University of South Carolina: ACCT 324 Connect Questions (Prof Hughes) Chapters 1-3 & 13-20,100% CORRECT

University of South Carolina: ACCT 324 Connect Questions (Prof Hughes) Chapters 1-3 & 13-20 CHAPTER 1 1: Connect Questions Business law consists of that govern commercial relationships. dominant systems and practices conventional channels enforceable rules of conduct traditional regulatory bodies Business law consists of the enforceable rules of conduct that govern commercial relationships. In other words, buyers and sellers interact in market exchanges within the rules that specify the boundaries of legal business behavior. A garment manufacturing company wants to shift from being a supplier to a retailer. Which of the following will govern the legal aspects of this decision? Corporate law Business law Administrative law Employment law Business activities must follow legal guidelines. All contracts, employment decisions, and payments to a supplier are constrained and protected by business law. Each of the six functional areas of business: management, production and transportation, marketing, research and development, accounting and finance, and human resource management; sits on a foundation of business law. Which of the following is an intended and essential purpose of law? To impose checks on citizens. To demand respect. To rely upon the goodwill of others. To encourage social justice. The purposes of law include: providing order such that one can depend on a promise or an expectation of obligations, serving as an alternative to fighting, facilitating a sense that change is possible, but only after a rational consideration of options, encouraging social justice, guaranteeing personal freedoms, and serving as a moral guide by indicating minimal expectations of citizens and organizations. The difference between civil law versus criminal law is that, the guilty defendant of a: civil case is never incarcerated. criminal case is always incarcerated. civil case is either incarcerated or required to pay a fine. criminal case is never required to pay a fine. Guilty defendant of a civil case is never incarcerated. Typically, if defendant is found guilty, the victim receives some sort of compensation Which of the following laws would govern a dispute between a tenant and a landlord over payment of rent? Public law Private law Commercial law Corporate law Private law regulates disputes between private individuals or groups. A restaurant regularly overfills trash cans in the alley and improperly disposes left-over meat and other perishables. Which of the following laws will regulate this incident? Private law Criminal and public law Public and civil law Public law Public law controls disputes between private individuals or between groups and their government. The U.S. Code contains legislative acts passed by the . Senate U.S. Congress President House of Representatives Legislative acts are written into the United States Code when they are passed by Congress. Which of the following laws is defined as, “A collection of rules and laws put forth by legislating bodies”? Constitutional law Common law Statutory law Administrative law A collection of rules and regulations put forth by legislating bodies; considered the primary law under the constitution. A collection of rules and decisions made by government agencies is known as law. corporate common agency administrative The federal, state, and local governments have dozens of administrative agencies whose task is to perform a particular government function. Administrative law is the collection of rules and decisions made by all these agencies. Wong owned a laundry store in Colorado but had to move to Salt Lake City, Utah for personal reasons. He wants to establish another laundry store in the new city. He can find information regarding local taxes if he refers to: local statutes. local ordinances. local codes. local laws. Business managers must also be familiar with the local city and county ordinances that govern matters not covered by federal or state codes. These ordinances address important business considerations, such as local taxes, environmental standards, zoning, and building codes. New statutory law can revoke law. criminal private corporate case Case law, or common law, is law unless revoked later by new statutory law. Which of the following laws is especially significant for businesses that operate in multiple legal jurisdictions? Trade law Administrative law Case law Restatements of law Case law is especially significant for businesses that operate in multiple legal jurisdictions. Courts in two different business locations may interpret similarly worded statutes differently. A labor union at a match factory protested against the unhealthy conditions in which they were required to work. Management refused to make changes since all the workers had signed an employment contract stating that they were willing to work in any condition provided by the factory. Despite the legal contract, the labor union has decided to litigate. On what grounds would their case, most likely, be fought? Tradition Legal realism Natural law Legal positivism The term natural law describes certain ethical laws and principles believed to be morally right and “above” the laws devised by humans. Under natural law, individuals have not only basic human rights but also the freedom to disobey a law enacted by people if their conscience goes against it and they believe it is wrong. “Not letting morality interfere with the obedience of law” comes under which concept? Natural law Legal positivism Tradition Identification with the vulnerable The concept of legal positivism sees ones proper role as obedience to duly authorized law. That law is quite distinct from morality, and moral questions about the law should not interfere with ones inclination to obey it. Which of the following concepts come under legal realism? Law can never be enforced with complete consistency. Past practice was the product of careful thought. Some higher law or body of moral principles connects all of us in the human community. Certain ethical laws and principles believed to be morally right and “above” the laws devised by humans. Legal realism is based on the idea that, when ruling on a case, judges need to consider more than just the law; they also weigh factors such as social and economic conditions, since legal guidelines were designed by humans and exist in an ever-changing environment. They believe the law can never be enforced with complete consistency and argue that because judges are human, they will bring different methods of reasoning to very similar cases. Business law consists of the enforceable rules of conduct that govern commercial relationships. True False Because of the law, we rely on the goodwill and dependability of one another. True False In the absence of law, we would rely solely on the goodwill and dependability of one another. Public law controls disputes between private individuals or between groups and their government. True False Cyberlaw is based primarily on existing laws. True False Another name for case law is common law. True False Case law, also called common law, is the collection of legal interpretations made by judges. Case law interpretations are law unless they are revoked later by new statutory law. True False The term “stare decisis” means “reversing the decision.” True False The principle of “stare decisis” refers to “standing by their decision,” a reference to rulings made in higher courts that become a binding precedent for lower courts. The decision of a state supreme court is binding on a lower state court located in the state. True False When an issue is brought before a state court, the court will determine whether the state supreme court has made a decision on a similar issue, which creates a binding precedent or pattern of law the lower court must follow. Constitutions and statutes are complete in the sense of covering the detailed rules that affect government and business relations. True False Constitutions and statutes never cover all the detailed rules that affect relationships between government and business. Presidents claim the power to issue executive orders on the basis of their Article II, Section 1, constitutional power to “take care that the laws be faithfully executed.” True False The term “natural law” is another word for “legal positivism.” True False The term “natural law” describes certain ethical laws and principles believed to be morally right and “above” the laws devised by humans whereas the term “legal positivism” focuses on obedience to duly authorized law. Which of the following spell out what market participants may and may not legally do? Constitutions, legislatures, regulatory bodies, and courts Legislatures only Courts only Legislatures and courts, but not constitutions or regulatory bodies Constitutions, legislatures, and courts, but not regulatory bodies Which of the following would be relevant areas of business law to a human resource manager? Contracts, employment and labor law, and employment discrimination Contracts only Contracts and labor law, but not employment discrimination Employment and labor law, but not contracts None of the above because a human resource manager would be involved in work assignments only Relevant areas of business law applicable to human resource management involve agency law, contracts, employment and labor law, and employment discrimination. Laws are enforced by which of the following? State legislatures Federal Congress Community consensus Courts All the above A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the . Electoral college Community standard Democratic validation Stare decisis Law Assume a businessperson who owns a computer equipment store is delinquent in paying rent to the landlord. The resulting dispute focuses on law. Public Preferential Consensual Private Black lette Private law regulates disputes between private individuals or groups. If a computer store dumps waste behind its building in violation of local, state, or federal environmental regulations, the resulting dispute focuses on law. Public Preferential Consensual Private Black letter Public law controls disputes between private individuals or between groups and their government. Which type of law delineates the rights and responsibilities involved in relationships between persons and between persons and their government? Criminal Procedural Civil Natural Positive Civil law delineates the rights and responsibilities implied in relationships between persons and between persons and their government. Which type of law involves incidents in which someone commits an act against the public as a unit? Criminal Procedural Civil Natural Positive Assume a restaurant chain is forced to pay damages to a person who suffered food poisoning after eating at the restaurant. What type of law is involved? Public law only Private law only Civil law only Public, private, and civil law Private law and civil law Civil law identifies the remedies available when someone’s rights are violated, and private law regulates disputes between private individuals or groups. Assume the Securities and Exchange Commission prosecutes someone for insider trading. This prosecution is an example of law. Criminal Procedural Civil and natural Natural Positive Criminal law regulates incidents in which someone commits an act against the public as a whole, such as by conducting insider trading on the stock exchange. The is the supreme law of the land. U.S. Constitution Declaration of Independence U.S. Code Model Law Uniform Code The rules and regulations put forth by legislatures are referred to as law. Administrative Statutory Uniform Proper Secondary Legislative acts passed by state legislatures can be found in the . U.S. Code State codes Uniform Register State Reporter State Reference Manual Legislative acts are written into the appropriate state codes when they are enacted by state legislatures. Legislative acts passed by the U.S. Congress can be found in the . U.S. Code State codes Uniform Register State Reporter The State Reference Manual Legislative acts are written into the United States Code when they are passed by Congress. Reference: “Inattentive Driving.” Molly decided not to attend class and instead decided to drive off campus to check on her new dress for the upcoming dance feast. While driving, Molly is busy talking on her cell phone with her friend Sharon to convince her into going to the dance with Molly’s brother who has a big crush on Sharon. Unfortunately for Molly, there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle. Molly crashes into the side of Sam’s new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans. A police officer just down the street comes over to investigate. Molly explains to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Around that time, Sam comes along. He is furious regarding the significant dent in his new car. Molly says that she has insurance, and she will cover the whole incident. Sam says that is insufficient. The officer is annoyed because it is his lunch break. He tells Molly that she must obey the law, and proceeds to write several citations to her. The law in Molly’s state regulating cell phone usage would be classified as which of the following? A statute A type of common law An executive order A uniform law A negative law The assortment of statutes, or rules and regulations put forth by legislatures, is what we call statutory law. The group that urges states to enact model laws to provide greater uniformity of law is called the . Model Law on Uniform State Laws Organization Federal Uniform Law Commission National Conference of Commissioners on Uniform State Laws Model and Uniform Law Consortium Uniform Statutory Enforcement Commission When the organization in charge of proposing uniform laws proposes a statute, which of the following is true? All states must adopt the uniform statute within one year. All states must adopt the uniform statute within six months. The uniform statute automatically goes into effect without any action by state legislatures. A state legislature is not required to adopt the uniform statute; but if the state legislature decides to go forward with adoption, all portions of the statute must be adopted. A state legislature can ignore the proposed uniform law, adopt it in full, or adopt it in part. Case law can be revoked by . New statutes Precedent Stare decisis Critical law None of the above. Case law cannot be revoked The term involves the use of past decisions to guide future decisions. Commonality Precedent Restatement Uniformity Modeling The is a body of law significant to business activities including sales, banking, and warranty. Federal Business Code Model Business Code Uniform Transactional Model Uniform Commercial Code Marketing Transaction Code The Uniform Commercial Code is a body of law significant for business activities including sales laws and other regulations affecting commerce, such as bank deposits and collections, title documents, and warranties. When courts rely on precedent, they are obeying . Common analysis Res judicata Stare decisis In rem process Federal law stare decisis (“standing by their decision”), in which rulings made in higher courts become binding precedent for lower courts. Which of the following cases overturned prior precedent? Brown v. Board of Education Wygant v. Jackson Board of Education Planned parenthood of Southeastern Pennsylvania v. Casey Plessy v. Ferguson None of the above because precedent cannot be overturned Brown v. Board of Education did not follow the precedent established by Plessy v. Ferguson. Which of the following is true regarding administrative agencies? There are state administrative agencies, but no federal administrative agencies. There are federal administrative agencies, but no state administrative agencies. There are state and federal administrative agencies, but no local administrative agencies. Administrative agencies exist only at the local county level. Administrative agencies exist at the federal, state, and local level. Which of the following is true regarding treaties at the federal level? A treaty is generally negotiated by the executive branch and must then be approved by two- thirds of the Senate. A treaty is generally negotiated by the executive branch and must then be approved by two- thirds of the House of Representatives. A treaty is generally negotiated by the executive branch and must then be approved by two- thirds of the Senate and also by two-thirds of the House of Representatives. A treaty is generally negotiated by the executive branch and no approval by the Senate or House of Representatives is needed. A treaty is generally negotiated by the executive branch and must then be approved by two- thirds of the Senate and also by two-thirds of the state legislatures. Which of the following can issue executive orders? The president only State governors only The president and state governors The president, state governors, and Congress The president, state governors, Congress, and state legislatures Which of the following contains summaries of common law rules in a particular area of the law? U.S. Code State Administrative Codes Executive Proclamations Case Reporters Restatements of the Law Which of the following is an independent agency? The Federal Deposit Insurance Corporation The Consumer Product Safety Commission The General Services Administration The Small Business Administration The Office of Personnel Management 1-5 “Major Federal Administrative Agencies” reflects that the Consumer Product Safety Commission is an independent agency. Which of the following is an executive agency? The Federal Deposit Insurance Corporation The Federal Trade Commission The Securities and Exchange Commission The Federal Communications Commission The Nuclear Regulatory Commission 1-5 “Major Federal Administrative Agencies” reflects that the Federal Deposit Insurance Corporation is an executive agency. The concept of suggests that individuals should have the freedom to disobey a law enacted by people if their conscience goes against the law and they believe the law is wrong. Legal positivism Natural law Legal-realism Conscience reaction None of the above Assume a judge writes that she is deciding to enforce a law in question but that her decision does not mean that she sees the law as the morally correct rule. The judge would have leanings in the direction of . Legal positivism Natural law Legal realism Conscience reaction None of the above The concept of legal positivism sees ones proper role as obedience to duly authorized law. That law is quite distinct from morality, and moral questions about the law should not interfere with ones inclination to obey it. In which school of jurisprudence is the concept of stare decisis rooted? The Historical school Legal realism The cost-benefit analysis school Positivism Cultural reenactment Which of the following is reported in the Federal Reporter? Statutes Executive orders Common law Administrative laws Local ordinances The Federal Reporter is a case law reporter Which of the following is reported in the United States Code? Statutes Executive orders Common law Administrative laws Local ordinances US code of LAWS Which of the following is reported in the Code of Federal Regulations? Statutes Executive orders Common law Administrative laws Code of Federal Regulations Which of the following is based on the idea that, when ruling on a case, judges consider more than just the law; they also weigh factors such as social and economic conditions? Cost-Benefit Analysis Legal Realism Historical School Legal Positivism Executive Positivism Legal realism is based on the idea that, when ruling on a case, judges need to consider more than just the law; they also weigh factors such as social and economic conditions, since legal guidelines were designed by humans and exist in an ever-changing environment. Which approach to jurisprudence is based on choosing alternatives that maximize benefits and minimize costs, and is tied to the pursuit of efficiency? Cost-Benefit Analysis Legal Realism Historical School Legal Positivism Executive Positivism Candy wants to start an Internet business. She is told by the Chinese government that certain items on her site are objectionable and illegal, and that if she wants to do business in China, she must remove the objectionable material. Which of the following is true? Candy is within her rights and should stand her ground. She is a U.S. citizen, and so long as she obeys U.S. laws, she can do business in China. Candy is within her rights only if she petitioned her state senator and obtained his or her permission to proceed. If Candy wants to do business in China, she must abide by Chinese law. By international law, there is a set fee of $10,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification. By international law, there is a set fee of $5,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification. Candy should understand comparative law which studies and compares the laws in different countries. The Chinese government does not want its citizens to have access to certain information and Web sites; and to do business there, Candy must conform to the Chinese standards. CHAPTER 2: Connect Questions What is an ethical dilemma? Study and practice of decisions about what is good, or right. Application of ethics to the special problems and opportunities experienced by businesspeople. A problem about what a firm should do, for which no clear, right decision is available. The expectations that communities have from businesses. An ethical dilemma is a problem about what a firm should do, for which no clear, right decision is available. Reasonable people can expect to disagree about optimal solutions to ethical dilemmas. Why must firms honor, to some extent, the social responsibility to business? The community often imposes restrictions on firms that only provide a useful good or services. Firms are always subject to the implicit threat that legislation will impose social obligations on them. The community expects businesses to obey certain standards of fairness, except when the standards interfere with profit maximization. Most communities have similar expectations of businesses. The social responsibility of business consists of the expectations that the community imposes on firms doing business inside its borders. These expectations must be honored to a certain extent, even when a firm wishes to ignore them, because firms are always subject to the implicit threat that legislation will impose social obligations on them. he legality of a business decision is the standard that must be met. maximal moderate optional minimal But the existence of that minimum standard is essential for the development of business ethics. Acme manufactures food products and is opening a subsidiary in Country Z. The firm discovers that to obtain raw materials it has to bribe local officials and businesses in Country Z. The second option is to import raw materials from its own country, which will be expensive in the long-run. In this situation, Acme: is faced with an ethical dilemma. has no social responsibility toward Country Z. can apply the concept of virtue ethics. needs to only focus on profitability. Multinational companies face an ethical dilemma: They must decide whether to pay bribes or find alternative sources of supplies. The definition of business ethics refers to of business conduct. correct decisions standards legality definitive lists The definition of business ethics refers to standards of business conduct. It does not result in a set of correct decisions. Business ethics can improve business decisions by serving as a reminder not to choose the first business option that comes to mind or the one that enriches us in the short run. A company is caught bribing government officials in foreign countries in order to establish and maintain its affiliate branches there. The fines levied on the company fall under which act? Foreign Criminal Practices Act Sarbanes Oxley Act International Modernization Act Foreign Corrupt Practices Act Multinational giant Siemens AG was ordered to pay the largest Foreign Corrupt Practices Act (FCPA) fine in history after admitting to acts of bribery worldwide. Why must multinational companies take into account the different ethical understandings that prevail in a different country? Ethical conceptions shape business law and business relationships uniquely in each country. Law and business ethics serve as an interactive system—informing and assessing each other. Business ethics can never produce a list of correct business decisions that all ethical businesses will make. Legal rules that govern the exchange have been shaped in large part by our sense of commercial ethics. Increasingly, business leaders require sensitivity to the differences in legal guidelines in the various countries in which they operate. Which of the following is a way to take the universalization test for a business owner? Informing the public of the business decision before it is taken. Putting himself in the position of the stakeholder and judging the decision. Taking into account whether God would judge the decision to be correct or not. Considering the impact on the world if the decision were applied by all businesses. A third general guideline shares with the other two a focus on the “other”—the stakeholders whom our actions affect. Before we act, the universalization test asks us to consider what the world would be like were our decision copied by everyone else. Which of the following is called the ‘television test’ with regard to the WPH framework? Universalization Public disclosure Golden Rule Social Responsibility The public disclosure test is sometimes called the “television test,” for it requires one to imagine that one’s actions are being broadcast on national television. What is the intent of the Sarbanes Oxley Act? Promoting high standards of business ethics. Setting limitations for Internet usage in business. Encouraging stakeholders to take a more active role in business. Apprehending businesses who use unethical trading means. The Sarbanes-Oxley Act is intended to promote high ethical standards among business managers and employees through a series of stringent requirements and controls that regulate several different facets of corporate operation. Ethical relativism holds that morality is . objective neutral relative divine Ethical relativism is a theory of ethics that denies the existence of objective moral standards. Rather, according to ethical relativism, individuals must evaluate actions on the basis of what they feel is best for them. Morality is relative, and thus no one can criticize another’s behavior as immoral. Why is ethical fundamentalism difficult to follow? The unquestionable nature of rules is overly inflexible. It does not offer specific-enough criteria to be useful in many real-world situations. It denies the existence of any fixed moral standards. It does not say how to evaluate someone’s actions. Absolutism, or ethical fundamentalism, requires that individuals defer to a set of rules to guide them in the ethical decision-making process. The unquestionable nature of the rules in most absolutist repositories seems overly inflexible when applied to different situations. In response to the trade union’s demands, Firm Z holds an executive-level meeting. In the meeting, the executives weigh the monetary consequences of agreeing to the union’s demands. Which theory of business ethics are they following? Rule utilitarianism Consequentialism Act utilitarianism Cost benefit analysis One form of utilitarianism commonly applied by firms and government is cost-benefit analysis. When a business makes decisions based on cost-benefit analysis, it is comparing the pleasure and pain of its optional choices, as that pleasure and pain are measured in monetary terms. Which of the following statements is true according to the categorical imperative of deontology? A business manager should choose the action which yields the greatest amount of pleasure over pain for all involved. A business manager should put himself in the shoes of the person to be affected by his decision and then decide. No decision taken by the business manager can be wrong as morality is subjective. A business decision can be evaluated on the basis that it would be consistent for everyone in society to take the same decision. According to the categorical imperative of the deontological perspective, an action is moral only if it would be consistent for everyone in society to act in the same way. Which of the following theories of business ethics is most concerned with human relationships? Virtue ethics Deontology Ethics of care Utilitarianism The ethics of care holds that the right course of action is the option most consistent with the building and maintaining of human relationships. Those who adhere to an ethic of care argue that traditional moral hierarchies ignore an important element of life: relationships. Ethical conversation is primarily about finding the one and only right thing to do. True False Ethical conversation is less about finding the one and only right thing to do; it is about finding the better thing to do. Business ethics is the application of ethics to the special problems and opportunities experienced by businesspeople. True False The social responsibility of business consists only of the expectations employees have of employers. True False The social responsibility of business consists of the expectations that the community imposes on firms doing business inside its borders. Ethics is not an issue in accounting because of the primarily objective data involved in that field. True False The social responsibility of business consists of the expectations that the community imposes on firms doing business inside its borders. These expectations must be honored to a certain extent, even when a firm wishes to ignore them, because firms are always subject to the implicit threat that legislation will impose social obligations on them. In some countries, businesses must pay bribes in order to receive legitimate supplies. True False In an ethical analysis using the WPH Framework referenced in the text, owners are the most important stakeholders and should receive the greatest consideration in decision making regardless of the type of problem addressed. True False The WPH framework considers who the decision would affect, purpose (values), and how to make ethical decisions. The definition of stakeholder is the same as the definition of shareholder. True False The stakeholders of a firm are the many groups of people affected by the firm’s decisions. The community in which a firm operates would not be considered a stakeholder of the firm. True False The general community where a firm operates is a stakeholder of the firm. Situational ethics is the same thing as ethical relativism. True False Unlike ethical relativism, situational ethics allows us to judge other people’s actions. Consequentialism provides a rigid set of rules to follow regardless of the situation. True False In contrast to absolutism, consequentialism does not provide a rigid set of rules to follow regardless of the situation. Utilitarianism is a form of consequentialism. True False Which of the following is the application of ethics to special problems and opportunities experienced by those in business? Situational ethics Consequentialism Business ethics Sarbanes-Oxley principles Business utilitarianism Which of the following is the study and practice of decisions about what is good, or right? Morals Ethics Consequences Law Business A local Chamber of Commerce plans a seminar on “the social responsibility of business in our community.” What does that term reference? The responsibility of business to make profit for shareholders. The responsibility of business to have annual meetings. The expectations that the community imposes on firms doing business inside its borders. The expectations of employees regarding wage rates. The expectations of management in regard to adequate utility resources. Which of the following is true, as reflected in the case of Rexford Kipps v. James Cailler, regarding the immunity of public officials? Public officials are absolutely immune from suit based on their actions. Government officials are entitled to qualified immunity insofar as their conduct does not violate clearly established statutory rights of which a reasonable person would have known. Government officials are entitled to qualified immunity insofar as their conduct does not violate clearly established constitutional rights of which a reasonable person would have known. Government officials are entitled to qualified immunity insofar as their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known. Government officials are entitled to qualified immunity insofar as their conduct does not violate the First Amendment of the U.S. Constitution. Which of the following is true regarding a corporate code of ethics? A corporate code of ethics provides definitive lists of right and wrong decisions. A well-managed corporation does not need a code of ethics. A well-managed corporation tries to provide ethical leadership by establishing codes of ethics. A corporate code of ethics is legally mandated in all states pursuant to state law. A corporate code of ethics is required by federal law Well-managed firms try to provide ethical leadership by establishing codes of ethics for the firm. The complications associated with managerial decisions do not permit any ethical guide to provide definitive lists of right and wrong decisions. What is the system of “guanxi” used in China? It refers to a system of relationship building woven together by social ties. It refers to a system of strict ethical rules. It refers to a prohibition against criticism of government rules and regulations. It refers to a system by which business people attempt to avoid strict Chinese regulations. It refers to a system of smuggling. What do the letters “WPH” mean in reference to the “WPH Framework for Business Ethics” discussed in the text? Who, Purpose, and How When, Plan, and How Why, Procedure, and Hope Where, Plan, and Hope Where, Procedure, and How The WPH framework addresses whom a decision would affect, the purpose of the decision, and the guidelines on how to make ethical decisions. Which of the following is true under the WPH process of ethical decision making? The interest of management is ranked higher than that of employees when decisions are made. The interest of owners is ranked higher than that of both employees and management when decisions are made. When decisions are made, the interest of the community as a whole is considered last. The interest of management is ranked higher than that of employees when decisions are made, but the interest of owners is ranked higher than the interest of any group. None of the above is true. The framework addresses whom a decision would affect, the purpose of the decision, and the guidelines on how to make ethical decisions. There is no reference to ranking stakeholders at a higher level. Which of the following are stakeholders of a business? Shareholders Employees Customers Management All the above The stakeholders of a firm are the many groups of people affected by the firm’s decisions. Positive abstractions that capture our sense of what is good or desirable are called . Ethical ideas Values Conscience demands Desirable principles Action goals Which of the following are values in the WPH process of ethical decision making? Freedom only Security only Efficiency only Freedom and security, but not efficiency Freedom, security, and efficiency 2-6 “Primary Values and Business Ethics” outlines an efficient way to apply this second step in the WPH framework referencing the values of freedom, security, justice, and efficiency. The idea that we should interact with other people in a manner consistent with the manner in which we would like them to interact with us is called the . Equalization Rule Ethical Realization Rule Silver Rule Golden Rule Ten Commandments Rule What is the name of the law signed by President Bush in the wake of several corporate accounting scandals? The Sarbanes-Oxley Act The Public Accounting Act The Certified Public Accounting Act The Whaley-Mallicoat Act The Corporate Scandal Act The Corporate and Criminal Fraud Accountability Act, also known as the Sarbanes-Oxley Act, was signed by President Bush in 2002 in the wake of several corporate accounting scandals. Which of the following does the Public Company Accounting Oversight Board do? Ensure that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit. Require that companies devise a system that allows employees to report suspicions of unethical behavior. Require that the universalization test be used as the primary ethical guideline. Ensure that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior. None of the above – there is no such board. According to the text, which of the following may be a part of the “how” in the WPH process of decision making? Public disclosure Values Profit maximization Whistle-blowing All the above The “public disclosure” test for ethical behavior is sometimes referred to as the test. Television Powell Self-conscious Golden Primary The “public disclosure” test for ethical behavior is sometimes referred to as the television test because it requires us to imagine that our actions are being broadcast on national television. The for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else. Golden rule Universalization test Public disclosure Relevant disclosure World rule The universalization test for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else. Which of the following is true regarding the universalization test for ethical behavior? It is the same as the public disclosure test. It has been discredited. It is the same as the golden rule test. It has been enacted into law by the Sarbanes-Oxley Act. None of the above The ethical theory that requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma is called . Situational ethics Ethical relativism Absolutism Consequentialism Relativity ethics How is absolutism different from ethical relativism and situational ethics? It applies utilitarianism. It holds that a cost-benefit analysis should be applied. It holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma. It applies virtue ethics. It applies corporate ethics principles. Unlike ethical relativism and situational ethics, absolutism holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma. Which of the following is true regarding the relationship between ethical relativism and situational ethics? Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma. Like ethical relativism, situational ethics allows us to judge the actions of others. Both theories hold that once we put ourselves in another person’s shoes, we can evaluate whether that person’s action was ethical. These theories are the same. There is no relationship between ethical relativism and situational ethics. Which of the following describes the theory of ethical relativism? Its only principle is the denial of the existence of objective moral standards. It holds that individuals must evaluate actions on the basis of what they feel is best for themselves based upon objective moral standards. It holds that since morality is relative, we have a basis upon which to criticize the behavior of others as immoral. It denies the existence of objective moral standards, it holds that individuals must evaluate actions on the basis of what they feel is best for them, but it does not hold that morality is relative. It denies the existence of objective moral standards; it holds that individuals must evaluate actions on the basis of what they feel is best for them; it holds that since morality is relative, no one can criticize another’s behavior as immoral. Which of the following requires that we see murder as a moral action as long as the murderer believes that the action is best for him or her? Absolutism Deontology Categorical Imperative Uncertainty of Thought Ethical Relativism Ethical relativism denies the existence of objective moral standards; it holds that individuals must evaluate actions on the basis of what they feel is best for them; it holds that since morality is relative, no one can criticize another’s behavior as immoral Which of the following theory of ethics denies the existence of objective moral standards? Ethical relativism Absolutism Social responsibility Ethical absolutism Absolute theory Which of the following is also referred to as ethical fundamentalism? Ethical relativism Absolutism Social responsibility Ethical absolutism Absolute theory Absolutism, or ethical fundamentalism, requires that individuals defer to a set of rules to guide them in the ethical decision-making process. Which of the following tells business managers to examine all the potential actions in each situation and choose the action that yields the greatest amount of pleasure over pain for all involved? Deontology Rule utilitarianism Act utilitarianism Absolutism Virtue ethics What is the basis of consequentialism? Deontology Categorical imperatives Inquiry into the consequences Disregard of consequences Act utilitarianism Consequentialism is a general approach to ethical dilemmas that requires that we inquire about the consequences to relevant people of our making a particular decision. Kantian ethics is involved with which of the following ethical theories? Deontology Act utilitarianism Rule utilitarianism Absolutism Situational ethics An ethical theory that urges managers to take those actions that provide the greatest pleasure after having subtracted the pain or harm associated with the action in question is called . Deontology Utilitarianism Kantian ethics Absolutism Ethical relativism A business manager who deceives everyone because the manager believes that deception maximizes pleasure over pain in a given situation is acting consistently with which ethical theory? Act deontology Ethical relativism Act utilitarianism Ethical fundamentalism Rule utilitarianism A business manager may consider it wrong to terminate a person whose spouse has terminal cancer because a firm has an absolute obligation to support its employees when they are vulnerable. The business manager is acting consistently with which ethical theory? Deontology Ethical relativism Act utilitarianism Ethical fundamentalism Rule utilitarianism A person who believes that they should not cheat on a drug test because if everyone did so, the drug test would be meaningless is applying a[n] . Ethics of care Virtual analysis Cost-benefit analysis Fundamentalist approach Categorical imperative According to the categorical imperative, an action is moral only if it would be consistent for everyone in society to act in the same way. Which of the following helps explain why the principle of deontology may be difficult to apply? People disagree about what duties we owe to one another. People disagree about whether consequences are positive or negative. People disagree about the ethics of care. People disagree about what duties we owe to one another and also whether consequences are positive or negative. People disagree about what duties we owe to one another, whether consequences are positive or negative, and about the ethics of care. The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called . Absolutism decision Virtual analysis Virtue ethics Fundamentalist approach Categorical imperative Virtue ethics is an ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality. Which of the following consists of acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences? Act utilitarianism Rule utilitarianism Situational ethics Virtue ethics Deontology Deontology consists of acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences. What is a difficulty with the application of virtue ethics? The applicable categorical imperatives. The lack of agreement about the meaning of “the good life.” The applicable principle of rights. The ethics of care analysis. Both the applicable categorical imperatives and the lack of agreement about the meaning of “the good life.” The adherents believe that when one individual, the caregiver, meets the needs of one other person, the cared-for party, the caregiver is helping to meet the needs of all the individuals who fall within the cared-for party’s web of care. Deontology Utilitarianism Absolutism Virtue ethics Ethics of care The holds that the right course of action is the option most consistent with the building and maintaining of human relationships. Ethics of care Principle of virtue ethics Deontology Act utilitarianism Rule utilitarianism CHAPTER 3: Connect Questions Which of the following statements is true of appellate courts? Appellate courts hold trials Appellate courts primarily handle questions of facts Under the federal system, appellate courts are called district courts Appellate courts have the power to review previous judicial decisions Appellate courts have the power to review previous judicial decisions to determine whether trial courts erred in their decisions. Appellate courts do not hold trials. Which of the following is true of a ‘bench trial’? Judges cannot decide questions of law. There is no judge in the trial. There is no jury in the trial. Questions of facts are determined by the jury. In a bench trial(a trial with no jury), the judge decides questions of fact; in a jury trial, the jury decides questions of fact. When does a court acquire ‘in personam jurisdiction’ over a defendant? When the verdict is passed. When it gives him or her a copy of the complaints and summons. When a lawsuit is filed with the court. When the trial begins. A court acquires in personam jurisdiction over a person (the plaintiff) when she files a lawsuit with the court. The court acquires jurisdiction over the person the plaintiff is suing (the defendant) when it gives him a copy of the complaint and a summons. Why have most states enacted a long arm statute? It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state. It enables courts to hear cases that fall within their jurisdiction but are geographically located in a different state. If a defendant has property in a state, it allows a plaintiff to file suit against the owner instead of his or her property. It opens doors to subject-matter jurisdiction that determines which court system can hear a particular case. Which of the following cases would fall under concurrent federal jurisdiction? Federal patent, trademark, and copyright cases Bankruptcy cases Cases involving admiralty law Federal-question cases Concurrent jurisdiction covers two types of cases: federal-question and diversity-of-citizenship cases. Federal-question cases require an interpretation of the United States Constitution, a federal statute, or a federal treaty. Who may file a motion for the change of venue? Prosecutor Defendant Plaintiff Jury If the location of the court where the plaintiff filed the case is an inconvenience to the defendant or if the defendant believes it will be difficult to select an unbiased jury in that venue, he may request that the judge move the case by filing a motion for a change of venue. The judge has the discretion to grant or deny the motion. Where in the federal court system are bankruptcy cases initially heard? Federal trial courts Intermediate appellate courts U.S. Supreme Court Special trial courts A small number of cases, however, do not begin in trial courts of general jurisdiction. For cases concerning certain subject matter, there are special trial courts. They hear bankruptcy cases, claims against the U.S. government, international trade and customs cases, and disputes over certain tax deficiencies. In a case between Mann versus Roberts in the state of Iowa, one party appealed the verdict of the state trial court. In the absence of an intermediate court of appeal, where would the case be heard? State Supreme Court Federal Trials Court State Trial Court Federal Circuit court Appeals from the state intermediate courts of appeal lead cases to the state court of last resort. Most states call this court the Supreme Court, although some states refer to it as the court of appeals. Because approximately half the states lack intermediate courts of appeal, appeals from trial courts in these states go directly to the state court of last resort. Which of the following is a necessary condition for a justifiable controversy? Courts rendering an advisory opinion. Judgment should solve an existing problem. Plaintiff should have a personal stake in the issue. The problem should be immediate. Three criteria are necessary for a case or controversy to exist. First, the relationship between the plaintiff and the defendant must be adverse. Second, actual or threatened actions of at least one of the parties must give rise to an actual legal dispute. Third, courts must have the ability to render a decision that will resolve the dispute. Usually the issue of arises when one party claims that the case is moot. personal stake controversy ripeness standing Usually, the issue of ripeness arises when one party claims that the case is moot—in other words, there is no point in the court’s hearing the case because no judgment can affect the situation between the parties. What is a pretrial motion? An initial attempt to solve the dispute informally by a negotiation or discussion. The first formal stage of a lawsuit. A judgment in favor of the plaintiff if the defendant fails to answer the complaint. A motion filed by either party to conclude the case early, after the pleading. The early pleadings establish the legal and factual issues of the case. After the pleadings, the plaintiff or defendant may file a motion to conclude the case early, eliminate some claims, or gain some advantage. A party may move, or request, that the court do almost anything pertaining to the case. What is meant by peremptory challenges? Written questions that one party sends to the other to answer under oath. A request for the court to consider that all the facts in the pleadings are true and to apply the law to those facts. Claims made by the defendant against the plaintiff that are sent with the answer to the complaint. A party can object to a certain number of potential jurors without citing a reason. In most states, each party has a certain number of peremptory challenges. These peremptory challenges allow a party to challenge a certain number of potential jurors without giving a reason. Peremptory challenges, however, may lead to abuse. What is a directed verdict? A verdict reached through an informal meeting of the judge with the attorneys representing the parties where the parties try to work out a settlement. A verdict for the defendant as the jury would have no legal basis for decision in favor of plaintiff even if it regarded the plaintiff’s claims to be true. A verdict given by recruited individuals who match the demographics of the jury. A verdict given in favor of the plaintiff when the defendant fails to answer the summons. Immediately following the plaintiff’s presentation of her case, the defendant may move for a directed verdict. This motion is a request for the court to direct a verdict for the defendant because even if the jury accepted all the evidence and testimony presented by the plaintiff as true, the jury would still have no legal basis for a decision in favor of the plaintiff. Which of the following motions is filed by the winning party after the trial ends? Motion for a judgment in accordance with the verdict Motion for a judgment notwithstanding the verdict Motion for a judgment as a matter of law Motion for a new trial Once the trial ends, the party who received the favorable verdict files a motion for a judgment in accordance with the verdict. Until the judge enters the judgment, the court has not issued a legally binding decision for the case. A is a written argument explaining why an appeal is being made. verdict motion settlement brief The appellant then files a brief or written argument, with the court. Appellants file briefs to explain why the judgment in the lower court was erroneous and why the appeals court should reverse it. The word “jurisdiction” comes from the Latin terms “juris,” meaning “law,” and “diction,” meaning “to speak.” True False In rem jurisdiction references jurisdiction over a person. True False Courts may have in rem jurisdiction (Latin for “jurisdiction over the thing”) even over property. Under federal statutory law, Internet transactions cannot be the basis for a finding of in personam jurisdiction. True False A federal district court established a “sliding-scale” standard in the 1997 case Zippo Mfg. Co. v. Zippo Dot Com, Inc. for determining whether a business that has Internet contact with a plaintiff in a different state satisfies the minimum-contacts standard. Subject-matter jurisdiction is a court’s power to hear certain kinds of cases. True False State courts have the power to hear all cases not within the exclusive jurisdiction of the federal court system. True False Concurrent federal jurisdiction means that both state and federal courts have jurisdiction over a case. True False Once a case is in the proper court system, venue determines which trial court in the system will hear the case. True False In some cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction. True False A person who has the legal right to bring an action in court has standing. True False Intermediate courts of appeal exist in all states. True False True Intermediate courts of appeal, analogous to federal circuit courts of appeal, exist in approximately half the states. Under our system of justice, courts may issue advisory opinions. False The case or controversy (or justiciable controversy) requirement ensures that courts do not render advisory opinions. The defendant responds to a complaint with an answer. True False Because of its complicated nature, any complaint should be at least three pages long. True False A defendant who believes that he or she has a claim against the plaintiff would include a counterclaim with the answer. True False A reply is an answer to a counterclaim. True False A party only has a limited number of challenges for cause in jury selection. True False Peremptory challenges in jury selection may not be racially based. True False In most civil cases, a plaintiff must prove her case beyond a reasonable doubt. True False In most civil cases, a plaintiff must prove her case by a preponderance of the evidence. Only one party may appeal from a final judgment. True False Either party may appeal the judge’s decision on posttrial motions or on her or his final judgment. If an appellate judge agrees with the majority’s decision, but for different reasons, the judge may write a “concurring” opinion. True False On average, the U.S. Supreme Court hears 300 cases a year. True False The Supreme Court hears, on average, only 80 to 90 cases each year. Which of the following do appellate courts primarily handle? Questions of law Questions of fact Questions of law and fact Cases when they initially enter the legal system Questions of law and fact, and also cases when they initially enter the legal system Appellate courts primarily handle questions of law, not questions of fact. Which of the following is a question of fact? Whether a vehicle ran a traffic light Whether premeditation is necessary for a first degree murder conviction Whether speech is protected by the First Amendment What is necessary for service of process Whether a vehicle ran a traffic light and also what is necessary for service of process A question of fact is a question about an event or characteristic in a case. Laws which enable the court to serve a defendant outside the state as long as the defendant has sufficient minimum contacts within the state and it seems fair to assert jurisdiction is called . Minimum contact statutes Significant contact statutes Long-arm statutes In rem statutes Quasi in rem statutes Which of the following is the same as attachment jurisdiction? In rem jurisdiction Personal jurisdiction Subject matter jurisdiction Equitable jurisdiction Quasi in rem jurisdiction Courts can gain quasi in rem jurisdiction, or attachment jurisdiction, over a defendant’s property unrelated to the plaintiff’s claim. Adult siblings, John, Sam, and Andy, are in disagreement over how to split the proceeds of a piece of land left to them by a rich uncle who recently died. The uncle was a resident of Georgia, and the land is in Georgia; but neither John, Sam, nor Andy live there. Which of the following is true regarding jurisdiction over the dispute? A court in Georgia would not have jurisdiction. The case would have to be brought in a state in which at least one of the brothers lives. A court in Georgia would have in rem jurisdiction over the dispute. A court in Georgia would have in personam jurisdiction over the dispute. A court in Georgia would have jurisdiction over the dispute only if all brothers signed a consent form agreeing to bring the case in Georgia. A court in Georgia would have original jurisdiction, but appellate jurisdiction would be in a state in which at least one of the brothers lives. Courts have in rem jurisdiction (Latin for “jurisdiction over the thing”) over property. Susan ran a traffic light and did significant damage to Paul’s car. Susan has no insurance and no assets except for a farm. Which of the following is true? A court can try the case and following judgment for Paul, exercise quasi in rem jurisdiction over the farm and authorize its sale. Any excess over Paul’s amount of damages would go to Susan to compensate her for the trouble she had trying the case. A court can try the case and following judgment for Paul, exercise quasi in rem jurisdiction over the farm and authorize its sale. Any excess over Paul’s amount of damages would go to Paul. A court can try the case and following judgment for Paul, exercise quasi in rem jurisdiction over the farm and authorize its sale. Any excess over Paul’s amount of damages would go to the court system for its trouble. A court can try the case and following judgment for Paul, exercise quasi in rem jurisdiction over the farm and authorize its sale. Any excess over Paul’s amount of damages would be split between Susan and Paul. Assuming that Paul obtains a judgment in his favor, he has no rights to proceeds from the farm because it is real property, not subject to seizure. Courts can gain quasi in rem jurisdiction, or attachment jurisdiction, over a defendant’s property unrelated to the plaintiff’s claim. Any excess proceeds are returned to the owner. Will a plaintiff be allowed to assert jurisdiction over a defendant in the plaintiff’s state for a cause of action arising out of the defendant’s website? It depends on the nature and quality of commercial activity that an entity conducts over the Interne