Managing Ethical and Legal Issues
Question Bank
Course Introduction
This course explores the fundamental ethical and legal principles relevant to management decision-making within organizations. Students will examine key frameworks for ethical reasoning and analyze real-world case studies to understand the complexities that arise when balancing business objectives with legal compliance and ethical responsibilities. Topics include corporate governance, social responsibility, employment law, privacy, intellectual property, and regulatory compliance. Through interactive discussions and applied projects, students will develop the skills to identify, assess, and respond to ethical and legal challenges in a professional setting, equipping them to be responsible leaders in the modern business landscape.
Recommended Textbook
Moral Issues in Business 13th Edition by William
H. Shaw
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11 Chapters
701 Verified Questions
701 Flashcards
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Chapter 1: The Nature of Morality
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Sample Questions
Q1) Which statement is true concerning moral principles and self interests?
A) Statutes are laws applied in the English-speaking world before there were any common laws.
B) Philosophers agree that morality is based on the commands of God.
C) "Groupthink" is a positive and necessary characteristic of all groups.
D) Morality serves to restrain our purely self-interested desires so that we can all live together.
Answer: D
Q2) Which of the following characteristics distinguishes moral standards from other sorts of standards?
A) moral standards are purely optional
B) moral standards take priority over other standards, including self-interest
C) moral standards cannot be justified by reasons
D) moral standards must be set or validated by some authoritative body.
Answer: B
Q3) Moral standards concern behavior that can be of serious consequence to human welfare.
A)True
B)False
Answer: True
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Chapter 2: Normative Theories of Ethics
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Sample Questions
Q1) According to W. D. Ross's theory
A) a prima facie obligation is absolute and can never be overridden.
B) what we should do in any specific set of circumstances will always be self-evident.
C) it would be wrong to lie to a murderer even to save the life of a friend.
D) we have various moral duties that can't be reduced to a single, overarching obligation.
Answer: D
Q2) In ethics normative theories propose some principle or principles for distinguishing right actions from wrong actions.
A)True
B)False
Answer: True
Q3) "If you want to go to law school, then you must take the LSAT exam." This statement is an example of
A) the transcendental imperative.
B) the categorical imperative.
C) a hypothetical imperative.
D) irrational behavior.
Answer: C
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Page 4
Chapter 3: Justice and Economic Distribution
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Sample Questions
Q1) Eminent domain is the ancient right of government to take what from an individual?
A) food
B) clothing
C) liberties
D) property
Answer: D
Q2) The view of ignorance demands people in the original position to be
A) difficult to come to agreement.
B) impartial.
C) biased.
D) forgiving.
Answer: B
Q3) According to John Rawls,
A) people in the original position choose the principles on the basis of self-interest.
B) in the original position, people must have full and complete knowledge.
C) justice forbids any social or economic inequalities.
D) liberty is of little or no importance compared to equality.
Answer: A
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Chapter 4: The Nature of Capitalism
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Sample Questions
Q1) Which statement creates the best picture of capitalism?
A) Industrial capitalism is characterized by pools, trusts, holding companies and an interpenetration of banking, insurance and industrial interests.
B) Mercantile capitalism emerged in the United States in the period directly following the civil war.
C) In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom-and-bust pattern of the business cycle.
D) Financial capitalism developed in the period immediately prior to the Renaissance.
Q2) Explain the correlation between job security and work ethic now and in the past.
Q3) The sense of private property that is central to capitalism is the ownership of the means of production and distribution.
A)True
B)False
Q4) What reason is there for thinking that American manufacturing is declining?
Q5) Utilitarians reject the very idea of a natural right to property.
A)True
B)False
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Page 6
Chapter 5: Corporations
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Sample Questions
Q1) The case of First National Bank of Boston v. Bellotti sharpened the legal distinction between corporations and individuals.
A)True
B)False
Q2) It is not logical for corporations to acknowledge that business should be conducted morally.
A)True
B)False
Q3) What is a corporation (or limited-liability company) and how does it differ from partnerships and other forms of business association? What are the different kinds of corporations?
Q4) A common point of contention about corporations is A) corporate punishment is no different from individual punishment.
B) modern corporations no longer utilize a CID structure.
C) philosophers and business theorists disagree whether corporations are moral agents. D) if corporations are moral agents, then this relieves individual human beings of any moral responsibility.
Q5) Briefly explain Milton Friedman's view of social responsibility.
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Chapter 6: Consumers
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Sample Questions
Q1) If we accept the principle of "caveat emptor" - "let the buyer beware," why then is there concern about the ethics of advertising. If the consumer is responsible to make the decision, is there anything to justify restricting the advertiser? Explain your view.
Q2) One decisive case in the legal transition away from the reasonable-person standard in matters of advertising, sales and marketing was FTC v. Standard Education.
A)True
B)False
Q3) People generally speak of two kinds of warranties. What are these two kinds of warranties?
A) express and implied
B) positive and negative
C) limited and unlimited
D) legal and moral
Q4) A psychological appeal is one that aims to persuade by appealing primarily to reason and not to human emotional needs.
A)True
B)False
Q5) Give an example of labeling or packaging that is deceptive or misleading.
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Chapter 7: The Environment
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Sample Questions
Q1) An ordinary example of an ecosystem is a pond.
A)True
B)False
Q2) According to Joel Feinberg, future generations of people have a right to be born.
A)True
B)False
Q3) One truth about factory farms is
A) they rarely inflict any genuine suffering on animals.
B) they are larger than ever.
C) they are necessary to feed the world.
D) they are run by brutal people.
Q4) Three approaches have gained the most attention when it comes to achieving our environmental goals: the use of regulations, incentives, and pricing mechanisms.
A)True
B)False
Q5) Would you propose an incentive based program to challenge companies to reduce their environmental liability? Explain in your own words an example of how this can be done.
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Page 9
Chapter 8: The Workplace Basic Issues
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Sample Questions
Q1) When most people fire another employee, they do it with great joy.
A)True
B)False
Q2) One of the seven factors given to help minimize the chances of setting unfair wages and salaries is that
A) If wages conform with the law, they are fair wages.
B) A fair wage is whatever an employee is willing to accept.
C) An employer's financial capabilities affect what constitutes a fair wage scale for that employer's employees.
D) Avoiding the prevailing wage in the industry and community wage level.
Q3) In the interview process, the interview should avoid rudeness, coarseness, condescension, and
A) giddiness.
B) hostility.
C) sternness.
D) questions.
Q4) What is the importance of the Wagner Act of 1935?
Q5) How did the passage of the National Labor Relations Act in 1935 advance the cause of unionism?
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Chapter 9: The Workplace Todays Challenges
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Q1) The breaking up of jobs into smaller and smaller units, with each worker performing fewer tasks but repeating them thousands of times a day, has contributed to health problems in manufacturing.
A)True
B)False
Q2) The one key questionable premise underlying personality tests is
A) they sometimes screen out potentially creative or individualistic employees.
B) they presuppose that all employees can be validly placed in a small number of categories.
C) they can help determine job applicants' areas of adequacy and inadequacy.
D) that all individuals can usefully and validly be categorized on the basis of a relatively small number of personality characteristics.
Q3) The most common reason that people leave their jobs is
A) low wages.
B) too much overtime.
C) a poor relationship with their immediate supervisor.
D) lousy benefits.
Q4) Informed consent requires that two criteria be met. What are these criteria? Briefly describe each of the criteria.
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Chapter 10: Moral Choices Facing Employees
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Sample Questions
Q1) What are the main features of the 1977 Foreign Corrupt Practices Act (FCPA)?
Q2) Are whistle-blowers a friend or foe to an organization?
Q3) When an employee's interests are likely to interfere with the employee's ability to exercise proper judgment on behalf of the organization, what exists?
A) a golden opportunity
B) a conflict of interest
C) a balance of power
D) a disaster
Q4) Provide examples of abuses that can occur when a person is in a position of power.
Q5) A whistle-blower
A) doesn't have to be a past or present member of the organization.
B) doesn't have to report activity that is illegal, immoral, or harmful.
C) is any employer who spreads gossip for personal gain.
D) far from being disloyal, may be acting in the best interest of the organization.
Q6) According to Norman Bowie, whistle-blowing is morally justified only if five criteria are met. What are these five criteria?
Q7) What is insider trading?
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Chapter 11: Job Discrimination
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Sample Questions
Q1) Today most large corporations not only accept the necessity of affirmative action but also find that _____ benefits when they make themselves more diverse?
A) the morale of the company
B) the bottom line
C) the law department
D) the managers
Q2) A survey shows that three out of four Hispanics believe that African Americans and whites?are more likely than Hispanics to prefer living on welfare.
A)True
B)False
Q3) Job discrimination occurs under three conditions. What are they?
Q4) What is the Supreme Court's current view of affirmative action (as evidenced by the Michigan cases Gratz and Grutter)?
Q5) The issue of comparable worth pits against each other two cherished American values: the ethic of nondiscrimination verses the free enterprise system.
A)True
B)False
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Page 13