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BLAW Chapter 2 Homeworks

Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering
a. the cost of losing employees and the benefit of the profit he could earn.
b. how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand.
c. whether the expansion violates his employees’ principles.
d. how society would be affected if everyone expanded their businesses against the advice of their employees.
b. how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand.
Bernard is the owner and manager of a small auto-parts store. He thinks that talking about business ethics with employees takes time that would be better spent paying attention to customers. He also does not believe that he has a right to tell other people how they should behave. Is Bernard likely to create an ethical workplace with this way of thinking? Why or why not?
a. Bernard’s attitude will have no particular effect on workplace ethics, because management has no ability to affect employee behavior.
b. Bernard’s attitude will have no particular effect on workplace ethics, because ethics is strictly a private matter best left to individual employees.
c. Bernard is unlikely to create an ethical workplace and so is likely to get into legal trouble, because business laws require him to compel his employees to follow an ethical code.
d. Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics.
d. Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics.
Robert was employed as a sales representative by the United States Steel Corporation. It had a “whistleblowing” policy and procedure by which employees could make complaints about company policies and products. Robert, who was not a safety expert, believed that one of the company’s products had not been adequately tested and posed a serious danger. In accordance with company policy, Robert notified his supervisor of his concerns. The product was successfully tested and marketed and caused no harm. Robert had
a. fulfilled his ethical obligations under a cost-benefit analysis.
b. fulfilled his ethical obligations as a salesperson because he followed company policy concerning unsafe products.
c. failed to fulfill his ethical obligations because he followed company policy concerning unsafe products rather than following his own principles.
d. failed to fulfill his ethical obligations because he did not stop the manufacturing of the product.
b. fulfilled his ethical obligations as a salesperson because he followed company policy concerning unsafe products.
The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider
a. how all other employees in the company would feel about Andy’s firing.
b. Andy’s fundamental rights.
c. the costs and benefits of retaining a nonproductive employee.
d. how Andy and his family might suffer if Andy were to lose his job.
c. the costs and benefits of retaining a nonproductive employee.
Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations?
a. No, because ethics is too hard to define.
b. Yes, because legal standards are stricter than ethical standards.
c. Yes, because ethical obligations require only legal behavior.
d. No, because legal compliance is regarded as the moral minimum.
d. No, because legal compliance is regarded as the moral minimum.
Sanderson worked in a travel service office and had access to the reservation systems of several airlines. Sanderson accessed the system and replaced the names of passengers with fictitious names. She also enrolled the fake names in the airlines’ frequent-flyer programs. Her husband set up mailboxes under those names for the delivery of free airline tickets “earned” under the frequent-flyer programs. Real passengers were not harmed by and did not complain of the deception. The Sandersons’ behavior was
a. unethical and illegal, because their actions constituted theft from the airlines.
b. ethical, because the other passengers did not suffer monetary damages.
c. unethical but legal.
d. ethical, because no passengers complained.
a. unethical and illegal, because their actions constituted theft from the airlines.
Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant’s categorical imperative at work. This means that the employees should
a. consider or weigh all of the costs and all of the benefits of their actions before making decisions.
b. consider their actions in light of the consequences if everyone in society acted the same way.
c. follow all city ordinances and state and federal law, and no more.
d. follow the Golden Rule.
b. consider their actions in light of the consequences if everyone in society acted the same way.
Under state law, a manufacturer must design a dangerous product so as to avoid harm to people who are using the product as intended or in an unintended but foreseeable way. Bennett, a six-year-old, placed a Bic cigarette lighter under his shirt and lit the lighter. His shirt caught on fire, causing him severe burns. His mother sued Bic, contending it was liable because the lighter was a dangerous product and Bennett’s use of the lighter was unintended but foreseeable. The court is most likely to find that Bic was
a. liable, because all lighters are dangerous.
b. not liable, because children should never have access to lighters.
c. liable, because it was foreseeable that a child would have access to and try to use a lighter.
d. not liable, because lighters cannot be designed so that children cannot use them.
c. liable, because it was foreseeable that a child would have access to and try to use a lighter.
Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted’s best defense is that
a. the law is unfair.
b. he acted in good faith.
c. his attorney was incompetent.
d. his firm made a profit on the product.
b. he acted in good faith.
Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is
a. prohibited by U.S. law if the contract price exceeds $20,000.
b. permitted by U.S. law if the payment is made to government officials for the purpose of securing advantageous contracts.
c. prohibited by U.S. law under all circumstances.
d. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures
d. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures
Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of
a. Acme’s competitors.
b. the city council.
c. Acme’s shareholders.
d. the state courts.
c. Acme’s shareholders.
Ethics is the study of what is _____ or _____.
Right; wrong
Business ethics applies to ____, _______, and _________ making decisions in a business context.
Businesspersons; businesses; managers
when making decisions, the first thing a business should evaluate is the _______ implications of each decision.
Legal
Merely complying with the law is referred to as the
Moral minimum
Which of the following are important to ensure that a decision like Trevor’s does not occur again
Ethical leadership, code of ethics, enforcement of code of ethics

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