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Q:
If a party to a franchise contract fails to perform, he or she may be subject to a suit for breach of contract.
Q:
Fact Pattern 25-2Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly imÂpossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability.Refer to Fact Pattern 25-2. To successfully defend against Beth's claim, COC will have to show thata. Beth consistently failed to meet the essential requirements of her job.b. COC cannot make changes to the doors without undue hardship.c. Dian is qualified for Beth's position.d. the doors were not installed as an act of intentional discrimination.
Q:
Fact Pattern 25-2Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly imÂpossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability.Refer to Fact Pattern 25-2. To succeed with a claim against COC under the Americans with Disabilities Act, Beth will have to show thata. Beth consistently met the essential requirements of her job.b. COC refused to make reasonable accommodation for Beth.c. Dian is unqualified for Beth's position.d. the doors were installed as an act of intentional discrimination.
Q:
A state deceptive trade practice statute may limit the actions of franchisors.
Q:
Commercial Products Company (CPC) markets its products nationwide. When making a decision, CPC must take into account the needs of
a. consumers and employees.
b. owners and shareholders.
c. society and the community.
d. all of the above.
Q:
Mary works in the public relations department of National Sales Company. Her job includes portraying National's activities in their best light. In this context, ethics consist of
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to non-business activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves National's "face."
Q:
Dick works for First City Bank. When his spouse Elin is diagnosed with Lou Gehrig's disease, Dick asks to take temporary leave to care for her. First City discharges him. He files a suit against the bank under the Americans with Disabilities Act of 1990. Most likely, Dick can
a. recover for association discrimination.
b. recover for reverse discrimination.
c. recover for disparate-impact discrimination.
d. not recover.
Q:
An owner's license of a formula to make a certain product to an outside party is a franchise.
Q:
In studying business law, Professor Smith's students also study ethics in a business context. Ethics is the study of what constitutes
a. financially rewarding behavior.
b. legal behavior.
c. religious behavior.
d. right or wrong behavior.
Q:
Paula, a disabled person, applies for a job at Quantity Corporation for which she is well qualiÂfied, but for which she is rejected. Quantity continues to seek applicants and eventually fills the posiÂtion with a person who is not disabled. Paula is most likely to succeed in a suit against Quantity for discrimination under the Americans with Disabilities Act of 1990 if she can show that
a. she was not hired solely because of her disabilÂity.
b. she can function well with corrective devices or on medication.
c. her disability causes her undue hardship.
d. she could not perform the job even with reasonable accommodation.
Q:
Most fast-food chains are distributorships.
Q:
Some U.S. bribery laws are directed toward accountants.
Q:
Eton files a suit in a federal district court against Florida, alleging employment discriminaÂtion under the Age Discrimination in Employment Act of The state asks the court to dismiss the suit. The court is most likely to rule that
a. the state is immune from the suit.
b. the suit can proceed.
c. Eton is immune from any defense the state might offer.
d. the court is immune from such request.
Q:
A manufacturer's license to an outside dealer to sell a product is a distributorship.
Q:
Contract law governs franchise relationships.
Q:
According to utilitarianism, it does not matter how many people benefit from an act.
Q:
Fact Pattern 25-1Lita replaces Manny in his job at Neighborly Business Corporation (NBC).Refer to Fact Pattern 25-1. To succeed with an age-discrimination claim against CBC, Manny will have to show thata. Lita is not qualified for Manny's job.b. Manny is qualified for his job.c. NBC's qualifications for Manny's job are too high.d. no one could do Manny's job as well as he could.
Q:
In a chain-style business operation, a franchise operates under a franchisor's trade name.
Q:
According to utilitarianism, an action that affects a minority adversely is morally wrong.
Q:
Fact Pattern 25-1Lita replaces Manny in his job at Neighborly Business Corporation (NBC).Refer to Fact Pattern 25-1. Manny believes that he has been discriminated against on the basis of his age. For the Age DisÂcrimination in Employment Act of 1967 to applya. all parties must be forty years of age or younger.b. Lita must be forty years of age or older.c. Manny must be forty years of age or older.d. NBC must have been in existence for at least forty years.
Q:
A franchise exists when the owner of a trademark licenses its use to another party to sell goods or services.
Q:
Duty-based ethical standards imply that people have basic rights.
Q:
Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on
a. age.
b. disability.
c. gender.
d. race.
Q:
A franchise exists when the owner of a copyright licenses its use to another party to sell goods or services.
Q:
Lisa brings a lawsuit against her employer for unlawful discrimination. Lisa is successful in proving that she was unlawfully discriminated against by her employer. Lisa may be awarded
a. back pay, but not retroactive promotions.
b. retroactive promotions, but not back pay.
c. damages, but not back pay.
d. back pay, retroactive promotions and damages.
Q:
Ethical standards based on religious teachings involve an element of compassion.
Q:
Acting in good faith gives a business firm a better chance of defending its actions in court.
Q:
Pikabo files an employment discrimination suit against Quantitative Analysis, Inc., under the Civil Rights Act of 1964, based on its discharge of Pikabo. Possible relief includes
a. imprisonment.
b. reinstatement.
c. fines.
d. an order to shutdown the employer's business.
Q:
A franchisee is a party who sells a franchise.
Q:
Technological developments can lead to ethical and legal uncertainties.
Q:
Vinnie, the owner of Café Rico, knows about, but does not take any action to prevent, the sexual harassment of employees. Vinnie and the café may be liable for such harassment by
a. an employee's previous employer.
b. a customer or a co-worker.
c. an employee's spouse or other close relative.
d. none of the choices.
Q:
A franchise is a form of business organization.
Q:
Simply obeying the law does not fulfill all ethical obligations.
Q:
A sole proprietorship is a separate legal entity for tax purposes.
Q:
One of the advantages of a sole proprietorship is that the owner is not liable for the actions of the business.
Q:
A sole proprietorship continues in business despite the death of the owner.
Q:
Elsa participates in a Title VII investigation at the firm where she works. As a result, Elsa's employer demotes her. Elsa can file a
a. harassment complaint.
b. retaliation claim.
c. constructive discharge claim.
d. disparate-impact discrimination claim.
Q:
One of the disadvantages of a sole proprietorship is that the owner is liable for the losses of the business.
Q:
A sole proprietor may own and manage any type of business.
Q:
The legality of a particular action is always clear.
Q:
The standard for determining whether constructive discharge has occurred is whether or not
a. a reasonable person in the employee's position would feel compelled to quit.
b. the employee's annual wage rate is fair.
c. a person of another race in the employee's position would feel compelled to quit.
d. a person of the opposite gender in the employee's position would feel compelled to quit.
Q:
Ignorance of the law will always excuse a business from liability for a violation of that law.
Q:
A sole proprietorship's income is taxed as the owner's personal income.
Q:
Greta is the only female employee in the maintenance department of Hydraulics Inc. Greta's supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
a. a constructive discharge.
b. a destructive discharge.
c. an instructive discharge.
d. not a discharge.
Q:
Ruth is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner announces that some emÂployees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. This is
a. harassment on the basis of sexual orientation.
b. not harassment.
c. quid pro quo harassment.
d. same-gender harassment.
Q:
Management constantly faces ethical trade-offs.
Q:
Starting a sole proprietorship is easier and less costly than starting any other form of business.
Q:
Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
Q:
Lying can be a violation of a duty of loyalty that an employer may owe to its employees.
Q:
In choosing a form of business organization for a new enterprise, important factors include the ease of creation.
Q:
Erasmus files a suit against Drain-Pro Plumbing & Repair LLC under the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of
a. a protected class.
b. a majority group.
c. an employer' association.
d. a union.
Q:
In choosing a form of business organization for a new enterprise, important factors include the titles of the organization's officers.
Q:
Corporations owe legal duties to their shareholders and their employees.
Q:
Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her ethnicity, or national origin. This is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
Q:
In choosing a form of business organization for a new enterprise, important factors include the ambiance of the home office.
Q:
Corporations owe ethical duties to their shareholders and their employees.
Q:
Doc's Sports Club enters into a franchise agreement with Elite Fitness Centers that provides for termination at any time for "cause." Doc's fails to meet Elite's "Friends and Family" membership sales quota. Is this "cause" for termination? Explain.
Q:
Corporate ethical policies must be clearly communicated to be effective.
Q:
Melanie files an employment discrimination suit against Natural Gas Industries Corp. under Title VII on a disparate-impact theory. To succeed, Melanie must show that a protected group of people are adversely affected by any of the following except the employer's
a. practices.
b. procedures.
c. tests.
d. seniority system.
Q:
Owen plans to open Owen's Pets Store, a pet sales and pet supplies outlet, and to hire Quimby and Ruth. Owen will invest only his own money. He does not expect to make any profit for at least two years and to make almost no profit for the first three years, but he hopes to expand eventually. Which form of business organization would be most appropriate? What are the chief characteristics, advantages, and disadvantages of this form of business organization? If Owen wants to obtain additional capital to expand the business, but does not want to lose control of the firm, what is his best option?
Q:
Setting realistic workplace goals can reduce the probability that employees will act unethically.
Q:
Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
Q:
Truman applies for a job at Skylight Canopy Corporation for which he is well qualiÂfied, but for which he is rejected. Skylight continues to seek applicants and eventually fills the posiÂtion with a person who is not a member of a miÂnority. Truman is most likely to succeed in a suit against Skylight for discrimination if he is a member of
a. a protected class.
b. a majority group.
c. an employer' association.
d. a union.
Q:
Ethical codes of conduct, more than management's behavior, set the ethical tone of a firm.
Q:
Bob operated a pet grooming shop under a franchise agreement with Clean Pets Corp (CPC). The agreement allowed CPC to terminate the franchise if Bob was fined for cruelty to animals. After an investigation initiated by a customer complaint, Bob was fined for cruelty. CPC terminated the franchise. Bob filed a suit against CPC for wrongful termination. Based on the decision in Case 26.3, Chic Miller's Chevrolet, Inc. v. General Motors Corp., the court will most likely rule in favor of
a. Bob, because CPC had no good cause to terminate the franchise.
b. Bob, because the fine for cruelty was based on a customer complaint.
c. CPC, because a franchisor can terminate a franchise at any time.
d. CPC, because the franchise was terminated for good cause.
Q:
Sarah believes that she was rejected for a position at Trekking Travel Agency due to her race. Sarah files a suit against Trekking Travel Agency under Title VII on the basis of disparate-treatment discrimination. Sarah must show all of the following except that
a. she is a member of a protected class.
b. she applied and was qualified for the job in question.
c. she was rejected by Trekking Travel Agency.
d. other people of her race hold similar positions with other employers.
Q:
Ethics is not concerned with the way in which moral principles are derived.
Q:
Jack buys a Kitchens, Inc., franchise, which the franchisor later terminates. In determining whether the termination was proper, a court will generally
a. balance the rights of both parties.
b. emphasize the right of Kitchens, Inc., to its business operation.
c. focus on the right of Jack to be dealt with fairly.
d. underscore the interest of consumers in affordability.
Q:
Bret buys a franchise from Comida Mexicano Ltd. If their agreement is like most franchise agreements, it will specify that Comida can terminate the franchise
a. at will.
b. for any reason.
c. for cause only.
d. for no reason.
Q:
Ethics focuses on the way in which moral principles apply in daily life.
Q:
Cody believes that Delta Corporation has disÂcriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To esÂtablish a prima facie case of employment discrimiÂnation, Cody must show that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
c. discriminatory intent motivated Delta's act.
d. other firms in Delta's industry have committed discriminatory acts.
Q:
Star Resorts Corporation wants to terminate its franchise arrangement with Tony. Their contract does not provide for notice of termination or set a time for winding up the business. This means that to wind up, Tony
a. has a reasonable time, with notice.
b. has whatever time A determines, with or without notice.
c. is entitled to notice, but nothing more.
d. must close immediately.
Q:
Dakota believes that Credit Services Corporation (CSC) has disÂcriminated against her on the basis of gender. She files a suit against CSC under the Civil Rights Act of 1964. To esÂtablish a prima facie case of employment discrimiÂnation, Dakota must show that
a. she is a member of a protected class.
b. CSC has no legal defenses against the claim.
c. discriminatory intent motivated CSC's act.
d. no other firm in CSC's industry has committed a discriminatory act.
Q:
ABC DVD Manufacturing, Inc., has to decide whether to close a plant, which will result in the lay-off of fifty employees. ABC may weigh the costs of doing so against the benefits. If the benefits are greater than the costs, can closing the plant be ethically justified, considering the effect on the employees?
Q:
Origami Paper Products Corporation meets all of the requirements to be subject to the federal employment discrimination laws. These laws restrict the ability of employers to discriminate against workers on the basis of
a. experience.
b. gender.
c. intelligence.
d. skill.
Q:
A franchise agreement between Simple Software Company and Total Game, Inc., is silent on a time for termination of the franchise. Simple may
a. never terminate.
b. terminate at any time.
c. terminate on reasonable notice.
d. terminate on three days notice.
Q:
Fine Clothes Company buys clothing assembled by Gamma, Ltd., a foreign firm that employs young children for long hours and low pay. Gamma's nation does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Fine Clothes' connection to Gamma and plans to reveal this information. Before HIP does so, however, Fine Clothes publicly releases the information itself and announces that it is severing its relationship with Gamma. Fine Clothes publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Fine acted unethically in any way? From an ethical perspective, is Fine Clothes' conduct in this situation more important than whatever its motive might be?
Q:
Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunity Commission.
Q:
Rita buys a Super Grill franchise. Super Grill requires that its franchisees buy its products for every phase of their operations. Because Rita wishes to buy less expensive products, she challenges the requirement. Her best argument is probably that the requirement violates
a. the commerce clause.
b. the Equal Protection Clause.
c. the federal antitrust laws.
d. the First Amendment.
Q:
International Manufacturing Corporation's side payments to government officials in exchange for favorable business contracts in foreign countries are considered, in the United States,
a. illegal and unethical.
b. illegal only.
c. neither illegal nor unethical.
d. unethical only.