Law: #22 Flashcards
How is business ethics defined?
This is defined as right or wrong behavior in business.
This also refers to the moral rules and regulations that govern the business world.
A system of principles governing morality and acceptable conduct.
How is attitude related to ethics as taught in the lesson.
This relates to doing what is right for the purpose of doing what is right, not just to avoid something because it is wrong and you can get caught.
In relation to ethics, what is an attitude of neglect?
This is when a person neglects to do what is right. This is seen as a violation of business ethics.
ex. Exxon allowing a captain with alcohol problems (that they were aware of) to captain a ship that wrecked and spilled oil
Understanding that the conduct in both Exxon and Time Warner was unethical, explain how the conduct of the defendants was different.
The difference is that Exxon involves reckless risk-taking for the purpose of profit. On the other hand, Time Warner was an overt, calculating plan to cheat business associates (to whom they owed a fiduciary duty).]
In the story of John, the business lawyer, elected to take a third of the money as an attorney’s fee. Would that choice be ethical?
The choice to take a third amount of the money as an attorney’s fee would have been ethical for two reasons. First, John had done the work; he had earned the fee. Second, the client had agreed to a third of the money. The point of the story is that John was willing to take the lesser amount simply to encourage the view that he was an honest man.]
Two questions: (1) Why do you think that the Exxon company left Hazelwood in command; why take that risk, and (2) why do you think the judge referred to the behavior of Exxon in leaving Hazelwood in command as “intentionally malicious,” and “highly reprehensible”?
We can guess that Exxon left Hazelwood in command of the Exxon Valdez because it was convenient, because it was the course of least resistance. Was that so because they didn’t want to confront his alcoholism head on or was there another reason? (2) We can be confident that Exxon didn’t want to discharge oil into Prince William Sound because it cost them billions of dollars. It seems that the judge viewed Exxon’s conduct as malicious and reprehensible because (in general) they didn’t care who they hurt as long as they made money.]
In the story of Murphy, the lawyer who helped the old lady, would Murphy have been unethical if he had received and spent the money from the will of the old lady?
Yes, he would have been unethical.
No, he would not have been unethical.
b
No, he would not have been unethical because (1) he did not suggest that the old lady give him any money, and (2) other lawyers advised the old lady and wrote her will.
In Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC, the court concluded that Time Warner Entertainment (TWE) was unethical in relation to the business activities of Six Flags Over Georgia (Flags). Understanding that TWE was neither a general partner nor a limited partner of Flags, how can TWE be unethical in relation to the business activities of Flags?
TWE was neither a general nor a limited partner of Flags; therefore, TWE was not unethical.
TWE controlled Six Flags Over Georgia, Inc. (SFOG) and SFOG managed (as general partner of Flags) the business of Flags. Thus, TWE controlled Flags indirectly.
TWE controlled Six Flags Fund, Limited (Fund) and Fund managed (as general partner of Flags) the business of Flags. Thus, TWE controlled flags indirectly.
b
TWE controlled SFOG and SFOG was the general partner of Flags. Using this connection, TWE was able to take unethical advantage of the business activities of Flags.
A business employee drives a company car and reaches for a piece of paper on the car seat and runs into the end of another car. Which of the following is true?
This business employee has been unethical.
This business employee has not been unethical.
b
Ethics deals knowing violation of rules of right and wrong. This behavior (being inattentive) does not (alone) involve a knowing or intentional violation of rules of right or wrong or a pattern of misbehavior.
In In re the Exxon Valdez, why was the Exxon company viewed as being unethical?
The captain was an alcoholic.
The captain was an alcoholic, and the company knew that the captain was an alcoholic.
The captain was an alcoholic, and the company knew that the captain was an alcoholic who had
returned to his drinking.
c
It is not unethical to hire an alcoholic, but it is unethical to hire an alcoholic who is known to have returned to his drinking habits, thus endangering others.
Can a nonreligious person be ethical?
Yes
No
a
Yes, a nonreligious person can be ethical. The concepts of right and wrong are not exclusively controlled by religions.
