Business law chap 2
Which of the following is not a factor that reduces sentences and fines under the Federal Sentencing Guidelines?
Diversity in the workplace
Which of the following is not a trait of the 100-years-of dividends companies?
Downsizing
layer ONE of the ethical culture strategic pyramid
Enforcement, ethics codes, ethics training, investigation
layer THREE of the ethical culture strategic pyramid
Example, leadership
Corruption hampers economic development.
True
the public is concerned about the issue
activism stage
the issue pops up in popular press
awareness stage
those in the industry know about the issue
latency stage
The Wall Street Journal model for resolving ethical dilemmas is the same as the "front page of the newspaper" test.
false
Least corrupt countries
finland USA Australia Singapore
Natural law dictates that codified law is superior to rights of individuals.
False
Normative standards of behavior are compliance with the law.
False
John Seagroves was a bully during his school days often ridiculing his classmates and teasing them with tricks such as taking their clothes during gym class and hiding them. Years later John ran for public office and the New York Times did a profile of his behavior during his school years, interviewing many of his classmates who were his targets. What test could have helped John evaluate his treatment of others during school?
Both "What if my actions were described on the front page of a newspaper?" and "Will I feel as comfortable about my decision over the long term as I do today?"
Which of the following is a correct statement about Bowen McCoy's feelings on investment bankers?
Both that there will always be difficult situations in that field and that investment bankers need a clear process for evaluating difficult situations
layer TWO of the ethical culture strategic pyramid
Compensation, policies
Which of the following questions is not part of the Blanchard/Peale model for resolving ethical dilemma?
Could i discuss it with a family member
"When in Rome, do as the Romans do," characterizes natural law
False
What did Bowen McCoy do about the Sadhu that they found on the mountain?
He worked with others to find a place for him to rest
Which of the following questions influenced Gil Meche in deciding to walk away from a $12-million contract?
How does it make me feel
Why was Bowen McCoy climbing the Himalayas?
It was part of a sabbatical leave from his Wall Street firm
Katie and Mark are co-workers. Mark takes a long lunch almost every day, and he told Katie that it's no big deal because everyone is doing it. On Tuesday, their boss is very upset and is looking for Mark. The boss asks Katie "Have you seen Mark this afternoon?" Katie knows that if Mark loses his job, he won't be able to pay his son's hospital bills but she doesn't want to lie to the boss. Using a standard of Moral Relativism, what would most likely be her response to the boss?
No I haven't seen him.
Jennifer had been waiting in line to purchase her tickets to the opening night of the newest blockbuster at the movie theatre. After 30 minutes, she was almost at the cashier when a teenager cuts in front of her. What rules or laws has the teenager broken?
Normative standards
Positive law, also known as ______ law, is _____ standard for ethical behavior.
Positive law, also known as codified law, is one standard for ethical behavior.
Select all of the following that are companies that paid dividends for 100 consecutive years:
Pullman Stanley Corning
What did Bowen McCoy learn from the Sadhu?
That ethical dilemmas are ambiguous and we sometimes pass through them without analyzing them
What is another name for the "Do unto others" test for resolving ethical dilemmas?
The Categorical Imperative
You begin a summer job working as an assistant project manager with a residential construction company. The construction of a new home requires a city inspector from the city's development office to inspect and sign off on various phases of the home, such as the foundation, plumbing, framing, electrical, mechanical, etc. One of the final permits needed is the driveway permit, and it has become customary for the project managers in the city to give the city inspector a Starbucks gift card in the amount of $25 to $100 to expedite this permit. Most builders have a petty cash fund that is largely for this purpose. Which of the following is correct?
The Starbucks gift card is a bribe, which makes it illegal
Jason worked as an outside sales representative for a medical supply company, which has a Code of Ethics for employees. One provision of the ethics code states: "We expect you to keep accurate records and reports... We do not permit... false or misleading entries in the company's books or records for any reason." The policy also stated that an employee would not be entitled to exercise any stock options if terminated for cause. Many of the outside sales representatives submitted inflated expense reports to make up for the lower commissions their company charged when compared to the commissions their competitor's paid. Jason was fired for padding his expense accounts and the company denied him his termination benefits for an employee in violation of its Code of Ethics. Which of the following statements is correct?
The company had the right to fire Jason because he violated the company's code of ethics.
CVS drug stores decided to no longer carry tobacco products in their stores because of the health impact of tobacco on its users. Which of the following groups does CVS fall into?
The social responsibility school
What is the goal of applying the "front page of the newspaper" test when trying to resolve an ethical dilemma?
To determine how your actions would be perceived by others
Financial pressures can cause employees to make ethical lapses
True
According to Milton Friedman, when should executives reduce pollution emitted by the company's factories?
When shareholders would lose dividends as a result
Many news agencies recently shared a report that studies had shown that drinking a certain type of juice drink was shown to have reduced the incidence of cancer in the patients studied. What the reports did not say was that the company producing that juice drink was the company who sponsored the study. Is this study unethical?
Yes, because the company has a conflict of interest in the study.
Which of the following questions is not part of the Laura Nash perspective on resolving ethical dilemmas?
a. "How would I view the issue if I stood on the other side of the fence?" b. "What am I trying to accomplish with my decision?" c. "Will I feel as comfortable about my decision over time as I do today?" *d. All of these are part of the Laura Nash perspective*
Deborah Collins works for MedCo, Inc. Deborah is a physician-scientist who is responsible for running the pilot tests on MedCo's new oral spray medication for individuals with adult onset diabetes. Deborah has discovered that if those in the test group do not spray the medicine correctly or if they spray for too short of a time, the medicine is not effective, or as effective, and insulin shock has resulted in a few of the patients. Deborah talks with one of her colleagues who responds, "Look, there's no need to stop the testing or the drug's release. Just tell them in the test and in the brochures that will be with the spray, they should 'Spray correctly! If you do not, you may not receive your necessary dose.'" Deborah is not sure anyone can be 100 percent accurate in spraying all the time. Who is affected by Deborah's decision, regardless of what decision she makes?
a. Deborah and her reputation b. customers c. shareholders *d. All of the answers*
Which of the following is not usually a cost to businesses that have ethical problems?
a. Declining profits b. Loss of customer trust c. Reduction in value of the company's stock price *d. All of these are usually costs of ethical problems*
Select all of the following that ARE a layer of business ethics:
a. Fairness and how we treat others b. Interaction with community and the environment c. Honesty and keeping your word
When people say, "It's just not right," what are they trying to communicate?
a. That the conduct of someone else bothers them b. That conduct is unethical c. That they recognize an injustice *d. All of these answer choices are correct.*
Michael Smith is the CEO of International Computer Corporation. Mr. Smith pays 25 cents to the company each time a personal fax comes to him at his office. Mr. Smith's actions:
are meant to establish an effective tone at the top.
What did Stephen learn from the Sadhu?
c. That an individual's values should be supported by the corporate culture, but without support, individuals don't know how to act
British companies are considering giving employees "pawternity leave" for employees who adopt or purchase pets. The employees would receive time off to help their pets acclimate to their homes. One company says, "Happy pets. Happy employees." There is no law that requires companies to give such leaves. Why are the companies doing so?
d. They are part of the social responsibility school
The policy on travel reimbursement at Amco Consulting is that receipts for meals under $25.00 are not required. Internal auditors at Amco have recently discovered that 80 percent of all meal submissions are in a range from $12.50 to $12.99. When one manager is questioned about his submissions and those of his employees he responds, "So, they make a little bit on meals—it helps their miserable salaries." The manager's evaluation:
demonstrates a lapse in the company's ethical culture.
A law firm in the Phoenix area provides "sick care" for employees' children. Sick care can be used when the child is too ill to go to school or its regular care facility. The law firm manager claims the program has cut down on sick days taken by employees to care for sick children. The program is an illustration of which type of social responsibility school?
enlightened self-interest school
An employer instituted a wellness program for all employees. The wellness program includes an exercise facility and several pay incentives for losing weight, quitting smoking, or beginning an exercise program. The program is not required under any state or national laws. Which of the following schools of social responsibility applies to this employer?
enlightened self-interest school
Jane and Mike Goodall discovered that an abandoned home in their neighborhood was being used as a drug house. Jane and Mike reported the problem to the police, but the police took no action. Concerned for the welfare of their children and the dangerous criminal element coming and going from the house, Jane and Mike tossed gasoline on the house late one evening and then set the house on fire. Jane and Mike said, "We did it to save our family when no one else would do anything." Which of the following ethical standards were Jane and Mike following?
moral relativism
Richard Martin owns and operates a Dalmatian breeding facility. The state regulations allow him to have up to 50 puppies at any given time for a property of his size. The West family visited the facility to purchase a puppy and saw that the puppies were in cramped cages despite the large property and most of the cages had very little food and water. What type of ethical standards, if any, has Mr. Martin violated?
natural law
The issue is in litigation or being regulated
regulation stage
What does the acronym WBAWI mean?
what business are we in
Most corrupt countries
somolia afghanistan iraq venezuela
About 75% of college students admit that they have cheated in some way during college
true
Conduct may be legal, but not ethical.
true
Conduct that jurors find appalling may not be a crime
true
Looking at someone else's answer sheet during an exam is an ethical problem, but not a criminal violation.
true
Two twelve-year-old boys were seriously injured when riding on a go-kart. The boys were riding on public streets, ran a stop sign, and were hit by a car that did not see them. The go-kart had clear warning labels on the sides stating that it was only for off-road use only. The manual stated the go-kart not to be used on public streets. The parents sued the go-kart manufacturer. One basic issue in this case would be:
whether a manufacturer liable when children are injured while riding one of its mini-trail bikes on a public road in violation of manufacturer and parental warnings.
