Ch 3 and 4 quiz – Flashcards

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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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.