Answer Sheet 2

Question 1

The law teaches us how to behave properly and inform us of the rules we all must follow.

Answer 1

TRUE

Question 2

Law affects all people, from CEO’s to children.

Answer 2

TRUE

Question 3

Helping a hurt person is required by moral standards, but is not mandated by the law.

Answer 3

TRUE

Question 4

There is strong evidence that ethical behavior increases profits or unethical behavior decreases profits.

Answer 4

FALSE

Question 5

Unethical behavior can be costly, if there is public outrage leading to a boycott.

Answer 5

FALSE

Question 6

Utilitarian ethics holds that decisions should be made tend to maximize overall happiness and minimize overall pain.

Answer 6

TRUE

Question 7

Deontologists would agree that the increasing medical concern over obesity in the United States does not need rules or regulations to address the issue.

Answer 7

FALSE

Question 8

The characteristics of the law is that law is:?
(a) powerful.
(b) important
(c) fascinating
(d) All of the above

Answer 8

(d) All of the above

Question 9

The sources of contemporary law is the:
(a) US Constitution
(b) State Constitution.
(c) Statute, common law, administrative, treaties and executive order.
(d) All the above.

Answer 9

(d) All the above.

Question 10

The reason why one bothers with ethics is because:
(a) society as a whole benefits by encouraging economic competition.
(b) people feel better when they behave ethically.
(c) unethical behavior can be costly, if there is public outrage leading to a boycott.
(d) All the above.

Answer 10

(d) All the above.

Question 11

Which of the following is NOT a stakeholder?
(a). a business competitor.
(b) shareholders.
(c) employees.
(d) the communities

Answer 11

(a). a business competitor.

Question 12

The issue in Kuehn v Pub Zone was
(a) Legal Positivism. Can a bar serve drunk patrons?
(b) Did the bar have a duty to protect its patrons?
(c) Is a bar allowed to exclude motorcycle riders from the premises?
(d) Can the government prosecute patrons who get into fights on private property?

Answer 12

(b) Did the bar have a duty to protect its patrons?

Question 13

What is the purpose of a corporation per Milton Friedman?
(a) Make the shareholders money.
(b) Comply with the law
(c ) Both answers are true
(d) Neither answer is true

Answer 13

(c ) Both answers are true

Question 14

Of the Philosophies of Ethics which one did Aaron Feuerstein, owner of Malden Mills Factory, exhibit when kept the workers on the payroll while he rebuilt the factory :
(a) Relativism
(b) Consequentialist
(c) Utilitarianism
(d) Deontological

Answer 14

(c) Utilitarianism

Question 15

Of the Philosophies of Ethics which one did John Stumpf CEO of Wells Fargo exhibit when for unethical sales practices in the bank’s retail division:
(a) Relativism
(b) Consequentialist
(c) Utilitarianism
(d) Deontological

Answer 15

(b) Consequentialist

Question 16

What is Business Law?

Answer 16

Encompasses all of the laws that dictate how to form and run a business.

Question 17

Of the ten law subjects that are included in business law, identify three (3) law subjects.

Answer 17

Anyone of these: Torts, Contracts, Criminal law, Bankruptcy law, Employment law, Labor law,
Consumer law, Environmental Law, Cyberlaw, Real Property law

Question 18

In comparing the classifications of criminal law and civil law name one difference for each one?

Answer 18

ANY ONE OF THESE
Criminal Law:
(1) Dangerous behavior outlawed by society,
(2) Government prosecutes accused
(3) Guilt is determined or
(4) Punishment or fine is imposed

Civil Law:
(1) Regulates rights and duties of parties,
(2) Victim, not government brings a suit,
(3) Guilt not determined or
(4) Compensation is ordered

Question 19

What is the shareholder model and who does it include?

Answer 19

Friedman argues that the primary responsibility of corporations is to:
(1) comply with the law
and
(2) make as much money for shareholders.

Question 20

Of the seven steps to decision making name three steps?

Answer 20

Any three of these:
Step 1: Identify the decision. You realize that you need to make a decision.
Step 2: Gather relevant information.
Step 3: Identify the alternatives.
Step 4: Weigh the evidence/consider moral/ethical issues.
Step 5: Choose among alternatives.
Step 6: Take action.
Step 7: Review your decision & its consequences