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Legal, Ethical, and Social Aspects of Business:     Test 5
General Test Questions & Answers

Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


An ethically wrong state or condition can still be legal
True
 
Kantian ethics is based on the premise that people can use reasoning to reach ethical decisions.
True
 
Identifies certain goals for society, such as unity, justice, domestic tranquility, defense from outsiders,
increasing general welfare, and liberty
The preamble
 
Which of the following compels a witness to appear in court and testify
subpoena
 
A threat with an apparent ability to do immediate injury is referred to as
an assault
 
A harmful of offensive touching is called
battery
 
Article 1
Creates congress and enumerates powers
 
Rawls's social justice theory is based on a contract theory of ethics
True
 
Ethical relativism holds that moral standards ought to be based on an implied set of universal rules applicable to all cultures
False
 
Article 1 section 8 clause 3
Commerce clause, gives congress the power to regulate congress
 
Article 2
sets up executive branch
 
Article 3
Establishes court system
 
Article 4, 6, and 14th amendment
Establish relationship between states and federal government
 
Article 5
Amendments to the Constitution
 
Article 6 clause 2
Supremacy clause, establishes federal law overrules state
 
The traditional view of social responsibility of business emphasized maximizing profits for employees rather than shareholders.
False
 
There are no specific governmental laws endorsing a moral minimum of social responsibility on corporations.
False
 
Bill of rights
The first ten amendments to the Constitution, put into effect in 1791
 
Amendments 11-27
Adopted from 1782-1992
 
What two remedies are generally available in a civil lawsuit
injunctions and damages
 
Which of the following is not an element of most torts
conspiracy
 
The theory of corporate citizenship contends that businesses and corporations owe a duty to promote the same
social goals as individual members of society.

True
 
Section 406 of the Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a code of
ethics for senior financial officers.

True
 
Ethics is a set of moral principles or values that governs the conduct of an individual or a group.
True
 
An ethical concept in which to do good in all circumstances; an action done for the benefit of another.
Beneficence
 
Which of the following cases describes an agreement of ethics and laws?
A person being penalized for bribing a judge to rule a case in the person's favor.
 
A government or political party that strictly derives its ethics and laws based on a specific religious book is an example of ________.
ethical fundamentalism
 
Purpose of the constitution
Establishes national government, the relationship between states and federal government, defines and preserves personal liberty, contains provisions for government to perpetuate itself
 
Article 1 section 8
Enumerated Powers of Congress
 
In a jury trial, who decides issues of fact
the jury
 
The groundskeeper in Janna's apartment complex failed to properly notify her and other residents about the slick conditions resulting from a broken water paper in the building. Janna subsequently fell and broke her ankle. What type of tort was committed in this instance
negligent
 
The party complained against in a civil case is know as the
defendant
 
A complete defense for a slander and libel suit would be to show that the statement is
true
 
A _______ is always a converter
Thief
 
How are ethical rules established in Kantian ethics?
By a set of universal rules that are based on consistency and reversibility
 
Consistency is one of the two important principles of ________ upon which its universal laws are based.
Kantian ethics
 
Principle used to discover what is in the best interest of a patient when the patient cannot make the decision on his or her own.
Best-interest standard
 
An absolute, unconditional requirement that must be obeyed in all circumstances; no exceptions.
Categorical imperative
 
Process of balancing competing interests in which no independent standard is utilized in order to make the comparison.
Comparative justice
 
10th amendment
All power not granted by the Constitution to the federal government is reserved for the States and the People.
 
McCulloh v. Maryland (1819)
Gave congress implied powers to execute enumerated powers / Dramatically expanded power of national
government over states

 
Mabury v. Madison
established judicial review over legislative and executive branches
 
__________________is a social responsibility theory of business which says that a corporation must consider the
effects its actions have on persons other than its shareholders.

Stakeholder interest
 
Federalism
Shared power between states and national government and local governments
 
Shelby County v. Holder (2013)
In 2013, the Supreme Court struck down a key provision of the Voting Rights Act of 1965, that required that
certain states with a history of voter discrimination obtain federal approval of any changes in voting laws.

 
The most common tort
negligence
 
Alice is a popular, well-respected professional educator in her community and was recently selected as " Teacher of the Year". In order to capitalize on her character and notoriety during recent school board election not obtain Deanna's permission, what tort did she commit
libel
 
What is the major difference between enculturation and acculturation?
Enculturation is the process by which humans learn the characteristics, values, and rules to participate in a society more generally, whereas acculturation is the introduction of the values, worldview, philosophy, or practice of one culture into another.
 
What is "corporate citizenship" as a social responsibility theory in business?
Businesses are responsible to even helping solve social problems that it did not cause
 
14 amendment
Due process clause all people are citizens and no state has the right to deprive any citizen of life, liberty, or property
 
Establishment clause
government cannot establish a national religion
 
free exercise clause
no undue states interference with religious practice
 
What part of speech can states regulate
Context, when where and how things are said to preserve state interests
 
Speech codes suffer from
1st amendment problem of Breadth and5th amendment due process of law problem of vagueness
 
According to Rawl's social justice theory, ________ is considered the essence of justice.
fairness
 
After hearing Cheri's case in court, a judge awarded her $20,000 to compensate for the loss she suffered as a result of Benson's negligence. This momentary compensation is known as
either a or b actual damages and punitive damages
 
How might consumerism be at odds with the growing concern for business ethics?
As an extreme preoccupation with buying and owning, consumerism runs counter to the new sensitivity to ethics
and human flourishing in business, because it defines people not by their humanity but by their purchasing power.

 
When a lawyer takes a percentage of the potential recovery as her of his payment for litigating a case, the amount the
lawyer receives is known as

contingency fee
 
Breadth and vagueness
Forbidding what should be protected speech
 
4th amendment
Protection against Unreasonable Search and Seizure
 
Two inquiries in search and seizure cases
Whether a search happened and whether the search violated expectation of privacy
 
improperly gathered evidence may not be introduced in a criminal trial
Exclusionary rule
 
The three main elements of a compensatory damages award are
lost wages
medical bills
pain and suffering
 
5th amendment
Prohibits taking of private property for public use without compensation
 
Eminent domain
Power of a government to take private property for public use.
 
Globalization is evidence that business is culturally neutral.
False
 
Protecting owners' interests was a common feature of
the Industrial Revolution
 
Due process difference and similarity with 5th and 14th amendment
5th applies to federal government and 14th applies to state
 
government may not deprive citizen of life, liberty, or property without
due process of law
 
When a civil judgement for the plaintiff becomes final, the defendant normally pays the judgement. If the defendant
does not pay, what may the plaintiff obtain t enforce the judgement

writ of execution
 
After Greta and Tom finalized their divorce, Greta repeatedly harassed her former husband by driving by his apartment, yelling obscenities, and throwing rocks at his windows. Tom contracted the police and eventually the court issued an order preventing
Greta from continuing the harassing activity . This court order is known as

injunction
 
Under specific circumstances some individuals are immune from liability for defamation of character, even if the statements
were made with malice. Which individual or circumstance is not immune from liability

legislator during a political campaign
 
All ethical standards are relative and should be treated as such.
False
 
The United Nations Global Compact is a set of standards that is binding worldwide.
False
 
Procedural due process
Government must provide a fair procedure in including notice and fair hearing before depriving personal rights
 
What did the decision in Shlensky v. Wrigley (1968) establish in ethical terms? How does it compare to the decision
in Dodge v. Ford Motor Company (1919)?

Shlensky v. Wrigley gave boards of directors and management more latitude in determining how to balance the interests of stakeholders. This was in contrast to Dodge v. Ford Motor Company, which validated the rule of shareholder primacy.
 
What part of speech can states regulate
Context
 
10th amendment shows
States have sovereign power
 
In Ypsilanti Township v. General Motors Corporation, Ypsilanti was successful in its lawsuit against GMC based on
GMC's unethical acceptance of tax abatements and misrepresentations about maintaining jobs.

False
 
How would you reconcile cultural differences between so-called contact and noncontact cultures in the context of business negotiations?
This can be a matter of managing expectations. Managers must do the work required for any business deal but deliver it in a way that is culturally sensitive, even if that means negotiating details like project deadlines and the conduct of meetings and agreeing to have different expectations of those in a different cultural context.
 
What's the most power that the federal government ha to regulate business
Commerce clause
 
Religion continues to be a forceful influence on ethical systems.
True
 
When does constitutional law apply
If it is a public offense, not private



Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


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