PA RT 1
QUESTION 1
President Abraham Lincoln very succinctly explained his rationale for his
condemnation of and opposition to slavery, to wit: "As I would not be a slave,
so I shall not be a master." Lincoln’s reasoning best exemplifies what ethical
theory?
a Legal Positivism of Thomas Hobbs
.
b Ethical Relativism of the Sophists
.
c The Categorical Imperative of
. Immanuel Kant
d Utilitarianism of Bentham and Mills.
.
QUESTION 2
Pursuant to traditional philosophical analysis which of the following
statements is/are true?
a Morals and morality are different from
. ethics.
b Intrinsic values are different from
. instrumental values.
c Cultural relativism is different from ethical
. relativism.
d All of the above.
.
QUESTION 3
Which of the following is NOT part of the beliefs of Kantian ethics?
All like cases should be treated alike.
Treating others as you want to be treated.
Choosing a course of action that produces the greatest
good for society.
Abiding by the rules applied to others in making
decisions.
QUESTION 4
Paul, the chief financial officer for Assembled Products Corporation, attempts
to apply Kantian ethical precepts in making moral decisions and in doing
business. In applying Kantian ethical principles, Paul would primarily consider
Whether the decision is legal or illegal
What his emotional reaction would be
Whether the action treats human beings with
dignity and respect
The consequences of putting the decision into
effect.
QUESTION 5
Kantian ethics can best be characterized by:
The consultation of an outside source, such as a book or person,
for guidance.
The belief that a person must decide what course of action is
proper based on that person’s own set of beliefs or feelings.
Determining which course of action produces the greatest amount
of good for the greatest number of people.
A set of universal moral rules based on reasoning which must be
applied regardless of consequences.
QUESTION 6
World Development Corporation suggests that its employees apply the
Categorical Imperative to ethical issues that arise at work. This theory
requires that the employees
Seek to overthrow unjust governments by any means at their
disposal
Categorize the issues according to profitability and legality
Evaluate their actions in light of how they treat human beings
Take whatever steps are necessary to survive since one can say
categorically that it is a “moral jungle” in the business world.
QUESTION 7
Which of the following is a correct statement?
Plato likely would object to the hierarchy of authority found today
in the typical business corporation.
For Aristotle, the highest good is the fulfillment of the physical
senses, though he counsels moderation in seeking pleasures.
Aristotle maintains in the Doctrine of the Mean that the virtuous or
moral choice is a rationally determined mean between two
extremes of deficiency or excess.
An intelligent person resolves all moral issues by appealing to what
most people feel is moral.
QUESTION 8
Juana applies Kant’s Categorical Imperative to decide whether to cheat on an
examination to get into an MBA program is the “right thing” to do. This
means that Juana evaluates her action in light of
Whether the “end” justifies the “means”
Whether the action of cheating is moral in and of itself
Whether Juana feels that cheating is good or bad under
the circumstances
Whether she can cheat without getting caught.
QUESTION 9
Which of the following is a correct statement?
According to the utilitarian ethical theory, a personal and subjective calculation of the good
is required since some people are more important and worthwhile than others.
Utilitarianism underscores the long-term consequences of an action in determining its
morality.
Even though some consequences will never be fully knowable, a
utilitarian would advise that one guess and speculate as to the
consequences in order to determine the morality of an action.
Since money is too materialistic a good, it cannot be used as a measurement in quantifying
pleasure and pain.
QUESTION 10
A problem with the Utilitarian ethical principle is that:
It is difficult to foresee the long-term consequences of an
action.
It is difficult to weigh and measure the good v. bad
consequences of an action.
It is difficult to ascertain how the good should be distributed.
All are problems.
PA RT 2
QUESTION 1
Albert is the Chief Financial Officer of a company that is regulated by the
Sarbanes-Oxley Act. Pursuant to this statute, Albert must:
Comply with the Act’s certification statements.
Not retaliate against whistleblowers.
Not receive a personal loan from his company except for very
limited purposes.
All of the above.
QUESTION 2
Lisa and Ann are disputing ownership of a piece of real estate. Lisa brings a
lawsuit to clear title to the property. This lawsuit must be heard:
Before the state court in the county where the property is located.
In the state supreme court since it has original jurisdiction of all
real estate lawsuits in the state.
In federal court since this is a title issue.
Wherever Lisa resides.
QUESTION 3
Omega Sales, Inc., promotes employees on the basis of color. Employees
with darker skin color are passed over in favor of those with lighter skin
color, regardless of their race. This is prohibited by
the Americans with Disabilities Act
of 1990.
the Equal Pay Act of 1963.
Title VII of the Civil Rights Act of
1964.
none of the above.
QUESTION 4
Janet is hired as a driver for Speedy Delivery, Inc. as an employee at-will. Her
boss tells her that she MUST speed on the roads to deliver packages in a
timely manner just like all the other Speedy drivers do. Janet refuses since
this is a dangerous, reckless, as well as illegal practice. Her boss fires her for
not following orders. The boss also tells Janet that she cannot sue Speedy for
wrongful discharge since she is only an employee at-will. Which of the
following is the most accurate statement?
a The boss is right as anyone can be fired for virtually anything if
. one is an employee at-will.
b The boss is right since everyone speeds.
.
c The boss is wrong if Janet is a lesbian.
.
d The boss is wrong since being fired under these circumstances is
. likely a violation of the Public Policy doctrine.
QUESTION 5
Masud, a high-tech employee of Global Tech, signs a covenant not to
compete with the firm in which Masud promises not to work for a competitor
of Global if and when he leaves the company’s employ for any reason. This
promise can be best characterized as:
Unenforceable since it is a restraint of trade.
Unenforceable in most states if Masud is a single-parent and got
laid-off through no fault of his own when his job was outsourced to
India.
Enforceable but only if Global pays Masud severance for six
months in accordance with the federal Family Medical Leave Act.
Enforceable if the time period and the duration of the covenant are
reasonable and Masud had access to confidential proprietary
information.
QUESTION 6
Local Delivery Company and Regional Trucking, Inc., attempt to enter into a
contract in electronic form. Under the Electronic Signatures in Global and
National Commerce Act (ESIGN Act), because this contract is in electronic
form, it
may be denied legal
effect.
may not be denied legal
effect.
will be limited to certain
terms.
will not be enforced.
QUESTION 7
Best Toy Company begins marketing a new toy that is highly flammable. The
Consumer Product Safety Commission may
ban the toy’s future manufacture and sale, and order that the toy
be removed from the market.
ban the toy’s future manufacture and sale only.
do nothing until there is an injury or damage on which to base an
action.
order that the toy be removed from the market only.
QUESTION 8
The District of Columbia sues several big gun manufacturers contending that
the guns they sell in large quantities legally in Virginia often illegally find
their way into the District where they are used to commit crimes and to
injure residents of the district as well as the criminals. The District wants to
recover its public hospital expenses from the gun manufacturers and
accordingly sues them for the tort of negligence. The likely result of this
lawsuit will be:
The District will win since guns are very dangerous products for
which the gun manufacturers are absolutely liable for.
The District will win if the residents who are shot by the guns do
not have health insurance.
The District will lose if it cannot establish a factual and proximate
causation connection between the original sale of the guns and the
harm to the District residents.
The District will lose since Virginia is a state and the District is not
a state.
QUESTION 9
Allie, an adult, is injured while using a very sharp kitchen knife manufactured
by Fearless Cutting to prepare a dinner. The knife is manufactured according
to Fearless’ product standards. There is an adequate handle for the knife, a
sheath to enclose the knife, but no warning on the box, sheath, or knife itself
that the knife is very sharp. Allie sues Fearless pursuant to the doctrine of
strict liability, contending that the knife is a defective product. The likely
result of such a lawsuit would be:
a Fearless loses since it is deemed to be an insurer of an ultra. hazardous product which caused harm to a consumer.
b Fearless loses since there was no warning on the product that the
. knife was sharp and could cut.
c Fearless loses since the knife was a flawed product.
.
d Allie loses since the product was not defective and a reasonable
. person should have been aware of the risk of being cut by a
knife.
QUESTION 10
Danielle is the sales agent representing her company in a Caribbean country.
She has negotiated the sale of a large amount of perishable goods to a buyer
in that country. The goods have arrived at the local port but only can be offloaded when the appropriate custom forms are stamped by the customs
inspector. The inspector is taking his time; and Danielle is beginning to worry
about the condition of the goods. Consequently, Danielle makes a "good will"
tip of $200 to the inspector who then promptly processes the forms, thereby
releasing the goods for shipment to the buyer. Under the Foreign Corrupt
Practices Act, Danielle likely will be deemed to be acting:
Illegally by paying a bribe to a foreign government official.
Illegally since the amount of the tip was too much for such a lower
level foreign government official.
Legally since all payments to foreign government officials are legal
so long as they are not high level officials.
Legally since she made a "facilitating and expediting" payment.
QUESTION 11
Eagle Corporation contracts to sell to Frosty Malts, Inc., six steel mixers for
$5,000. When Eagle fails to deliver, Frosty buys mix¬ers from Great
Company, for $6,500. Frosty’s measure of damages is
$6,500.
$5,000.
$1,500 plus incidental
damages.
nothing.
QUESTION 12
Kilgore, an electrician, was testing various fuses with a standard tester.
Kilgore had not purchased any of these fuses but had been supplied them by
a friend, a fellow electrician. While Kilgore was testing a Royal Crystal fuse
manufactured by Big Electric Company, the fuse explodes, injuring Kilgore’s
eye. Upon later examination, it was discovered that this fuse had been
incorrectly wired during manufacture, despite the fact that Big Electric
Company had exercised the highest degree of care and maintained the
highest standards of product quality control, testing, and inspection. Kilgore
sues Big Electric Company for negligence, breach of warranty, and strict
liability for her injuries. Which of the following is a true statement regarding
this lawsuit?
A
.
B
.
C
.
D
.
Kilgore will prevail on the negligence claim since the product
caused him harm.
Kilgore will prevail on the warranty claim if the product is
deemed to be not "merchantable."
Kilgore will prevail on the strict liability claim if the product is
deemed to be "flawed."
Both b. and c. are true.
QUESTION 13
Carl holds himself out as a partner of Delta Associates, a partnership, even
though he has no connec¬tion to the firm. Carl obtains a loan based on the
misrepresentation. Carl’s default on the loan results in
Carl and Delta’s joint liability for the
amount.
Carl’s sole liability for the amount.
Delta’s sole liability for the amount.
neither Carl’s nor Delta’s liability.
QUESTION 14
Jill offers to sell her car to Kelly, stating that the offer will stay open for thirty
days. Jill may revoke the offer
before Kelly accepts the offer.
before thirty days have expired, whether or not Kelly has
accepted the offer.
only after Kelly accepts the offer.
only after thirty days.
QUESTION 15
Memorial Hospital hires Large Construction Company to renovate its
emergency room. Construction Company submits plans that the Hospital
approves. Construction Company completes the major renovation, paints the
interior, and supplies the necessary fixtures, equipment, and furnishings. The
Hospital, however, rejects some of the furnishings because, due to the lack
of oversight of a Construction supervisor, they do not exactly match the
plans. The Hospital subsequently refuses to allow Construction Company to
finish the work or to collect any payment. Whereupon, Large Construction
Company sues for breach of contract. The most accurate statement
regarding the resolution of this lawsuit is?
A
.
B
.
C
.
D
.
Hospital wins since Construction’s performance was not perfect
according to the Perfect Tender rule
Hospital wins Construction’s supervisor was negligent.
Construction wins since Hospital acted in a deceitful manner.
Construction wins and recovers the contract price minus the
amount necessary to correct the defects and finish the work
pursuant to the Substantial Performance doctrine.
QUESTION 16
Gil sends a letter to Holly in which he falsely accuses her of embezzling. This
is defamation if the letter is read by
a public figure.
any third person.
Holly.
only Holly’s employer or a potential
employer.
QUESTION 17
Home Products Company issues common stock for sale to the public. If Ira
buys ten shares of the stock, he has a proportionate interest with regard to
control only.
earnings and net assets
only.
control, earnings, and net
assets.
none of the above.
QUESTION 18
Dan and Eve sign a contract under which Dan agrees to repair Eve’s
computer for $150. Later, they agree that Eve will pay the $150 directly to
Dan’s creditor, First State Bank. The bank is
a delegatee.
an assignee.
an incidental
beneficiary.
an intended
beneficiary.
QUESTION 19
Ken, a teacher, sells Larry a parcel of land, claiming that it is "perfect" for
commercial development. Larry later learns that it is not zoned for
commercial uses. Larry may rescind the contract
only if Ken knew about the zoning law.
only if Larry did not know about the
zoning law.
only if the zoning law was not common
knowledge.
under no circumstances.
QUESTION 20
Carol is a salesperson who works for Delta Products, Inc. In determining
whether Carol is Delta’s employee or an independent contractor, the most
important factor is
the degree of control that Delta exercises over
Carol.
the distinction between Delta’s business and
Carol’s occupation.
the length of the working relationship between
Delta and Carol.
the method of payment.
PA RT 3
QUESTION 1
When it comes to doing traditionally and conventionally "bad" actions in
business, such as deceiving and misleading, Machiavelli would likely say:
Do not do them since they are probably illegal.
Do not do them since people may condemn them as immoral acts.
Do them only if absolutely necessary and do them in a smart,
clever, and crafty way.
Do not do them since they are regarded as wrong and
transgressions by religions.
QUESTION 2
Today, critics of the corporation argue for various corporate governance
reform proposals to improve the legal, moral, and socially responsible
behavior of the corporation. Which of the following is the most convincing
argument FOR these proposals?
Corporate managers should never have any duty other than to
maximize profits for the shareholders
Market forces invariably operate to deter any corporate
misbehavior
Existing law already establishes clear standards for what is and is
not moral corporate behavior globally
These corporate governance reform proposals will help the
company to act in a moral manner, especially when the law is
silent or vague as to the legality of an action.
QUESTION 3
The Chinese government publicly executes convicted criminals of serious
crimes, and then "harvests" and sells their organs to wealthy Westerners and
people from the Middle East, presumably with the "consent" of the prisoners
facing execution. This practice is:
a Immoral pursuant to Ethical Emotism if one initially feels
. emotionally sick when reading or hearing about the practice.
b Moral under Ethical Egoism if one desperately needs an organ
. and has the money.
c Moral pursuant to Ethical Relativism if one is in China and the
. Chinese have no problems with and thus accept this practice of
executions and organ sales.
d All of the above.
.
QUESTION 4
In the old, American, pre-Civil War South, slavery ethically could be
considered:
a Moral if one was a Legal
. Positivist.
b Moral if one was an Ethical
. Relativist
c Immoral if one was a Kantian
.
d All of the above.
.
QUESTION 5
In order to be considered a profession what attributes of a profession does
management have to work on and develop?
Autonomy and self-governance.
Codes of ethics that apply to management as whole and are
"policed" and enforceable.
An oath with an appropriate ceremony when entering the
management profession.
All of the above.
QUESTION 6
Which of the following statements is true?
Ethics focuses on the way in which ethical principles apply in
making moral determinations in life.
Ethics is not concerned with the way moral rules are derived.
The immoral conduct of corporate management is not likely to
affect the behavior of lower level employees.
Ethical codes of conduct cannot help to set the ethical tone of a
firm.
QUESTION 7
Danny, an accountant for Engineering Associates, Inc., attempts to apply the
duty-based approach to ethical reasoning in conflicts that occur on the job.
This approach is based on the idea that a person
Has a duty not to engage in unethical behavior no matter how
desirable the consequences may be
Has a duty to conform one’s behavior to society’s ethical standards
Has a duty to one’s employer and family that is superior to any
duty owed to society as a whole
May engage in unethical behavior if it achieves a greater good.
QUESTION 8
Abraham Lincoln’s famous condemnation of slavery, "So I would not be a
slave, therefore I shall not be a master," best reflects what type of ethical
thinking:
Ethical relativism
Utilitarianism
Rousseau’s General Will
theory
Kant’s Categorical
Imperative
QUESTION 9
Bribery of foreign government officials can be:
Legal as a "facilitating and expediting" exception under the Foreign
Corrupt Practices Act.
Moral pursuant to Utilitarian ethics if all the stakeholders benefit.
Moral pursuant to Ethical Relativism.
All of the above.
QUESTION 10
A large business horizontal merger, such as the United Airlines – Continental
Airlines merger, could be considered moral pursuant to:
a Ethical egoism from the standpoint of the new gigantic merged
. business despite some short-term expense, stress, and
dislocation if the merger is approved by the government and
overall it benefits the company and its stakeholders in the longterm.
b Utilitarianism if society benefits overall from the merger
. although some employees (mainly middle managers) lost their
jobs and there is now less competition on some routes (but more
competition on others).
c Legal Positivism if the government approves the merger.
.
d All of the above.
.
