing a product in an unforeseeable manner, the likely result is A) that the plaintiff contributed to his own injury and contributory negligence is a valid defense to a strict liability claim. B) that the plaintiff contributed some percentage to his own injury and comparative negligence will reduce his damages in a strict liability lawsuit. C) that the company will raise the assumption of the risk or misuse defense. D) that the company will be held liable because it did not manufacture its product to protect people from any misuse of the product.
C) that the company will raise the assumption of the risk or misuse defense.
How do privatization supporters envision major changes to daily life? (A) By promising economic justice for all (B) By promoting religiosity and building peace (C) By citing free market efficiency and personal freedom while challenging moral conventions (D) By encouraging economic cooperation and varying degrees of centralized control
C. By citing free market efficiency and personal freedom while challenging moral conventions
Which of the following statements is true of the Sarbanes-Oxley Act? (A) It was enacted to encourage publicly traded companies to adopt a company-wide ethics code. (B) It was enacted to encourage ethical risk-taking in the financial markets. (C) It established an independent board to oversee the accounting profession. (D) It established an independent board to oversee the banking profession.
C. It established an independent board to oversee the accounting profession.
Identify a reason why some parents and school boards have adopted a free market "fix." (A) Parents and school boards are convinced that replacing merit-based admission with an auction allowing space to the highest bidders is the only way to raise the academic profile of an educational institution. (B) Studies reveal that achievement growth rates were twice as high in districts with a free market fix than in standard public schools. (C) Parents and school boards hope that competition will push all schools to higher achievement levels. (D) Studies carried out in other countries reveal that market-based approaches such as open enrollment and charter schools work better than direct payment to students of $100 to $500 per year for improved performance.
C. Parents and school boards hope that competition will push all schools to higher achievement levels.
Which of the following is true of Robert Putnam's observations on social capital? (A) Putnam observed that the practice of free market principles is essential for a moral life. (B) Putnam observed that a sharp rise was seen in league bowling from 1980 to 2000 although the number of bowlers decreased by about 10 percent. (C) Putnam observed that virtually every measure of social interaction fell significantly from roughly 1975 to 2000. (D) Putnam observed that only three categories of government were necessary: the police, the armed services, and the law courts.
C. Putnam observed that vitually every measure of social interaction fell significantly from roughly 1975 to 2000.
Which of the following countries followed the "Third Way" and navigated a path between the harsher extremes of capitalism and communism? (A) China (B) Japan (C) Sweden (D) South Korea
C. Sweden
Wright Corp., an American firm, is establishing an office in Africa with Mary as the manager. After two months of endless efforts, Mary is informed that in order to get utilities for its African branch, she must give some money to the government-based electric company agent as an "encouragement," just as all the other businesses have done. Under the Foreign Corrupt Practices Act, which of the following statements about the payment is true? (A) The payment is illegal since it is a bribe to a foreign government official (B) The payment is legal as long as all other businesses do the same thing (C) The payment is legal since that is the only way she can get utilities (D) The payment is legal since it is merely "grease" money to expedite routine action
C. The payment is legal because it is money merely to expedite or secure performance of a routine government action.
If Kohlberg was correct about the six universal stages of moral development, a consequence of adults not passing beyond level 2 (that is, following rules only if it is in their own interest but letting others do the same and conforming to secure rewards) results in (A) decision making that is based on universal principles of justice. (B) decision making that may take an impersonal view on morality as opposed to a voice that rises from relationships and concern for the needs of others. (C) managers behaving unethically because they have not achieved moral maturity. (D) individuals reaching independent moral judgements that may not conform with conventional societal wisdom.
C. managers behaving unethically because they have not achieved moral maturity.
Virtue ethics focuses on the classic notion that the key to good ethics lies in a person's _____________. (A) belief in the Golden Rule (B) belief in personal liberty (C) motivation to do the right thing (D) motivation to follow universal rules
C. motivation to do the right thing
The garment factory collapse in Dhaka, Bangladesh, illustrates all the following concerns except (A) American corporations' opportunity to find cheap, powerless labor abroad. (B) the outsourcing of good, high-paid factory jobs from the United Staets to less-develpoed countries (C) people purchasing less technologically advanced goods. (D) real wages for blue-collar workers remained almost unchanged for 35 years.
C. people purchasing less technologically advanced goods.
Which of the following statements is true of the strict liability law? A) Strict liability law focuses on the use of the product more than the condition of the product. B) Strict liability recognizes that manufacturers cannot anticipate foreseeable misuses of the product. C) Strict liability law is a branch of negligence law and has been subsumed by the negligence rules. D) Strict liability offers the prospect of holding all of those in the chain of distribution liable for damages from the defective product.
D) Strict liability offers the prospect of holding all of those in the chain of distribution liable for damages from the defective product.
George decides to use a lawn mower to trim his hedges. He lifts the mower and in this process is seriously injured. Which of the following outcomes is the most likely under strict liability? A) George will win because he was hurt while using the mower, and an injury is all that must be established under strict liability. B) George will win even though he was aware of the risk that his action created because he mistakenly believed he could trim his hedges safely using the mower. C) The company will lose if George proves that the product had defects which caused his injury. D) The company will win if it can prove that using a mower to trim hedges is an improper and unforeseeable use.
D) The company will win if it can prove that using a mower to trim hedges is an improper and unforeseeable use.
When a company manufactures a product, it is sound business practice to consider which of the following? A) The maximization of profits B) Limiting the sale of the manufacturer's products to those that have been proven safe over a number of years C) Avoiding all possible misuses of the product, both foreseeable and unforeseeable D) The cost of litigation should a products liability claim be filed
D) The cost of litigation should a products liability claim be filed
Which of the following is not true of coverage under the law of strict liability? A) Some states limit strict liability recovery to new goods. B) Strict liability coverage generally extends to property damage and personal injury. C) Proof of the manufacturer's actual fault is not required in order to recover. D) The courts have interpreted strict liability to cover exclusively design and warning defect cases.
D) The courts have interpreted strict liability to cover exclusively design and warning defect cases.
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: A) contributory negligence. B) strict liability. C) comparative negligence. D) assumption of risk.
D) assumption of risk.
The historic rule that any contribution by the plaintiff to his or her own harm constitutes a complete bar to recovery is called ________. A) comparative negligence B) strict liability C) assumption of the risk D) contributory negligence
D) contributory negligence
Which of the following is most likely to be a result of a country maintaining its core welfare commitment in combination with an entrepreneurial spirit? (A) An economy that has only state-dominated companies with high employment due to the encouragement of welfare over work (B) An economy that is impoverished and filled with inequality (C) An economy encompassing poverty, oppression, and the rich-poor gap (D) An economy of relatively low unemployment, low inflation, and high GDP growth
D. An economy of relatively low unemployment, low inflation, and high GDP growth
Which of the following indicates an existentialist's belief? (A) An existentialist believes that Judeo-Christian beliefs are powerful, ethical voices in contemporary life. (B) An existentialist believes reliance on external norms is justified. (C) An existentialist believes all humanity is one undivided and indivisible family. (D) An existentialist believes that no actions are inherently right or wrong.
D. An existentialist believes that no actions are inherently right or wrong.
_____________ in the United States, Japan, Denmark, and other nations favors business to create wealth and government to regulate as needed. (A) Regional socialism (B) State Capitalism (C) Religious socialism (D) Democratic capitalism
D. Democratic capitalism
Which of the following is involved in a teleological view of life? (A) Obligations (B) Principles (C) Duties (D) Ends
D. Ends
Which of the following is a risk associated with the outcome of whistle-blowing? (A) Poor legal protection (B) Instigation of benchmarking (C) Liquidation of the company's assets (D) Fear of retribution
D. Fear of retribution
The formalistic view of ethics is best evidenced by which of the following? (A) The moral evaluation of individual acts is determined by the result achieved. (B) The rightness of an act depends on the act's end result. (C) The moral person makes ethical decisions based on the consequences of the decision. (D) Immanuel Kant's categorical imperative.
D. Immanuel Kant's categorical imperative.
Which of the following statements is not true of the Foreign Corrupt Practices Act? (A) It allows grease payments to foreign officials. (B) It requires rigorous interanl accounting controls to ensure bribes cannot be concealed as "slush" funds. (C) It creates civil and criminal fines that can be levied on both individuals and companies. (D) It requires all publicly traded companies to develop ethics codes for senior management.
D. It requires all publicly traded companies to develop ethics codes for senior managment.
______________ was particularly concerned about the growing imbalance between rich and poor and felt that the pursuit of wealth and self-interest would erode society's moral core. (A) Ayn Rand (B) Bo Xilai (C) Anatole Kaletsky (D) Karl Marx
D. Karl Marx
In the context of corporate or white-collar crime, which of the following statements is true of sentencing? (A) Companies involved in crimes do not receive reduced penalties even if they have effective compliance programs in place. (B) Federal sentencing guidelines are issued by the Uniform Commercial Code. (C) Departures from federal sentencing guidelines are not permissible for any form of cases. (D) Responsibility for compliance rests explicitly with the board of directors and top-level executives.
D. Responsibility for compliance rests explicitly with the board of directors and top-level executives.
Which of the following statements about socialists is true? (A) Socialists feel that the economy must be directed toward the welfare of the successful capitalists. (B) Socialists reserve much of their concern for the condition of the higher class. (C) Socialists do not object to the harshness of working life. (D) Socialists consider class distinctions anathema.
D. Socialists consider class distinctions anathema.
In the context of toll roads, parking meters, and congestion pricing, which of the following is true of privatization? (A) Privatization brings secure working conditions, increased services, and increased responsiveness to customers. (B) Privatization often brings increased costs and higher customer dissatisfaction. (C) Growing government revenue problems suggest that privatization of transportation. (D) Some struggling governments see privatization as a solution for financial distress
D. Some struggling governments see privatization as a solution for financial distress
All of the following countries have a communist form of government except: (A) Cuba (B) North Korea (C) China (D) South Korea
D. South Korea
The pure free market approach assumes that: (A) equal faith should be placed in the market and government planning. (B) legal systems in all countries should reflect a preference for greater central authority. (C) limited centralized authority will result in a government and economy completely free of corruption. (D) business structures and societies can be operated at large free of all but foundational legal mechanisms.
D. business structures and societies can be operated at large free of all but foundational legal mechanisms.
Teleological ethical systems are often referred to as ________________. (A) formalist ethical systems (B) existentialist ethical systems (C) deontologist ethical systems (D) consequentialist ethical systems
D. consequentialist ethical systems
In the context of economic systems, the "Third Way" refers to _____________. (A) limited totalitarianism (B) market communism (C) unrestrained capitalism (D) market socialism
D. market socialism
Democratic governments and peaceful change are often associated with ______________. (A) strong centralized governments (B) communism (C) economic individualism (D) socialism
D. socialism
The principle that is most likely to be followed by a utilitarian is: (A) that moral judgement is guided by individual acts. (B) that ethics are measured by the rightness of the rules. (C) that all good is to be weighed against all evil. (D) that the greatest good for the greatest number determines the act.
D. that the greatest good for the greatest number determines the act.
