Chapter 2 BUSLAW – Flashcards
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John is sales manager for Kleen 'N Brite Products, Inc. Compared to John's personal activities, his business activities most likely involve a. more complex ethical issues. b. no ethical issues. c. simpler ethical issues. d. the same ethical issues.
answer
a. more complex ethical issues.
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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 a. fair or just behavior. b. financially rewarding behavior. c. legal behavior. d. religious behavior.
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a. 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 a. a different set of principles from those that apply to other activities. b. the same moral principles that apply to non-business activities. c. those principles that produce the most favorable financial outcome. d. whatever saves New Trends's "face."
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b. the same moral principles that apply to non-business activities.
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Lia works for Media Marketing Company. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics consist of a. "bad" versus "good" publicity. b. questions of rightness and wrongness. c. the firm's quarterly revenue. d. whatever is legal.
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b. questions of rightness and wrongness.
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Any decision by the management of Fast-Food Franchise Corporation may significantly affect its a. operators only. b. operators, owners, suppliers, the community, or society as a whole. c. owners only. d. suppliers, the community, or society as a whole only.
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b. operators, owners, suppliers, the community, or society as a whole.
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Bess runs Creditors Asset Recovery. She recruits clients by misrepresenting the facts and pretending to be licensed in various occupations in Michigan. Bess's conduct most likely warrants a. an ethical admonishment but no other sanctions. b. an injunction plus other sanctions. c. no sanctions but no praise. d. praise for her aggression in recovering the assets of "deadbeat" debtors.
answer
b. an injunction plus other sanctions.
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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 a. a legal duty beyond those duties mandated by ethics. b. an ethical duty beyond those duties mandated by law. c. any duty beyond those mandated by both ethics and the law. d. any duty when it is uncertain whether a legal duty exists.
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b. 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 a. illegal and unethical. b. illegal only. c. neither illegal nor unethical. d. unethical only.
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d. 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 a. all situations. b. many situations. c. no situations. d. practically no situations
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b. many situations.
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Sharon, the human resources director for Tempo Corporation, at¬tempts to comply with the law in dealing with applicants and employ¬ees. One of the challenges Sharon faces is that the legality of an action is a. always clear. b. never clear. c. sometimes clear. d. usually clear.
answer
c. sometimes clear.
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Kennedy Capital Corporation provides other firms with funds to expand op¬erations. If Kenney strictly complies with existing laws, the firm will a. fulfill all business ethics obligations. b. fulfill no business ethics obligations. c. fulfill some business ethics obligations. d. not need to fulfill any business ethics obligations.
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c. fulfill some business ethics obligations.
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Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en¬sure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in a. good faith. b. ignorance of the law. c. regard for the firm's shareholders only. d. their own self interest.
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a. 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 a. a corporate ethics code. b. a cost-benefit analysis. c. philosophical reasoning. d. the law.
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c. philosophical reasoning.
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Flexo Trucking Company transports hazard¬ous 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 a. Flexo showed reckless disregard for Hill City's residents and others. b. Garn exceeded the federal time limit. c. harm was caused by an unfortunate accident. d. Hill City should have better protected its water source.
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a. Flexo showed reckless disregard for Hill City's residents and others.
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Tilly, the chief financial officer for USA Products Corporation, at¬tempts to apply Christian precepts in making ethical decisions and in do¬ing business. In applying duty-based ethical standards that are derived from a religious source, Tilly would consider the motive behind an act to be a. irrelevant. b. the least important consideration. c. the most important consideration. d. the only consideration.
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a. irrelevant.
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Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This re¬quires that the employees a. categorize the issues according to legality, morality, and profitability. b. consider only the benefits that would accrue to them personally. c. look only at the result, regardless of the means to attain it. d. weigh the consequences that would follow if everyone acted the same.
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d. weigh the consequences that would follow if everyone acted the same.
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Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian relig¬ious ethical standards. With respect to their application, these standards are a. absolute. b. analytical. c. discretionary. d. utilitarian.
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a. absolute
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Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must a. achieve the greatest good for the most people. b. avoid unethical behavior regardless of the consequences. c. conform to society's ethical standards. d. place his or her employer's interest first.
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b. avoid unethical behavior regardless of the consequences.
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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 a. a religious rule. b. the categorical imperative. c. the principle of rights. d. utilitarianism.
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c. the principle of rights.
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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 a. the right determination under a cost-benefit analysis. b. the rights of others. c. the "right" thing to do. d. the right to make a profit.
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b. the rights of others.
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Made4U Goods, Inc., asks its employees, many of whom are mem¬bers of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require a. a choice among alternatives to produce the maximum so¬cietal utility. b. a determination of whom an action will affect. c. an assessment of the effects of alternatives on those affected. d. the acquiring of the means of production by workers.
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d. 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 a. duty-based ethics. b. Kantian ethics. c. rights-based ethics. d. utilitarian ethics.
answer
d. utilitarian ethics.
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Halley, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on a. moral values. b. religious beliefs. c. the consequences of an action. d. the nature of an action.
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c. the consequences of an action.
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Bob, research manager for CornAgri Products, Inc., ap¬plies utilitarian ethics to determine that an action is morally cor¬rect when it produces the greatest good for a. Bob. b. CornAgri. c. the fewest people. d. the most people.
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d. the most people.
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In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of a. duty-based ethics. b. Kantian ethics. c. the principle of rights. d. utilitarianism.
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d. utilitarianism.
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In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with a. how the corporation can best fulfill any ethical duty to society. b. the effect on corporate profits of ignoring any ethical duty to society. c. whether the corporation owes any ethical duty to society. d. all of the choices.
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d. all of the choices.
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Chuckie, president of DrinkUp Fresh Beverages, Inc., does not ap¬ply utilitarianism to business ethical issues. One problem with utilitari¬an¬ism is that it a. gives business profits priority over production costs. b. ignores the practical costs of a given set of circumstances. c. requires complex cost-benefit analyses of simple situations. d. tends to justify human costs that many find unacceptable.
answer
d. 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 a. its consumers, the community, and society only. b. its employees and owners only. c. its employees, owners, consumers, the community, and society. d. no one.
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c. its employees, owners, consumers, the community, and society.
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A common ethical dilemma faced by the management of General Holdings Corporation involves the effect that its decision will have on a. one group as opposed to another. b. the firm's competitors. c. the government. d. the U.S. Chamber of Commerce.
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a. one group as opposed to another.
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Superior Energy Corporation engages in ethical behavior solely for the purpose of get¬ting good publicity and thereby increasing profits. Superior is a. acting unethically in its pursuit of publicity. b. acting unethically in its pursuit of profits. c. acting unethically in its setting of priorities. d. not acting unethically.
answer
d. not acting unethically.
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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 a. an individual's conscience. b. business rules and procedures. c. loopholes in the law or company policies. d. promises to others.
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c. loopholes in the law or company policies.
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Spencer Hydraulics Corporation's ethics committee is asked a business ethics question—should the firm 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 a. absolution. b. decision. c. inquiry. d. justification.
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a. absolution.
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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 a. agrees to produce goods at Retail Mart's desired price. b. goes unnoticed by "corporate watch" groups. c. exploits its workers. d. pays its workers less than the U.S. minimum wage.
answer
c. exploits its workers.
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Bilt-Well Construction Corporation makes a side payment to a govern¬ment official in Nigeria to obtain a contract. In the United States, this is a. illegal and unethical. b. illegal but not unethical. c. unethical but not illegal. d. legal and ethical.
answer
a. illegal and unethical.
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To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. companies, must a. conceal financial records that reveal past bribes. b. keep records that "accurately and fairly" reflect financial activities. c. make bribes through third parties rather than directly to officials. d. permit payments to foreign officials that are unlawful in that country.
answer
b. keep records that "accurately and fairly" reflect financial activities.
