LES 305: Business Law and Ethics
(Exam 1)fully solved
Compliance with the law meets all ethical standards. - correct answer ✔✔False The law is the minimum
standard of conduct for ethical behavior. Usually, you need to do more than just comply with the law to
act ethically.
"I was just following orders" is a defense in law and a test for ethical behavior." - correct answer
✔✔False If you use this rationalization you may be in ethical and legal trouble.
Many companies that had been headquartered in the United States have decided to conduct corporate
inversions, in which they sell their assets to a foreign corporation so they can claim a new residence in
that country for corporate tax purposes and avoid paying corporate taxes in the United States. This
action is permissible under which school of social responsibility? - correct answer ✔✔Inherence School
With respect to the corporate inversions described above, they are permissible under which ethical
theory? - correct answer ✔✔ethical egoism
Which question is missing from this model of the steps for analyzing ethical dilemmas in your book?
i. Gather the facts.
ii. List missing information and your assumptions.
iii. Generate list of alternatives and apply ethical decision-making models.
iv. Evaluate resolutions for cost, legality and impact.
v. Recommend and take action. - correct answer ✔✔List each stakeholder's interests (concerns) in the
dilemma.*
Is there an ethical issue when restaurants and shops give customers discounts, free meals and other
kickbacks in exchange for good reviews on Yelp and other social media websites? - correct answer
✔✔Yes. This creates a conflict of interest on behalf of the reviewer customers.
, Committing acts of personal decadence, like driving home drunk after an office holiday party has no
relevance to business ethics. - correct answer ✔✔FALSE. This behavior may damage the reputation of
the employee and the person or organization that hired him or her.
Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually commit
any act that is unethical. - correct answer ✔✔FALSE, in some situations, failure to act may also constitute
a breach of an ethical obligation or a legal duty. For example, if you witness a subordinate who is making
comments to another employee that constitute sexual harassment, you are implicitly condoning
unethical conduct and you are breaching your obligations to your employer which would require you to
intervene.
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions - correct answer ✔✔True Management should have
anticipated adverse shareholder reaction.]
Cheating on exams is acceptable because - correct answer ✔✔None of the above because all are
rationalizations.*
Which of the categories of ethical dilemmas should you be concerned about when you have an
arbitration clause in your employment contract and your employer is the one paying the arbitration
fees? - correct answer ✔✔Engaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to your textbook? -
correct answer ✔✔All of the above are ethical breaches.
A stakeholder is anyone - correct answer ✔✔who has an interest in a decision.
1. The "front page of the newspaper test": - correct answer ✔✔uses the perspective of a reporter who is
reporting impartially.
Laura Nash would ask - correct answer ✔✔a. "How would I view the problem if I sat on the other side of
the fence? "
b. "How did the situation arise in the first place?"
c. "Who does the action or decision injure?"
(Exam 1)fully solved
Compliance with the law meets all ethical standards. - correct answer ✔✔False The law is the minimum
standard of conduct for ethical behavior. Usually, you need to do more than just comply with the law to
act ethically.
"I was just following orders" is a defense in law and a test for ethical behavior." - correct answer
✔✔False If you use this rationalization you may be in ethical and legal trouble.
Many companies that had been headquartered in the United States have decided to conduct corporate
inversions, in which they sell their assets to a foreign corporation so they can claim a new residence in
that country for corporate tax purposes and avoid paying corporate taxes in the United States. This
action is permissible under which school of social responsibility? - correct answer ✔✔Inherence School
With respect to the corporate inversions described above, they are permissible under which ethical
theory? - correct answer ✔✔ethical egoism
Which question is missing from this model of the steps for analyzing ethical dilemmas in your book?
i. Gather the facts.
ii. List missing information and your assumptions.
iii. Generate list of alternatives and apply ethical decision-making models.
iv. Evaluate resolutions for cost, legality and impact.
v. Recommend and take action. - correct answer ✔✔List each stakeholder's interests (concerns) in the
dilemma.*
Is there an ethical issue when restaurants and shops give customers discounts, free meals and other
kickbacks in exchange for good reviews on Yelp and other social media websites? - correct answer
✔✔Yes. This creates a conflict of interest on behalf of the reviewer customers.
, Committing acts of personal decadence, like driving home drunk after an office holiday party has no
relevance to business ethics. - correct answer ✔✔FALSE. This behavior may damage the reputation of
the employee and the person or organization that hired him or her.
Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually commit
any act that is unethical. - correct answer ✔✔FALSE, in some situations, failure to act may also constitute
a breach of an ethical obligation or a legal duty. For example, if you witness a subordinate who is making
comments to another employee that constitute sexual harassment, you are implicitly condoning
unethical conduct and you are breaching your obligations to your employer which would require you to
intervene.
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions - correct answer ✔✔True Management should have
anticipated adverse shareholder reaction.]
Cheating on exams is acceptable because - correct answer ✔✔None of the above because all are
rationalizations.*
Which of the categories of ethical dilemmas should you be concerned about when you have an
arbitration clause in your employment contract and your employer is the one paying the arbitration
fees? - correct answer ✔✔Engaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to your textbook? -
correct answer ✔✔All of the above are ethical breaches.
A stakeholder is anyone - correct answer ✔✔who has an interest in a decision.
1. The "front page of the newspaper test": - correct answer ✔✔uses the perspective of a reporter who is
reporting impartially.
Laura Nash would ask - correct answer ✔✔a. "How would I view the problem if I sat on the other side of
the fence? "
b. "How did the situation arise in the first place?"
c. "Who does the action or decision injure?"
