Exam
Name___________________________________
1. Even in today’s legal climate, there is little incentive for firms to cooperate with prosecutors investigating
financial crimes at their firm.
2. Advances in data storage have made routine violation of individual privacy more difficult.
3.
The last step in analyzing an ethical issue should be to identify the stakeholders people who have a vested
interest in the outcome of the decision.
4. Professionals take on special rights and obligations because of their special claims to knowledge, wisdom,
and respect.
5. Privacy is the right to be left alone when you want to be, without surveillance or interference from other
individuals or organizations.
6. Most American and European privacy law is based on a set of five principles called COPPA.
7. Spyware is software that comes hidden in downloaded applications and can track your online movements.
8. Most Internet businesses do very little to protect the privacy of their customers.
9. Data gathered by online behavioral tracking firms is limited to the user’s behavior on a single Web site.
10. Copyright is the legal protection afforded intellectual property, such as a song, book, or video game.
11. In white–collar fraud, information systems are most typically used as a means to hide financial evidence of
crimes.
12. The Copyright Office began registering software programs in the 1990s.
13. The drawback to copyright protection is that the underlying ideas behind the work are not protected, only
their reproduction in a product.
14. According to the courts, in the creation of software, unique concepts, general functional features, and even
15. The key concepts in patent law are originality, novelty, and value.
16. Despite the passage of several laws defining and addressing computer crime, accessing a computer system
without authorization is not yet a federal crime.
17. Any unsolicited e–mail is legally considered spam.
18. The European Parliament has passed a ban on unsolicited commercial messaging.
19. The most common type of computer–related RSI is CTS.
20. Technostress is a computer–related malady whose symptoms include fatigue.
21. The 2012 FTC report on industry–best practices for protecting individuals’ privacy focused on each of the
following topics except
A) phasing out of self–regulatory codes.
B) large platform providers.
C) data brokers.
D) mobile privacy.
22. Which of the following best describes how new information systems result in legal gray areas?
A) They result in new situations that are not covered by old laws.
B) They work with networked, electronic data, which are more difficult to control than information stored
manually.
C) They are implemented by technicians rather than managers.
D) They are created from sets of logical and technological rules rather than social or organizational mores.
23. The introduction of new information technology has a
A) waterfall effect in raising ever more complex ethical issues.
B) ripple effect raising new ethical, social, and political issues.
C) beneficial effect for society as a whole, while raising dilemmas for consumers.
D) dampening effect on the discourse of business ethics.
24. In the information age, the obligations that individuals and organizations have concerning rights to
intellectual property fall within the moral dimension of
A) system quality.
B) property rights and obligations.
C) accountability and control.
D) information rights and obligations.
25. In the information age, the obligations that individuals and organizations have regarding the preservation of
existing values and institutions fall within the moral dimension of
A) quality of life.
B) property rights and obligations.
C) family and home.
D) system quality.
26. All of the following are current key technology trends raising ethical issues except
A) data storage improvements.
B) data analysis advancements.
C) increase in use of mobile devices.
D) increase in multimedia quality.
27. The use of computers to combine data from multiple sources and create electronic dossiers of detailed
information on individuals is called
A) profiling.
B) targeting.
C) phishing.
D) spamming.
28. Which of the five moral dimensions of the information age do the central business activities of ChoicePoint
raise?
A) property rights and obligations
B) information rights and obligations
C) accountability and control
D) system quality
29. NORA is a
A) federal privacy law protecting networked data.
B) data analysis technology that finds hidden connections between data in disparate sources.
C) sentencing guideline adopted in 1987 mandating stiff sentences on business executives.
D) profiling technology used by the EU.
30. Accepting the potential costs, duties, and obligations for the decisions you make is referred to as
A) accountability.
B) responsibility.
C) liability.
D) due process.
31. The process in law–governed societies in which laws are known and understood and there is an ability to
appeal to higher authorities to ensure that the laws are applied correctly is called
A) the courts of appeal.
B) accountability.
C) due process.
D) liability.
32. The feature of social institutions that means mechanisms are in place to determine responsibility for an
action is called
A) the courts of appeal.
B) the judicial system.
C) accountability.
D) due process.
33. Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an
ethical issue?
A) Identify and clearly describe the facts.
B) Identify the options you can reasonably take.
C) Identify the stakeholders.
D) Assign responsibility.
34. A colleague of yours frequently takes for his own personal use small amounts of office supplies, noting that
the loss to the company is minimal. You counter that if everyone were to take the office supplies, the loss
would no longer be minimal. Your rationale expresses which historical ethical principle?
A) the “No free lunch” rule
B) the Risk Aversion Principle
C) the Golden Rule
D) Kant’s Categorical Imperative
35. Immanuel Kant’s Categorical Imperative states that
A) one should take the action that produces the least harm or incurs the least cost.
B) if an action is not right for everyone to take, it is not right for anyone to take.
C) one can put values in rank order and understand the consequences of various courses of action.
D) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
36. A classic ethical dilemma is the hypothetical case of a man stealing from a grocery store in order to feed his
starving family. If you used the Utilitarian Principle to evaluate this situation, you might argue that stealing
the food is
A) wrong, because if everyone were to do this, the concept of personal property is defeated.
B) acceptable, because the higher value is the survival of the family.
C) acceptable, because the grocer suffers the least harm.
D) wrong, because the man would not want the grocer to steal from him.
37. The ethical “no free lunch” rule states that
A) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
B) one should take the action that produces the least harm or incurs the least cost.
C) everything is owned by someone else, and that the creator wants compensation for this work.
D) one can put values in rank order and understand the consequences of various courses of action.
38. According to the ________, you should take the action that produces the least harm.
A) Utilitarian Principle
B) Risk Aversion Principle
C) Categorical Imperative
D) Golden Rule
39. Which U.S. act restricts the information the federal government can collect and regulates what they can do
with the information?
A) Gramm–Leach–Bliley Act of 1999
B) HIPAA of 1996
C) Privacy Act of 1974
D) Freedom of Information Act
40. FIP principles are based on the notion of the
A) privacy of the individual.
B) accountability of the record holder.
C) responsibility of the record holder.
D) mutuality of interest between the record holder and the individual.
41. The Federal Trade Commission FIP principle of Notice/Awareness states that
A) data collectors must take responsible steps to assure that consumer information is accurate and secure
from unauthorized use.
B) Web sites must disclose their information practices before collecting data.
C) customers must be allowed to choose how their information will be used for secondary purposes other
than the supporting transaction.
D) there is a mechanism in place to enforce FIP principles.
42. Which of the following is not one of the practices added in 2010 by the FTP to its framework for privacy?
A) Firms should build products and services that protect privacy.
B) Firms should require consumer consent and provide clear options to opt out of data collection.
C) Firms should limit the length of time that any personal data is stored to six months or less.
D) Firms should increase the transparency of their data collection.
43. Which of the following U.S. laws gives patients access to personal medical records and the right to authorize
how this information can be used or disclosed?
A) HIPAA
B) Freedom of Information Act
C) Privacy Protection Act
D) Gramm–Leach–Bliley Act
44. European privacy protection is ________ than in the United States.
A) less liable to laws
B) much more strict
C) much less stringent
D) less far–reaching
45. U.S. businesses are allowed to use personal data from EU countries if they
A) make their privacy protection policies publicly available.
B) have informed consent.
C) develop equivalent privacy protection policies.
D) create a safe harbor.
46. The U.S. Department of Commerce developed a ________ framework in order to enable U.S. businesses to
legally use personal data from EU countries.
A) P3P
B) safe–harbor
C) COPPA
D) PGP
47. When a cookie is created during a Web site visit, it is stored
A) on the visitor’s computer.
B) on the ISP’s computer.
C) in a Web directory.
D) on the Web site computer.
48. Flash cookies are different from ordinary cookies in that they
A) are installed only at the user’s request.
B) cannot be easily detected or deleted.
C) monitor the user’s behavior at a Web site.
D) are not stored on the user’s computer.
49. The Online Privacy Alliance
A) is a government agency regulating the use of customer information.
B) encourages self–regulation to develop a set of privacy guidelines for its members.
C) protects user privacy during interactions with Web sites.
D) has established technical guidelines for ensuring privacy.
50. A(n) ________ model of informed consent permits the collection of personal information until the consumer
specifically requests that the data not be collected.
A) P3P
B) PGP
C) opt–out
D) opt–in
51. In the United States, the claim to privacy is protected primarily by each of the following except
A) Fourth Amendment protections against unreasonable search and seizure.
B) Privacy Act of 1974.
C) Constitutional guarantees of freedom of speech and association.
D) COPPA.
52. Which of the following statements about trade secrets is not true?
A) Trade secret law protects the actual ideas in a product.
B) Trade secret protections vary from state to state.
C) Software that contains unique elements can be claimed as a trade secret.
D) Any intellectual product, regardless of its purpose, can be classified as a trade secret.
53. Intellectual property can best be described as
A) tangible or intangible property created from a unique idea.
B) unique creative work or ideas.
C) intangible property created by individuals or corporations.
D) the expression of an intangible idea.
54. What legal mechanism protects the owners of intellectual property from having their work copied by others?
A) Fair Use Doctrine
B) copyright law
C) intellectual property law
D) patent protection
B) the distinction between an idea and its expression.
C) the distinction between tangible and intangible ideas.
D) using the graphical elements of another product.
56. The strength of patent protection is that it
A) grants a monopoly on underlying concepts and ideas.
B) allows protection from Internet theft of ideas put forth publicly.
C) puts the strength of law behind copyright.
D) is easy to define.
57. One of the difficulties of patent protection is
A) the years of waiting to receive it.
B) that only the underlying ideas are protected.
C) digital media cannot be patented.
D) preventing the ideas from falling into public domain.
58. Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent
technology–based protections of copyrighted materials?
A) Privacy Act
B) Freedom of Information Act
C) Electronic Communications Privacy Act