LEG 500 Week 11 Final Exam – Strayer NEW

LEG 500 Week 11 Final Exam – Strayer NEW

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Chapters 1 Through 9

LAW & ETHICS IN THE BUSINESS ENVIRONMENT

CHAPTER 1

Law, Ethics, Business:  An Introduction

Questions

1.      Select the best definition of ethics:

1. a set of rules for behavior. 
2. a menu of options regarding what we must do.
3. a menu of options regarding what we should do.
4. standards that must be met to avoid penalty. 

2.      Laws must be static and unyielding in order to provide stability for a society.

a.       True

b.      False

3.      Choose the statement regarding duty to rescue that is false:

1. There is no general duty to rescue an individual. 
2. Individual freedom of dictates that a person should not be forced to act. 
3. Under a liberal–communitarian approach, citizens owe a duty to the state to rescue other citizens.
4. When one taunts another person who then puts themselves in danger in response to the teasing, the teaser has a duty to rescue the person teased. 

4.      All of the following are considered exceptions to the general rule that there is no duty to rescue except:

a.       Pre-existing duty:  For example, lifeguards have signed contracts agreeing to rescue people in exchange for pay and benefits.

b.      Witnessing an accident: This creates a duty to step in and help the injured.

c.       Employer: A duty exists to help an employee injured while working for that employer.

d.      Endangerment: If one puts another in danger, they are obligated to rescue the person put in danger.

5.      Which of the following views would be consistent with the free market ethics approach advocated by Milton Friedman?

1. Outsourcing to other countries is wrong because it is detrimental to the overall US economy.
2. When making decisions, corporate managers should consider the interests of all the corporation’s stakeholders.
3. The only social responsibility of business is to increase profits in a legal and ethical manner.
4. Automating processes and replacing workers is unethical since it does not serve a greater good.

6.      Which of the following statements best illustrates the view of “utilitarianism”?

                            I.            From each according to his abilities, to each according to his needs.

                         II.            The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.

                      III.            An action is right when maximizing welfare and total well-being.

                      IV.            Individuals should pursue his or her own self-interest, even at the expense of others.

1. I only
2. III only
3. I and II
4. I, II, and III

7.      According to deontological thinker Kant:

                            I.            It is only acceptable to lie when done to protect an innocent person.

                         II.            The level of respect owed to another is based on one’s relationship to that person.

                      III.            It is wrong to use another person unless mutual benefit is attached.

                      IV.            Once chosen, actions will be repeated whenever the same situation arises.

a.   I and III

b.   II and IV

c.   III and IV

d.   I, III, and IV

8.      Virtue ethics:

a.       focuses on what human beings are capable of being.

b.      develop from learning how to make choices in difficult situations.

c.       accepts that individuals rarely reach moral excellence.

d.      are based on the concept that a person’s ethical beliefs are developed in childhood and do not change. 

9.      The Ethic of Care is:

a.       A set of rules that explain how to prioritize those people affected by a decision so that a utilitarian analysis can be done successfully.

b.      A set of universal principles, which applied evenly to all decisions will result in fairness and equity in ethical decisions.

c.       The idea that we should all make decisions under the assumption that we don’t know our station in life, that we could be the person most negatively impacted by the decision.

d.      A set of principles that encourage decision makers to look at human relationships as a primary motivator for a decision. 

10.  Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”? 

1. individual rights and justice for all
2. applies only to women and not men
3. care and responsibility to others
4. obedience to independent moral rules or duties

11.  Which of the following statements is INCORRECT regarding the rights of shareholders?

                               I.            voting power on major issues and ownership in a portion of the company

                            II.            right to transfer ownership and dividend entitlement

                         III.            hire and fire management and select and appoint a chief executive

1. I and II
2. I, II, and III
3. I only
4. III only

12.  According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?

a.       Political speech is the most important, and most protected, speech that exists.  It is crucial to the democratic process that political speech be encouraged and heard. 

b.      The immense wealth of a corporation allows it to be the most accurate in providing messages to people. 

c.       Independent expenditure by corporations do not give rise to corruption or the appearance of corruption.

d.      Rapid changes in technology suggest laws restricting political speech should not be upheld.

13.  Corporate director or officer decisions to dedicate corporate  funds for social causes is called:

a.       Corporate Social Responsibility (CSR)

b.      Social Activism (SA)

c.       Business Engagement in Environmental Situations (BEES)

d.      Strategic Investment in Stakeholder Issues (SISI)

14.  Which of the following statements regarding Benefit Corporations is true?

a.       Benefit corporations are required to identify one or more specific benefit purposes.

b.      Directors of benefit corporations are protected from all lawsuits from both shareholders and beneficiaries of the corporation’s public benefit purpose.

c.       Benefit corporations are incorporated under state law with the intent to be profitable.

d.      All of these statements regarding benefit corporations are true.

Essay Questions

15.  Describe the difference between the law and ethics.

16.  From where do ethical preferences originate?

17.  Discuss how multinational corporations can be both a benefit and a detriment to society.

18.  Explain why laws exist that do not impose a duty to rescue.

19.  Describe the philosophy of noted economist, Milton Friedman, on the issue of “free market ethics.”

20.   Discuss the differences in utilitarianism and virtue ethics in making a decision. 

21.  Discuss the similarities and differences between a traditional corporation and a benefit corporation.

CHAPTER 2

The Duty of Loyalty: Whistleblowing

Questions

22.  Select the best definition of whistleblower:

5. the sole goal of modern ethics training
6. originated from the Latin "qui tam pro domino regequam pro sic ipso in hoc parte sequitur" meaning "who as well for the king as for himself sues in this matter."
7. a narrow exception under the general rule of at-will employment
8. people who report unethical or illegal activities under the control of their employers

23.  Under the legal doctrine of “employment at will” an employee can be lawfully terminated from her job for:

                            V.            wearing a shirt that clashes with her suit

                         VI.            any non-discriminatory reason

                      VII.            complaining about illegal activity in the workplace

                   VIII.            only for good cause

1. a. I only
2. b. II only
3. c. I and II
4. d. III and IV

24.  Exceptions to the rule of employment-at-will include which of the following?

                               I.            organization of unions

                            II.            passage of Sarbanes Oxley Act

                         III.            raising of public policy issues

                         IV.            promise of implied-contract  or covenant-of-good-faith

1. I only
2. II only
3. I and II
4. I, II, III, IV

25.  The Food Safety Modernization Act:

                               I.            offers some protections for whistleblowers

                            II.            covers vegetables, seafood and dairy

                         III.            covers eggs and poultry

                         IV.            gives the FDA power to make mandatory recalls

1. I and II only
2. I, III and IV only
3. I,  II and IV only
4. I, II, III, IV

26.  Ag Gag would criminalize:

1. undercover video recordings showing animal cruelty
2. recordings of public health violations occurring in agricultural facilities
3. Both a. and b.
4. Neither a. nor b.

27.  The National Labor Relations Board has stated that the right to discuss working conditions freely and without fear of retaliation should exist at the work site.  However, the Board believes the same right does not exist online.

1. True
2. False

28.  The Constitution does not always protect free-speech rights for what public employees say on the job.  Which of the following is true?

1. When a citizen enters government service, the citizen need not accept certain limitations on his or her freedom.
2. Public employees may speak out on matters of public concern and have First Amendment protection but not when they speak out in the course of their official duties.
3. As public employees speak out and receive First Amendment protection, there is an acceptable chilling of the speech of all potential whistleblowers.
4. None of the above

29.  To determine whether a public employee receives First Amendment protection from speech (and therefore cannot be fired for it), the Supreme Court has stated that all of the following are important except:

a.       The employer must have a justification for treating the employee differently than it would treat a member of the general public.

b.      The speech cannot be about political topics. 

c.       The speech must be about something of great public concern.

d.      The speech cannot be made as part of the employment (such as an internal memorandum). 

30.  When Qui Tam whistleblowers against the pharmaceutical industry were questioned about their motivation, several reasons were mentioned.  Which of the following was NOT given as a reason?

a.       Potential risk to public health.

b.      Unfair employment practices.

c.       Financial reward.

d.      Self-preservation. 

Essay Questions

31.  According to research, what are the characteristics of the typical whistleblower?

32.  According to the Montana Wrongful Discharge from Employment Act, what are the three elements of a wrongful discharge?

33.  How was Ken Kendrick of The Peanut Corporation of America a typical whistleblower?  An atypical whistleblower?

34.  Explain what happened in the 1968 Supreme Court’s re-interpretation of the First Amendment to the U.S. Constitution regarding public employees’ limited speech protections.

35.  Describe at least two other times since the Pickering decision in which the Supreme Court revisited the ruling. What were the outcomes?

36.  As discussed in the text, False Claims Act or qui tam suits have been successful in the health care industry.  The text mentions several things that all these successful claims have in common.  Discuss those things.

CHAPTER 3

Privacy and Technology

Questions

1. In considering the legality of employer interception of employee e-mails at work, pick the correct statement.

                      IX.            Employees have complete expectation of privacy since they can select their password for in-house and remote access of e-mails.

                         X.            A subpoena is required by the employer to read any e-mail that is clearly marked “confidential” by the employee.

                      XI.            No expectation of privacy exists over an employer-owned computer system at work. 

                   XII.            Statement by the employer that e-mails are confidential and privileged cannot be later used by an employer to defeat an employee’s claim of privacy

a. I only

b. II only

c. III only

d. I and IV

2. It is perfectly legal for employers to secretly and intrusively spy on their employees.

a.       True

b.      False

c.        

3. Which of the following are ways businesses justify electronic surveillance of employees?

                         I.            It measures and encourages efficiency.

                      II.            It uncovers employee disloyalty.

                   III.            It enhances the fairness of personnel evaluations. 

                   IV.            It prevents employees from sending personal emails on company time.

a. I and II only

b. I, II and III only

c. I, II and IV only

d. I, II, III and IV

4. The Electronic Communications Privacy Act of 1986 (ECPA):

i.        supplements the Omnibus Federal Employee Workplace Privacy Rights Law of 2008.

j.        has been an effective law because employee privacy intrusions are less common and steadily declining since 2000.  

k.      restricts employer access to public chat room interactions.

l.        fails to protect employees in most situations involving e-mail monitoring by public and private employers.

5. According to the article excerpted in the text entitled, The Functions of Privacy,by Alan Westin, privacyhas several functions in today’s society. These include:

a.       Total freedom in the private life with no consequences to the work life.

b.      The ability to vent anger at authority without being held responsible.

c.       The ability to post critical information on the Internet without consequences at work.

d.      The ability to spend time quietly analyzing the actions and reactions of other people. 

6. It is illegal to increase a specific employee’s health insurance premiums based on the employee’s lifestyle.

a.       True

b.      False

7. A majority of states have enacted off-the-job privacy protection laws.  What is the LEAST effective argument by an employer to regulate off-the-clock activities in a state that has not enacted such lifestyle rights legislation?

a.       It will provide a healthy work force.

b.      Unregulated employees are less productive.

c.       There is no invasion of privacy since the employee is “at will.”

d.      It will prevent higher health care and insurance costs.

8. According to the article, Can They Do That? By Lew Maltby:

a.       A job candidate who has been arrested will probably not be disqualified unless the candidate was found guilty.

b.      Psychological tests are a good way to determine a job candidate’s honesty.

c.       Employees who are being treated unfairly can protect themselves by joining a union.

d.      Credit score can keep you from getting a job, even if it doesn’t involve handling money.

9. Which of the following is NOT one of the three privacy rights created by the Supreme Court through its interpretation of various constitutional amendments?
1. The government cannot interfere with the choices adults make about their private family and sexual life.
2. An individual’s medical history cannot be publicized by the government.
3. Individuals are protected against unwarranted invasion of privacy by private corporations.
4. Corporations are protected against unreasonable government searches or seizures.
10. Privacy rights are triggered under the Fourth Amendment:

a.       when a corporation has authorized an agent with direct authority to perform an electronic search of an employee’s e-mail account.

b.      upon issuance of a subpoena duces tecum to bring electronic data (e-mails, files, etc.) including electronic metadata such as headers, directional information, and other such useful tracking data.

c.       when the government is conducting a search.

d.      during an archival search of e-mails on a corporation’s server.