Q&A Hero

Q: List and briefly describe the schools of ethical thought.

Q: Explain what ethics is. Give a definition here.

Q: What was the American Bar Association's position on enhanced interrogation techniques used during the Bush administration? a. That the tactics were not in violation of either U.S. or international law. b. That the tactics were in violation of U.S. and international law. c. That the tactics were not in violation of U.S. law, but were in violation of international law. d. That the tactics were in violation of U.S. law, but were not in violation of international law.

Q: Randy White is the executive director of a non-profit preschool for special needs children. Part of Randy's responsibilities include fundraising for the preschool. Because of his experience and success in operating specialty pre-schools, Randy is sought after as a consultant at locations around the country to assist in the start-up and operation of such facilities. Randy does so quite frequently. Randy does not take vacation time for this work, and his consultant fees (which range from $750 - $1500 per day) are kept by him as personal income. Randy uses his secretary at the preschool to book his travel arrangements and prepare his consultant reports and bills for these outside engagements.a. Randy's activities are ethical so long as disclosed.b. Randy is using the time and resources of his employer in an unethical manner.c. Randy's activities are ethical whether disclosed or undisclosed.d. There is no conflict of interest in Randy's activities.

Q: Edward Snowden released classified documents that were stored at his employers' archives. He works for a government agency. He released them because he felt U.S. citizens should know what kind of information their government was keeping about them. Which of the following is a correct statement? a. Snowden has done nothing wrong. b. Snowden has taken something that did not belong to him. c. Snowden is justified if the government was acting unfairly. d. Snowden follows the philosophical school of thought of the newspaper test.

Q: Which of the following is true about Steve Cohen, the founder and owner of SAC Capital?a. He was banned from trading securities for life.b. He was accused of insider trading in a civil suit.c. He was an aggressive trader, but he was never fired.d. He is under criminal indictment.

Q: Lance Armstrong says that he looked up the meaning of the word "cheat" in the dictionary when he was using performance-enhancing drugs (PEDs). The dictionary defined cheating as "using an unfair advantage in a competition." Mr. Armstrong believed that PEDs were used by his competitors and felt it was ethical to continue using them. Which rationalization did Mr. Armstrong use? a. It's a gray area. b. It could be worse. c. Everyone does it. d. I deserve this.

Q: Ralph has used all but one day of his personal leave time (PLT). His company's policy is that PLT can be used for illness, family needs, or medical appointments. Ralph has used his PLT days when he was hung over or when a friend wanted to spend the day with him. Ralph's grandmother, to whom he is very close, passed away, and he would like to go to her funeral, but it will take a day of travel, a day for the funeral, and a day to return. Ralph has asked his supervisor for additional time off in order to go to the funeral. Which of the following is correct? a. If Ralph were an employer, he would see his request differently. b. Companies need to provide additional days when employees request them for a good reason. c. Ralph should receive the extra days because everybody uses PLT for sketchy reasons. d. Giving Ralph the extra days does not affect other employees.

Q: What was the occupation of the author of "The Parable of the Sadhu" piece? a. Minister b. Professional mountain climber c. Writer d. Investment banker

Q: Megyn Kelly, a Fox News Anchor, is interviewing a physician about the impact of Obamacare. The physician is a partner with Ms. Kelly's ex-husband. a. Ms. Kelly need not disclose the relationship because she is now divorced. b. Ms. Kelly need not disclose the relationship unless she also interviews her ex-husband. c. Ms. Kelly needs to disclose the relationship. d. Ms. Kelly need not disclose the relationship because she is an anchor, not a reporter.

Q: Pam purchased a quesadilla at Taco Bell for lunch. She also asked for a water cup, which is free and to be used to get water at the soda fountain. Pam used the water cup to get Pepsi. Which of the following is correct? a. Pam has simply taken advantage of a loophole with no supervision over water cup use b. Pam has taken something that does not belong to her c. Pam has done nothing wrong unless she was warned not to fill the water cup with soda d. Both a and c

Q: Which category of ethical dilemma applies to dog walkers who do not scoop up after their pets? a. Conflict of interest b. Not following the rules c. Balancing ethical dilemmas d. Saying things you know are not true

Q: Thomas Hobbes felt that we needed strong government control in order to achieve ethical behavior.

Q: Lee is an accountant. As an accountant, Lee may be liable for violations of a. consumer protection statutes only. b. securities laws only. c. tax laws only. d. consumer protection statutes, securities laws, and tax laws.

Q: Business Insurance Company includes in its policies a clause that states the insurer cannot contest statements made in the application after the policy has been in force for two years. This is a. a limitations clause. b. a misrepresentation clause. c. an incontestability clause. d. a non-repudiation clause.

Q: Apex Company obtains a traditional business insurance policy from Best Insurance Company. Due to a virus, Apex's servers shut down, and Apex loses computer-stored data and customer sales. Most likely, Best's policy covers the cost to recover a. neither the lost data nor the lost sales. b. the lost data and the lost sales. c. the lost data only. d. the lost sales only.

Q: Alpha Corporation is a U.S. firm that does business internationally. Among the ethical challenges facing Alpha and other firms is the role of women because some countries a. accept any professional role for women. b. expect any professional role for women. c. protect any professional role for women. d. reject any professional role for women.

Q: John is an insurance agent. As an agent, John is liable for failing to advise a client of a. every possible insurance option. b. every reasonable insurance option. c. every significant insurance option. d. none of the above.

Q: Custom Software, Inc. (CSI), obtains a business insurance policy from Digital Insurance, Inc., to cover Web-related risks. Ed, a hacker, breaks into CSI's computer system and steals CSI's product data, which Ed uses to make and sell an identical product. Most likely, Digital's policy covers the loss related to a. neither the stolen data nor the copyright infringement. b. the copyright infringement only. c. the stolen data and the copyright infringement. d. the stolen data only.

Q: Eve gives her coin collection to Fine Coin Shop to hold temporarily. While in the shop's possession, the collection is destroyed. Fine may be liable for the loss if this was a bailment for a. both parties' mutual benefit. b. Eve's sole benefit. c. Fine's sole benefit. d. no one's benefit.

Q: Quality Lenders, Inc., initiates a garnishment proceeding against Real Services Corporation, a domain name registrar, to force a sale of Standard Company's domain name. The court is most likely to rule that garnishment is not possible because a. domain names are not commonly sold in the market. b. domain names do not have value. c. the right to use a domain name is bound to the registrar's services. d. the right to use a domain name is unique to the party whose name is the domain.

Q: Delta County condemns Earl's property. In a suit between the parties, a court is most likely to refuse to allow the condemnation to proceed if Delta County's purpose is to a. benefit the public. b. further private interests. c. increase revenue. d. widen a local highway.

Q: Eagle County imposes a moratorium on building until the county issues its land-use plan. According to the majority in Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency, this moratorium most likely is a. a taking that does not require compensation. b. a taking that requires compensation. c. not a taking and does not require compensation. d. not a taking but does require compensation.

Q: Ann finds a notebook computer and asks Bob to hold it for her temporarily. Later, Bob refuses to return it, claiming that it's not hers. Most likely to establish rights to the computer, under the doctrine of relativity of title a. are Ann and Bob, as concurrent owners. b. is Ann. c. is Bob. d. is no one.

Q: Bay City condemns Cathy's property. In a suit between the parties, a court is most likely to allow the condemnation to proceed if Bay City's purpose is to a. benefit the public. b. further private interests. c. increase revenue. d. punish Cathy.

Q: Pat is an athlete is a professional sport that is not subject to the antitrust laws to the same extent as other professional sports. This sport is a. baseball. b. basketball. c. football. d. soccer.

Q: Cold Calls Corporation a telemarketing firm, files a suit to block the enforcement of the Federal Trade Commission's (FTC) amendment to the Telemarketing Sales Rule establishing a national "do not call" list, on the ground that it violates the First Amendment to the U.S. Constitution. The court is most likely to hold that a. the "do not call" list is constitutional. b. the FTC exceeded its authority. c. the Telemarketing Sales Rule should be suspended pending review. d. this claim is illegal.

Q: Alan owns a Blue Toxic Waste Dump, which must be cleaned up. Ethical questions arise, with respect to the clean up, because a. Alan knows the cost. b. everyone knows the cost. c. no one knows the cost. d. the Environmental Protection Agency knows the cost.

Q: Credit Info, Inc., a credit-reporting agency, sells data about consumers to merchants and others. Under the Fair Credit Reporting Act, Credit must a. not allow consumers to challenge the information. b. not sell data about consumers who request to be "blacklisted." c. report the data accurately. d. tell consumers when the data is sold.

Q: Ruth is an employee of Sam, a franchisee of Total Fitness, Inc. The franchisor may be liable for Ruth's torts committed within the scope of her employment under the principles ofa. acting in one's own interest.b. agency.c. care.d. loyalty.

Q: Pete is an officer with Quality Corporation. Pete is in a position to acquire assets that would benefit Quality if acquired in its name. Pete's usurping this opportunity may violate the duty ofa. acting in one's own interest.b. agency.c. care.d. loyalty.

Q: Nora is a senior officer with Online, Inc., a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that Online's financial results are accurate and timely, Nora and Online's other senior officers must set up and maintaina. internal "disclosure controls and procedures."b. external "release and reveal timetables."c. personal "peruse and review liability policies."d. public "information and discussion forums."

Q: Nina enters into a franchise agreement with Omega, Inc., which agrees not to grant additional franchises within Park Town. Omega begins to sell to consumers directly over the Internet, however, including residents of Park Town. Nina files a suit against Omega, claiming that this violates their agreement. One of Omega's best arguments is thata. consumers may stop buying Omega products.b. excluding competition violates the antitrust laws.c. Nina was only the first Omega franchisee in Park Town.d. Omega will stop giving exclusive territorial rights to its franchisees.

Q: Carl posts messages online in a Delta Corporation chat room stating that "Delta's stock is headed for $20." Over the following six months, the price of Delta's stock declines significantly. Carl's messages are a. fraudulent opinions. b. fraudulent statements of fact. c. non-fraudulent opinions. d. non-fraudulent statements of fact.

Q: Ralph is a director for Superior Marketing Company. Normally, Ralph owes fiduciary duties only to a. himself. b. Superior's corporate personnel. c. Superior's creditors. d. Superior's shareholders.

Q: Ace Corporation is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, Ace is subject to direct corporate governance requirements of a. any local government in whose jurisdiction Ace does business. b. any state in which Ace does business. c. the federal government. d. the state in which Ace incorporated.

Q: Adam enters into a franchise agreement with Beta Corporation, which agrees not to grant additional franchises within Close City. When Beta begins to sell to consumers directly over the Internet, Adam challenges this as a violation of their agreement. This challenge will likely a. fail because excluding competition violates the antitrust laws. b. fail if Beta stops giving exclusive territorial rights to its franchisees. c. succeed if Adam was only the first Beta franchisee in Close City. d. succeed if Beta gave Adam exclusive rights to Close City.

Q: Sam offers Tina a job in a distant state. Tina accepts and moves her family. Two months later, Tina is terminated without cause. Absent an employment contract or a personnel manual, Sam may be held to have violated a. the employment-at-will doctrine. b. the one-year exception to the employment-at-will doctrine. c. the public-policy exception to the employment-at-will doctrine. d. not the employment-at-will doctrine nor any of its exceptions.

Q: Gail is Hal's agent. Ethically, Gail cannot a. be loyal to Hal. b. disclose Gail's interest in property being bought by Hal. c. profit from the agency relation with Hal's consent. d. represent Ira in a transaction with Hal.

Q: Ann has carpal tunnel syndrome. To qualify as a disability under the Americans with Disabilities Act of 1990, this condition must a. be correctable only with a "major medical appliance." b. "possibly prevent" doing manual tasks associated with Ann's job. c. "severely restrict" doing manual tasks associated with Ann's job. d. "substantially limit" the major life activity of doing manual tasks.

Q: Carol, an employee of Digital Corporation, works in Digital's office and out of her own office. Digital provides, pays for, and monitors all of Carol's work-related Internet connections, including her e-mail. Carol files a suit against Digital for privacy violations. A court is most likely to allow monitoring a. at Carol's office and Digital's office. b. at Carol's office only. c. at Digital's office only. d. nowhere.

Q: Tom works for United Personnel Services. Reasons for holding United liable under the doctrine of respondeat superior for Tom's tort injuring Vicky do not include the employer's a. ability to afford Vicky more effective relief. b. ability to pay for Vicky's injury. c. control over Tom. d. guilt or innocence.

Q: Mark is Nora's agent. Despite ethical concerns, Mark's legal duties to Nora do not include a. compensation. b. cooperation. c. loyalty. d. reimbursement.

Q: Under the Americans with Disabilities Act of 1990, conditions that qualify as disabilities include a. bipolar disorder that can be corrected with medication. b. diabetes that can be corrected with insulin. c. nearsighted that can be corrected with lenses. d. none of the above.

Q: Adam, an employee of Beta Corporation, responds from home to e-mail from his supervisor, Craig. Beta monitors the response, and Adam is discharged for his comments. Adam files a suit against Beta for privacy violations. A court is most likely to a. award Adam damages based on a breach of an employment contract. b. award Adam damages based on a breach of a tort duty. c. order Beta to reinstate Adam. d. uphold the discharge.

Q: First National Bank lends money to Gary, taking a security interest in his assets. Later, Gary files a bankruptcy petition. From Firs National's point of view, once Gary is in bankruptcy, his assets have a. decreased value, or no value. b. increased value. c. the same value as before the petition. d. unique value.

Q: Friendly Credit Corporation uses "self-help" repossession when its debtors default on their loans. This simplifies the process of repossession because a. it can be done without judicial process. b. it is less stressful for debtors. c. it provides an incentive for confrontations with debtors. d. the UCC clearly defines what constitutes "breach of the peace."

Q: Bob has an annual income in excess of the mean income in Bob's state of residence. Bob files a bankruptcy petition. Under the Bankruptcy Abuse and Consumer Protection Act of 2005, Bob must opt for a. a Chapter 7 liquidation. b. a Chapter 11 reorganization. c. a Chapter 12 discharge plan. d. a Chapter 13 repayment plan.

Q: Brad is a consumer who files for, and is granted, a discharge of his debts in bankruptcy. The consequences to Brad of this discharge are most likely to include a. blemished credit ratings for up to ten years. b. favorable publicity. c. lower interest charges for new debts. d. unexpected job offers from potential employers.

Q: Great Credit Company lends money to Holly, a farmer. Holly secures the loan with her livestock's feed. Great also obtains a security interest in the proceeds from the feed. Holly defaults on the loan. Great can a. not suffer any loss. b. suffer a loss of no more than half of the value of the loan. c. suffer a loss of no more than three-fourths of the value of the loan. d. suffer a total loss.

Q: Ann, a consumer, files for liquidation under Chapter 7. Beta, Inc., files for reorganization under Chapter 1 Carl, a farmer, files for bankruptcy under Chapter 12. Donna, a sole proprietor, files a repayment plan under Chapter 13. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was initiated as a response to an increase in filings by such persons as a. Ann. b. Beta, Inc. c. Carl. d. Donna.

Q: First National Bank claims that Gene withdrew $500 from his account through the bank's automated teller machine. Gene denies making the withdrawal. In a suit to resolve the dispute, under the Electronic Fund Transfer Act (EFTA), the court may rule in favor of a. First National only. b. First National or Gene, depending on the proof. c. Gene only. d. neither First National nor Gene.

Q: Alan signs a promissory note in reliance on Bob's assurance that it is not a note. Bob negotiates the note to Credit Collection Corporation (CCC), which is a holder in due course (HDC) of the note. When CCC tries to collect, Alan refuses to pay. Under the HDC doctrine, the loss falls on a. Alan only. b. Alan and CCC equally. c. Alan or CCC, depending on which party can afford the loss. d. CCC only.

Q: First National Bank is based in New York. Under the Check Clearing in the 21st Century Act, First National must accept from a collecting bank presentment of a. neither original paper checks nor "substitute" checks. b. original paper checks and "substitute" checks. c. original paper checks only. d. "substitute" checks only.

Q: E-Bank processes e-money, or digital cash, outside the network of brick-and-mortar banks, checks, and paper currency. Currently, this e-cash is subject to a. no government regulation. b. the Federal E-Money Act. c. the International Internet Payments Processing Convention. d. the Uniform Digital Cash Act (in most states).

Q: In accord with banking industry practices, U.S. Bank's computers are programmed to verify signatures only on checks exceeding $1,000. U.S. Bank cashes a check for $900 on the forged signature of its customer Vicky. Under the revised UCC Article 3, with respect to reasonable commercial standards, U.S. Bank is a. definitely liable. b. definitely not liable. c. liable if any other bank verifies all signatures on all processed checks. d. liable if Vicky has never written or cashed a check for more than $899.

Q: First National Bank is based in New York. Like other banks, under the Check Clearing in the 21st Century Act, First National must change a. all of its check-collection practices. b. its electronic check-processing practices only. c. its paper check-processing practices. d. nothing.

Q: Timber Products, Inc., and Walt, a consumer, enter into a contract for a sale of plywood. If the contract includes a clause that is perceived as grossly unfair to Walt, its enforcement may be challenged under the doctrine of a. good faith. b. impracticability. c. square dealing. d. unconscionability.

Q: American Products Company and Best Manufacturing, Inc., enter into a contract for the sale of a certain quantity of machine parts. Although not expressly stated, a concept that is read into this contract is the concept of a. good faith. b. impracticability. c. square dealing. d. unconscionability.

Q: Delta Watercraft, Inc., makes and sells a boat to Elin, who is injured in an accident allegedly due to the boat. Elin and others similarly situated pool resources to file a suit as a group against Delta, seeking $10 million in damages. Under the Class Action Fairness Act, the suit must be filed in a federal court a. if Delta is a national corporation. b. if more two-thirds of the plaintiffs are from multiple states. c. under any circumstances. d. under no circumstances.

Q: Fast Food Corporation and Great Potatoes, Inc., enter into a contract for Great's sale to Fast of all of the potatoes that Fast needs. The amount of potatoes that Great must supply is a. all of Fast's requirements that may occur in good faith. b. all of Great's output that is not commercially impracticable. c. the greatest quantity that is not unconscionable. d. the greatest quantity that makes the contract a "square deal."

Q: U.S. Oil Company and Vehicle Fuel Corporation enter into a contract for the sale of refined oil. Either party's nonperformance may be excused, because of unforeseen circumstances, under the doctrine of commercial a. good faith. b. impracticability. c. square dealing. d. unconscionability.

Q: Alpha Tools, Inc., makes and sells a Best-brand power drill to Craig, who is allegedly injured by the drill. Craig and others allegedly injured by Best-brand drills pool resources to file a suit as a group against Alpha. Under the Class Action Fairness Act, if more than two-thirds of the plaintiffs are from different states and the damages sought are $5 million or more, jurisdiction over the suit is in a. a federal court. b. a federal court and a state court. c. a federal court or a state court. d. a state court.

Q: Mega Mining Corporation and Nora enter into a contract for a sale of the minerals beneath Nora's land. A court might determine this contract is so one-sided and unfair as to be unenforceable under a. the concept of unconscionability. b. the doctrine of promissory estoppel. c. the principle of freedom of contract. d. the Statute of Frauds.

Q: To bid on a job, Alpha Construction Company relies on the promise of Beta Plumbing, Inc., to perform certain work at a certain price. Beta fails to perform. Alpha may recover from Beta under a. the concept of unconscionability. b. the doctrine of promissory estoppel. c. the principle of freedom of contract. d. the Statute of Frauds.

Q: United Sales, Inc., includes a forum-selection clause in a contract entered with Vicky. In a suit between United and Vicky, a dispute arises over the enforcement of the clause. The court is most likely not to enforce the clause if it is a. located in distinctive type on the first page of the contract. b. located in small type at the end of a standard form. c. part of a contract entered into online. d. presented in a fair and forthright fashion.

Q: Alice and Bob sign a prenuptial agreement that includes a waiver of all support in the case of divorce. A court will most likely hold that this waiver is a. enforceable according to public policy. b. enforceable by the financially weaker party only. c. unenforceable as contrary to public policy. d. unenforceable by the financially stronger party only.

Q: Omega Data, Inc., makes certain representations about its financial health to Pat, whom Omega offers a job in its Iowa office. Pat accepts. Omega soon closes the office and discharges Pat, who files a suit against the firm for fraud. The court will most likely hold that Omega is liable if a. Omega's representations about its financial health were false. b. Omega's representations about its financial health were not false. c. Pat had not held a previous job. d. Pat's employment was at-will.

Q: Digital Services Corporation (DSC) promises to hire Ellen. The day before Ellen is to start work, DSC revokes the promise. In Ellen's suit against DSC, the court is most likely to hold that DSC is not liable to Ellen if a. Ellen's promised employment is at-will. b. Ellen falls under the protection of a federal or state statute. c. Ellen has an employment contract. d. Ellen quit a previous job and moved to a new city to work for DSC.

Q: Standard Manufacturing Company and United Distributors, Inc., engage in preliminary contract negotiations, but have not yet drawn up a formal contract. A court will most likely hold that the parties have an enforceable contract at this stage if a. the parties expressly stated they would not be bound absent a signed agreement. b. one of the parties has partially performed. c. some material terms remain to be agreed on. d. the contract at issue is the type usually committed to writing.

Q: Quik Sales Corporation and Rollo enter into a contract under which Rollo agrees to pay for Quik's services. Later, Rollo files a suit against Quik, alleging that the contract is unconscionable. Whether the contract is unconscionable is determined by a. Quik only. b. Rollo only. c. the court. d. UCC 2"302.

Q: Omega Programming Associates, which is new to its business, offers its services at less than half their possible market price to Peak Computer Corporation, which knows the services' value. Peak's decision to accept the offer without commenting on the price could be justified by a. the concept of unconscionability. b. the doctrine of promissory estoppel. c. the principle of freedom of contract. d. the Statute of Frauds.

Q: Great Services Corporation includes a forum-selection clause in its contract entered into online with Harry. The purpose of this clause is to avoid, in a court in a distant jurisdiction, the appearance of a. Great Services only. b. Harry only. c. Great Services or Harry. d. the Internet Foreign Forum Arbitration Counsel.

Q: Jack and Jill sign a prenuptial agreement. A court will most likely hold that Jill did not sign the agreement voluntarily if, before signing the agreement, she a. did not have the advice of independent counsel. b. followed the advice of independent counsel. c. refused to follow the advice of independent counsel. d. refused to obtain the advice of independent counsel.

Q: Standard Corporation makes certain representations about its financial health to Tom, whom Standard offers a job in its Utah plant. Tom accepts. Standard soon closes the plant and discharges Tom, who files a suit against the firm for fraud. The court will most likely hold that Standard is not liable if a. Standard's representations about its financial health were false. b. Standard's representations about its financial health were not false. c. Tom had not held a previous job. d. Tom's employment was at-will.

Q: Ben works for Consumer Industries, Inc (CII). When CII fires Ben, he files a suit against the firm. The court will most likely hold that CII is not liable if a. Ben's employment is at-will. b. Ben falls under the protection of a federal or state statute. c. Ben has an employment contract. d. Ben quit a previous job and moved to a new city to work for CII.

Q: During contract negotiations between Macro Corporation and National Sales Company, before a formal contract is signed, Macro announces that they have "made a deal." A court will most likely hold that the parties have an enforceable contract if a. all essential terms have been agreed on. b. National does not issue a "counter-announcement." c. only disputed issues remain to be resolved. d. only major terms are open for further negotiation.

Q: To complain about Omega Corporation's products, Pat opens a Web site with the domain name "omegasucks.com." Omega files a suit against Pat. If the court rules in Pat's favor, it will most likely be on the basis of a. a likelihood of confusion. b. Pat's privacy rights. c. the freedom of speech. d. trademark law.

Q: Alpha Data Corporation buys and sells consumers' personal information. This may violate a. businesses' trademarks. b. individuals' privacy rights. c. manufacturers' duty to warn. d. software makers' copyrights.

Q: In a federal court, Jody is convicted of a white-collar crime. This crime is subject to federal sentencing guidelines that went into effect in 1991. After the ruling in United States v. Booker in 2005, the judge in sentencing Jody a. may depart from the guidelines. b. must establish new guidelines. c. must follow the guidelines. d. must ignore the guidelines.