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Which of the following ethical theorists subscribes to self-interest?
a. Ayn Rand
b. Adam Smith
c. Thomas Hobbes
d. a and c only
e. All of the above
Ben Small, a sole practitioner, has just decided to form a law partnership with his
lifetime friend, Harvey Steptoe. They agree to name the firm Steptoe and Small and to
split all profits. Ben is also a director for a publicly-traded telecommunications firm,
NewVector, Inc. Ben has just learned that Harvey is lead counsel is a lawsuit against
NewVector. Ben continues to serve as a board member and participates in sensitive
discussions about the lawsuit. Ben does not disclose that Steptoe is his partner. Ben's
feeling is that he and Harvey are as honest as the day is long and neither would
compromise their duties to NewVector and client, respectively.
a. Ben has a conflict of interest and must either resign as a director or leave the
partnership.
b. The pledge of both Ben and Harvey is sufficient to cover the ethical issues on
conflict.
c. It is Harvey's obligation to take action, not Ben's.
d. None of the above
What happened to Matthew Lee when he raised questions about Lehman's risk level?
a. The board responded and fired the company's CEO
b. Federal regulators arrived and closed down the investment bank
c. Outside auditors began an investigation
d. He was fired
Who said, "I don"t think that people in the media can say that advertising influences
consumers to buy cars or shirts, and then argue that violence on television or in music
has no impact"?
a. President Bush
b. Charlton Heston
c. CEO of Nicole Miller
d. David Geffen
What was Intel's original proposal on the flawed chips?
a. To replace them without questions
b. To replace them only for computer users who had to do calculations
c. To replace them only for a fee
d. None of the above
What dictated the placement of the Pinto gas tank?
a. Safety
b. Style
c. Weight
d. Government regulations
An ad contains the following: "Restaurant Critic, Jose Winfrey, on Mama Leone's
Italian Eatery, "Mama Leone's is simply the best. It is a surprising new entrant into the
competitive Italian bistro market and it is a mighty one."" Jose Winfrey is the cousin of
the owner of Mama Leone's and knows restaurants, but is not a critic for any
publication or other media outlet. The ad:
a. Creates a false impression.
b. Raises no ethical questions.
c. Is legal and ethical because it doesn"t state where he is a critic.
d. Both b and c
e. None of the above
On April 1, 2008, about 20,000 workers in Vietnamese factories that make Nike shoes
walked off the job. The workers at the plants (managed by a Taiwanese company) were
demanding higher wages. At the time of the strike, the Nike workers were being paid
14% above the minimum wage for Vietnam. However, consumer prices in Vietnam
have risen 19% in one year. The inflation rate has been the impetus for a number of
labor strikes over the past year. By April 2, 2008, the strike was settled. The workers
were given a 10 percent raise to their $5 hourly wage. If Nike's wages that it was paying
were legal, why did it settle the strike by agreeing to pay more?
a. Nike had an ethical dilemma that fit into the category of organizational abuse
b. Nike was considering its stakeholders in resolving ethical dilemmas
c. Nike was exercising social responsibility
d. All of the above are correct
Which company has a campaign directed at children and teens that warns them not to
begin smoking?
a. RJR
b. Philip Morris
c. Camel
d. None of the above
Dr. Joseph Biederman and Dr. Timothy Wilens are members of the psychiatry
department at Harvard Medical School. The two scholars reported, in hindsight, $1.6
million they received from drug makers between 2000 and 2007. The two are known
for their advocacy of the use of antipsychotic medicines in children and the paymentsto
the two camefrom pharmaceutical firms that producesuch drugs. Consulting
arrangements with the pharmas were already a topic of concern because the good docs
advocated unapproved uses of the drugs. Dr. Biederman responded to the disclosure of
the fees and his belated compliance with university policy on reporting consulting
arrangements, "My interests are solely in the advancement of medical treatment through
rigorous and objective study." Which of the following best describes what happened
with Dr. Biederman?
a. He eliminated the question of conflicts through his disclosure statement
b. He is correct; he never had a conflict
c. Either a or b
d. None of the above
How much debt did Enron really have?
a. $5 billion
b. $13 billion
c. $38 billion
d. None of the above
What error did Intel discover in its Pentium chip in July 1994?
a. That the chip was contaminated
b. That there was a floating point error that caused errors in division calculations
c. That the chip could cause computer viruses
d. None of the above
How did McNeil resolve its problem that occurred between 2010 and 2012?
a. They are not resolved and litigation is ongoing
b. It entered into a consent decree with the FDA
c. It entered a guilty plea to violations of manufacturing standards
d. Both b and c
Which of the following claims were made in Skecher's ads for its Shape-Up Athletic
shoes?
a. "Shape up while you walk!"
b. "Get in shape without setting a foot in a gym!"
c. A promise of weight loss
d. All of the above
Why did the SEC require Peter Lynch of Fidelity to pay a fine?
a. He was involved in a bachelor party that got out of control
b. He was not registered to be on the trading desk
c. He obtained show and concert tickets through the trading desk
d. He accepted gifts from traders at the trading desk
Which statement best describes the moral of the story in "The Parable of the Sadhu"?
a. That the rules and normative standards for mountain climbing are different from our
day-to-day rules and that not stopping to help another climber is sometimes the right
thing to do.
b. That those who are not prepared for the challenges of hiking have to bear the
consequences.
c. That in our quest for success we sometimes walk right through moral dilemmas
without really analyzing them.
d. That sometimes, despite working together, we are unable to solve problems and that
we should not feel guilty if we have done our best.
Matt Walsh, a golf pro from Hawaii, was a video operator for the New England Patriots
from 1999-2002. Walsh says that he taped the Patriots' opponents' signals, information
that he says was then used by the Patriots when they next met that team. If you know
the signals, then you know what defense has planned. Offense is then a tad easier.
Some quotes emerged from the situation:
From Patriots' coach, Bill Belichick, "I misinterpreted the rules."
From Jacksonville Coach Jack Del Rio on the videotaping, "I think all teams do that.
That's been going on forever."
From Matt Walsh, "I had always been a big Patriots fan. I wasn"t going to question
what they wanted me to do."
From Pennsylvania Senator Arlen Specter, "If you can cheat in the NFL, you can cheat
in college, you can cheat in high school, you can cheat on your grade-school math test.
There's no limit as to what you can do. I think they owe the public a lot more candor
and a lot more credibility."
What rationalization is the Jacksonville coach applying?
a. "Everybody does it."
b. "That's the way it has always been done."
c. "If we don"t do it. . ."
d. All of the above
Who was the CEO at GE at the time GE owned Kidder Peabody?
a. Gary Lynch
b. Edward Cerullo
c. Jack Welch
d. Linda LaPrade
Countrywide was acquired by Bank of America.
How long had Hopkins been with Price Waterhouse at the time she applied for
partnership?
a. 5 years
b. 7 years
c. 10 years
d. 15 years
Which category of ethical dilemma did the conduct of the Yale University researchers
breach in their submission of time allocation?
a. False impression
b. Conflict of interest
c. Balancing ethical dilemmas
d. Organizational abuse
The perks furnished by pharmaceutical companies to physicians:
a. Are simply direct advertising methods.
b. Are conflicts of interest.
c. Do not influence the doctors decisions and are ethical.
d. None of the above
What was part of HealthSouth's vision statement?
a. The health care choice for the rich and famous
b. The hospital model for the future of health care
c. Full service health care from diagnosis to physical therapy and recovery
d. None of the above
"I did fudge on some of the numbers in our financial reports, but that kept 6,000
employees from losing their jobs," a statement by a CFO, is an example of:
a. Moral relativism.
b. Rights theory.
c. Divine command theory.
d. Contractarianism.
What was the price of the GM Volt?
a. $7,500
b. $26,000
c. $41,000
d. $52,000
What did the Freeh report on Penn State conclude?
a. That the university needed to just provide more training for employees regarding
minors on campus
b. That the administrators had done the best that they could in handling the situation
c. That the Board of Trustees had acted inappropriately
d. That Joe Paterno had fulfilled all of his duties to report
Who was trying to have an investigation into Madoff's operation launched as of 2005?
a. The SEC
b. Harry Markopolos
c. Congress
d. NASD
The goals of Locke and Rawls in developing their theory of ethics:
a. Is universality of rules.
b. Is rules that will survive over time.
c. Is based on decisions made by those who do not know what role they might fill in an
ethical dilemma.
d. All of the above
Which of the following resulted when Mervyn's was acquired by a private equity firm?
a. Its profits increased
b. Its rent increased
c. It was able to expand operation
d. It was able to work with its private equity holders
What was the total cost to Malden Mills of paying Malden employees for six months
while the factory was down?
a. $10 million
b. $25 million
c. $300 million
d. $430 million
Many International Olympic Committee members had to resign after accepting bribes
in connection with the Salt Lake City Olympics.
Taking information from a confidential file accidentally left on your desk is not
unethical.
Using things of minimal value that belong to your employer for personal reasons (such
as paper, paper clips, pens) is not an ethical violation.
A member of the city council who is employed by a waste management firm would
have a conflict of interest in voting on the city's award of a contract for the handling of
the city's waste.
Most companies do not have international labor and human rights policies.
If I discovered that I unintentionally violated a federal environmental regulation, I
should just wait and see if anything happens before taking any action.
There have been 35 indictments of teachers and administrators since the discovery that
test scores were manipulated.
Walmart executives had no prior knowledge of FCPA issues in Mexico.
Guanxi is an example of a facilitation payment.
BP had no warnings about its pipeline problems in Prudhoe Bay.
All of the officer loans at Tyco were approved by the Tyco board.
Purchasing agents accepting a pleasure trip from a supplier when no bids are pending is
still an ethical violation.
Third-trimester abortions would be supported under a Rights Theory.
Kellogg's was forced to remove its claims that Rice Krispies increased children's
attentiveness from its cereal boxes.
Explain the evolution of an individual baseball player using performance enhancing
drugs (PEDs) to it becoming a societal issue.
A state education department administrator cannot award a contract to a company in
which he holds an ownership interest.
