Business Law Chapter 7 – Flashcards
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In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes:
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fair or just behavior
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Mariah works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of:
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operators, owners, suppliers, the community, or society as a whole
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Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has:
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an ethical duty beyond those duties mandated by law
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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:
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unethical only
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Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in:
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many situations
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Kennedy Capital Corporation provides other firms with funds to expand operations. If Kenney strictly complies with existing laws, the firm will:
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fulfill some business ethics obligations
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Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in:
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good faith
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In business deals, Felipe, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from:
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philosophical reasoning
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Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because:
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Flexo showed reckless disregard for Hill City's residents and others.
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Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian religious ethical standards. With respect to their application, these standards are usually:
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absolute
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In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is:
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the principle of rights.
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Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require:
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the acquiring of the means of production by workers.
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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:
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utilitarian ethics
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Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for:
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the most people
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In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of:
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utilitarianism
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In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with:
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All of the choices: how the corporation can best fulfill any ethical duty to society. the effect on corporate profits of ignoring any ethical duty to society. whether the corporation owes any ethical duty to society.
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Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it:
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tends to justify human costs that many find unacceptable.
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Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of:
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its employees, owners, consumers, the community, and society.
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Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that:
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exploits its workers.
