LEG 500 Final Exam Part 1 and 2
LEG500 Final Exam Part 1 and 2, LEG 500 Week 11 Final Exam Part 1 and 2
Question 1
1.
Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances annually, with each allowance permitting one ton of emissions.
Answer
allocation of resources
tradeable permit
green capitalism
shareholder activism
Question 2
1.
Which of the following are permissible uses of power of eminent domain.
Answer
The government taking private property to transfer to a private company for development of a strip mall.
The government taking private property to build a highway.
The government taking private property to expand an airport.
All of the above
Question 3
1.
Eminent Domain is a practice governed under the _____ Amendment to the constitution.
Answer
10th
5th
22nd
1st
Question 4
1.
According to law professor Thomas Joo, the best group of persons for addressing the environmental concerns facing the world today is:
Answer
Shareholders
Directors and Officers
Environmentalists
The Government
Question 5
1.
Eminent domain permits the “taking” of private property by the government under the following circumstances.
Answer
When there is valid “public use” for the property and the government pays the property owner “just compensation”.
When there is either a valid “public use” or “private use” for the property.
When there is a valid “public use” for the property and the government pays fair market value for the property.
Only in circumstances where there government has paid fair market value for a piece of property.
Question 6
1.
Which of the following are examples of significant environmental regulation passed by the Federal Government.
Answer
The Clean Air Act
The Resource and Recovery Act
The National Environmental Property Act
All of the above
None of the above
Question 7
1.
To succeed under the The Lanham Act, a plaintiff must prove which of the following
Answer
That the defendant made a factual misrepresentation about a product or service.
That the defendant “puffed” up various representations about a product or service.
That the defendant made a factual representation about a product or service.
All of the above.
Question 8
1.
The original intent of brand expansion is to
Answer
Sponsor culture and be culture.
Nudge the hosting culture into the background and make the brand the star.
Work within the existing culture to create a stronger brand awareness.
All of the above.
None of the above.
Question 9
1.
________________ is the advertising industries established self-regulation organization.
Answer
The National Advertising Board of Governors.
The National Advertising Division of the Council of the Better Business Bureau.
The National Advertising Division of the Council on Advertising.
The National Advertising Division of the Council on Truth in Advertising.
Question 10
1.
The “dependence effect” is based on which proposition.
Answer
The urgency of wants diminishes appreciably as more are met.
The urgency of wants does not diminish appreciably as more are met.
The urgency of wants is a fixed idea in an individual’s own subconscious.
The urgency of wants focuses on what one consumer can get from another.
Question 11
1.
Of product promotion techniques, which is the most influential according to author Naomi Klein?
Answer
Advertising
Marketing
Branding
Word-of –mouth promotion
Question 12
1.
The FTC has tried to make consumer privacy a priority, by brining ______ spyware enforcement actions between 2005 and 2007.
Answer
10
25
11
18
Question 13
1.
The main purpose of the American Tort Reform Association is to.
Answer
Make tort litigation fairer for companies.
Make tort litigation less confusing
Restore balance to the civil justice system.
Both A and C
Both B and C
Question 14
1.
The most notable exception to caveat emptor was for
Answer
Food
Automobiles
Clothing
Shoes
Question 15
1.
Punitive damages are:
Answer
Damages that are intended to compensate the injured parties for their injures.
Damages that are intended to reimburse the injured party for medical expenses.
Damages that are intended to reimburse the injured party for time lost from work.
Damages that are intended to punish the defendant.
Question 16
1.
The Ford Pinto exploded when rear-ended by another vehicle. Of the types of defects a product may have, the Pinto suffered from
Answer
Design Defect
Manufacturing Defect
Warning Defect
End-user Defect
Question 17
1.
Product liability lawsuits focus on
Answer
A person acting in an unreasonable manner
A product operating in an unsafe or defective manner.
Both a person and a product not operating in a reasonable or effective manner.
None of the above
Question 18
1.
The UCC controls contracts that:
Answer
Deal with the sale of Goods.
Contracts over $500 in value.
Contracts between Merchants.
All of the above.
Question 19
1.
The fundamental legislation aimed at protecting copyrights is
Answer
The Sony Bono Copyright Term Extension Act
The Digital Millenium Copyright Act
The Copyright Act of 1831
The American Society for Composers and Publishers Act
Question 20
1.
The “inducement rule” is vital to understanding if infringement has occurred in what type of intellectual property?
Answer
Patent
Tradesecret
Trademark
Copyright
Question 21
1.
The difference between the Project Gutenberg (PG) and the Google book scanning project is:
Answer
The PG limits itself to the “classics”
The PG limits itself to only works in the public domain
Google only digitizes full documents but the PG digitizes key segments
The PG limits itself to “orphan” works – those with hard-to-find authors or owners.
Question 22
1.
Napster is an example of what type of intellectual property theft?
Answer
Patent
Copyright
Trademark
Tradesecret
Question 23
1.
Misappropriation of trade secrets has been a federal crime since
Answer
The passage of the Constitution
The passage of the Digital Millennium Copyright Act
The Economic Espionage Act of 1996
The Patient Protection and Affordable Care Act
Question 24
1.
Which of the following are factors used to determine if a use is fair?
Answer
Purpose of the Use
Nature of the Work
Amout Used
Potential Market Impact
All of the Above
Question 25
1.
In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing _________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing from a copyrighted work.
Answer
collective rights
misappropriation
unlimited use
fair use
Question 1
1.
Which of the following would best describe the difference between the law and ethics?
Answer
Ethics provides for a set of rules for behavior and Law is unwritten forms of rules.
Laws are rules that may be broken, Ethics are punishments.
Laws are “what a person must do,” and ethics addresses “what a person should do.”
Ethics are always connected to laws.
Question 2
1.
The philosophy of noted economist, Milton Friedman, on the issue of “free market ethics” was:
Answer
Decisions regarding such social problems should be addressed by governments in the political arena and funded by tax dollars.
A decision by corporate managers to aid society is, in effect, theft of stockholders’ resources.
It is wrong for managers to use corporate resources to deal with problems in society at large.
All of the above.
Question 3
1.
Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?
Answer
individual rights and justice for all
applies only to women and not men
care and responsibility to others
obedience to independent moral rules or duties
Question 4
1.
Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?
Answer
Outsourcing is detrimental to the economy because it limits profitability.
Outsourcing decreases efficiency and productivity.
Outsourcing enhances competitiveness, modernization, and bigger market opportunities.
Automating processes and replacing workers is unethical since it does not serve a greater good.
Question 5
1.
Which of the following statements is INCORRECT regarding the rights of shareholders?
I. voting power on major issues and ownership in a portion of the company
II. right to transfer ownership and dividend entitlement
III. hire and fire management and select and appoint a chief executive
Answer
I and II
I, II, and III
I only
III only
for whistleblowing?
Answer
It is an exception to employment-at-will doctrine.
It is developed simultaneously in different states.
All states recognize this tort and define it consistently.
States do not look to the courts for guidance.
Question 7
1.
The Constitution does not always protect free-speech rights for what public employees say on the job. Which of the following is true?
Answer
When a citizen enters government service, the citizen need not accept certain limitations on his or her freedom.
Public employees may speak out on matters of public concern and have First Amendment protection but not when they speak out in the course of their official duties.
As public employees speak out and receive First Amendment protection, there is an acceptable chilling of the speech of all potential whistleblowers.
None of the above
Question 8
1.
What is the BEST definition of “flexicurity” which has been used by European nations to invest in human capital?
Answer
Paying more to displaced workers until they return to work.
Requiring worker training while workers are unemployed.
Promoting job saving measures which only allow terminations during labor market crisis.
Coupling unemployment benefits with retraining and transitional assistance to allow workers to adapt to labor market restructuring.
Question 9
1.
Exceptions to the rule of employment-at-will include which of the following?
I. organization of unions
II. passage of Sarbanes Oxley Act
III. raising of public policy issues
IV. promise of implied-contract or covenant-of-good-faith
Answer
I only
II only
I and II
I, II, III, IV
The Sarbanes Oxley Act was passed in response to:
I. concerns that investors received full and complete information about potential corporate fraud
II. a lack of investor confidence
III. corporate scandals like Enron
IV. discrimination against an employee when providing information she reasonably believes constitutes a violation of federal security laws
Answer
I only
II only
I and II
I, II, III, IV
Question 11
1.
What are the two (2) main factors the courts consider when reviewing an employer’s intrusion of employee rights using electronic surveillance?
Answer
Obnoxiousness of means and reason for intrusion.
Obnoxiousness of means and type of intrusion.
Violation of tenth amendment and frequency of intrusive conduct.
Obnoxiousness of supervisors and whether valid evidence is present.
Question 12
1.
There are several types of company surveillance employees are legally subjected to, EXCEPT:
Answer
Videotaping
GPS Satellite & Tracking of cars & cell phones
Wiretapping of private cell phones
Monitoring IM chat
Question 13
1.
Alan Westin views that limited communication is particularly vital in which communities due to heightened stimulation and continuous physical and psychological confrontations between strangers?
Answer
small town life
suburban life
southern life
urban life
Title I of the Americans with Disabilities Act of 1990 (ADA) explicitly limits the ability of employers to use “medical examinations and inquiries” as a condition of employment and provides for all of the following EXCEPT:
Answer
a prohibition against using pre-employment medical tests.
a prohibition against the use of a medical examination after a job offer has been made if the results are kept confidential.
a prohibition against the use of medical tests that lack job-relatedness and business necessity.
a prohibition against the use of tests that screen out (or tend to screen out) people with disabilities.
Question 15
1.
What does Lewis Maltby submit is the correlation between drug testing and workplace safety?
Answer
There is a low correlation, so impairment tests are better alternatives.
There is no correlation.
Studies suggest there may be very high correlations, so most jobs currently have and do need them.
There is a high correlation in all jobs.
Question 16
1.
Employment practices without business justification applied to all employees that result in a less favorable effect for one group than for another group may state a claim for:
Answer
disparate treatment
disparate impact
inclusion
reasonable accommodation
Question 17
1.
To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:
Answer
That religion has been a significant part of the employee’s life for a significant amount of time.
That the employee has a sincerely held religious belief.
That the employer was on notice that the religious belief was in conflict with the employer’s request.
That there was a negative employment action based on a conflict between the religious belief and the employment requirement.
Question 18
1.
All of the following are true statements regarding the Family and Medical Leave Act (FMLA, 29 U.S.C. §§ 2601, et seq.), EXCEPT which of the following?
Answer
An eligible employee is entitled to take 12 weeks of unpaid leave in any 12-month period.
Every personal or family emergency qualifies for FMLA leave.
Under most circumstances, the employer must reinstate employees when they return from leave.
An eligible employee is entitled to take unpaid leave because of the birth of a son or daughter.
Question 19
1.
The Question of whether there is still a “glass ceiling” in the U.S. is illustrated by what USA Today statistics?
Answer
Women comprise 25% of board seats and 5% are CEO’s of fortune 500 companies as of 2010.
Women comprise 15% of board seats and 3% are CEO’s of fortune 500 companies as of 2010.
Women comprise 1% of board seats and 15% are CEO’s of fortune 500 companies as of 2010.
Women comprise 45% of board seats and 2% are CEO’s of fortune 500 companies as of 2010.
Question 20
1.
Equal protection is the constitutional guarantee:
Answer
that empowers Congress to regulate equally distributed commerce with foreign Nations, and among the several States, and with the Indian Tribes.
that laws made in pursuance of the Constitution and all treaties made under the authority of the United States shall be the equally protected as the “supreme law of the land.”
embodied in the Fourteenth Amendment to the U.S. Constitution.
that grants and distributes power and responsibilities to national and state governments.
Question 21
1.
With the adoption of the ____________, the U.S. began to address the need to prevent, or minimize, workplace accidents and health hazards.
Answer
Securities Act
Occupational Safety and Health Act
Environmental Protection Agency
National Insurance Act
Question 22
1.
According to Henry Shue, who should have responsibility to protect workers from potential harm caused by imported goods?
I. The employers of the workers facing the potential harm
II. The governments of the people who may be harmed
III. The companies importing the goods
IV. Consumers who ultimately buy the goods
Answer
I only
I and II
I, II and III
I, II, III and IV
Question 23
1.
Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.
Answer
rarely
marginally
mostly
always
Question 24
1.
One example of modern day slavery, as discussed in the interview with Kevin Bales, is:
Answer
Purchased human labor for farming – just as it existed in early U.S. History with humans being kidnapped, transported and sold on the open market.
Debt bondage – where families borrow money with the collateral being their future labor and the future labor of their offspring.
People being offered very low wages and poor working conditions because the market will bear those conditions.
Children working for their family businesses doing manual labor that is legal under exceptions to the child labor laws.
Question 25
1.
What was the most immediate consequence of the 2010 disaster at BP’s Deepwater Horizon oil rig?
Answer
Over 8,000 marine wildlife has been affected by the oil spill disaster.
Over 65Billion in damages has been sanctioned against BP.
15 men were killed by the explosion, fire and sinking of the drill hole.
The spill has crippled the gulf coast and economic and wildlife may never fully recover.
• Question 1
The political Question doctrine states
• Question 2
Which of the following countries were exempted from the emissions caps set forth in the Kyoto Treaty
Question 3
A Tradeable permit plan
• Question 4
The power of the U.S. Government to take property from a private individual and use it for public purposes is:
• Question 5
Which of the following would be permissible “public uses” for to government obtaining land through Eminent Domain.
• Question 6
Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances annually, with each allowance permitting one ton of emissions.
• Question 7
In the case of IMS Health, Inc., et al v. Kelly Ayotte, Attorney General of New Hampshire, District Judge Barbadora argues that
• Question 8
According to the text, the rise in childhood obesity has been linked which of the following items:
• Question 9
Commercial speech is protected under which Amendment to the US Constitution?
• Question 10
To succeed under the The Lanham Act, a plaintiff must prove which of the following
• Question 11
The Learned Intermediary Rule
• Question 12
Of product promotion techniques, which is the most influential according to author Naomi Klein?
• Question 13
The cost of taking product liability cases to court is.
• Question 14
According to Stephen Sugarman, performance-based regulation is:
• Question 15
The main purpose of the American Tort Reform Association is to.
• Question 16
The most notable exception to caveat emptor was for
• Question 17
The court’s ruling in Levin v. Wyeth explains how:
• Question 18
Compensatory damages are:
• Question 19
Which of the following are characteristics needed to obtain a patent
• Question 20
To establish copyright infringement, a plaintiff must prove which of the following?
• Question 21
Parodies occur in what type of intellectual property?
• Question 22
Misappropriation of trade secrets has been a federal crime since
• Question 23
Once the copyright on a work has expired,
• Question 24
Nike’s swoosh, McDonald’s arches, and the Xerox name are all identifiable trademarks. Which of the following laws protect(s) them?
I. Lanham Trademark Act of 1946
II. Federal Trademark Dilution Act of 1995
III. Sonny Bono Act of 1998
• Question 25
In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing _________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing from a copyrighted work.
Question 1
Corporate director or officer decisions to dedicate corporate funds for social causes is called:
• Question 2
The Ethic of Care is.
• Question 3
The following statements are true regarding the differences in utilitarianism and values ethics in making a decision, EXCEPT:
Decision makers never analyze potential dangers such as financial loss, negative publicity, physical harm to others and so forth.
• Question 4
Where do ethical preferences originate
• Question 5
According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
• Question 6
Which case since the Pickering
decision caused the Supreme Court to revisit a state employee’s speech rights?
• Question 7
Which of the following statements is INCORRET regarding a public policy exception for whistleblowing?
• Question 8
What is the BEST definition of “flexicurity” which has been used by European nations to invest in human capital?
• Question 9
In a 2008 study of 1,000 cases of fraud in American firms, the Association of Certified Fraud Examiners (ACFE) revealed one important fact to take into consideration when crafting a Whistleblower policy for a private company?
• Question 10
There are several reasons why whistleblowing may not be protected on an international level. These include:
• Question 11
The United States Constitution, Fourth Amendment provides “[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated… ” Privacy rights are triggered under the Fourth Amendment:
• Question 12
As a result of the 1927 Supreme Court case which legitimized state-sponsored sterilization of young women with alleged mental disabilities, Buck v. Bell, how many Americans were subjected to forcible sterilization in the 40 years following that decision?
• Question 13
What does Lewis Maltby submit is the correlation between drug testing and workplace safety?
• Question 14
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated is the _________ Amendment of the U.S. Constitution?
• Question 15
A majority of states have enacted “lifestyle rights laws” that protect workers’ off-duty activities including cases of smoking, cohabitation, drinking. and single parenthood. What is the least effective argument by an employer to regulate off-the-clock activities in a state that has not enacted such lifestyle rights legislation?
• Question 16
TheQuestion of whether there is still a “glass ceiling” in the U.S. is illustrated by what USA Today statistics?
• Question 17
What is the only acceptable rationale behind English-only workplace rules?
• Question 18
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. Which of the following federal government agencies is charged with enforcing this statute?
• Question 19
Which claims of discrimination remain the most common filed to the Equal Employment Opportunity Commission?
• Question 20
In 2003, the Supreme Court in its ruling of Goodridge v. Department of Public Health, struck down which state’s denial of marriage licenses for same sex couples?
Answer
• Question 21
Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:
• Question 22
Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.
• Question 23
According to Michael Silverstein, all of the following are types of risks workers find on the job today, EXCEPT?
• Question 24
With the adoption of the ____________, the U.S. began to address the need to prevent, or minimize, workplace accidents and health hazards.
• Question 25
When an employee is injured on the job, that employee may:
I. File a worker’s compensation claim and accept the government-determined value for the injury.
II. File a tort claim in state court to recover damages above the worker’s compensation amount.
III. File a complaint with OSHA to have the employer investigated and charged if violations are present.
• Question 1
The realization that 21st Century businesses must attend to the “triple bottom line” of profits, people, and the planet” is referred to as:
• Question 2
What are two ways that familiarity with ethical theories can support you in tackling business dilemmas?
• Question 3
Contrary to Plato’s ideal that t rulers of society should be paid no more than four (4) times what the lowest member of society is paid, what was the average compensation of CEO’s by 2005?
• Question 4
Corporate director or officer decisions to dedicate corporate funds for social causes is called:
• Question 5
The following statements are true regarding the differences in utilitarianism and values ethics in making a decision, EXCEPT:
• Question 6
Qui Tam is latin meaning:
• Question 7
Which case since the Pickering
decision caused the Supreme Court to revisit a state employee’s speech rights?
• Question 8
There are several reasons why whistleblowing may not be protected on an international level. These include:
• Question 9
In a 2008 study of 1,000 cases of fraud in American firms, the Association of Certified Fraud Examiners (ACFE) revealed one important fact to take into consideration when crafting a Whistleblower policy for a private company?
• Question 10
In the essay, Work Matters, by law professor Marion Crain, all of the following are the result of working except:
• Question 11
Alan Westin views that limited communication is particularly vital in which communities due to heightened stimulation and continuous physical and psychological confrontations between strangers?
• Question 12
Title I of the Americans with Disabilities Act of 1990 (ADA) explicitly limits the ability of employers to use “medical examinations and inquiries” as a condition of employment and provides for all of the following EXCEPT:
• Question 13
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated is the _________ Amendment of the U.S. Constitution?
• Question 14
What are the two (2) main factors the courts consider when reviewing an employer’s intrusion of employee rights using electronic surveillance?
• Question 15
The Electronic Communications Privacy Act of 1986 (ECPA):
• Question 16
All of the following court cases or laws lead to our current views on sexual harassment EXCEPT which one?
• Question 17
TheQuestion of whether there is still a “glass ceiling” in the U.S. is illustrated by what USA Today statistics?
• Question 18
Equal protection is the constitutional guarantee:
• Question 19
A mayor serving in a major metropolitan area receives an internal memorandum indicating personnel at many police stations are single-race. At the time of the report, thirty percent of the police force was black or Hispanic. She immediately calls a press conference and orders transfer of police officers to achieve racial balance across the city. The transferred police offers sue on constitutional grounds. Assuming just these facts, what is the strongest argument that might be advanced by the transferred officers based on constitutional grounds?
• Question 20
To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:
• Question 21
Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.
• Question 22
When an employee is injured on the job, that employee may:
I. File a worker’s compensation claim and accept the government-determined value for the injury.
II. File a tort claim in state court to recover damages above the worker’s compensation amount.
III. File a complaint with OSHA to have the employer investigated and charged if violations are present.
• Question 23
What was the most immediate consequence of the 2010 disaster at BP’s Deepwater Horizon oil rig?
• Question 24
According to Michael Silverstein, all of the following are types of risks workers find on the job today, EXCEPT?
• Question 25
According to Henry Shue, who should have responsibility to protect workers from potential harm caused by imported goods?
I. The employers of the workers facing the potential harm
II. The governments of the people who may be harmed
III. The companies importing the goods
IV. Consumers who ultimately buy the goods
Question 1
Which of the following statements best illustrates the view of “utilitarianism”?
I. From each according to his abilities, to each according to his needs.
II. The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.
III. An action is right when maximizing welfare and total well-being.
IV. Individuals should pursue his or her own self-interest, even at the expense of others.
Question 2
The best example of a source for virtue ethics for a business is
Question 3
According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
Question 4
Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?
Question 5
Corporate director or officer decisions to dedicate corporate funds for social causes is called:
Question 6
Under the legal doctrine of “employment at will” an employee can be lawfully terminated from her job for:
I. wearing a shirt that clashes with her suit
II. any non-discriminatory reason
III. complaining about illegal activity in the workplace
IV. only for good cause
Question 7
In the essay, Work Matters, by law professor Marion Crain, all of the following are the result of working except:
Question 8
Exceptions to the rule of employment-at-will include which of the following?
I. organization of unions
II. passage of Sarbanes Oxley Act
III. raising of public policy issues
IV. promise of implied-contract or covenant-of-good-faith
Question 9
The Constitution does not always protect free-speech rights for what public employees say on the job. Which of the following is true?
Question 10
To determine whether a public employee receives First Amendment protection from speech (and therefore cannot be fired for it), the Supreme Court has stated that all of the following are important except:
Question 11
As Facebook and other social media sites grow in users and popularity
Question 12
One reason employers use to justify giving honesty or integrity tests is:
Question 13
The Electronic Communications Privacy Act of 1986 (ECPA):
Question 14
In considering the legality of employer interception of employee e-mails at work, pick the correct statement.
I. Employees have complete expectation of privacy since they can select their password for in-house and remote access of e-mails.
II. A subpoena is required by the employer to read any e-mail that is clearly marked “confidential” by the employee.
III. No expectation of privacy exists over an employer-owned computer system at work.
IV. Statement by the employer that e-mails are confidential and privileged cannot be later used by an employer to defeat an employee’s claim of privacy
Question 15
A majority of states have enacted “lifestyle rights laws” that protect workers’ off-duty activities including cases of smoking, cohabitation, drinking. and single parenthood. What is the least effective argument by an employer to regulate off-the-clock activities in a state that has not enacted such lifestyle rights legislation?
Question 16
Equal protection is the constitutional guarantee:
Question 17
John Smith was assaulted on the loading dock by a coworker, Jim Jones, at the Acme Widget Company. The attack was unprovoked by Smith. After the physical assault, there was an angry verbal exchange between the parties. The incident ended when Jones yelled that Smith was a “sissy” and “everybody knows you’re queer as a three dollar bill.” Which of the following statements best describes the outcome of the harassment lawsuit filed by Smith under The Civil Right Act of 1964?
I. Sex discrimination is prohibited by federal law (The Civil Right Act of 1964).
II. Sexual orientation discrimination is prohibited by federal law (The Civil Right Act of 1964).
III. Suits based on harassment due to sexual orientation cannot prevail when based on local or state laws.
IV. Sexual orientation discrimination is not prohibited by federal law (Title VII).
Question 18
All of the following are true statements regarding the Family and Medical Leave Act (FMLA, 29 U.S.C. §§ 2601, et seq.), EXCEPT which of the following?
Question 19
To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:
Question 20
A mayor serving in a major metropolitan area receives an internal memorandum indicating personnel at many police stations are single-race. At the time of the report, thirty percent of the police force was black or Hispanic. She immediately calls a press conference and orders transfer of police officers to achieve racial balance across the city. The transferred police offers sue on constitutional grounds. Assuming just these facts, what is the strongest argument that might be advanced by the transferred officers based on constitutional grounds?
Question 21
Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:
Question 22
Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.
Question 23
When an employee is injured on the job, that employee may:
I. File a worker’s compensation claim and accept the government-determined value for the injury.
II. File a tort claim in state court to recover damages above the worker’s compensation amount.
III. File a complaint with OSHA to have the employer investigated and charged if violations are present.
Question 24
Which of the following is true about worker’s compensation in America?
Question 25
One example of modern day slavery, as discussed in the interview with Kevin Bales, is:
Leg 500 week 11 final exam part 2
Question 1
According to law professor Thomas Joo, the best group of persons for addressing the environmental concerns facing the world today is:
Question 2
When environmentalists recognized that politicians were not going to pass stricter legislation and regulations, they changed their tactics to force change. According to the Layzer article in the chapter, these new tactics included:
I. Eco-terrorism – bombing pipelines and factories.
II. Collaboration with businesses – create partnerships to improve environmental impacts.
III. Public relations campaigns – go public with their accusations and encourage consumers to demand change.
IV. Work internally through shareholders to try to change corporate disclosure
Question 3
Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances annually, with each allowance permitting one ton of emissions.
Question 4
The power of the U.S. Government to take property from a private individual and use it for public purposes is:
Question 5
Shareholder activism includes which of the following?
Question 6
Which piece of legislation was passed first?
Question 7
According to MIT professor Layzer, the lobbyists for the energy corporations have used which of the following tactics to avoid stricter regulation?
I. Portray the science of global warming as uncertain and debatable
II. Focus on the financial costs of regulation
III. Provide Senators and Representatives with financial incentives to vote against regulation
IV. Portray the environmentalists as extremists and a vocal minority.
Question 8
Obesity in children has continued to rise since 1976 and approximately _____ of all teens and youth are overweight.
Question 9
According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
Question 10
The “creative revolution” in advertising refers to
Question 11
Of product promotion techniques, which is the most influential according to author Naomi Klein?
Question 12
Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1840s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not “materially affect” its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.
IV. The Prescription Information Law expressly allows the transmission or use of both patient-identifiable data and prescriber-identifiable data for certain commercial purposes.
Question 13
The most notable exception to caveat emptor was for
Question 14
According to Stephen Sugarman, performance-based regulation is:
Question 15
According to the plaintiff’s attorney, the primary tactic defense attorneys use to minimize liability is:
I. Hire the best defense firms to make the plaintiffs look like liars
II. Pursue illegal means to get plaintiffs to drop their cases
III. Use the system to make the case too expensive for plaintiffs to pursue their cases
IV. Push plaintiffs into class action suits to force the case to be heard only one time.
Question 16
The Ford Pinto exploded when rear-ended by another vehicle. Of the types of defects a product may have, the Pinto suffered from
Question 17
The term caveat emptor means:
Question 18
To win a case in negligence, a plaintiff must prove all but
Question 19
The Food and Drug Administration, the Consumer Product Safety Commission and the National Highway Transportation Safety Association are
Question 20
In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing _________, based on the notion that the free flow of ideas sometimes.
Question 21
The difference between the Project Gutenberg (PG) and the Google book scanning project is:
Question 22
In order to obtain a patent under U.S. Patent Law, an inventor must have an invention that is
I. Not obvious
II. Unique
III. Useful
IV. Not a modification of any prior patents
Question 23
Nike’s swoosh, McDonald’s arches, and the Xerox name are all identifiable trademarks. Which of the following laws protect(s) them?
I. Lanham Trademark Act of 1946
II. Federal Trademark Dilution Act of 1995
III. Sonny Bono Act of 1998
Question 24
Debora Halbert asserts in her essay that:
Question 25
If an author owns a copyright to a non-fiction essay, then publishes that essay in an anthology of similar essays published by a major publishing company, the rights involved in this relationship would be referred to as ______.
• Question 1
According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
• Question 2
Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?
• Question 3
Corporate director or officer decisions to dedicate corporate funds for social causes is called:
• Question 4
Which of the following statements is INCORRECT regarding the rights of shareholders?
I. voting power on major issues and ownership in a portion of the company
II. right to transfer ownership and dividend entitlement
III. hire and fire management and select and appoint a chief executive
• Question 5
The Ethic of Care is
• Question 6
The best example of a source for virtue ethics for a business is
• Question 7
Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?
• Question 8
The Sarbanes Oxley Act was passed in response to:
I. concerns that investors received full and complete information about potential corporate fraud
II. a lack of investor confidence
III. corporate scandals like Enron
IV. discrimination against an employee when providing information she reasonably believes constitutes a violation of federal security laws
• Question 9
Select the best definition of whistleblower:
• Question 10
The Constitution does not always protect free-speech rights for what public employees say on the job. Which of the following is true?
• Question 11
In the essay, Work Matters, by law professor Marion Crain, all of the following are the result of working except:
• Question 12
To determine whether a public employee receives First Amendment protection from speech (and therefore cannot be fired for it), the Supreme Court has stated that all of the following are important except:
• Question 13
Under the legal doctrine of “employment at will” an employee can be lawfully terminated from her job for:
I. wearing a shirt that clashes with her suit
II. any non-discriminatory reason
III. complaining about illegal activity in the workplace
IV. only for good cause
• Question 14
The most recent major privacy law passed by Congress was the
• Question 15
As Facebook and other social media sites grow in users and popularity
• Question 16
One reason employers use to justify giving honesty or integrity tests is:
• Question 17
According to the article excerpted in the text entitled, The Functions of Privacy, by Alan Westin, privacy has several functions in today’s society. These include:
• Question 18
In considering the legality of employer interception of employee e-mails at work, pick the correct statement.
I. Employees have complete expectation of privacy since they can select their password for in-house and remote access of e-mails.
II. A subpoena is required by the employer to read any e-mail that is clearly marked “confidential” by the employee.
III. No expectation of privacy exists over an employer-owned computer system at work.
IV. Statement by the employer that e-mails are confidential and privileged cannot be later used by an employer to defeat an employee’s claim of privacy
• Question 19
The Electronic Communications Privacy Act of 1986 (ECPA):
• Question 20
John Smith was assaulted on the loading dock by a coworker, Jim Jones, at the Acme Widget Company. The attack was unprovoked by Smith. After the physical assault, there was an angry verbal exchange between the parties. The incident ended when Jones yelled that Smith was a “sissy” and “everybody knows you’re queer as a three dollar bill.” Which of the following statements best describes the outcome of the harassment lawsuit filed by Smith under The Civil Right Act of 1964?
I. Sex discrimination is prohibited by federal law (The Civil Right Act of 1964).
II. Sexual orientation discrimination is prohibited by federal law (The Civil Right Act of 1964).
III. Suits based on harassment due to sexual orientation cannot prevail when based on local or state laws.
IV. Sexual orientation discrimination is not prohibited by federal law (Title VII).
• Question 21
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. Which of the following federal government agencies is charged with enforcing this statute?
• Question 22
All of the following are true statements regarding the Family and Medical Leave Act (FMLA, 29 U.S.C. §§ 2601, et seq.), EXCEPT which of the following?
• Question 23
Employment practices without business justification applied to all employees that result in a less favorable effect for one group than for another group may state a claim for:
• Question 24
A mayor serving in a major metropolitan area receives an internal memorandum indicating personnel at many police stations are single-race. At the time of the report, thirty percent of the police force was black or Hispanic. She immediately calls a press conference and orders transfer of police officers to achieve racial balance across the city. The transferred police offers sue on constitutional grounds. Assuming just these facts, what is the strongest argument that might be advanced by the transferred officers based on constitutional grounds?
• Question 25
To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:
Questions
1. Select the best definition of ethics:
a. a fairly clear cut set of guides for decision making.
b. a set of relatively unclear principles regarding what we must do.
c. a set of relatively unclear principles regarding what we should do.
d. religious views about the world.
2. Laws must be static and unyielding in order to provide stability for a society.
a. True
b. False
PAGE: 1
3. Choose the statement regarding duty to rescue that is false:
a. There is no general duty to rescue an individual.
b. One basis for not imposing individual rescue liability is: An individual should have a right of freedom of action, privacy and personal autonomy not to intervene and perform rescue.
c. Under a liberal–communitarian approach, citizens owe a duty to the state to rescue other citizens based on reciprocal rights and duties.
d. When one taunts another person who then puts themselves in danger in response to the teasing, the teaser has a duty to rescue the other.
4. All of the following are considered exceptions to the general rule that there is no duty to rescue except:
a. Contract – lifeguards, for example, have signed contracts agreeing to rescue people in exchange for pay and benefits.
b. Witnessing an accident – this creates a duty to step in and help the injured
c. Child abuse- statutes in nearly all states require that one report suspected child abuse.
d. Endangerment – if one puts another in danger, then he/she is obligated to rescue that person.
5. Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?
a. Outsourcing is detrimental to the economy because it limits profitability.
b. Outsourcing decreases efficiency and productivity.
c. Outsourcing enhances competitiveness, modernization, and bigger market opportunities.
d. Automating processes and replacing workers is unethical since it does not serve a greater good.
PAGE: 11
6. Which of the following statements best illustrates the view of “utilitarianism”?
I. From each according to his abilities, to each according to his needs.
II. The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.
III. An action is right when maximizing welfare and total well-being.
IV. Individuals should pursue his or her own self-interest, even at the expense of others.
a. I only
b. III only
c. I and II
d. I, II, and III
PAGE: 14
7. The best example of a source for virtue ethics for a business is
a. newspapers articles about the corporation.
b. the corporate mission statement.
c. the documentation in human resources justifying the hiring of new staff.
d. the resumes of the members of the board of directors and the officers.
Page 22-23
8. The Ethic of Care is
a. A set of rules that explain how to prioritize those people affected by a decision so that a utilitarian analysis can be done successfully.
b. A set of universal principles, which applied evenly to all decisions will result in fairness and equity in ethical decisions.
c. The idea that we should all make decisions under the assumption that we don’t know our station in life, that we could be the person most negatively impacted by the decision.
d. A set of principles that encourage decision makers to look at human relationships as a primary motivator for a decision.
9. Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?
a. individual rights and justice for all
b. applies only to women and not men
c. care and responsibility to others
d. obedience to independent moral rules or duties
10. Which of the following statements is INCORRECT regarding the rights of shareholders?
I. voting power on major issues and ownership in a portion of the company
II. right to transfer ownership and dividend entitlement
III. hire and fire management and select and appoint a chief executive
a. I and II
b. I, II, and III
c. I only
d. III only
11. According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
a. Political speech is the most important, and most protected, speech that exists. It is crucial to the democratic process that political speech be encouraged and heard.
b. The immense wealth of a corporation allows it to be the most accurate in providing messages to people.
c. Presidents and members of Congress often consult with corporate leaders on a number of issues, suppressing all corporate political speech would eliminate the ability for non-profits and smaller corporations to oppose or reject publicly the position of those larger corporations being consulted.
d. Restrictions do not protect minority or dissenting shareholders because they can address disagreement through the corporate democratic process.
12. Corporate director or officer decisions to dedicate corporate funds for social causes is called:
a. Corporate Social Responsibility (CSR)
b. Social Activism (SA)
c. Business Engagement in Environmental Situations (BEES)
d. Strategic Investment in Stakeholder Issues (SISI)
Essay Questions
13. Describe the difference between the law and ethics.
ANSWER: Law provides for a set of rules for behavior. When these rules are broken, behavior is punishable. On the other hand, ethics presents a menu of options, perhaps disconnected from laws. Laws are “what a person must do,” and ethics addresses “what a person should do.”
Page 1
14. From where do ethical preferences originate?
15. Discuss how multinational corporations can be both a benefit and a detriment to society.
16. Explain why laws exist that do not impose a duty to rescue.
17. Describe the philosophy of noted economist, Milton Friedman, on the issue of “free market ethics.”
18. The chapter discusses a number of different ethical theories or approaches to decision making. Discuss the potential dangers of relying solely on one theory or approach.
19. Discuss the differences in utilitarianism and values ethics in making a decision.
True/False
Indicate whether the sentence or statement is true or false.
____ 1. According to Henry Shue, firms are not in the business of protecting the interests of their workers,
except when this is a means to accomplish the organizational objectives.
____ 2. Today, shareholder activism within corporations continues to grow.
____ 3. The problems facing the EPA now are more blatant and traceable to a few major industrial sources
now than they were 35 years ago, when the problems were more diffuse and insidious.
____ 4. Environmentalists have sought to work more closely with businesses for the past 40 years.
____ 5. Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.
____ 6. The Federal Trade Commission was created to promote competition through its enforcement of the
Sherman and Clayton Antitrust Acts.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the Question.
____ 7. With the adoption of the ____________, the U.S. began to address the need to prevent, or minimize,
workplace accidents and health hazards.
a. Securities Act c. Environmental Protection Agency
b. Occupational Safety and Health d. National Insurance Act
Act
____ 8. Employers have __________ been held criminally responsible for workplace injuries and deaths to
workers.
a. rarely c. mostly
b. marginally d. always
____ 9. What state has prosecuted more employers for safety violations than any of the other states
combined?
a. New York c. Ohio
b. Utah d. California
____ 10. Elements of human slavery include which of the following?
I. Lack of legal ownership benefits slaveholders today.
II. Slaves are controlled through violence or the threat of violence.
III. Debt bondage is not used for today’s slave market.
a. I only c. III only
b. II only d. I and II only
____ 11. When were worker’s compensation laws first adopted in the United States?
a. 1911-1925 c. 1964, the same year as the Civil
Rights Act
b. 1946, after World War II d. 1972
____ 12. Which of the following is true about current carbon dioxide levels?
a. They are the highest they have been in c. They are the highest they have ever
the past 20 million years. been.
b. They are the lowest they have been in d. They are the lowest they have ever
the past 360,000 years. been.
____ 13. Which piece of legislation was passed first?
a. The Clean Water Act
b. The Resource Conservation and Recovery Act
c. The Clean Air Act
d. The Comprehensive Environmental Response, Compensation, and Liability Act
____ 14. Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances
annually, with each allowance permitting one ton of emissions.
a. allocation of resources c. green capitalism
b. tradeable permit d. shareholder activism
____ 15. Shareholder activism includes which of the following?
a. the proxy system c. preliminary management resistance
b. recommendations with moral d. all of the above
authority
____ 16. What piece of legislation outlawed “unfair methods of competition and unfair or deceptive acts and
practices”?
a. Federal Trade Act of 1914 c. Federal Food and Drug Act of 1953
b. Lanham Act of 1946 d. The Learned Intermediary Rule
____ 17. The Prescription Information Law of 2006 was passed to:
a. aid pharmaceutical companies in obtaining information about patients’ prescription requirements.
c. protect physicians from unethical bribery by pharmaceutical companies.
b. protect patent and physician privacy. d. protect patients from fraudulent
claims about the effectiveness of prescription medication.
____ 18. Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1840s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not
“materially affect” its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.
IV. The Prescription Information Law expressly allows the transmission or use of both patient-identifiable data and prescriber-identifiable data for certain commercial purposes.
a. I only c. III only
b. II only d. I and III
3
b. I and II
a. I only
Name: ________________________ ID: A
____ 19. According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
c. III only d. II and III
• Question 1
In Native Village of Kivalina v. Exxonmobil Corporation, et. al, Judge Armstrong ruled.
• Question 2
The political Question doctrine states
• Question 3
According to MIT professor Layzer, the lobbyists for the energy corporations have used which of the following tactics to avoid stricter regulation?
I. Portray the science of global warming as uncertain and debatable
II. Focus on the financial costs of regulation
III. Provide Senators and Representatives with financial incentives to vote against regulation
IV. Portray the environmentalists as extremists and a vocal minority.
• Question 4
Concerns over national security and the environment led congress to pass which items?
• Question 5
A Tradeable permit plan will provide incentives for companies
• Question 6
The power of the U.S. Government to take property from a private individual and use it for public purposes is:
• Question 7
The Learned Intermediary Rule
• Question 8
The FTC regulates various industries by
• Question 9
Spam practices are regulated by which government entity?
• Question 10
The American Association of Advertising Agencies as agreed to a code that contains the following prohibitions in advertising.
• Question 11
In the case of IMS Health, Inc., et. al. v. Kelly Ayotte, Attorney General of New Hampshire, “detailing” a drug is:
• Question 12
Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1840s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not “materially affect” its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.
IV. The Prescription Information Law expressly allows the transmission or use of both patient-identifiable data and prescriber-identifiable data for certain commercial purposes.
According to the plaintiff’s attorney, the primary tactic defense attorneys use to minimize liability is:
I. Hire the best defense firms to make the plaintiffs look like liars
II. Pursue illegal means to get plaintiffs to drop their cases
III. Use the system to make the case too expensive for plaintiffs to pursue their cases
IV. Push plaintiffs into class action suits to force the case to be heard only one time.
• Question 14
Section 402A of the Restatement of Torts (Second) states which of the following:
• Question 15
The court’s ruling in Levin v. Wyeth explains how:
• Question 16
Strict liability arises when:
• Question 17
To win a case in negligence, a plaintiff must prove all but
• Question 18
The Ford Pinto exploded when rear-ended by another vehicle. Of the types of defects a product may have, the Pinto suffered from
• Question 19
Which section of the Constitution empowered Congress with the ability to pass Legislation to protect intellectual property rights?
• Question 20
Which of the following are factors used to determine if a use is fair?
• Question 21
Why was the Digital Millennium Copyright Act passed?
• Question 22
Debora Halbert asserts in her essay that:
• Question 23
In order to obtain a patent under U.S. Patent Law, an inventor must have an invention that is
I. Not obvious
II. Unique
III. Useful
IV. Not a modification of any prior patents
• Question 24
Once the copyright on a work has expired,
• Question 25
The fundamental legislation aimed at protecting copyrights is
LAW & ETHICS IN THE BUSINESS ENVIRONMENT 6e
CHAPTER 1
Law, Ethics, Business: An Introduction
Questions
1. Select the best definition of ethics:
a. a fairly clear cut set of guides for decision making.
b. a set of relatively unclear principles regarding what we must do.
c. a set of relatively unclear principles regarding what we should do.
d. religious views about the world.
PAGE: 1
2. Laws must be static and unyielding in order to provide stability for a society.
a. True
b. False
3. Choose the statement regarding duty to rescue that is false:
a. There is no general duty to rescue an individual.
b. One basis for not imposing individual rescue liability is: An individual should have a right of freedom of action, privacy and personal autonomy not to intervene and perform rescue.
c. Under a liberal–communitarian approach, citizens owe a duty to the state to rescue other citizens based on reciprocal rights and duties.
d. When one taunts another person who then puts themselves in danger in response to the teasing, the teaser has a duty to rescue the other.
4. All of the following are considered exceptions to the general rule that there is no duty to rescue except:
a. Contract – lifeguards, for example, have signed contracts agreeing to rescue people in exchange for pay and benefits.
b. Witnessing an accident – this creates a duty to step in and help the injured
c. Child abuse- statutes in nearly all states require that one report suspected child abuse.
d. Endangerment – if one puts another in danger, then he/she is obligated to rescue that person.
5. Which of the following views on outsourcing would be consistent with the free market ethics approach advocated by Milton Friedman?
a. Outsourcing is detrimental to the economy because it limits profitability.
b. Outsourcing decreases efficiency and productivity.
c. Outsourcing enhances competitiveness, modernization, and bigger market opportunities.
d. Automating processes and replacing workers is unethical since it does not serve a greater good.
6. Which of the following statements best illustrates the view of “utilitarianism”?
I. From each according to his abilities, to each according to his needs.
II. The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.
III. An action is right when maximizing welfare and total well-being.
IV. Individuals should pursue his or her own self-interest, even at the expense of others.
a. I only
b. III only
c. I and II
d. I, II, and III
7. The best example of a source for virtue ethics for a business is
a. newspapers articles about the corporation.
b. the corporate mission statement.
c. the documentation in human resources justifying the hiring of new staff.
d. the resumes of the members of the board of directors and the officers.
8. The Ethic of Care is
a. A set of rules that explain how to prioritize those people affected by a decision so that a utilitarian analysis can be done successfully.
b. A set of universal principles, which applied evenly to all decisions will result in fairness and equity in ethical decisions.
c. The idea that we should all make decisions under the assumption that we don’t know our station in life, that we could be the person most negatively impacted by the decision.
d. A set of principles that encourage decision makers to look at human relationships as a primary motivator for a decision.
9. Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?
a. individual rights and justice for all
b. applies only to women and not men
c. care and responsibility to others
d. obedience to independent moral rules or duties
10. Which of the following statements is INCORRECT regarding the rights of shareholders?
I. voting power on major issues and ownership in a portion of the company
II. right to transfer ownership and dividend entitlement
III. hire and fire management and select and appoint a chief executive
a. I and II
b. I, II, and III
c. I only
d. III only
11. According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
a. Political speech is the most important, and most protected, speech that exists. It is crucial to the democratic process that political speech be encouraged and heard.
b. The immense wealth of a corporation allows it to be the most accurate in providing messages to people.
c. Presidents and members of Congress often consult with corporate leaders on a number of issues, suppressing all corporate political speech would eliminate the ability for non-profits and smaller corporations to oppose or reject publicly the position of those larger corporations being consulted.
d. Restrictions do not protect minority or dissenting shareholders because they can address disagreement through the corporate democratic process.
12. Corporate director or officer decisions to dedicate corporate funds for social causes is called:
a. Corporate Social Responsibility (CSR)
b. Social Activism (SA)
c. Business Engagement in Environmental Situations (BEES)
d. Strategic Investment in Stakeholder Issues (SISI)
Essay Questions
13. Describe the difference between the law and ethics.
14. From where do ethical preferences originate?
15. Discuss how multinational corporations can be both a benefit and a detriment to society.
16. Explain why laws exist that do not impose a duty to rescue.
17. Describe the philosophy of noted economist, Milton Friedman, on the issue of “free market ethics.”
18. The chapter discusses a number of different ethical theories or approaches to decision making. Discuss the potential dangers of relying solely on one theory or approach.
19. Discuss the differences in utilitarianism and values ethics in making a decision.
The Duty of Loyalty: Whistleblowing
Questions
20. Select the best definition of whistleblower:
e. the sole goal of modern ethics training
f. originated from the Latin “qui tam pro domino regequam pro sic ipso in hoc parte sequitur” meaning “who as well for the king as for himself sues in this matter.”
g. a narrow exception under the general rule of at-will employment
h. people who report unethical or illegal activities under the control of their employers
21. Under the legal doctrine of “employment at will” an employee can be lawfully terminated from her job for:
V. wearing a shirt that clashes with her suit
VI. any non-discriminatory reason
VII. complaining about illegal activity in the workplace
VIII. only for good cause
a. a. I only
b. b. II only
c. c. I and II
d. d. III and IV
22. Exceptions to the rule of employment-at-will include which of the following?
I. organization of unions
II. passage of Sarbanes Oxley Act
III. raising of public policy issues
IV. promise of implied-contract or covenant-of-good-faith
a. I only
b. II only
c. I and II
d. I, II, III, IV
23. In the essay, Work Matters, by law professor Marion Crain, all of the following are the result of working except:
a. People become self-sufficient.
b. People become more engaged in the democratic process.
c. People become more engaged in society and social issues.
d. People stay out of jail.
24. The Sarbanes Oxley Act was passed in response to:
I. concerns that investors received full and complete information about potential corporate fraud
II. a lack of investor confidence
III. corporate scandals beginning with Enron
IV. discrimination against an employee when providing information she reasonably believes constitutes a violation of federal security laws
a. I only
b. II only
c. I and II
d. I, II, III, IV
25. “Groupthink” is always to be trusted because the great number of people needed to come to one consensus is usually correct.
a. True
b. False
26. The Constitution does not always protect free-speech rights for what public employees say on the job. Which of the following is true?
a. When a citizen enters government service, the citizen need not accept certain limitations on his or her freedom.
b. Public employees may speak out on matters of public concern and have First Amendment protection but not when they speak out in the course of their official duties.
c. As public employees speak out and receive First Amendment protection, there is an acceptable chilling of the speech of all potential whistleblowers.
d. None of the above
27. To determine whether a public employee receives First Amendment protection from speech (and therefore cannot be fired for it), the Supreme Court has stated that all of the following are important except:
a. The employer must have a justification for treating the employee differently than it would treat a member of the general public.
b. The speech cannot be about political topics.
c. The speech must be about something of great public concern.
d. The speech cannot be made as part of the employment (such as an internal memorandum).
28. There are several reasons why whistleblowing may not be protected on an international level. These include:
a. Dictators typically do not care if companies are engaging in illegal activities.
b. Collective or collaborative cultures may frown on whistleblowing instead of working together to fix a problem.
c. Many nations across the globe do not have the dishonesty problems that are found in western nations.
d. Most business is not truly international and so there has been no push for globalization of protection.
Essay Questions
29. Given the information in the text, why is public policy towards whistleblowing an inconsistent issue?
30. How was SherronWatkinis of Enron a typical whistleblower? An atypical whistleblower?
31. Explain what happened in the 1968 Supreme Court’s re-interpretation of the First Amendment to the U.S. Constitution regarding public employees’ limited speech protections.
32. Describe at least two other times since the Pickering decision in which the Supreme Court revisited the ruling. What were the outcomes?
33. As discussed in the text, False Claims Act or qui tam suits have been successful in the health care industry. The text mentions several things that all these successful claims have in common. Discuss those things.
34. What does Dworkin suggest in her essay are four activities any organization should implement for effective compliance behavior towards whistleblowing?
Questions
1. Employees’ emails are private and are protected under the law.
a. True
b. False
2. Employees can now be secretly and intrusively spied upon by their employers, and it is perfectly legal.
a. True
b. False
3. In considering the legality of employer interception of employee e-mails at work, pick the correct statement.
IX. Employees have complete expectation of privacy since they can select their password for in-house and remote access of e-mails.
X. A subpoena is required by the employer to read any e-mail that is clearly marked “confidential” by the employee.
XI. No expectation of privacy exists over anemployer-owned computer system at work.
XII. Statement by the employer that e-mails are confidential and privileged cannot be later used by an employer to defeat an employee’s claim of privacy
a. I only
b. II only
c. III only
d. I and IV
4. The Electronic Communications Privacy Act of 1986 (ECPA):
i. supplements the Omnibus Federal Employee Workplace Privacy Rights Law of 2008.
j. has been an effective law because employee privacy intrusions are less common and steadily declining since 2000.
k. restricts employer access to public chatroom interactions.
l. fails to protect employees in most situations involving e-mail monitoring by public and private employers.
5. According to the article excerpted in the text entitled, The Functions of Privacy,by Alan Westin, privacyhas several functions in today’s society. These include:
a. Total freedom in the private life with no consequences to the work life.
b. The ability to express dissatisfaction without risk of exposure.
c. The ability to be post critical information on the Internet without consequences at work.
d. The ability to spend time quietly analyzing the actions and reactions of other people.
6. A majority of states have enacted “lifestyle rights laws” that protect workers’ off-duty activities including cases of smoking, cohabitation, drinking.and single parenthood. What is the least effective argument by an employer to regulate off-the-clock activities in a state that has not enacted such lifestyle rights legislation?
a. It will provide a healthy work force.
b. Unregulated employees are less productive.
c. There is no invasion of privacy since the employee is “at will.”
d. To prevent higher health care and insurance costs.
7. One reason employers use to justify giving honesty or integrity tests is:
a. History shows that employees that tell even a small lie on those tests are extremely likely to steal from the business.
b. Most employers use the test to calculate complex personality matches between employees when placing them on groups or teams in the business.
c. Employee theft is a tremendous expense each year and employers believe that these tests will remove the largest potential offenders.
d. Employers want something in the file they can try to use later to fire someone if it things don’t work out.
8. Title I of the Americans with Disabilities Act of 1990 (ADA) explicitly limits the ability of employers to use “medical examinations and inquiries” as a condition of employment and provides for:
a. a prohibition against using pre-employment medical tests.
b. a prohibition against the use of a medical examination after a job offer has been made if the results are kept confidential.
c. a prohibition against the use of medical tests that lack job-relatedness and business necessity.
d. a prohibition against the use of tests that screen out (or tend to screen out) people with disabilities.
PAGE: 98
9. There is a high correlation between drug testing and workplace safety.
a. True
b. False
10. As Facebook and other social media sites grow in users and popularity
a. There has been wide agreement that the expectation of privacy in those sites is nonexistent.
b. The sites have gotten more and more protective of their user’s information.
c. Many user’s have been unhappy with the privacy policies of the sites.
d. The sites have eliminated privacy policies as they were the source of too many lawsuits.
11. The United States Constitution, Fourth Amendment provides “[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated… ” Privacy rights are triggered under the Fourth Amendment:
a. whena corporation has authorized an agent with direct authority to perform an electronic search of an employee’s e-mail account.
b. upon issuance of a subpoena ducestecumto bring electronic data (e-mails, files, etc.) including electronic metadata such as headers, directional information, and other such useful tracking data.
c. whenthe government is the primary actor.
d. during an archival search of e-mails on a corporation’s server.
12. The most recent major privacy law passed by Congress was the
a. Genetic Information Nondescrimination Act (GINA) – defining how businesses can obtain and use genetic information.
b. Discrimination Against Narcoleptics Act (DANA) – defining narcolepsy, or uncontrolled sleeping, as a disability under the Americans with Disabilities Act.
c. Keeping International Migration Issues Act (KIMI) – defining how businesses can obtain and use immigration status and information.
d. Family History and Ancestry Act (FHA) – describing parameters on the use of family history or ancestry in evaluating job candidates.
Essay Questions
13. List several types of company surveillance people are subjected to now.
14. How can businesses justify electronic surveillance?
15. Briefly describe what Alan Westin believes are the “functions of privacy.”
16. Why is corporate testing of employees on the rise?
17. Discuss Lewis Maltby’s proposition that employers should not do drug testing (or other testing related to off-work conduct) but should instead focus on impairment testing when an employee is entering the workplace.
18. Discuss privacy in social media websites. What sort of policies should exist? Does it matter that the user doesn’t have to be honest (to the extent of using false names)?
19. The term “privacy” does not appear anywhere in the Constitution of the United States. Discuss (meaning share your opinion and support it with anecdotes or evidence) whether or not the Supreme Court was correct in “finding” privacy in the Constitution.
20. The Genetic Information Nondiscrimination Act of 2008 (GINA) was passed amidst public concern for the collection and use of genetic information. Prior to its passage, the Americans with Disabilities Act protected anyone with a disability or perceived disability and the Health Information Portability and Accountability Act (HIPAA) protected people from intrusion in to medical records. Was GINA a necessary act or was it merely passed for political reasons?
Questions
1. Equal protection is the constitutional guarantee:
a. that empowers Congress to regulate equally distributed commerce with foreign Nations, and among the several States, and with the Indian Tribes.
b. that laws made in pursuance of the Constitution and all treaties made under the authority of the United States shall be the equally protected as the “supreme law of the land.”
c. embodied in the Fourteenth Amendment to the U.S. Constitution.
d. that grants and distributes power and responsibilities to national and state governments.
2. A mayor serving in a major metropolitan area receives an internal memorandum indicating personnel at many police stations are single-race. At the time of the report, thirty percent of the police force was black or Hispanic. She immediately calls a press conference and orders transfer of police officers to achieve racial balance across the city. The transferred police offers sue on constitutional grounds. Assuming just these facts, what is the strongest argument that might be advanced by the transferred officers based on constitutional grounds?
a. Executive action by the mayor is unconstitutional because there was no rational relationship to a valid governmental purpose.
b. The action is “void for vagueness” since transferred police officers must unnecessarily guess at the underlying public policy of the transfer process.
c. The mayor’s policy used race as the basis for transfers, and assignments are subject to strict scrutiny.
d. The transfer can be set aside based on intermediate or heightened level of scrutiny.
PAGE: 130
3. John Smith was assaulted on the loading dock by a coworker, Jim Jones, at the Acme Widget Company. The attack was unprovoked by Smith. After the physical assault, there was an angry verbal exchange between the parties. The incident ended when Jones yelled that Smith was a “sissy” and “everybody knows you’re queer as a three dollar bill.” Which of the following statements best describes the outcome of the harassment lawsuit filed by Smith under The Civil Right Act of 1964?
XIII. Sex discrimination is prohibited by federal law (The Civil Right Act of 1964).
XIV. Sexual orientation discrimination is prohibited by federal law (The Civil Right Act of 1964).
XV. Suits based on harassment due to sexual orientation cannot prevail when based on local or state laws.
XVI. Sexual orientation discrimination is not prohibited by federal law (Title VII).
a. I only
b. II only
c. III only
d. I and IV
4. Title VII specifically addresses the issues of affirmative action, sexual harassment, and same-sex marriage.
a. True
b. False
5. To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:
a. That religion has been a significant part of the employee’s life for a significant amount of time.
b. That the employee has a sincerely held religious belief.
c. That the employer was on notice that the religious belief was in conflict with the employer’s request.
d. That there was a negative employment action based on a conflict between the religious belief and the employment requirement.
6. Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. Which of the following federal government agencies is charged with enforcing this statute?
m. U.S. Department of Labor
n. Merit Systems Protection Board
o. Office of Personnel Management
p. Equal Employment Opportunity Commission
7. The Equal Employment Opportunity Commission (EEOC) favors English-only rules because they decrease the ability for people to stereotype based on national origin or ethnicity and thus decrease illegal workplace discrimination.
a. True
b. False
8. Employment practices without business justification applied to all employees that result in a less favorable effect for one group than for another group may state a claim for:
a. disparate treatment
b. disparate impact
c. inclusion
d. reasonable accommodation
9. All of the following are true statements regarding the Family and Medical Leave Act (FMLA, 29 U.S.C. §§ 2601, et seq.), EXCEPT which of the following?
a. An eligible employee is entitled to take 12 weeks of unpaid leave in any 12-month period.
b. Every personal or family emergency qualifies for FMLA leave.
c. Under most circumstances, the employer must reinstate employees when they return from leave.
d. An eligible employee is entitled to take paid leave because of the birth of a son or daughter.
10. The law is concerned with discrimination as well as work/life balance (giving people a fair opportunity to take care of personal health issues). According to the text, these two concerns have been addressed nicely by eliminating the ability to discriminate based on caregiver status.
a. True
b. False
11. The Americans with Disabilities Act requires businesses to make accommodations for the disabled, no matter what the cost.
a. True
b. False
Essay Questions
12. Describe the term heightened scrutiny. What do the courts use to determine which type of scrutiny to use?
13. List six of the seven laws or court decisions leading to our current views on sexual harassment.
14. What must a plaintiff show to make a prima facie case of hostile environment sexual harassment?
15. The Supreme Court has defined sex discrimination under Title VII of the Civil Rights Act of 1964 to include sexual harassment (both opposite-gender and same-gender). The Court has defined quid pro quo and hostile environment harassment. The Court has not defined it to protect someone against discrimination or harassment based on sexual orientation or preference, or transgender status. Discuss whether Title VII should be expanded to include those issues.
Questions
16. According to the court in the World Trade Center, the Fifth Amendment Substantive Due Process clause has all of the following meanings except:
a. Individual protection against arbitrary actions of the government
b. No deprivation of life, liberty or property without due process of law
c. The government is bound to follow certain processes when arresting or trying someone for a crime
d. The government is not allowed to behave in a manner that shocks the conscience
17. With the adoption of the ____________, the U.S. began to address the need to prevent, or minimize, workplace accidents and health hazards.
q. Securities Act
r. Occupational Safety and Health Act
s. Environmental Protection Agency
t. National Insurance Act
18. Employers have __________ beenheld criminally responsible for workplace injuries and deaths to workers.
e. rarely
f. marginally
g. mostly
h. always
19. Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:
a. Risking liability
b. Piercing the corporate veil
c. The privilege of the stockholders
d. Free market trading of stocks
20. When an employee is injured on the job, that employee may:
I. File a worker’s compensation claim and accept the government-determined value for the injury.
II. File a tort claim in state court to recover damages above the worker’s compensation amount.
III. File a complaint with OSHA to have the employer investigated and charged if violations are present.
a. I only
b. I and II only
c. III only
d. I and III only
21. The purpose of OSHA and the MSHA is to eliminate injury in the workplace.
a. True
b. False
. the purpose is to reduce harm or to manage risk.
22. Which of the following is true about worker’s compensation in America?
a. Employers pay the employees directly for injuries caused on the job.
b. Employees collect workers compensation for on the job injuries but are not allowed to sue employers for negligence.
c. Employees collect workers compensation for on the job injuries but are not allowed to sue employers for any claim related to the injury.
d. Employers cannot opt out of the system even if they can self-insure against workplace injury.
PAGE 184
23. One example of modern day slavery, as discussed in the interview with Kevin Bales, is:
a. Purchased human labor for farming – just as it existed in early U.S. History with humans being kidnapped, transported and sold on the open market.
b. Debt bondage – where families borrow money with the collateral being their future labor and the future labor of their offspring.
c. People being offered very low wages and poor working conditions because the market will bear those conditions.
d. Children working for their family businesses doing manual labor that is legal under exceptions to the child labor laws.
24. According to Henry Shue, firms are not in the business of protecting the interests of their workers, except when this is a means to accomplish the organizational objectives.
c. True
d. False
25. According to Henry Shue, who should have responsibility to protect workers from potential harm caused by imported goods?
I. The employers of the workers facing the potential harm
II. The governments of the people who may be harmed
III. The companies importing the goods
IV. Consumers who ultimately buy the goods
a. I only
b. I and II
c. I, II and III
d. I, II, III and IV
(the author states that all should have responsibility but ultimately the reality is that consumers have responsibility because the others fail)
Essay Questions
26. According to Michael Silverstein, what are four types of risks workers find on the job today?
27. Explain how worker’s compensation in the U.S. works.
28. When Nike faced public criticism for its affiliation with sweatshops, it started a public relations campaign to counter its negative image. Some detractors sued Nike to stop the campaign, alleging that it was misleading and false. Discuss why you, as a judge, would either allow Nike to continue its campaign, or would make Nike stop the campaign.
29. Workplace harm is an area of concern for employers, employees and the government. Explain what each group has done, or might do, to address this concern.
30. Though slavery was outlaws in the United States during the mid-1800’s, several authors and experts express concern that slavery still exists in actuality and through sweatshops. Discuss what has been done to combat these issues and how companies charged with slavery of sweatshop affiliations have reacted.
Questions
31. Shareholder activism includes which of the following?
e. the proxy system
f. recommendations with moral authority
g. preliminary management resistance
h. all of the above
32. Which piece of legislation was passed first?
i. The Clean Water Act
j. The Resource Conservation and Recovery Act
k. The Clean Air Act
l. The Comprehensive Environmental Response, Compensation, and Liability Act
33. Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances annually, with each allowance permitting one ton of emissions.
e. allocation of resources
f. tradeable permit
g. green capitalism
h. shareholder activism
34. The Kyoto Protocol is an international treaty to reduce greenhouse admissions, signed by over 200 countries. The United States is one of those countries.
a. True
b. False
PAGE: 209
35. According to MIT professor Layzer, the lobbyists for the energy corporations have used which of the following tactics to avoid stricter regulation?
I. Portray the science of global warming as uncertain and debatable
II. Focus on the financial costs of regulation
III. Provide Senators and Representatives with financial incentives to vote against regulation
IV. Portray the environmentalists as extremists and a vocal minority.
a. I and II
b. I, II and III
c. I and III
d. I, II and IV
36. When environmentalists recognized that politicians were not going to pass stricter legislation and regulations, they changed their tactics to force change. According to the Layzer article in the chapter, these new tactics included:
a. Eco-terrorism – bombing pipelines and factories.
b. Collaboration with businesses – create partnerships to improve environmental impacts.
c. Public relations campaigns – go public with their accusations and encourage consumers to demand change.
d. Work internally through shareholders to try to change corporate disclosures
a. I and II
b. II and III
c. III and IV
d. II, III and IV.
37. Many religious sects have an environmental ethic and could unite to influence political change.
a. True
b. False
38. Today, shareholder activism within corporations continues to grow.
e. True
f. False
39. According to law professor Thomas Joo, the best group of persons for addressing the environmental concerns facing the world today is:
a. Shareholders
b. Directors and Officers
c. Environmentalists
d. The Government
40. The power of the U.S. Government to take property from a private individual and use it for public purposes is:
a. Due Process
b. Equal Protection
c. Eminent Domain
d. Suffrage
Essay Questions
41. Explain how the tradeable permit plan works.
42. Discuss how global warming unites national security issues and religion.
43. Discuss your thoughts on whether corporate social responsibility (CSR) should include an environmental component and how firms could capitalize on an environmental mission.
44. Describe the “proxy system” and how is it used to as activism to encourage companies to “go green.”
45. The Fifth Amendment to the Constitution explicitly protects private property owners’ economic interests. Explain how this amendment affects owners of private property.
nswers may vary, but students should mention that it has been an important battleground over the years as courts have had to define “public use,” “just compensation,” and, especially in recent environmental cases, the concept of a “taking.” Early cases typically dealt with the confiscation of private land—as in the highway example above. By the early twentieth century, many of the conflicts involved local zoning laws that prevented owners from enjoying economically optimal use of their property. In a 1926 case, land that had been zoned for industrial development was restricted by a new zoning ordinance to residential use, reducing its value to the owner by 75 percent. Yet the Supreme Court found that this did not amount to a taking, and the city did not have to compensate the owner for it. The Court viewed the rezoning as an exercise of the police power–the power of state and local governments to make laws for public health, safety, and welfare. Commercial use of land might, in shifting circumstances under that police power, wear out its welcome and become a nuisance.
46. The power of eminent domain requires the government to provide just compensation to a property owner when taking private property for public purposes. Discuss your thoughts on whether the following should be considered “public purposes.”
a. The government taking private property to transfer to a private company for development of a strip mall.
b. The government taking private property to build a highway.
c. The government taking private property to expand an airport.
Questions
47. Identify the true statement(s) regarding freedom of speech:
XVII. It was not until the 1840s that legal doctrines protecting speech when offensive began to be recognized by the courts.
XVIII. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not “materially affect” its business.
XIX. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.
XX. The Prescription Information Law expressly allows the transmission or use of both patient-identifiable data and prescriber-identifiable data for certain commercial purposes.
i. I only
j. II only
k. III only
l. I and III
48. According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
a. I only
b. I and II
c. III only
d. II and III
PAGE: 250
49. Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.
a. True
b. False
PAGE 250
50. Obesity in children has continued to rise since 1976 and approximately ¾ of all teens and youth are overweight.
a. True
b. False
PAGE: 262 – approximately 1/3 of all youth and teens are overweight.
51. The “creative revolution” in advertising refers to
a. The move from black and white to color advertising
b. The move from talking about a product to showing what a product can do
c. The move from showing what a product can do to making the product a status symbol
d. The move from making a product a status symbol to using subliminal messaging to “force” consumers to buy the product.
PAGE: 266
52. The debate over advertising fast food and other “junk foods” to kids is a well settled debate after federal and state laws have put limits on that advertising.
a. True
b. False
53. Branding and advertising are really the same thing and should be used interchangeably. Each is about making sure that consumers recognize a product and have a favorable opinion of it.
a. True
b. False
54. Of product promotion techniques, which is the most influential according to author Naomi Klein?
a. Advertising
b. Marketing
c. Branding
d. Word-of –mouth promotion
Essay Questions
55. In the case of IMS Health, Inc., et. al. v. Kelly Ayotte, Attorney General of New Hampshire, what is involved in “detailing” a drug?
ANSWER: “Detailing” a drug involves the provision of promotional and educational information during face-to-face contact between sales representatives and doctors.
PAGE: 245
56. According to District Judge Barbadora in the case of IMS Health, Inc., et al v. Kelly Ayotte, Attorney General of New Hampshire, is the Prescription Information Law more extensive than necessary to serve the State’s interests? Explain your answer.
ANSWER: Pharmaceutical detailing is sometimes used in ways that benefit public health. The Prescription Information Law, however, does not distinguish between beneficial detailing and harmful detailing. Instead, it imposes a ban of the use of prescriber-identifiable information to enhance the effectiveness of all detailing.
PAGE: 246-7
57. What forms can deceptive advertising claims take?
eceptive advertising can be obvious and not-so-obvious. Obvious, or “express,” claims must be truthful as to the product’s qualities and appearance. Suggested, or “implied,” claims are misleading messages that consumers are led to believe. Some ads are literally true but deceptive because of what they don’t say. Endorsements and testimonials must reflect honest opinions or findings of the endorser.
PAGE: 252
58. Discuss some of the ways the FTC is investigating deceptive trade practices involving the Internet.
ANSWER: The FTC has tried to make consumer privacy a priority, bringing 11 spyware enforcement actions between 2005 and 2007. The FTC has also targeted deceptive and unfair spam practices by imposing civil penalties for illegal spam messages.
PAGE: 253-4
59. What is the Lanham Act? To succeed in suit under the Lanham Act, what must a plaintiff prove?
ANSWER: The Lanham Act of 1946 was passed in reaction to the Great Depression. Its main focus is trademark registration and protection, but it also gives competitors the right to sue for false or misleading advertising damaging to them. To succeed under the Lanham Act, a plaintiff must prove that the defendant made a “factual misrepresentation” about a product or service beyond mere “puffery.”
PAGE: 258
60. Discuss some actions the advertising industry has established for self-regulation.
ANSWER: The National Advertising Division of the Council of the Better Business Bureau is the official self-policing mechanism of the industry. It investigates and resolves disputes. In 1990, the American Association of Advertising Agencies adopted Standards of Practice guidelines.
PAGE: 261
61. Direct-to-consumer advertising of prescription drugs began in the late 1980’s to early 1990’s. Based on the information in the Norplant case in the text, discuss the reasons why it should or should not be allowed.
LAW & ETHICS IN THE BUSINESS ENVIRONMENT
CHAPTER 8
Allocating Risk and Responsibilities: Products Liability
Questions
62. The term caveat emptor means:
u. “seller take care”
v. “empty the cave of deceit”
w. “buyer beware”
x. “truth shall prevail”
63. In Wyeth v. Levine, the majority rejected the idea that primary responsibility for drug safety lies with the government and instead lies with the drug manufacturer.
a. True
b. False
64. The Food and Drug Administration, the Consumer Product Safety Commission and the National Highway Transportation Safety Association are
a. Cabinet Departments within the Executive Branch
b. Subcommittees of the Senate and House of Representatives within the Legislative Branch
c. Judicially created organizations to implement Supreme Court mandates related to product safety.
d. Independent Agencies that report to no branch of government.
PAGE: 287
65. The organization that works with companies on recalls of unsafe products (such as lead-paint laden Thomas the Train toys) is
a. The Consumer Protection Group (CPG)
b. The Consumer Product Safety Commission (CPSC)
c. The Product Protection People (P3)
d. The Buy American Coalition (BAC)
PAGE: 289-90
66. According to the plaintiff’s attorney, to minimize liability, corporations often
a. Hire the best defense firms to make the plaintiffs look like liars
b. Pursue illegal means to get plaintiffs to drop their cases
c. Use the system to make the case too expensive for plaintiffs to pursue their cases
d. Push plaintiffs in to class action suits to force the case to be heard only one time.
a. I and II
b. II and III
c. III and IV
d. IV and I
67. The most notable exception to caveat superior was for
a. Food
b. Automobiles
c. Clothing
d. Shoes
68. To win a case in negligence, a plaintiff must prove all but
a. A duty of care owed by the defendant to the plaintiff
b. A lack of fault by the defendant for the harm caused
c. Behavior by the defendant that fails to meet a standard imposed by the law
d. Harm caused to the plaintiff by the defendant’s behavior
69. The Ford Pinto exploded when rear-ended by another vehicle. Of the types of defects a product may have, the Pinto suffered from
a. Design Defect
b. Manufacturing Defect
c. Warning Defect
d. End-user Defect
70. According to Stephen Sugarman, performance-based regulation is:
a. Where the government sets targets for how much harm is allowed for each product produced and the company is fined or penalized for any harm beyond the acceptable level.
b. Where the government creates a reporting structure for consumers to report corporation performance related to safety or environmental issues and then the government imposes fines by a specific formula for companies who exceed a certain number of negative reports.
c. Where consumer advocacy groups work with the independent agencies to determine which corporations are implementing best practices for consumer safety and then create regulations to impose those practices on other companies.
d. Where the government analyzes which companies make the most profit, indicating consumer approval of their performance on safety standards and then implement those companies’ practices as legal standards.
Essay Questions
71. Discuss litigation against major corporations – tactics used to aid plaintiffs and to aid defendants.
72. Explain the concept of strict liability and give two early examples of when this concept was applied in the U.S.
73. Explain the features of Section 402A of the Restatement of Torts (Second).
:
(1.) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer or to his property, if a. the seller is engaged in the business of selling such a product, and b. it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold.
(2.) The rule stated in Subsection (1) applies although (a.) the seller has exercised all possible care in the preparation and sale of the product, and (b.) the user or consumer has not bought the product from or entered into any contractual relation with the seller.
74. What are punitive damages?
75. Explain how injured parties can recover damages under the UCC.
76. Discuss Sugarman’s “Performance-based regulation.” Is this a viable means to create safer products or is it unnecessary government interference?
Questions
77. Debora Halbert asserts in her essay that:
y. women have benefited greatly from intellectual property laws.
z. intellectual property has historically benefited men more than women.
aa. in the nineteenth century, writing poetry and novels enabled women to not only express themselves intellectually but to reap financial rewards as well.
bb. when women knitted or quilted, they were reluctant to share their patterns with other women.
78. American copyright law creates a bundle of rights for the owner, including the right to reproduce, distribute, perform, display, or adapt the work.
c. True
d. False
79. In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing _________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing from a copyrighted work.
g. collective rights
h. misappropriation
i. unlimited use
j. fair use
80. If an author owns a copyright to a non-fiction essay, then publishes that essay in an anthology of similar essays published by a major publishing company, the rights involved in this relationship would be referred to as ______.
m. collective work
n. public domain
o. collective bargaining
p. joint domain
81. Once the copyright on a work has expired,
a. The owner can renew it for a new term
b. The work is in the public domain
c. The work becomes the property of the government
d. The work is considered no longer creative
82. The difference between the Project Gutenberg (PG) and the Google book scanning project is:
a. The PG limits itself to the “classics”
b. The PG limits itself to only works in the public domain
c. Google only digitizes full documents but the PG digitizes key segments
d. The PG limits itself to “orphan” works – those with hard-to-find authors or owners.
83. Nike’s swoosh, McDonald’s arches, and the Xerox name are all identifiable trademarks. Which of the following laws protect(s) them?
XXI. Lanham Trademark Act of 1946
XXII. Federal Trademark Dilution Act of 1995
XXIII. Sonny Bono Act of 1998
m. I only
n. II only
o. I and II
p. II and III
84. In order to obtain a patent under U.S. Patent Law, an inventor must have an invention that is
I. Not obvious
II. Unique
III. Useful
IV. Not a modification of any prior patents
a. I only
b. I and II
c. I, II and III
d. I, II, III and IV
85. Reverse Engineering would be considered a violation of the Uniform Trade Secret Act.
a. True
b. False
Essay Questions
86. Discuss how intellectual property is different from other kinds of property.
87. What must a plaintiff prove to establish copyright infringement?
88. Give a brief description of the evolution of U.S. Copyright laws using approximate dates.
89. Discuss the Fair Use Doctrine – what are the four factors used to determine if a use is fair?
90. Why was the Digital Millennium Copyright Act passed?
