Q&A Hero

Q: Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package of business documents from Rico within thirty minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have a. a bilateral contract. b. a trilateral contract. c. a unilateral contract. d. no contract.

Q: Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a a. bilateral contract. b. unilateral contract. c. void contract. d. unenforceable contract.

Q: Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month. Levi promises to do the chores. Jonah and Levi have formed a a. bilateral contract. b. unilateral contract. c. void contract. d. unenforceable contract.

Q: On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if various tasks are completed by Friday. On Wednesday, when Outdoor has finished more than half of the work, Neil says that he has changed his mind. These parties had a. an expired contract when Neil said that he had changed his mind. b. a quasi contract when Neil said that he would pay for certain work. c. a unilateral contract as soon as Outdoor began to perform. d. no contract.

Q: Kelly tells Jimmy she will pay him $1,000 if he builds a shed in her backyard. Kelly is a(n) a. offeree. b. offeror. c. promisee. d. contractor.

Q: Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because they lack the requirement of a. agreement. b. capacity. c. consideration. d. legality.

Q: Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include a. consideration. b. capacity. c. legality. d. practicality.

Q: Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to a. the conscious theory of contracts. b. the objective theory of contracts. c. the personal theory of contracts. d. the subjective theory of contracts.

Q: Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is a. the parties' intent. b. Phil's rate of pay. c. Phil's education. d. the terms of Phil's employment.

Q: Tania promises to buy Saki's handheld video game-player for $40. Saki is a. an executee. b. an offeror. c. a promisee. d. a promisor.

Q: Jack promises to buy Lizette's used textbook for $60. Jack is a. an executor. b. an offeree. c. a promisee. d. a promisor.

Q: InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, it may be required to a. do nothing. b. make another promise. c. pay monetary damages. d. perform a different service.

Q: Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has a. only a moral obligation to do keep his promise. b. only a legal obligation to keep his promise. c. both a legal and a moral obligation to keep his promise. d. no obligation to keep his promise.

Q: Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the definition of a. a prediction. b. a premise. c. a principle. d. a promise.

Q: Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana a a. prediction. b. promise. c. bilateral contract. d. void contract.

Q: Quasi contracts are often used by courts, even in cases where there is an actual contract that covers the area in controversy.

Q: One purpose of quasi contracts is to prevent unjust enrichment of one party at the expense of another.

Q: A quasi contract is not a true contract.

Q: A quasi contract arises from a mutual agreement between two parties.

Q: A quasi contract is not enforceable by a court.

Q: An otherwise valid contract may be unenforceable if it is not in writing.

Q: A void contract is enforceable if it is in writing.

Q: If a voidable contract is avoided, the parties to it are released from it.

Q: A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.

Q: A contract can be executed on one side and executory on the other.

Q: An executed contract is one that has been fully performed by both parties.

Q: An express contract does not need to be in writing.

Q: An implied contract is implied from the conduct of the parties.

Q: Letters of credit are formal contracts that are often used in international sales contracts.

Q: A check, like other negotiable instruments, is a formal contract.

Q: Informal contracts require a special form or method of creation.

Q: A lottery is an example of an offer for an unilateral contract.

Q: A unilateral contract is formed when the party receiving the offer completes the requested act or performance.

Q: An offer to form a bilateral contract is accepted only by promising to perform the contract performance.

Q: An offeree is a person who makes an offer.

Q: All contracts must be in writing to be enforceable.

Q: Every contract involves at least two parties.

Q: A contract is valid only if both of the parties entering into it have the capacity to do so.

Q: The only requirement for a valid contract is that the parties voluntarily entered into it.

Q: The term consideration refers to the voluntary consent of all of the parties to a contract.

Q: An agreement is NOT one of the requirements of a valid contract.

Q: The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.

Q: In contract law, intent is determined by the objective theory of contracts.

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: Rio Business Corporation pays potential clients, including private foreign companies and the representatives of foreign labor organizations to facilitate business. If Rio knows that the payments will be passed on to a foreign government, this practice is a. illegal if the payments violate the Foreign Corrupt Practices Act. b. legal because a third party acts as a "go-between." c. legal because private parties are involved on both sides of the deal. d. legal because the payments are intended to facilitate business.

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: In judging her action as a corporate employee of Music Notes Corporation, Brooke always lets her conscience be her guide. As an effective alternative, Brooke could a. ask herself whether she would be happy to be interviewed by the national media about the action. b. consider only the benefits that would accrue to her personally. c. look only at the result, regardless of the means to attain it. d. consider how she would like to have others treat her in a similar situation.

Q: In making a decision as chief executive officer of Straightarrow Archery Supplies, Robin always considers whether he would feel any guilt about a particular action. As a guide, Robin is using a. the categorical imperative. b. internal company policies. c. the law. d. his conscience.

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 most likely 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: A common ethical dilemma faced by the management of Spencer Hydraulics 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: MeatMen, Inc. spends a great deal of money and effort to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. MeatMen appears to strongly believe in the concept of a. the moral minimum. b. corporate social responsibility. c. "grey areas" in the law. d. government oversight.

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: 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: Hailey, a lawyer on the staff of International Group, always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context. Hailey is applying a. the utilitarian theory of ethics in business contexts. b. religious beliefs in business contexts. c. Kantian ethics in business contexts. d. the principle of rights theory of ethics in business contexts.

Q: In making decisions for Smartt Investments, Rita uses a cost-benefit analysis. This is a part of a. duty-based ethics. b. Kantian ethics. c. rights-based ethics. d. utilitarian ethics.

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 her 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: Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother. Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected. Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any. Carrie Ann is being influenced by a. the categorical imperative. b. the principle of rights. c. a cost-benefit analysis. d. outcome-based ethics.

Q: Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the Ten Commandments. One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter. Julia is likely to a. punish the employee for stealing even though the employee's motive was benevolent. b. view the employee's actions as justified because the employee was clothing the poor. c. contribute more sweaters to the homeless shelter. d. gently reprimand the employee without suggesting that the employee's actions were unethical.

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: In business deals, Fiona, the chief executive officer of Snacks n" Bites, 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: Whirlwind Financial Corporation sends its executives to a resort in Mexicoat taxpayers' expenseto consider using the firm's cash to buy back its stock and thereby prop up the value. Many of its competitors are doing the same thing. One of the best ways to learn about the ethical responsibilities inherent in operating a business is to look at a. the mistakes made by other companies. b. the benefits of pursuing profit despite the appearance of impropriety. c. the prevalence of a practice among other corporations. d. who is footing the bill for a particular action.

Q: Richard suspects his supervisor of unethical accounting practices. However, he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him. An important feature of online reporting systems like EthicsPoint is a. the employee reporting the unethical behavior can do so anonymously. b. the employee reporting the unethical behavior is financially compensated if he loses his job as a result of the report. c. the employee reporting the unethical behavior must give his full name when making the report. d. the employee reporting the unethical behavior must have another employee supporting him.

Q: Megan is the ethics officer for Nature's Eggs, Inc., an organic egg raising company. In overseeing the application of the company's ethical code of conduct, Megan is most likely not in charge of a. an ethics committee. b. ethical training programs. c. internal ethical audits. d. ethical reviews of employees' family members.

Q: Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code of conduct, (2) an ad campaign to publicize the new code, and (3) the discharge of employees who do not adhere to the code. One of the most effective ways to set a tone of ethical behavior within a business organization is a. to create an ethical code of conduct. b. to discharge employees who create the appearance of impropriety. c. to post a marketing campaign online touting the firm's ethical tone. d. for management to direct employees to "do as we say, not as we do."

Q: Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues from management. One of the most important ways to create and maintain an ethical behavior workplace is for management to a. demonstrate a commitment to ethical decision making. b. discreetly engage in unethical or illegal acts. c. look the other way when an employee engages in an unethical act. d. direct employees to "do as we say, not as we do."

Q: Margaret is the top manager of Pecans, Inc. She sets strict ethical standards for all employees. Margaret, however, often takes some of the company's best nuts and sells them from her house. The ethical tone at Pecans, Inc. is a. likely to be good because Margaret has set such strict standards for her employees. b. not likely to be good because although Margaret sets strict ethical standards for the other employees, she does not follow them. c. not related to either Margaret's ethical standards or her own unethical behavior. d. not likely to be good because employees tend to resent strict ethical standards.

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: David, the chief accounting officer of Tension Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. David should a. not worry about what is legal or illegal as long as the corporate executives benefit in the short run. b. try his best to not do anything illegal and keep documentation showing that he always acts in good faith. c. not worry about what is legal or illegal as long as it benefits the shareholders. d. not worry about what is legal or illegal as long as it benefits the chief executive of the corporation.

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: 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: 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: 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: Mary 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: 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: 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.