Business Law Ch 3 and 4
All of the following situations reflect a possible conflict of interest except: A CEO offers a contract to a friend without checking competing bids. A CEO hires a relative for a company position although another candidate is more qualified. A manager buys a piece of realty that would be suitable for a planned company project. A CEO takes a cut in pay to decrease company overhead.
A CEO takes a cut in pay to decrease company overhead.
Which of the following is true about administrative agencies? Administrative agencies exercise powers guaranteed to them in the U.S. Constitution. Administrative agencies exercise powers allocated to them by the president. Administrative agencies make decisions that are rarely reviewed by the courts. Administrative agencies make decisions that are effectively reviewed by voters.
Administrative agencies make decisions that are rarely reviewed by the courts.
Which of the following is not a question business ethicist Laura Nash has developed to help businesspeople reach the right decision in ethical dilemmas? Have you defined the problem accurately? How would you define the problem if you stood on the other side of the fence? How did the situation occur in the first place? Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?
Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?
The United States utilizes a bicameral division of government.
False
There is no evidence that commitment to ethical values is linked with financial performance of business organizations.
False
Mortgages, security interests, and surety relationships are legal mechanisms created primarily to promote stability and flexibility in trade.
False
According to the Privileges and Immunities clause, a state cannot bar someone who comes from another state from engaging in local business or from obtaining a hunting or fishing license.
True
Congressional 'silence' in particular subject area could mean Congress doesn't want to regulate in that particular subject area.
True
Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.
True
Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach their ethical codes.
True
Some of the powers delegated to the national government may be exercised by the states.
True
The final question of the Blanchard-Peale "Three Part Test", has to do with conscience.
True
Civil disobedience is the remedy natural law proponents use to change positive law.
True
Ethics is a philosophical concept that deals with values related to the nature of human conduct.
True
In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.
True
The concept of equal protection of the law: applies to both state and federal governments. prohibits any classifications whatsoever. applies only to conduct by private parties. does not permit reasonable classifications.
applies to both state and federal governments
Federal judges of the United States: are appointed by the President, with the approval of the Senate. are appointed by the Senate, with the approval of the President. cannot be impeached. are elected by the public.
are appointed by the President, with the approval of the Senate.
A declaration of war: can be enacted by both state and federal governments. can be enacted only by the national government. can be enacted only by state governments. is prohibited by the U.S. Constitution.
can be enacted only by the national government.
Laws that prohibit defamation, invasions of privacy, and reputation exist primarily: for protection of the person. for protection of public health, safety, and morals. for protection of property. for protection of the state.
for protection of the person.
The importance of trust as a fundamental principle in capitalism is illustrated by expectations that: investors will be able to earn a return on their investments. employees may be discharged at any time for any reason without notice. litigation is inevitable because panics to agreements usually break promises. insider trading proves that the economic system underlying business is flawed.
investors will be able to earn a return on their investments.
In a living-document view, the U.S. Constitution is a document that: is clear in allocating the rights and responsibilities of people and our government. can be interpreted only according to the bedrock principles of 1776 can be interpreted only in accordance with current values. must be interpreted to accommodate both stability and flexibility.
must be interpreted to accommodate both stability and flexibility.
Federal law particular subject conflicting state regulation when a federal law regulates that coincides with is subordinate to parallels preempts
preempts
The due process clause: allows the U.S. government to take private property without due process. allows a state to take private property without due process. provides a guarantee of protection against loss of rights or property without the chance to be heard. does not apply to state governments.
provides a guarantee of protection against loss of rights or property without the chance to be heard.
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright infringement exist primarily: for protection of the person. for protection of public health, safety, and morals. for protection of property. for protection of the state.
for protection of property.
Which of the following is not characteristic of the "living" Constitution? strong government strong President administrative agencies states' powers equal to federal powers
states' powers equal to federal powers
