Fubara – Business Ethics Final Chapters 6-11 – Flashcards
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the case of MacPerson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts
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permitted consumers to sue manufacturers with whom they had no contractual relationships
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according to the legal doctrine of strict product liability,
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a manufacturer needs not be negligent to be held liable for a defective product
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which statement is accurate in its description of consumer protection?
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the Consumer Product Safety Commission has the power to order recalls
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Legal Paternalism is the doctrine that the law
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may justifiably restrict the freedom of the individual for his or her own good
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"Puffery" is an example of which of the following deceptive or misleading advertising techniques?
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exaggeration
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for years bayer aspirin advertised that it contained "the ingredient doctors recommend most." this is an example of
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concealed facts
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The case of FTC v. Standard Education was important in the legal transition
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away from the reasonable person standard in the matters of marketing
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In deciding whether an ad is deceptive, today the FTC basically follows
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the "modified" ignorant-consumer standard
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Harvard business professor Theodore Levitt has
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Drawn an analogy between advertising and art
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According to Galbraith's "dependence effect"
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producers use advertising to shape consumer wants
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Advertising
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subsidizes the media
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Critics of advertising contend that
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advertising rarely gives consumers much useful information
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which of the following consumer goods is responsible for the greatest number of individual social ills?
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cigarettes
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Before the case of MacPherson v. Buick Motor Car in 1916 the law based a manufacturer's liability for injuries due to a defective product on
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the contractual relationship between the producer and the consumer
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Due care is
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the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer
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which statement is true from an ethical perspective?
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the argument for strict liability is basically utilitarian
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in 1972 Congress created one of the most important agencies for regulating product safety this agency is the
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Consumer Product Safety Commission
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To properly protect consumers,
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if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it
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people generally speak of two kinds of warranties. What are these two kinds of warranties?
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express and implied
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which of the following is an example of price gouging
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a New York hotel tripling its room prices after 9/11
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The consumer's main source of product information is
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the label and the package
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advertising is best known for
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the persuasion to purchase the product
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Terms like "can be," "as much as," and "help," are examples of
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ambiguity
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The terms "best, finest, and most" are examples of
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puffery
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the media with the greatest advertising influence over children is
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television
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which of the following is true concerning our environment today?
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air is a health risk in many major metropolitan areas
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An ecosystem
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can be upset by human behavior
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the "tragedy of the commons" is
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that individual pursuit of self-interest can sometimes make everyone worse off
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Some environmental regulation(like forbidding the burning of coal in cities) benefit each and everyone of us because the air we all breathe is cleaner. if an individual ignores the regulation and burns coal, while others obey the regulation, then he or she
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is being a free rider
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the moral theorist William T. Blackstone claims that the right to a livable environment
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is a fundamental human right
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cost-benefit analysis
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is influenced by value judgements
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which environmental statement is true?
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An American consumer can cause more tropical rain forest destruction than a poor person living in the forest
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As we look to the future generations,
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the social and environmental policies we adopt can affect who is born in the future
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according to the anthropocentric ethic of Baxter and others
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the Grand Canyon is valuable only because people care about it
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Which of the following is true of Factory farms?
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they permit the mass production of meat at low prices
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Utilitarians
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are likely to oppose factory farming
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which of the following is true of a regulatory approach to environmental problems?
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it requires the EPA or other body to determine the most effective, feasible pollution control technology for each different industry
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Animal manure
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is a large source of pollution
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Pollution permits are an example of which of the following methods of achieving our environmental goals?
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pricing mechanisms
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In consideration for the obligation to others
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the U.S. uses more than its proportional share of the world's resources
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One truth about factory farms is
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they are larger than ever
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according to the philosopher Joel Feinberg,
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the rights of future generations are contingent upon those people coming into existence
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William F. Baxter addresses environmental ethics by noting
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judgements about environmental problems ought to be people-oriented
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The philosopher Tom Regan
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claims that no one could approve of the treatment of animals in factory farms if they knew what was going on
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According to Holmes Rolston III
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some natural objects are morally considerable in their own right, apart from human interests
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A decade after wolves were reintroduced to Yellowstone park their presence was discovered to
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have changed the behavior of elk
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business has considered the environment to be
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free and nearly limitless
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an assessment of costs and benefits inevitably involves
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value judgements and factual uncertainties
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which of the following is a drawback to the regulatory approach?
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regulation can take away an industry's incentive to do more than the minimum
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a moral vegetarian
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rejects eating meat based on moral grounds
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According to David Ewing, two factors explain the absence of civil liberties and the prevalence of authoritarianism in the workplace. which of the following is one of them?
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the rise of personnel engineering and professional management
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according to common law, to legally terminate an employee, an employer
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need have no reason at all
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which of the following is an accurate statement about employment law in the workplace
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it's illegal to fire workers because of union membership
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Austin Fagothey and Milton Gonsalves believe, a direct strike is justified
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when it is a last resort
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Groups of 18th century skilled artisans formed secret societies for two basic reasons. which of the following is one of those reasons?
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to equalize their relationship with their employers
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choose the statement that is accurate in the workplace
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an employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees
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According to David Ewing
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the corporate invasion of employees civil rights is rampant
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to be successful any test used by a corporation must be
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valid
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The Wagner Act of 1935
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prohibited firing workers because of union membership or union activities
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Unions employ two kinds of boycotts to enforce their demands. these tow kinds of boycotts are
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primary and secondary
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Which statement is true about the hiring and employment process?
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according to common law, unless there is an explicit contractual provision to the contrary, every employment is employment "at will"
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the appropriate guideline for testing potential employees is:
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Griggs v. Duke Power Company, which prohibits employers from requiring a high school education as a prerequisite for employment or promotion without demonstrable evidence that the associated skills relate directly to job performance
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which of the following is a correct statement about union activities?
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a sympathetic strike occurs when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others
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since congress passed the Americans with Disabilities Act in 1994
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employers must make reasonable accommodations for disabled workers
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choose the factual precept concerning wages
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a fari wage presupposes a fair work contract
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employers have the right to fire an employee who performs inadequately but they should do so
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as painlessly as possible
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fair personnel policies and decisions must be based on criteria that are clear, job related, and
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equally applied
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the hiring process needs to include screening, testing, and
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interviewing
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which of these is a valid reasoning for not hiring a potential employee
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lack of experience
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tests are designed to measure the applicant's skills in verbal, quantitative, and
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logic
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In the interview process, the interview should avoid rudeness, coarseness, condescension
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hostility
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Conscious and unconscious biases and stereotypes are as the English philosopher Francis Bacon called
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"idols of the mind"
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The key moral ideal in promotions is
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fairness
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of the four types of discharge firing
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for-cause dismissal--the result of employee theft, gross insubordination, release of proprietary information, and so on
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in union terms, a direct strike occurs
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when an organized body of workers withholds its labor to force the employer to comply with its demands
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Privacy
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must be respected if we are to function as complete, self-governing agents
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the right to privacy of employees
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may conflict with an organization's legitimate interests
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when it comes to obtaining information about employees, a key concept is
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informed consent
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which of the following is true
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media sensationalism and political posturing can get in the way of sensible answers to the drug problem
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the one key questionable premise underlying personality tests is
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that all individuals can usefully and validly be placed into a relatively small number of categories of personality types and character traits
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Polygraph tests are
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are impossible to beat when properly administered
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The Hawthorne effect shows
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attentions and recognition can enhance worker productivity and motivation
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businesses cite several reasons for using polygraphs to detect lying. Which of the following is one of those reasons?
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the polygraph is a fast and economical way to verify the information provided by a job applicant
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Used properly, personality tests serve two purposes in the work place. Which of the following is one of those purposes?
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Personality tests help screen applicants for jobs by indicating areas of adequacy and inadequacy
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which statement has the proper perspective about drug testing?
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drug testing can only be defensible when it is really pertinent to employee performance and when there is a lot at stake
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Doglas McGregor rejects Theory X, which holds that
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workers essentially dislike work and will do everything they can to avoid it
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an early 1970s government study (Work in America) identified three chief sources of worker dissatisfaction which of the following is one of those sources?
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the rigidity of rules and regulations
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A fact about job satisfaction is
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a lack of job satisfaction can create mental health problems
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out of these four, which one is the only correct statement concerning OSHA?
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critics call OSHA a "toothless tiger"
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The most accurate statement about workplace safety is
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workers are often unaware of the hazards they face on the job
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CoCorporate in fighting, "management power struggles," " maneuvering and politics and power grabbing" and Machiavellian intrigues" are all phrases, H. Ross Perot, uses to describe
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the reality of corporate life today
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OSHA statics indicate that on the job 32 people each day are
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killed
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the proper approach to promote safety is found in the "hidden culture" which is
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a culture that is proactively oriented toward safety
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the most common reason that people leave their jobs is
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a poor relationship with their immediate supervisor
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one of the three chief sources for dissatisfaction in the workplace is
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lack of opportunities to be one's own boss
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when employees at all occupational levels are asked to rank what is important to them, the order that put them in is
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interest work; sufficient help, support and information to accomplish the job; enough authority to carry out the work; and good pay
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which of the following is a true statement about the information gained from polygraph tests?
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not only should the organization have job-related grounds for using the polygraph, but these must be compelling enough to justify violating the individuals privacy and psychic freedom
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many major employer routinely monitor the performance of their employees through the computers and telephones they ousel. the one check that they can do is
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check the number of keystrokes that word processors enter during the day
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a study published in the Journal of the American Medical Association showed that postal workers who tested posit for drug use in a pre-employent urine tests were at least 50 percent more likely to be
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fired injured, disciplined, or absent than those who tested negative
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the United States has more of what per employee than any other austral nation?
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managers
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Based on guidelines of employer/employee relations, which statement is true?
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the traditional law of agency obliges employees to act loyally and in good faith and to carry out lawful instructions
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conflicts of interest
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occur when employees private interest are substantial enough hot potentially interfere with their job duties
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according to the Supreme Court
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even if you are not an insider, you can be guilty of insider trading if you misappropriate sensitive information
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a trade secret
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can become part of an employee technical knowledge, experience, and skill
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the Foreign Corrupt Practices Act
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is alleged by its critics to put American companies at a disadvantage
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In determining the morality of giving and receiving gifts in a business situation, which of the following factors is Most relevant?
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the purpose of the gift
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A whistle-blower
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far from being disloyal, may be acting in the best interest of the organization
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the Sarbaes-Oxley aAct
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makes it illegal for executive to retaliate against employees who report possible violations of federal law
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According to Professor Norman Bowie, which of the following factors is relevant to determining the morality off blowing the whistle?
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All of the above
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in discussing the case of the truck stop cashier who is asked to write up phony chits or receipts the text argues that
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she may be justified in "going along;" at least temporarily
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In the 1997 case of the U.S. v Hagan the supreme court found that Hagan
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had misappropriated confidential information
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The Donald Wohlgemuth case shows that
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trade secrets often become an integral part of an employee's total job skills and capabilities
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some writers deny that employees have any obligation of loyalty to the company because
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companies are not the kind of things that are properly objects of loyalty
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when an employee's interest are likely to interfere with the employee's ability to exercise proper judgement on behalf of the organization what exists?
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a conflict of interest
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insider trading is
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the buying or selling of stocks (or other financial securities) by business insiders on the basis of information that has not yet been made public ansi silkily to affect the price of the stock
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inside traders ordinarily defend their actions by claiming that they dot injure
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anyone
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which is the best argument for legally protecting trade secrets?
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employees who disclose trade secrets violate the confidentiality owed to their employers
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U.S. companies have a history of paying off foreign officials for business favors. Such acts were declared illegal by
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the Foreign Corrupt Practices Act
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To resolve difficult moral dilemmas, the better we understand the exact ramifications of the alternatives the more likely we are
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to make a sound moral decision
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whistle-blowing involves exposing activities that are
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harmful immoral or contrary to the public interest
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whistle-blowers are only human beings, not saints and they sometimes have their own
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self serving agenda
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Which act provides sweeping new legal protection for employees who report possible securities fraud, making it unlawful for companies to "discharge, demote, suspend, threaten, harass or in any other manner discriminate against" them?
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Sarbanes Oxley Act
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Conflicts of interest may exist when employees have financial investments
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in suppliers, customers, or distributors with whom their organizations do business
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the use of one's official position for what always raises more concern and questions?
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personal gain
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conflicts of interest are what kind of problem
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Moral
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which of the following is true based on documented evidence of discrimination?
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relatively few women and minorities have made it to the very top of their professions
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a historical view indicates which of the following is correct?
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women and blacks are sometimes victimized by stereotypes
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which of these statements is true concerning court cases about discrimination?
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in the recent University of Michgan cases the Supreme court upheld moderate, flexible affirmative action programs
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which of the following is the most plausible argument FOR affirmative action?
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it is necessary to break the cycle that keeps minorities and women locked into low-paying low-prestige jobs
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which of the following is the most plausible argument AGAINST affirmative action?
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affirmative action violates the rights of white men to equal treatment
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advocates of comparable woth
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want women to be paid as much as men for jobs involving equivalent skill, effort and responsibility
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which of the following is an example of sexual harassment?
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a female employee suggesting sexual offers to a male employee
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sexual comments that one woman appreciates might distress another women who decides when such behavior is inapporpriate
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the person to whom the comments are directed
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the 1984 Supreme Court decision in Memphis Firefighters v. Stotts
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upheld seniority over affirmative action
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in 1987, the supreme court affirmed in the case of Johnson v. Transportation agency, that
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considerations of sex are permissible as one factor in deciding whom to promote
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Which of the following statements is accurate
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the law treats sexual harassment as a form of sexual discrimination
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when investigators sent equally qualified young white and black men--all of them articulate and conventionally dressed--to apply for entry-level jobs in Chicago and Washington, D.C., the results clearly showed
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racial discriminate against young African-American men
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What quality is more important in predicting who gets fired than job-performance ratings or even prior disciplinary history?
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race
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Male managers frequently assume that women
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are too emotional to be good managers
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what do affirmative action programs involve
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firms are expected to survey current female and minority employment by department and job classification
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Today most large corporations not only accept the necessity of affirmative action but also find that _____ benefits when they make themselves more diverse?
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the bottom line
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Many Americans oppose what issue because they fear it will mean in practice, illegal quotas, preferential treatment ofAfrican Americans and women and even reverse discrimination against white men?
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Affirmative action
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over the last two decades, how many sexual-harassment claims have emerged?
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over 12,000
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there are tow types of sexual harassment
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"quid pro quo" and "hostile work environment"
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to answer the question of who determines what is objectionable or offensive in sexual harassment, the courts use what kind of hypothetical person?
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a reasonable person
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one message that sexual harassment conveys is that managers view women as
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playthings
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what should a female employee do if she encounters sexual harassment?
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she should try to document it by keeping a record of what has occurred, who was involved, and when it happened
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companies clearly have what kind of obligation to provide a work environment in which employees are free from sexual harassment?
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moral
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opponents of comparable worth insist which one of these ideas support their position?
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most women have freely chosen the lower paying occupations
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Affirmative action, comparable worth, and sexual harassment are connected to
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job discrimination
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Affirmative action, comparable worth, and sexual harassment are connected to
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job discrimination