Business Law 11122

Page Count
16 pages
Word Count
3200 words
Book Title
Business Ethics: Case Studies and Selected Readings 8th Edition
Marianne M. Jennings
Who was the key witness against Mr. Sandusky at his trial?
a. Joe Paterno
b. The Penn State athletic director
c. The janitor at the football facilities
d. Michael McQueary
Which of the following is not considered a stakeholder?
a. Competitors
b. Suppliers
c. Customers
d. Shareholders
e. All of the above are considered stakeholders
What was the defense department penalty for Boeing for using the Lockheed Martin
a. $1 billion fine
b. $300 million fine
c. $500 million fine
d. $1 billion in lost contracts
Which of the following is a characteristic of the gun regulatory debates?
a. Accurate factual information
b. Bipartisan agreement
c. Emotion
d. All of the above
Where is the GM Volt today?
a. Selling well
b. Selling slightly less than projections
c. Production is halted and sales goals will not be reached
d. GM is in bankruptcy
What is at issue when government officials take gifts from those they regulate?
a. Conflicts of interest
b. Corruption
c. Public trust
d. All of the above
Who is Charles Jones?
a. Beech-Nut's purchasing manager
b. Beech-Nut's CEO
c. Beech-Nut's head of chemistry
d. Beech-Nut's general counsel
How much debt did Enron disclose?
a. $5 billion
b. $13 billion
c. $38 billion
d. None of the above
Ford and Firestone have been named as defendants in lawsuits brought by owners of
Ford Explorers who have been involved in rollover accidents in their vehicles. For
Firestone to be held solely liable for the accidents:
a. Ford must establish that there was no defect in design or manufacture or warning
with its Explorer.
b. Firestone cannot be held liable to the Explorer owners because they did not buy their
tires directly from Firestone.
c. Ford must show that Firestone was aware of defects in its tires.
d. None of the above
When did Kearns finally end his infringement case against Ford?
a. 1990
b. 1977
c. 1971
d. None of the above
Edward Snowden released classified documents that were stored at his employers'
archives. He works for a government agency. He released them because he felt U.S.
citizens should know what kind of information their government was keeping about
them. Which of the following is a correct statement?
a. Snowden has done nothing wrong.
b. Snowden has taken something that did not belong to him.
c. Snowden is justified if the government was acting unfairly.
d. Snowden follows the philosophical school of thought of the newspaper test.
EBITDA is an acronym for:
a. Earnings before I took depreciation for assets.
b. Earnings before interest and debt adjustments.
c. Earnings before interest and taxes decertified by the auditor.
d. Earnings before interest, taxes, depreciation, amortization.
When testifying about the company-financed decorations for his New York City
apartment, Mr. Kozlowski said:
a. The decorations were "godawful."
b. The decorations were "expensive."
c. That he should have supervised the decoration purchases more.
d. b and c
e. All of the above
What was the required legal temperature for cooking burgers at the time of the E-Coli
illnesses and deaths?
a. 140 degrees
b. 150 degrees
c. 155 degrees
d. 160 degrees
e. 165 degrees
WorldCom's accounting scandal resulted from:
a. Embezzlement.
b. Capitalization of ordinary expenses.
c. A downturn in the telecommunications market demand.
d. Both b and c
e. None of the above
The enlightened self-interest school of social responsibility:
a. Holds that the primary responsibility of business is to accommodate the community.
b. Holds that the primary responsibility of business is to earn a profit.
c. Does not acknowledge the interest of others beyond shareholders.
d. Both b and c
e. None of the above
How did the information about Gadams's employment and letters of recommendation
become known?
a. The guardian of a Livingston student filed suit against the school
b. Parents disclosed the information
c. The issues with Gadams were on file with his teaching certification
d. None of the above
The Body Shop founder Anita Roddick said that she didn"t care about making money;
she only cared about making the world a better place. Into which school of social
responsibility would you place Ms. Roddick?
a. Inherence
b. Enlightened self-interest
c. Invisible hand
d. Social responsibility
Lance Armstrong says that he looked up the meaning of the word "cheat" in the
dictionary when he was using performance-enhancing drugs (PEDs). The dictionary
defined cheating as "using an unfair advantage in a competition." Mr. Armstrong
believed that PEDs were used by his competitors and felt it was ethical to continue
using them. Which rationalization did Mr. Armstrong use?
a. It's a gray area.
b. It could be worse.
c. Everyone does it.
d. I deserve this.
How did Goldman avoid violation of SOX in advancing cash to two of its officers?
a. It made them a loan
b. It made them an interest-free loan
c. It purchased stock from the executives
d. It had them issue a promissory note
What percentage of Price Waterhouse partners today are women?
a. 10%
b. 18%
c. 44%
d. 47%
How were the workers at Westland/Hallmark Meat Company compensated?
a. By the hour
b. By the number of cows processed
c. By the number of cows slaughtered for meat production
d. By the evaluation of the federal agencies that regulate their production facilities
Into which of the following categories do patent and copyright infringement fall?
a. Conflict of interest
b. Balancing ethical dilemmas
c. Organizational abuse
d. Interpersonal abuse
e. Taking things that don"t belong to you
How many CFOs did Scrushy have at HealthSouth from 1998 through 2003?
a. One
b. Three
c. Four
d. Five
Jack-in-the-Box, Inc. cooked its hamburgers according to the temperature required by
law. Other chains cooked their hamburgers at a higher temperature and for longer.
a. Made a decision that resulted in liability and the moral responsibility for deaths and
injuries of its customers.
b. Was in compliance with the law and ethical in its conduct.
c. Has no liability because it was in compliance with the law.
d. Both b and c
e. None of the above
Which of the following was not in the e-mails found in Peanut Corporation of
America's internal e-mail system?
a. "We at least need to turn the raw peanuts on the floor into money."
b. "Clean "em up and ship them."
c. "I can sign without running the tests."
d. "This time lapse is costing us $$$$."
Who warned Tyco officers about accounting issues and odd payments at Tyco?
a. Frank E. Walsh
b. Mark Belnick
c. Patricia Prue
d. Wilmer Cutler
Social responsibility by a business:
a. Is a doctrine developed by economist Milton Friedman.
b. Requires a business to examine how its decisions affect its stakeholders, not just its
c. Is not part of a discussion of business ethics.
d. None of the above
Susan Wade is the president of the Illinois Hospice Organization (IHO). IHO is a state
organization affiliated with a national non-profit organization, the National Hospice
Organization. Both the state and national organizations have members from both
for-profit and non-profits hospices. Susan Wade is the director of a non-profit hospice in
A Chicago newspaper has printed a story about hospices and what they do. Susan was
interviewed extensively for the piece. In one quote in the article, Susan expressed her
concerns about for-profit hospices. "It has become the sort of franchise of the decade.
They're not all bad, but I think the original spirit of hospice is becoming very
adulterated. There's one time in a person's life when he shouldn't be looked at as a
number, as a piece of an actuarial problem. If your first and last priority is making
money, it flies in the face of what hospice is all about. It's the end of the health-care
chain. It's the place of last hope for patients. Dollars should not be the issue here."
A chief operating officer of a for-profit hospice has written to Susan complaining that
her remarks are libelous and misinform the public about for-profit hospices.
a. Does Ms. Wade have a conflict of interest?
b. Is Ms. Wade properly executing her role as the president of the state organization?
Which philosopher is associated with the Rights Theory?
a. John Rawls
b. Robert Nozick
c. Adam Smith
d. Ayn Rand
Which of the following occurred at Simmons?
a. It flourished each time it was acquired
b. It expanded its operations with each acquisition
c. It was able to eliminate debt
d. None of the above
Which of the following employers is likely to have an English-only policy upheld?
a. Hospital with surgery and trauma units
b. An emergency call center
c. The control room of a nuclear power plant
d. All of the above
Which of the following is not one of Novak's seven internal responsibilities of a
a. To create new wealth
b. To defeat envy
c. To make charitable contributions
d. To create new jobs
What happened to the Piper High School teacher, Ms. Pelton?
a. She was fired
b. Her decision was reversed
c. She quit her job
d. Both a and b
e. Both b and c
Who is Zeev Kaplansky?
a. Employee of Universal
b. Beech-Nut's lawyer
c. Beech-Nut's head of chemistry
d. None of the above
The failure of employees to deal with issues and concerns can result in conflicts and
concerns that remain unresolved.
Booking sales in advance of actual contracts is not a violation of accounting rules.
Prescription drug ads carry the additional issues of safety of the users.
Slotting fees are the fees paid for a shelf position or distribution access.
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.
Your company has several outdated computers sitting in a storage closet that no one is
using. You have taken one home and set it up for personal use. This is unethical
Provide the accounting for the following:
Stanford University medical researchers conducted a study on the correlation between
the use of fertility drugs and ovarian cancer. Their study, published in the American
Journal of Epidemiology, concludes that the use of the fertility drugs, Pergonal and
Serophene, may increase the risk of ovarian cancer by three times. The lead author of
the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs
is by no means certain. It is based on very small numbers and is really very tenuous."
FDA Commissioner David Kessler would like the infertility drug manufacturers to
disclose the study findings and offer a warning on the drug packages. He notes, "Even
though the epidemiology study is still preliminary, women have a right to know what is
known. We're not looking to make more of this than there is."
If you were a manufacturer of one of the drugs, would you voluntarily disclose the
study information?
FINOVA was a second-tier lender.
Goldman's securities offerings in the 1920s were similar to its offerings in the
mortgage-debt instruments sold in the 2000s.
Alice is a secretary in your department. Alice is also a member of the American Guild
of Organists. Alice has been placed in charge of the Guild's national convention. Each
time you pass by Alice's desk or go to her to have some work done, you notice she is on
the phone discussing or working on the convention. Alice's work on the convention
during work hours is an ethical violation.
Data Processing, Inc. is a service firm that performs word processing functions for law
firms, corporations and government agencies. Their facilities consist of 120 office units
with a word processor in each unit.
Their facilities were formerly a shoe manufacturing plant, and all of the office units are
located in one large room. Over the past 14 months, 7 of the 120 word processors have
been diagnosed with breast cancer. In six of the seven cases diagnosed, there is no
family history of breast cancer. Jane Quinn, the owner and CEO of data processing, has
seen a cluster study that links employment as a word processor to a higher rate of breast
cancer. Ms. Quinn does not disclose the study to her employees and takes no further
action. Discuss the ethical issues.
Courts are beginning to hold landlords liable for the trademark infringement activities
of their tenants.
Price-fixing is a violation of federal law.
Discuss the benefits for a company of not downsizing, as in the case of Aaron
Feuerstein and Malden Mills.
Television commentators who recommend stocks have no conflict if they own the
Part of a credo includes a list of lines you would never cross to be successful.
With respect to #73, it would be unethical for you to hire your friend to get him to bring
the information to your company.
The use of patented or copyrighted materials without permission entitled the owner to
royalties for use.

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