LAW 2150 Exam 2 Study Guide

The Supreme Court first held that the Constitution protects individual privacy rights during the:

1960s.

The Health Insurance Portability and Accountability Act (HIPAA) was enacted during the:

1990s

Jim believes that his privacy rights were violated by his employer, the state of Colorado, when it disclosed several items about him, including some financial and health information. In general, Jim may look at all of the areas of law except which of the following to determine if his privacy rights were violated?

Criminal law

Amneet, a young woman whose family follows the Sikh religion, is new to the U.S. In the country of her birth, people who are not Sikhs are discriminated against by the national government, and Amneet is worried that because she is not a Christian the U.S. government will discriminate against her and her family. With knowledge about the First Amendment in the U.S. Constitution, what can you tell her the U.S. government is prohibited from doing?

Establishing any state-sponsored religion. Enacting any law that promotes religion or favors one religion over another. Interfering with people's religious practices or forms of worship.

A federal judge must adhere strictly to federal sentencing guidelines.

False

A job candidate may not be rejected for failure to maintain a social media presence.

False

A suspect who is told that she can remain silent is automatically protected from having her confession entered as evidence against her.

False

Because of the First Amendment, employers may not restrict employees' use of social media in any way.

False

Employers are prohibited from conducting background checks beyond running criminal checks in official, government databases.

False

If an action is ethical from an outcome-based perspective, it is always ethical from a duty-based perspective.

False

Ignorance of the law generally excuses a business from liability for a violation of that law.

False

In the discussion step of the IDDR systematic approach to decision making, the team will review whether the solution was effective.

False

It is illegal to market a product that causes the firm to lose sales and profits.

False

It is widely accepted that judging an employee for what he or she does outside of work is unethical.

False

Legal and ethical issues concerning employee on-line speech are largely settled by now.

False

Managers must apply different standards to themselves than they apply to their employees.

False

Since 2012, no employee can be fired for engaging in unpopular speech.

False

The Constitution specifically guarantees a right to privacy.

False

The Foreign Corrupt Practices Act prohibits so-called "grease" payments.

False

The Fourth Amendment protects against searches that violate an individual's actual expectation of privacy.

False

The Miranda decision has been overruled by Congress.

False

The National Labor Relations Board is unlikely to hear another case about employee on-line speech.

False

The Sarbanes-Oxley Act requires employees to set up confidential reporting systems so employees can report allegations of workplace harassment.

False

The Supreme Court has held that a constitutional right to privacy was implied by the Sixth Amendment.

False

Using suppliers in developing nations no longer raises any ethical issues.

False

Jarrod has been conducting his web business for about a year now, and really wants to know what information the government has collected on him. He may be able to get some of those records pursuant to the:

Freedom of Information Act.

Harley went shopping at the local Kwik-Co store, and was caught shoplifting by the security guard. To get away, he decided to cause a distraction, and so shouted loudly so that other shoppers could hear, "There's a bomb in Aisle 5!" The shoppers panicked, screamed, knocked people down and headed for the door. The security guard holding him was overwhelmed, and Harley escaped. Harley believes what he said was protected by the First Amendment. With knowledge of the First Amendment, is Harley right? Why or why not?

Harley is wrong, because his speech incited others to act violently.

Cameron discovers that his medical provider has accidentally released all of Cameron's medical records without Cameron's permission. If Cameron sues, which federal law is most likely to help him win his case?

Health Insurance Portability and Accountability Act

Jarrod is starting a web business, but becomes worried when he hears that the USA Patriot Act gave authority to government officials to monitor what he does online. With knowledge about the USA Patriot Act, you should tell Jarrod that the government may monitor which of the following?

His e-mail His personal financial data His web site visits

Ralph and Elaine have brought a new marketing idea to their company, Sportswear, Inc. Elaine is a bit concerned about the ethical implications of the new strategy. Therefore, the marketing team has decided to use the IDDR approach to decide whether or not to pursue Ralph and Elaine's idea. IDDR stands for:

I Desire to Do Right

A director of a U.S. firm operating in Saudi Arabia made a payment to a government clerk to accelerate approval of a construction contract. Is the director potentially liable for violating the Foreign Corrupt Practices Act (FCPA)?

No, because "grease" payments do not violate the FCPA.

Joe works for a large retailer with stores throughout the United States. The company's employee handbook prohibits employees from criticizing other employees or managers on the Internet. All employees must agree to abide by the handbook as a condition of employment. Joe agreed to the condition like all the others. In an e-mail to five colleagues on their private e-mail accounts, Joe criticized his manager's practice of making employees clean up the work room after they clocked out of work. Somehow the manager found out and fired Joe. Was the termination legal?

No, the National Labor Relations Board has set precedent rendering this illegal.

Aiden has a small donut shop in the center of town in an old building which he owns. For some time, he had been hearing rumors about an urban renewal project and wondered if his building would be part of the project. Then he read in the paper that his building had been condemned and would be torn down next month. He received no notice of this, no payment for his property, and no chance to say why he believed the building should stand. He believes the government has acted unfairly, but cannot be sure of the proper legal term for the right they have denied him. What would it be?

Procedural due process

The City of Selonda has passed an ordinance requiring all package delivery companies to deliver their packages covered in a plastic wrapper if there is a 35 percent chance of rain. Boxes2U believes the ordinance would cost too much and plans to sue in order to stop it from taking effect. If Boxes2U takes its case to court, what standard will the court use to evaluate whether the ordinance may stand?

Rational basis

The Sarbanes-Oxley Act applies to Coyron, Inc. Which of the below is a requirement to comply with the Act?

Setting up confidential systems so employees can "raise red flags" as needed.

Some U.S. companies have chosen to produce goods in developing nations, because the wage rates in those nations are significantly lower than wages in the United States.

Some U.S. companies have chosen to produce goods in developing nations, because the wage rates in those nations are significantly lower than wages in the United States.

If a law or action prohibits or inhibits some people from exercising a fundamental right, the law or action will be subject to what level of scrutiny by courts?

Strict scrutiny

Samuel would like to review the information that the U.S. Department of Labor (DOL) has in its files about him. Which of the following statutes allows Samuel to request this information from the DOL?

The Freedom of Information Act

Which act requires companies to set up confidential systems so that "red flags" can be raised about suspected illegal and unethical business practices?

The Sarbanes-Oxley Act

"Corporate watch" groups can exercise much pressure on U.S. businesses using foreign suppliers.

True

"Grease" or facilitating payments are meant to accelerate performance of administrative services that might otherwise be carried out at a slow pace.

True

A number of companies have fired employees for such activities as criticizing other employees or managers through social media outlets.

True

An action may be legal but not ethical.

True

Corporate ethical policies must be clearly communicated to be effective.

True

Employees cannot be fired for engaging in speech.

True

In the review phase of the Systematic Approach, the solution to an ethical dilemma should be analyzed.

True

In the review step of the IDDR systematic approach to decision making, the team will review whether the solution was effective.

True

Managers have found that discharging even one employee for ethical reasons has a tremendous impact as a deterrent to unethical behavior in the workplace.

True

One of the most important ways to create and maintain an ethical workplace is for top management to demonstrate its commitment to ethical decision making.

True

Setting realistic workplace goals can reduce the probability that employees will act unethically.

True

Side payments to government officials in exchange for favorable business contracts are not unusual in such countries where they are not considered to be unethical.

True

Some U.S. companies have refused to deal with certain suppliers to avoid negative publicity.

True

Some employers reject job candidates if they do not participate in social media.

True

Some people believe that researching job candidates' social media posts invades their privacy.

True

The Foreign Corrupt Practices Act prohibits U.S. businesspersons from bribing foreign officials to secure advantageous contracts.

True

The Foreign Corrupt Practices Act prohibits bribery of foreign officials if the purpose of that payment is to induce the officials in their official capacity to provide business opportunities.

True

The National Labor Relations Board has issued a ruling preventing an employer from completely prohibiting its employees from using social media to discuss work.

True

The minimal acceptable standard for ethical behavior is compliance with the law.

True

Under the USA Patriot Act, government officials may track certain telephone and e-mail communications relevant to an ongoing criminal investigation without providing proof of any wrongdoing.

True

Which of these is not a type of duty-based ethics?

Utilitarianism

Jennifer works for a solo practitioner lawyer, Jill Smith. After a frustrating day at work, she posted the following to her publicly accessible Facebook page: "Ugh. Jill Smith's clients just stink. They are so needy and are not even worth the time Jill gives them." Jennifer has approximately 500 Facebook friends, many of whom "liked" the post. Can Jill fire Jennifer for these comments?

Yes, because Jennifer's speech was not such that it might be protected by law.

Sam works for a national fast food restaurant chain. After a particularly frustrating shift at work, Sam Tweeted 100 times various negative things about the fast food restaurant chain. He stated repeatedly that he personally knew the chain served dog meat and that cockroaches infested the kitchens in hundreds of locations. His allegations were false. One of Sam's co-workers told the manager, who fired Sam. Was his firing legal?

Yes, because Joe's speech was not such that it might be protected by law.

A director of a U.S. firm operating in Nigeria made a $200,000 payment to the Nigerian Treasury Minister to accelerate approval of a construction contract. Is the director potentially liable for violating the Foreign Corrupt Practices Act (FCPA)?

Yes, because the director bribed a foreign government official.

An employee of a U.S. firm operating in Mexico made a $50,000 payment to the mayor of the city of Oaxaca to gain approval to build a manufacturing plant within the city. Is the company potentially liable for violating the Foreign Corrupt Practices Act (FCPA)?

Yes, because the employee bribed a foreign government official.

Xtreme Publications, Inc., disseminates obscene materials. Under numerous state and federal statutes, this is:

a crime.

Spencer Hydraulics Corporation's ethics committee is asked to decide whether the firm should bid low to obtain a contract that it knows it can fulfill only at a higher price. A practical method to investigate and solve this question involves all of the following steps except:

absolution.

Privacy rights are protected under:

all of these choices.

One of the most effective ways of setting a tone of ethical behavior within an organization is to create:

an ethical code of conduct.

Britney, an employee of Computer Associates, is arrested at work. A grand jury issues a formal charge against Britney for larceny. This charge is:

an indictment.

Mike is arrested at a warehouse in North Industrial Park. A government prosecutor issues a formal charge against Mike for receiving stolen property. This charge is:

an information.

Indiana enacts a statute that bans the distribution of anonymous political leaflets. A court would likely hold this to be:

an unconstitutional restriction of speech

An Alabama state statute prohibits business entities from using bill inserts to express controversial views. A court would likely hold this law to be:

an unconstitutional restriction of speech.

Congress enacts the Tight Money Act (TMA) of 2006 to ban "major business entities" from making political contributions that individuals can make. A court would likely hold the TMA to be:

an unconstitutional restriction of speech.

Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial's labels and those of other marketers. A court would likely hold this regulation to be:

an unconstitutional restriction of speech.

Brad stands in front of Rustler's Round-Up Café, shouting "fighting words" that are likely to incite Rustler's patrons to respond violently. The First Amendment protects such speech:

at no point in time.

The First Amendment protects Ira and other individuals who engage in speech that violates state criminal laws:

at no point in time.

Privacy rights receive protection under

both federal law and state law.

What constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting is referred to as:

business ethics.

For lesser crimes, such as robbery, an individual may be formally charged with the crime:

by a government prosecutor if the prosecutor determines that there is sufficient evidence to justify bringing the individual to trial.

Under what is known as the exclusionary rule, all evidence obtained in violation of constitutional rights:

can be excluded even though it was derived from other evidence obtained in violation of constitutional rights (known as "fruit of the poisonous tree"). is excluded in order to deter police from conducting warrantless searches. can be excluded from the trial although it can lead to injustice.

President Woodrow Wilson negotiated the treaty that ended World War I, but Congress refused to ratify the treaty. This event exemplifies the principle of:

checks and balances.

With respect to business ethics, the moral minimum is:

compliance with the law.

A Minnesota state statute restricts certain kinds of advertising to protect consumers from being misled. A court would likely hold this statute to be:

constitutional under the First Amendment.

A Metro City ordinance allows only a few street vendors to operate in certain areas for the purpose of reducing traffic. A court would likely hold this ordinance to be:

constitutional under the equal protection clause.

The idea that businesses can and should act ethically and be accountable to society for their actions is referred to as:

corporate social responsibility.

The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Under this clause, "persons" include:

corporations and other "legal persons."

A decision-making technique that involves weighing the costs of a given action against the benefits of that action is referred to as:

cost-benefit analysis.

Participants in the Systematic Approach will craft a consensus plan of action for the corporation in the:

decision stage.

Due to a website malfunction, you find you would be able to purchase all of your textbooks from the university bookstore for free. The opportunity is tempting. If you follow the concept of Kant's categorical imperative, you will:

decline to take advantage of the opportunity because if everyone did it, the bookstore would not be able to conduct business.

Samuel was tried for rape. After a week-long trial, the jury returned a verdict of not guilty. The next morning, the prosecutor re-filed the rape charges against Samuel. Samuel can raise the constitutional protection against:

double jeopardy.

Moral principles and values applied to social behavior is referred to as:

ethics.

A Delaware law allowed electrical contractors doing state-funded work to pay lower wage rates to apprentices if the contractors had registered their apprenticeship programs in the state. Out-of-state contractors, however, could not pay the lower rate unless they maintained a permanent office in Delaware. If an out-of-state contractor files a suit claiming that Delaware's regulations discriminate against out-of-state contractors the federal court will probably:

find the law to be in violation of the dormant commerce clause.

Companies may use different frameworks to determine whether a business decision is ethical. These frameworks may:

focus more on legal than ethical implications. be primarily outcome-based. set out a series of steps to follow.

Exceptions to the Miranda rule would include:

for public safety, a statement concerning the location of a bomb or other weapon.

One reason that businesspersons may find it difficult to comply with the law is because:

gray areas in the law make it difficult to tell how the law will be applied to a specific business situation.

In 2006, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be considered valid:

if it directly advances a substantial government interest but goes no further than necessary.

Tori files a suit against the state of Utah, claiming that a Utah state law violates the commerce clause. The court will agree if the statute:

imposes a substantial burden on interstate commerce.

Dustin has newly been promoted to manager of a medical research laboratory. He noticed that Tracy was taking shortcuts with the work she was doing, copying test results rather than testing each item individually, which is required by applicable industry-wide ethics codes. If Dustin looks the other way and allows her to do this, he should know that he will set an example that:

indicates that ethical transgressions will be accepted.

The first step to follow when investigating and solving specific ethics problems is:

inquiry.

Sanford applied for a job with the state park service to conduct guided walking tours in the state park. He was denied employment because he is a male; the state park service thinks that females are more well-suited for the task. If Sanford sues the state park service for discrimination, in making its decision the court will apply the:

intermediate scrutiny test.

ABC Communications, Inc., needs to cut costs by downsizing. In determining which employees to lay off, ABC will be concerned primarily with:

its ethical duty to long-term employees, its profit margin, and the legality of discharging older workers.

Harry, a vice-president of International Pharmaceuticals, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it:

justifies human costs that many find unacceptable.

Best Sales Corporation regularly advertises its products. Under the First Amendment, these ads and other commercial speech are given:

less protection than noncommercial speech.

The Be Well Clinic Inc. provides health care services to patients. The clinic has several employees, including doctors, nurses, and clerical personnel. Under the Health Insurance Portability and Accountability Act (HIPAA), the clinic:

must protect its patients protected health information and limit its disclosure.

Business Markets Coalition (BMC), a political lobbying group, wants a certain policy enacted into law. If BMC's policy conflicts with the U.S. Constitution, a law embodying it can be enacted by:

none of the choices.

Ralph and Elaine have brought a new marketing idea to their company, Sportswear, Inc. Elaine is a bit concerned about the ethical implications of the new strategy. Therefore, the marketing team has decided to use the IDDR approach to decide whether or not to pursue Ralph and Elaine's idea. During the inquiry step of this strategy, the team is struggling to identify the ethical problem. In doing so, they should:

not frame the issue in a way that gives them the answer they might prefer.

If there is a reasonable doubt as to whether a criminal defendant did, in fact, commit the crime with which he or she has been charged, then the verdict must be:

not guilty.

By enacting fire and building codes, parking regulations, and zoning restrictions, state and local governments are exercising:

police powers.

Duty-based ethical standards often derive from:

principles rooted in religion.

Mary claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on:

procedures used in making decisions to take life, liberty, or property.

Managers can reduce the probability that employees will act unethically by setting:

realistic production or sales goals.

Police powers allow states to:

regulate private activities to promote public health, safety, and general welfare.

Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that the Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of:

religion, speech, and the press.

Ralph and Elaine have brought a new marketing idea to their company, Sportswear, Inc. Elaine is a bit concerned about the ethical implications of the new strategy. Therefore, the marketing team has decided to use the IDDR approach to decide whether or not to pursue Ralph and Elaine's idea. In the discussion step of this strategy, the team will do all of the following except:

review whether the solution was effective.

All groups who are affected by the decisions of a corporation are referred to as:

stakeholders.

A law that limits the liberty of all persons to do something may violate:

substantive due process.

Colorado enacts a statute that limits the liberty of all persons, including corporations, to broadcast "annoying" radio commercials. This may violate:

substantive due process.

When there is a direct conflict between a decision by a federal Environmental Protection Agency (EPA) administrator on a matter that comes within the EPA's jurisdiction and a Hawaii state law:

the EPA's decision takes precedence.

The requirement that no person be deprived of "life, liberty, or property without due process of law" is found in:

the Fifth Amendment and the Fourteenth Amendment.

Privacy rights receive protection under:

the U.S. Constitutions, state constitutions, federal statutes, state statutes, and tort law.

Holly, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on:

the consequences of an action.

Owen claims that a Pennsylvania state statute infringes on his "substantive due process" rights. This claim focuses on:

the content of the statute.

Two fundamental approaches to ethical reasoning in a business environment are:

the duty-based and outcome-based approaches.

Courts traditionally give the right of free speech:

the fullest possible protection.

The constitutional requirement of equal protection means that:

the government must treat similarly situated individuals in a similar manner.

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law, is referred to as:

the moral minimum.

Kant's "categorical imperative" states that:

the morality of an action should be judged by the effects the action would have if everyone in the same situation or category acted the same way.

In response to rapidly rising property taxes, California voters approved a statewide ballot initiative, Proposition 13, which froze property taxes regardless of the appraised value of the property. The state was to reassess the value of the property and could increase taxes only when the ownership of property was transferred. The property was exempt from this reassessment if the exchange of ownership was made between persons over the age of fifty-five or between parents and children. Over time, this system created dramatic differences in the taxes paid by people owning similar property. Long-term owners paid lower taxes; new owners paid higher taxes. Stephanie Nordlinger bought a house in Los Angeles County. Nordlinger then sued the county claiming that the tax system was unconstitutional under the equal protection clause because it allowed the government to treat similarly situated individuals differently. In finding that the law did not violate the equal protection clause, the court most likely applied which of the following standards?

the rational basis test

Mack is sales manager for National Products, Inc. Compared to Mack's personal activities, his business activities involve:

the same ethical standards.

Fred, the president of Good Retail Corporation, claims that certain actions by the federal government and the state of Hawaii infringe on rights guaranteed by the Bill of Rights. Most of these rights limit:

the state government and the federal government.

Article VI of the Constitution, commonly referred to as the supremacy clause, provides that when there is a direct conflict between a federal law and a state law:

the state law is rendered invalid.

Following the Revolutionary War, the states created a confederal form of government in which:

the states had the authority to govern themselves and the national government could exercise only limited powers.

A New Hampshire state law that directly conflicts with a federal law is invalid under:

the supremacy clause.

Because the state has extensive resources at its disposal when prosecuting criminal cases:

there are numerous procedural safeguards to protect the rights of defendants.

Probable cause means:

there is a substantial likelihood that the person has committed or is about to commit a crime.

A key technique employed by utilitarians to determine the morality of a given action is:

to conduct a cost-benefit analysis.

To obtain a search warrant, law enforcement officers must convince a judge that they have:

trustworthy evidence that would convince a reasonable person that the proposed search or seizure is more likely justified than not.

U.S. law provides safeguards against all of the following except:

trying someone for a criminal offense.

If Congress passes a 2 percent tax on cigarette sales in New Jersey only, this law will most likely be held:

unconstitutional according to Article I, Section 8.

The Iowa state legislature passed a statute banning sixty-five-foot twin trailer trucks from operating on its state roads, highways, and interstate freeways. Consolidated Freightway (CF) employees drove twin and triple trailer trucks through Iowa on a regular basis. Switching to single trailer trucks either for all of its routes or just for the trip through Iowa was inconvenient, inefficient, and costly. CF filed a lawsuit contending that the statute was unconstitutional. The court most likely found that the Iowa statute was:

unconstitutional state interference with interstate commerce.

A Rhode Island state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be:

unconstitutional under the due process clause.

Ralph Young was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard had also specifically granted Young an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Young's state license and he was not allowed to operate his vessel under his federal licenses. Young filed a lawsuit against the state alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was:

unconstitutional under the supremacy clause.

The Constitution provides that the national government has the implied power to:

undertake actions necessary to carry out its expressly designated powers.

Jill lies to her family. According to legal and ethical principles, this is:

unethical only.

Gayle Schreier worked in a travel service office and had access to the computer reservation systems of several airlines. On a number of occasions, Schreier accessed the system and replaced the names of passengers with fictitious names. She also enrolled the fictitious names in the airlines' frequent flyer programs. Gayle's husband, Irwin Schreier, set up mailboxes under these same fictitious names for the delivery of free airline tickets "earned" under the frequent flyer programs. The actual passengers were not harmed by and did not complain of the deception. The Schreiers' behavior was:

unethical, because their actions constituted theft from the airlines.

The Fourth Amendment protects you from:

unreasonable searches and seizures

An approach to ethical reasoning in which a "good" decision is one that results in the greatest good for the greatest number of people affected by the decision is:

utilitarianism.

The state of Oregon enacts a statute that automatically revokes the driver's license of anyone caught text messaging while driving a vehicle. The statute provides that there is no right to a hearing in this type of driver's license revocation. While driving her car in Oregon, Sarah is stopped by a police officer who gives her a ticket for text messaging while driving and also informs her that her driver's license has been revoked. The Oregon statute:

violates Sarah's procedural due process rights.

The USA Patriot Act has been criticized for:

violating privacy rights with domestic surveillance.

World Distribution Corporation suggests that its employees apply the Kantian "categorical imperative" to ethical issues that arise at work. This requires that the employees:

weigh the consequences that would follow if everyone took the same action.

Business ethics focuses on:

what constitutes ethical behavior in the business world.

Ethics can be defined as the study of:

what constitutes right and wrong behavior