1
In which scenario do the different court systems in the U.S. interact properly?
When an employee in Colorado sues her employer for sexual harassment, the state
court judge applies federal law relating to workplace harassment because it extends
protections to employees beyond those provided by state law.
When an employee tries to file a discrimination complaint against her employer in Maine
after she loses in a Vermont state court, the Maine state court agrees to hear the case.
An Arizona resident drove through New Mexico to visit his college roommate and is hit
by a delivery truck. When the New Mexico state court hears the case, the judge only
takes Arizona law into consideration, since that's where the plaintiff resides.
A federal judge refuses to hear a negligence case that includes a state-based claim in
addition to a federal one. She cites the fact that federal courts can never have
jurisdiction over cases that involve state laws.
CONCEPT
The Courts and the Legal Process
2
Since corporations are separate legal entities from their shareholders, which of the
following is true?
Shareholders do not need to pay taxes on dividend earnings since corporations are
taxed independently.
Under no circumstances can the protection of limited liability be removed from
shareholders.
Shareholders are usually not financially accountable for the actions of the corporation,
but neither do they own the assets of the corporation.
A corporation can only exist for as long as its original owners are present.
CONCEPT
Corporations
, 3
The CEO of Oil Company X is dismayed to learn that oil has been leaking from one of its off-
shore rigs into the Gulf of Mexico for the last five years. In deciding how to proceed, the
company identifies a range of stakeholders, considers how different courses of action
would impact each stakeholder, and determines which core values each decision would
satisfy.
According to the Josephson's core values model for ethical decision-making, what
should Company X do next?
Determine which course of action will be easiest to implement.
Choose the course of action that is most likely to promote the greatest number of core
values.
Decide which stakeholders are most important and whose needs should be prioritized.
Weigh the financial cost of each possible course of action against the core values that it
promotes.
CONCEPT
An Ethical Decision Model
4
A corporation is concerned about their exposure to criminal liability after the most recent
election cycle placed a number of new legislators in Congress who campaigned against
corporate corruption.
Select the strategy that would be least effective in reducing the company's criminal
liability.
It could encourage reporting by establishing internal protections for whistleblowers
beyond what is provided by Congressional law.
It could strengthen its code of ethics to reflect the current political mood.
It could prioritize ethical leadership when making hiring decisions for management-level
positions.
In which scenario do the different court systems in the U.S. interact properly?
When an employee in Colorado sues her employer for sexual harassment, the state
court judge applies federal law relating to workplace harassment because it extends
protections to employees beyond those provided by state law.
When an employee tries to file a discrimination complaint against her employer in Maine
after she loses in a Vermont state court, the Maine state court agrees to hear the case.
An Arizona resident drove through New Mexico to visit his college roommate and is hit
by a delivery truck. When the New Mexico state court hears the case, the judge only
takes Arizona law into consideration, since that's where the plaintiff resides.
A federal judge refuses to hear a negligence case that includes a state-based claim in
addition to a federal one. She cites the fact that federal courts can never have
jurisdiction over cases that involve state laws.
CONCEPT
The Courts and the Legal Process
2
Since corporations are separate legal entities from their shareholders, which of the
following is true?
Shareholders do not need to pay taxes on dividend earnings since corporations are
taxed independently.
Under no circumstances can the protection of limited liability be removed from
shareholders.
Shareholders are usually not financially accountable for the actions of the corporation,
but neither do they own the assets of the corporation.
A corporation can only exist for as long as its original owners are present.
CONCEPT
Corporations
, 3
The CEO of Oil Company X is dismayed to learn that oil has been leaking from one of its off-
shore rigs into the Gulf of Mexico for the last five years. In deciding how to proceed, the
company identifies a range of stakeholders, considers how different courses of action
would impact each stakeholder, and determines which core values each decision would
satisfy.
According to the Josephson's core values model for ethical decision-making, what
should Company X do next?
Determine which course of action will be easiest to implement.
Choose the course of action that is most likely to promote the greatest number of core
values.
Decide which stakeholders are most important and whose needs should be prioritized.
Weigh the financial cost of each possible course of action against the core values that it
promotes.
CONCEPT
An Ethical Decision Model
4
A corporation is concerned about their exposure to criminal liability after the most recent
election cycle placed a number of new legislators in Congress who campaigned against
corporate corruption.
Select the strategy that would be least effective in reducing the company's criminal
liability.
It could encourage reporting by establishing internal protections for whistleblowers
beyond what is provided by Congressional law.
It could strengthen its code of ethics to reflect the current political mood.
It could prioritize ethical leadership when making hiring decisions for management-level
positions.
