question

All courts require arbitration before a case goes to trial.

answer

False

question

Velvety Pancake House, Inc., a U.S. firm, and Wallaby Waffles, Ltd., an Australian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Velvety and Wallaby over a dispute involving this contract may occur in

answer

Australia, the United States, or both.

question

Few corporate lawsuits are settled or dismissed before they go to trial.

answer

False

question

A submission occurs when one of the parties to arbitration agrees to give up his or her claims.

answer

False

question

An arbitrator's award may be set aside if it was the result of corruption or fraud.

answer

True

question

A mini-trial is a private proceeding in which each party's attorney argues the party's case before the other party.

answer

True

question

Arbitration clauses are often found in contracts governing the international sale of goods.

answer

True

question

Seaside Hotels, Inc., adopts an alternative dispute resolution (ADR) program. Tess, a current employee, signs an agreement under which arbitration is subject to "Seaside's rules, with the employee to bear all costs of the proceeding." When a dispute arises, Tess refuses to arbitrate. Seaside files a suit to compel arbitration. The court will most likely

answer

refuse to order arbitration if Tess lacks the ability to pay.

question

A court's scope of review on the appeal of an arbitrator's award may be restricted.

answer

True

question

The federal government enforces agreements to arbitrate disputes between private parties.

answer

True

question

Lamont files a suit against Melvin. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who renders a legally binding decision. This is

answer

arbitration

question

Berle, a dairy farmer, and Clover Creamery, Inc., are engaged in court-annexed arbitration proceedings. The award will be binding on

answer

neither Berle nor Clover.

question

Virtually any dispute can be the subject of arbitration.

answer

True

question

An arbitrator's error in judgment is sufficient to provide a basis for overturning an award.

answer

False

question

Rocko Corporation, a U.S. firm, and Siena, S.A., a Columbian firm, enter into a contract providing that any dispute between them will be heard in a specific British court. Litigation between Rocko and Siena over a dispute involving this contract may occur in

answer

the specified British court only.

question

To resolve a dispute, Ripley in South Dakota and Tyler in Utah utilize Virtual Solution, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts

answer

not at all.

question

Deepwell Drilling Service and Eco-Refuge, Inc., agree to have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to

answer

do nothing.

question

Pixie files a suit against Quiver. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who imposes a resolution on the parties. This is

answer

arbitration

question

Donatello files a suit against Erasmus. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without the involvement of a third party. This is

answer

negotiation

question

Most states do not enforce agreements to arbitrate disputes between private parties.

answer

False

question

An action may be legal but not ethical.

answer

True

question

Ryan, the owner of SuperMart Stores, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects

answer

the rights of others.

question

Restricting the bonuses that are paid to executives is unethical.

answer

False

question

Sunny Energy Corporation engages in ethical behavior solely for the purpose of getting good publicity and thereby increasing profits. Sunny is

answer

not acting unethically.

question

Business ethics applies only to the owners, operators, and employees of corporations.

answer

False

question

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

answer

False

question

Solid Tool Company's decision makers view a particular risk in the use of Solid's product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of

answer

utilitarian ethics.

question

It may be unethical for a company with a product that is outlawed in one country to look elsewhere for a market.

answer

True

question

Ethical codes of conduct can set the ethical tone of a firm.

answer

True

question

Business ethics is consistent only with short-run profit maximization.

answer

False

question

To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. companies, must

answer

keep records that "accurately and fairly" reflect financial activities.

question

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except

answer

loopholes in the law or company policies.

question

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

answer

Correct operators, owners, suppliers, the community, or society as a whole.

question

In business deals, Felipe, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from

answer

philosophical reasoning.

question

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

answer

tends to justify human costs that many find unacceptable.

question

A business firm can sometimes predict whether a given action is legal.

answer

True

question

The role played by women may present some difficult ethical problems for firms doing business internationally.

answer

True

question

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid. This is most likely to be challenged as

answer

unethical only.

question

Ethics is concerned with the fairness or justness of an action.

answer

True

question

Kennedy Capital Corporation provides other firms with funds to expand operations. If Kenney strictly complies with existing laws, the firm will

answer

fulfill some business ethics obligations.

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