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Law
Q:
A franchisee normally pays an initial lump sum for a franchise license.
Q:
Valerie is a pilot for Wayfarer Airlines. Wayfarer's policy is to restrict Valerie and its other pilots from flight responsibilities after a certain age. This is most likely
a. a legitimate bona fide occupational qualification.
b. discrimination on the basis of age.
c. reverse discrimination.
d. discrimination on the basis of disability.
Q:
International Sales Corporation, like other businesses, has duties prescribed by
a. ethics and the law.
b. ethics only.
c. neither ethics nor the law.
d. the law only.
Q:
A franchisee may be required to pay for certain of the franchisor's administrative expenses.
Q:
Under no circumstances may a franchisor establish an additional franchise in a territory allotted to a franchisee.
Q:
Machine Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school eduÂcaÂtion and job performance. In a suit against Machine Corporation under Title VII, this requirement is shown to have a discriminatory effect. The employer has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
Q:
Silky Coordinates, a women's clothing store, employs female attendants to asÂsist customers in the dressing rooms. Radley, a forty-one-year-old male, apÂplies for an attenÂdant's job, but is not hired. In Radley's suit against Silky for emÂployment discrimination under Title VII, the store has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
Q:
The ethical dilemma faced by the management of International Chemical Corporation, and other business firms, in many circumstances involves the effect that a decision will have
a. in favor of one group against another group.
b. on the firm's competitors.
c. on the government.
d. all of the above.
Q:
Flynn is a drug addict who has completed a supervised drug-rehabilitation program. Gert used drugs casually in the past. Heath reports to work while under the influence of alcohol. Considered to have a disability under the Americans with Disabilities Act of 1990 is
a. Flynn.
b. Gert.
c. Heath.
d. all of the choices.
Q:
Fact Pattern 5-1
Quantity Trucking Company (QTC) owns a fleet of trucks that transports hazardous waste across the United States. Rod is a QTC driver, whom QTC knows drives longer hours than federal regulations permit. One night, Rod exceeds the limit and has an accident. Spilled chemicals contaminate Small City's water source, forcing the residents to move away.
Refer to Fact Pattern 5-1. Under the reasoning and the words of the court in Case 5.2, In re the Exxon Valdez, QTC's conduct might be described as
a. "blamelessly faultless" and "unintentionally capricious."
b. "highly reprehensible" and "intentionally malicious."
c. "irregardlessly respectful" and "respectfully regardless."
d. "uniquely preoccupied" and "wantonly sleepless."
Q:
A franchisee normally does not pay a fee for a franchise license until after the first year of using it.
Q:
Fact Pattern 5-1
Quantity Trucking Company (QTC) owns a fleet of trucks that transports hazardous waste across the United States. Rod is a QTC driver, whom QTC knows drives longer hours than federal regulations permit. One night, Rod exceeds the limit and has an accident. Spilled chemicals contaminate Small City's water source, forcing the residents to move away.
Refer to Fact Pattern 5-1. According to the reasoning of the court in Case 5.2, In re the Exxon Valdez, QTC is liable because
a. harm was caused by an unfortunate accident.
b. QTC showed reckless disregard for Small City's residents and others.
c. Rod exceeded the federal time limit.
d. Small City should have better protected the water source.
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:
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:
A franchise exists when the owner of a copyright licenses its use to another party to sell goods or services.
Q:
Ethical standards based on religious teachings involve an element of compassion.
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:
Acting in good faith gives a business firm a better chance of defending its actions in court.
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:
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:
Corporations owe ethical duties to their shareholders and their employees.
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.