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Q:
Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian is liable for
A.appropriation.
B.benefiting an employee.
C.conversion.
D.wrongful interference with a business relationship.
Q:
As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed
A.appropriation.
B.conversion.
C.intentional infliction of emotional distress.
D.trespass to personal property.
Q:
Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he
A.does not have Bella's permission to drive on the property.
B.drives onto the property for recreational purposes.
C.harms the property in a material way.
D.harms the property in any way.
Q:
Joy invites Ken into her apartment. Ken commits trespass to land if he
A.enters the apartment with fraudulent intent.
B.harms the apartment in any way.
C.makes disparaging remarks about Joy to others.
D.refuses to leave when Joy asks him to go.
Q:
Liz trespasses on Mega Corporation's property. Through the use of reasonable force, Mega's security guard Ned detains Liz until the police arrive. Mega is liable for
A.assault and battery.
B.false imprisonment.
C.intentional infliction of emotional distress.
D.none of the choices.
Q:
OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is
A.appropriation.
B.conversion.
C.wrongful interference with a contractual relationship.
D.none of the choices.
Q:
Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with
A.a bargaining relationship.
B.a business relationship.
C.a contractual relationship.
D.a customer relationship.
Q:
Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of
A.emotion.
B.fact.
C.illusion.
D.opinion.
Q:
Lew angrily accuses Mandy, a broker with New Financial Services, of fraudulently inducing him to invest in Open Pit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on a statement of
A.emotion.
B.fact.
C.opinion.
D.puffery.
Q:
Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This isA.fraud if the statement is the truth.B.fraud if Jim believes that this statement is not TRUE.C.fraud if Jim is stating his opinion, not the facts.D.not fraud.
Q:
Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is
A.a corporate officer.
B.a non-employee.
C.a private individual.
D.a public figure.
Q:
Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only ifA.a third party hears it.B.Hu has not been caught.C.the statement is puffery.D.the statement is TRUE.
Q:
Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What conflicts might arise if the firm stops selling this product?
Q:
Olaf, an executive with Pharma Product Distribution, Inc., has to decide whether to market a product that might have undesirable side effects for a small percentage of users. How should Olaf decide whether to sell the product? How does the standard of ethics that is applied affect this answer?
Q:
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.
Q:
Bilt-Well Construction Corporation makes a side payment to a government 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.
Q:
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.
Q:
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.
Q:
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.
Q:
Superior Energy Corporation engages in ethical behavior solely for the purpose of getting 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.
Q:
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.
Q:
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.
Q:
Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism 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.
Q:
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.
Q:
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.
Q:
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
A.Bob.
B.CornAgri.
C.the fewest people.
D.the most people.
Q:
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.
Q:
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.
Q:
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
A.a choice among alternatives to produce the maximum societal 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.
Q:
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.
Q:
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.
Q:
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
A.absolute.
B.analytical.
C.discretionary.
D.utilitarian.
Q:
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.
Q:
Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This requires 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.
Q:
Tilly, the chief financial officer for USA Products Corporation, attempts to apply Christian precepts in making ethical decisions and in doing 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.
Q:
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.
Q:
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
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.
Q:
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
A.good faith.
B.ignorance of the law.
C.regard for the firm's shareholders only.
D.their own self interest.
Q:
Sharon, the human resources director for Tempo Corporation, attempts to comply with the law in dealing with applicants and employees. 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.
Q:
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.
Q:
Kennedy Capital Corporation provides other firms with funds to expand operations. 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.
Q:
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.
Q:
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.
Q:
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.
Q:
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.
Q:
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.
Q:
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.
Q:
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."
Q:
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.
Q:
Some U.S. bribery laws are directed toward accountants.
Q:
Bribery of foreign government officials is both an ethical and a legal issue.
Q:
The role played by women may present some difficult ethical problems for firms doing business internationally.
Q:
One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."
Q:
A business organization and its actions cannot be based on trust.
Q:
Businesspersons who would choose to act unethically may be deterred from doing so because of public opinion.
Q:
To be ethical is to "do the right thing" but it does not otherwise "pay."
Q:
A business firm's profits may suffer if the firm is not a "good corporate citizen."
Q:
Corporations can be good citizens by promoting goals that society deems worthwhile.
Q:
If an action is ethical from an outcome-based perspective, it is always ethical from a duty-based perspective.
Q:
According to utilitarianism, an action that affects the majority adversely is morally wrong.
Q:
According to utilitarianism, it does not matter how many people suffer a negative effect from an act.
Q:
In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.
Q:
Ethical standards based on religious teachings tend to be absolute.
Q:
Under the principle of rights theory, one person's set of values is as "right" as another's.
Q:
Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.
Q:
Corporate ethical policies must be clearly communicated to be effective.
Q:
Setting realistic workplace goals can reduce the probability that employees will act unethically.
Q:
An ethics program can clarify what a company considers to be unacceptable conduct.
Q:
Ethical codes of conduct can set the ethical tone of a firm.
Q:
Managers must apply different standards to themselves than they apply to their employees.
Q:
A business firm can sometimes predict whether a given action is legal.
Q:
The legality of an action is always clear.
Q:
Acting in good faith gives a business firm a better chance of defending its actions in court.
Q:
The most common reason that ethical problems occur in business is an overemphasis on long-run profit maximization.
Q:
The minimal acceptable standard for ethical behavior is compliance with the law.
Q:
Business ethics is consistent only with short-run profit maximization.
Q:
Simply obeying the law does not fulfill all ethical obligations.
Q:
An action may be legal and ethical.
Q:
An action may be legal but not ethical.
Q:
Business ethics applies only to the owners, operators, and employees of corporations.