1. Jay and Kim enter into a contract for Jay's sale to Kim of ten computers for $500 each. After Kim takes possession, but before she makes payment, this contract is enforceable
A-only if it is in writing.
B-only if it is oral.
C-whether it is oral or in writing.
D-under no circumstances.
2. Security Guns & Ammo, Inc. tells its salespersons not to load a gun during a sale. Bert, a salesperson, loads a gun during a sale. The gun fires, negligently injuring Kathy, who is in the store. Security is
A-not liable, because Bert was not acting within the scope of employment.
B-not liable, because employers are not responsible for their employees' torts.
C-liable under the doctrine of respondeat superior.
D-liable under the doctrine of res ipsa loquitur.
3. National Coal Association (NCA) is a group of independent coal mining companies. Demand for coal falls. The price drops. Coal Refiners Association, a group of independent coal refining companies, agrees to buy NCA's coal and they all agree to sell it according to a schedule that will increase the price. This agreement is
A-a per se violation of the Sherman Act.
B-exempt from the antitrust laws.
C-subject to continuing review by the appropriate federal agency.
D-subject to the rule of reason.
4. Mike promises to pay Nora to work for him. Nora agrees and quits her job, but Mike does not hire her. Mike may be liable to Nora based on
A-the concept of accord and satisfaction.
B-the doctrine of promissory estoppel.
C-the preexisting duty rule.
D-the principle of rescission.
5. Adam invests in a franchise with Best Gas Stations, Inc. Best requires Adam to exclusively buy Best products for every phase of the operation. Adam's best argument to challenge this requirement is that it violates
A-an implied covenant of good faith and fair dealing.
B-antitrust laws.
C-the Federal Trade Commission's Franchise Disclosure Rule.
D-the U.S. Franchise Agency's Purchase and Sale Regulations.
6. At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market - Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be:
A-The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market.
B-The company would not be deemed guilty of monopolization of commerce.
C-The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer).
D-The company committed a horizontal restraint of trade by "freezing out" its main competitors.
7. Zinnie from Jersey City, New Jersey, and Sally from Sunny Isles, Florida, are disputing the title to and thus ownership of a small piece of undeveloped real property in western North Carolina. At most, the property is worth only a few thousand dollars; nonetheless, Vinnie intends to proceed to court to resolve the matter. Which court system will hear the case?
a. New Jersey state court system, since Vinnie is the plaintiff and the one bringing the lawsuit and he is a New Jersey resident.
b. Florida state court system, since Sally is the defendant and she is a resident of Florida.
c. The federal district court system, since Vinnie and Sally are residents of different states.
d. North Carolina state court system, since the property is located in that state and the lawsuit involves title to real property.
8. Jill sells her business to Kyle and, as part of the agreement, promises not to engage in a business of the same kind within three miles for one year. This promise is generally
A-an unreasonable restraint of trade.
B- unreasonable in terms of geographic area and time.
C- unreasonable in terms of Kyle's "goodwill" and "reputation."
D- valid and enforceable.
9. In making business decisions, Owen, a certified financial planner with Private Investment Corporation, attempts to apply his belief that human beings have fundamental moral rights and duties. This belief is best manifested by
A - Legal standards only
B - Kantian ethics
C - What a society believes is and is not a moral right and duty
D - What the local community believes is socially responsible behavior for an investment firm.
10. Which of the following is NOT an accurate statement about the Utilitarian ethical theory?
A-It determines the moral worth of an action based on what a society believes is morally right
B-It may allow the personal interests of individuals to be sacrificed in that the collective good be attained
C-It is usually regarded as a consequentialist ethical theory
D-It determines the moral worth of an action by whether the action achieves the greatest overall balance of satisfaction over dissatisfaction.
11. A satisfactory approach to moral business decision-making would encompass:
A- Doing well for the company as per Ethical Egoism.
B - Acting morally for the "greater good" as per Utilitarianism.
C - Achieving this "greater good" without demeaning or disrespecting anyone as per Kantian ethics.
D - All of the above.
12. Which of the following statements is most accurate?
A-Morals are legal minimums.
B-Morals are legal maximums.
C-Laws are moral minimums.
D-Laws are moral maximums.
13. Which of the following are reasons for changing moral standards in the workplace over the past several decades?
A-The communications "revolution"
B-Growing environmental problems and an awareness thereof
C-A proliferation of women and minorities in the workplace
D-All of the above.
14. Big Sneaker Multinational Company has an Asian manufacturing facility which would be regarded as a "sweat-shop," where young, teen-age girls are exploited, working for poor wages and with minimal safety precautions, as well as some of the girls being sexually harassed by managers in the making of sneakers. The company, however, is acting legally in Asia and, moreover, produces a lot of money for the Asian and U.S. economies, the company's shareholders and distributors and retailers; and furthermore the U.S. consumer gets a very good product at a reasonable price. The Asian girls have some type of a job, at least. Under these circumstances, Kant based on his Categorical Imperative would say:
a. If those type of working conditions are considered to be normal and the customary practice in Asian societies then the facility is a moral one.
b. If the facility produces the greater good for U.S. and the Asian society then it is a moral one despite some suffering by the employees.
c. If the facility produces overall good for the company, despite a little bad publicity which the "PR people" can handle, then it is moral.
d. If the working conditions at the facility are not improved and if the sexual harassment of the girls is not stopped, the facility is an immoral one as it fails the Kingdom of Ends and Agent/Receiver tests.
15. Big Greene Company is considering introducing a new product to replace an existing product. The new product would result in increased revenues, but slightly lower overall profits because the product will cause injury to a few users and Big Green will issue warnings and compensate persons who are injured. The introduction of this product would best be a proper decision pursuant to:
A-Ethical egoism
B-Kantian ethics
C-Ethical relativism
D-Corporate social responsibility.
16. As to why a company should be a socially responsible one and get involved in civic and charitable affairs, Socrates would likely argue:
A- Justice is the will of the stronger.
B-Money comes from virtue.
C- Ignorance of the law is no excuse.
D- Virtue comes from money.
17. Some consumers misuse the products of Midwest Manufacturing, Inc., but in a foreseeable manner, and are injured. In terms of responsibility for consequences, Midwest may have
A- An ethical duty only
B- A legal duty only
C- An ethical and legal duty
D- Neither an ethical nor a legal duty.
18. A large business merger such as the Continental Airlines - United Airlines merger typically has what type of ramifications:
A- Legal
B- Moral
C- Social Responsibility
D- All of the above.
19. Which of the following statements is most accurate regarding the relationship of law and ethics?
A- The legal requirement will almost always be the same as the ethical requirement because the law is equivalent to the ethical standards.
B- In some cases ethics will require a higher standard of conduct than the law, but never the opposite.
C- In some cases the law will require a higher standard of conduct than ethics, but never the opposite
D- Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.
40. What is TRUE about the employment at-will doctrine?
a. It has been modified by statute, for example, civil rights acts.
b. It has been modified when a discharge is in violation of a fundamental "public policy" of a state.
c. It can result in a legal but immoral discharge.
d. All of the above.
20. Which of the following will the executives of Mink, Inc, a fur sale company, likely take into account in carrying out their business?
A- Adverse publicity and threat of boycotts
B- Legal restrictions on the production and sale of animal fur products
C- Societal norms as to the morality of selling fur products
D- All of the above
21. CEO Cleo believes her corporation must consider what effects corporate actions may have on the company's stakeholders. Which of the following theories is NOT part of Cleo's approach to business?
A- Corporate "Good Citizenship"
B- Stakeholder Interest
C- Legal Nonfeasance
D- Social Responsibility
22. A war against the repressive government erupts in Country X. The U.S. Congress wants to draft U.S. citizens into the military to help the people of Country X fight for independence. Members of Congress believe that although some U.S. troops may die, hundreds of thousands of people in Country X will be given freedom. The President of the U.S., however, believes that individuals should have the right to choose from themselves whether to fight or not and thus opposes the idea of a draft. The President's feelings closely mirror
A- Kantian ethics
B- Utilitarianism
C- Corporate social responsibility
D- Plato's ethics.
23. Which statement is NOT correct?
A- The Kantian moral philosopher believes that formal "legal" law is superior to universal moral rules and ethical principles that can be determined by reason
B- Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.
C- Ethics is not concerned with the philosophical, theoretical, rational basis for morality.
D- An action may be legal but not moral.
24. Kyle, an accountant for Engineering Associates, Inc. attempts to apply the duty approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person
A- Has a duty not to engage in unethical or immoral behavior no matter how desirable the consequences may be
B- Has a duty to conform one's behavior to society's ethical standards
C- Has a duty to one's employer that is superior to any duty owed to society as a whole
D- May engage in unethical behavior if it achieves the greater good.