Legal and Ethical Issues in Business Study Guide Questions
Course Introduction
This course examines the foundational legal and ethical principles shaping the modern business environment. It covers key legal concepts including contracts, agency, employment law, intellectual property, and regulatory compliance, as well as the ethical dilemmas that arise in corporate decision-making. Students will analyze real-life case studies to understand the impact of laws and ethical standards on business operations, develop critical thinking skills to navigate complex legal situations, and explore frameworks for responsible and sustainable business practice. Emphasis is placed on understanding how legal and ethical considerations intersect and influence management strategies and organizational behavior.
Recommended Textbook Law and Ethics in the Business Environment 7th Edition by Terry Halbert
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9 Chapters
146 Verified Questions
146 Flashcards
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Chapter 1: Law, Ethics, Business: An Introduction
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Sample Questions
Q1) Explain why laws exist that do not impose a duty to rescue.
Answer: Traditionally,our society has tended to grant maximum leeway to individual freedom of choice.Requiring that people help one another in emergencies would infringe on that freedom by forcing people to act when they might choose not to.Further,imposing a duty to rescue presupposes that there is agreement that rendering assistance is always the right thing to do,which in some cases,it is not.
Q2) 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.
Answer: B
Q3) Laws must be static and unyielding in order to provide stability for a society.
A)True
B)False
Answer: False
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Chapter 2: The Duty of Loyalty: Whistleblowing
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Sample Questions
Q1) How was Sherron Watkinis of Enron a typical whistleblower? An atypical whistleblower?
Answer: Ms.Watkins is typical of whistleblowers because she had knowledge of damaging information,and she disclosed it to her supervisor's superior.However,she was an atypical whistleblower because as an accountant,she had sufficient expertise to know that her corporation was possibly breaking the law and defrauding the public.Second,her disclosure to the president of the company did not lead to the type of investigation that was necessary to stop any wrongdoing.Her actions did not cause the immediate collapse of Enron.Third,even though she blew the whistle on her boss,she did not immediately get fired;in fact,she received praise for the action.
Q2) 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.
Answer: D
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Chapter 3: Privacy and Technology
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Sample Questions
Q1) The Electronic Communications Privacy Act of 1986? (ECPA):
A)supplements the Omnibus Federal Employee Workplace Privacy Rights Law of 2008.
B)has been an effective law because employee privacy intrusions are less common and steadily declining since 2000.
C)restricts employer access to public chatroom interactions.
D)fails to protect employees in most situations involving e-mail monitoring by public and private employers.
Answer: D
Q2) List several types of company surveillance people are subjected to now. Answer: (1)Videotaping; (2)monitoring IM chat, (3)GPS satellite and tracking of cars and cell phones,and (4)audiotaping personally.
Q3) Why is corporate testing of employees on the rise?
Answer: Employee theft costs have gone up dramatically.Also companies claim an interest in the ability to identify people they see so little.
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Chapter 4: Valuing Diversity: Stereotyping VInclusion
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Sample Questions
Q1) 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.
Q2) Title VII specifically addresses the issues of affirmative action,sexual harassment,and same-sex marriage.
A)True
B)False
Q3) List six of the seven laws or court decisions leading to our current views on sexual harassment.
Q4) What must a plaintiff show to make a prima facie case of hostile environment sexual harassment?
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Chapter 5: Workers Rights as Human Rights: Health and Safety in
the Workplace
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Sample Questions
Q1) The purpose of OSHA and the MSHA is to eliminate injury in the workplace.
A)True
B)False
Q2) 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.
Q3) Explain how worker's compensation in the U.S.works.
Q4) 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.
Q5) Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.
A)rarely
B)marginally
C)mostly
D)always
Q6) According to Michael Silverstein,what are four types of risks workers find on the job today?
Page 7
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Chapter 6: Global Climate Change: Responsibility and Survival
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Sample Questions
Q1) 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
Q2) Many religious sects have an environmental ethic and could unite to influence political change.
A)True
B)False
Q3) Today,shareholder activism within corporations continues to grow.
A)True
B)False
Q4) Discuss how global warming unites national security issues and religion.
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Chapter 7: Marketing and Technology: Choice and Manipulation
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Sample Questions
Q1) 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.
Q2) 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.
Q3) 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.
Q4) Obesity in children has continued to rise since 1976 and approximately ¾ of all teens and youth are overweight.
A)True
B)False
Q5) What forms can deceptive advertising claims take?
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Chapter 8: Allocating Risk and Responsibilities: Products Liability
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Sample Questions
Q1) What are punitive damages?
Q2) Explain how injured parties can recover damages under the UCC.
Q3) Discuss litigation against major corporations - tactics used to aid plaintiffs and to aid defendants.
Q4) According to the plaintiff's attorney,to minimize liability,corporations often
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 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
Q5) Explain the features of Section 402A of the Restatement of Torts (Second).
Q6) Discuss Sugarman's "Performance-based regulation." Is this a viable means to create safer products or is it unnecessary government interference?
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Chapter 9: Ownership, Creativity and Innovation: Intellectual Property
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Sample Questions
Q1) Give a brief description of the evolution of U.S.Copyright laws using approximate dates.
Q2) Discuss how intellectual property is different from other kinds of property.
Q3) What must a plaintiff prove to establish copyright infringement?
Q4) 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.
A)collective rights
B)misappropriation
C)unlimited use
D)fair use
Q5) Why was the Digital Millennium Copyright Act passed?
Q6) Using patents to claim rights to plant-derived substances is a huge business.Discuss the legal position that discoverers are allowed to patent (and own exclusive rights to manufacture)isolated plant materials if altered in some format in order to produce medicines.
Q7) Discuss the Fair Use Doctrine - what are the four factors used to determine if a use is fair?
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