Q&A Hero

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 dis­criminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To es­tablish a prima facie case of employment discrimi­nation, 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: Dakota believes that Credit Services Corporation (CSC) has dis­criminated against her on the basis of gender. She files a suit against CSC under the Civil Rights Act of 1964. To es­tablish a prima facie case of employment discrimi­nation, 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: 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: 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.

Q: Title VII of the Civil Rights Act of 1964 applies to which of the following? a. An employer with five employees b. An employer with ten employees c. A labor union with twenty-five members d. A labor union with twelve members

Q: Pricey Auto Corporation gives notice to Quint that Pricey is terminating their franchise arrangement. Winding up the business requires a. a new franchise agreement. b. nothing more than closing immediately. c. Quint's death, disability, or insolvency. d. returning Pricey's property.

Q: Comfort Wear, Inc., a franchisor of shoe stores, wishes to standardize the pricing practices of its franchisees that have engaged in price-cutting to increase their respective shares of the market. The most prudent rem­edy might be for Comfort to a. reduce the quantity of the products that it sells to its franchisees. b. suggest the prices at which its franchisees sell their products. c. terminate the franchisees who cut prices. d. undercut the business of those franchisees who cut prices by open­ing competing stores in the franchisees' territory.

Q: To assist in detecting illegal bribes, Eagle, Inc., and all U.S. companies, must a. conceal financial records that reveal past bribes. b. keep records that "accurately and fairly" reflect financial activities. c. make bribes through third parties rather than directly to officials. d. permit payments to foreign officials that are unlawful in that country.

Q: Personnel Staffing Corporation meets all of the requirements to be subject to the federal employment discrimination laws. Among these, the most important statute prohibiting discrimination against members of protected classes is a. the Age Discrimination in Employment Act of 1967. b. the Americans with Disabilities Act of 1990. c. the National Labor Relations Act of 1935. d. Title VII of the Civil Rights Act of 1964.

Q: Erica is sixty-year-old woman with cerebral palsy. Erica is a member of a. one protected class. b. two protected classes. c. three protected classes. d. no protected classes.

Q: In making decisions for United Merchandising Company, Jay uses a cost-benefit analysis. This is part of a. duty-based ethics. b. Kantian ethics. c. the principle of rights. d. utilitarianism.

Q: Nina wants the exclusive right to sell Oven-Rite Corporation appliances in a certain area. If Oven-Rite agrees, it will likely require Nina to pay a. a license fee and a percentage of the sales. b. a license fee only. c. a percent­age of the sales only. d. neither a license fee nor a percentage of the sales.

Q: Lee is seventy years old and Mira is gay. Based on this information, members of protected classes include a. Lee and Mira. b. Lee only. c. Mira only. d. neither Lee nor Mira.

Q: Stacy contracts to buy a franchise from Tender Steak House Company. In this contract, as in most franchise contracts, the determination of the territory to be served is made by a. a court. b. Stacy. c. Tender Steak House. d. the Federal Trade Commission.

Q: Harry, a vice-president of International Pharmaceuticals, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it a. gives business profits priority over production costs. b. ignores the practical costs of a given set of circumstances. c. requires complex cost-benefit analyses of simple situations. d. tends to justify human costs that many find unacceptable.

Q: Tom, in making marketing decisions for United Products, Inc., takes a utilitarian perspective. A characteristic statement of this philosophy is a. "an action is morally correct when, among the people it affects, it produces the greatest amount of good for the greatest number." b. "for every action, there is an equal and opposite reaction." c. "life in a state of nature is nasty, brutish, and short." d. "the pursuit by individuals of their self-interest will result in a corresponding increase in societal welfare."

Q: Fern contracts to buy a franchise from Green Grocery Company. The contract is silent on the issue of territorial rights. Green allows a competing franchise to be established near Fern's store, which suffers a significant loss in profits. This is most likely a violation of a. no law. b. the ban on certain types of anticompetitive agreements. c. the Federal Trade Commission's Franchise Rule. d. the implied covenant of good faith and fair dealing.

Q: Under Title VII of the Civil Rights Act of 1964, most private firms are required to implement affirmative action policies.

Q: An employer may defend against a claim of unintentional discrimination by asserting that a practice that has a discriminatory effect is a business necessity.

Q: Roller Rinks, Inc. (RRI) grants a franchise to Sven to operate an RRI rink. RRI may require Sven to pay a percentage of his a. annual sales only. b. annual sales or annual volume of business. c. annual volume of business only. d. neither annual sales nor annual volume of business.

Q: Holly, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on a. moral values. b. religious beliefs. c. the consequences of an action. d. the nature of an action.

Q: Gender can be a bona fide occupational qualification.

Q: John decides to cheat on an examination to get into graduate school so that he can later volunteer to serve the needy with better skills. From an ethical perspective, John decides that a. the "end" of his action justifies the "means." b. the "means" of his action justifies the "end." c. the "end" and the "means" of his action justify each other. d. the "end" of his action can never justify the "means."

Q: Pat enters into an agreement with Ole! Food, Inc., to operate a franchise in Region City. Later, Ole! grants franchises to others within the city, Pat files a suit to close them. This suit will likely a. fail because excluding competitors violates the an­titrust laws. b. fail if Ole! did not give Pat exclusive rights to Region City. c. succeed if Pat paid a franchise fee. d. succeed if Pat was the first Ole! representative in Region City.

Q: Employers who do not accommodate the needs of persons with disabilities must demonstrate that the accommodations would cause undue hardship.

Q: Otis is interested in buying a franchise from Plentiful Inc. This transaction, like other franchise deals, is regulated to protect a. certain types of anticompetitive agreements. b. franchisors from dishonest prospective franchisees. c. prospective franchisees from dishonest franchisors. d. the government's power to restrict freedom of contract.

Q: International Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This requires that the employees a. categorize the issues according to legality, morality, and profitability. b. consider only the benefits that would accrue to them personally. c. look only at the result, regardless of the means to attain it. d. weigh the consequences that would follow if everyone took the same action.

Q: Riley is interested in buying a franchise from Soft Shoe Corporation. Soft Shoe must disclose material facts that Riley needs to make an informed decision concerning this purchase, according to a. no law. b. the federal service-station franchise termination law. c. the Federal Trade Commission's Franchise Rule. d. the Illinois Franchise Disclosure Act.

Q: The Americans with Disabilities Act of 1990 requires that employers accommodate the needs of applicants or employees with disabilities who are not otherwise qualified for the work

Q: Tina, the chief financial officer for USA Products Corporation, attempts to apply Christian precepts in making ethical decisions and in doing business. In applying duty-based ethical standards that are derived from a religious source, Tina would consider the motive behind an act to be a. irrelevant. b. the least important consideration. c. the most important consideration. d. the only consideration.

Q: Dina, an accountant for Excel Financial, Inc., attempts to apply the duty approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must a. achieve the greatest good for the most people. b. avoid unethical behavior regardless of the consequences. c. conform to society's ethical standards. d. place his or her employer's interest first.

Q: If a job applicant or an employee with a disability, with reasonable accommodation, can perform essential job functions, the employer must make the accommodation.

Q: Nico is interested in buying a franchise from Oz Inc. For Nico to make an informed decision concerning this purchase, Oz must disclose in writing or online a. general estimates of costs and sales, but not the basis for them. b. material facts such as the basis of projected earnings figures. c. no information. d. start-up requirements, but not renewal conditions.

Q: Kay follows certain religious principles. With respect to the behavior of Kay and other adherents of her religion, its principles are most likely a. absolute. b. changeable. c. flexible. d. vague.

Q: Rafe is interested in buying a franchise from Sportz Rulez Company. In this transaction, the Federal Trade Commission's Franchise Rule a. does not apply. b. enables Rafe to weigh the deal's risks and benefits. c. enables Sportz Rulez to weigh the deal's risks and benefits. d. prohibits certain types of anticompetitive agreements.

Q: Employers can consider mitigating measures or medications when determining if an individual has a disability that fits the definition in the Americans with Disabilities Act of 1990.

Q: Under the Americans with Disabilities Act of 1990, an employer must hire unqualified applicants who have disabilities.

Q: Rob, the owner of Super Stores, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects a. the right determination under a cost-benefit analysis. b. the rights of others. c. the "right" thing to do. d. the right to make a profit.

Q: Chicago Coca-Cola Bottling Company is a. a chain-style franchise. b. a distributorship franchise. c. a manufacturing franchise. d. no franchise.

Q: Leo buys an exclusive territory in which he is authorized to set up a plant to make Midwest Dairy, Inc., products. After receiving the formula, Leo begins making Nice-brand ice cream and other Midwest products. This is a. a chain-style franchise. b. a distributorship franchise. c. a manufacturing franchise. d. no franchise.

Q: State employers are not immune from private suits brought by employees under the Americans with Disabilities Act of 1990.

Q: Jill lies to her family. According to legal and ethical principles, this is a. illegal. b. unethical. c. illegal and unethical. d. none of the above.

Q: State employers are not immune from private suits brought by employees under the Age Discrimination in Employment Act of 1967.

Q: Many consumers misuse the products of Midwest Manufacturing, Inc., and are injured. In terms of responsibility for the consequences, Midwest may have a. an ethical duty only. b. a legal duty only. c. an ethical and a legal duty. d. neither an ethical nor a legal duty.

Q: CheezBurger Heaven, Inc., conducts a chain-style franchise. This involves the transfer to Clive, one of its franchisees, of a. a license. b. a trade name. c. the formula to make a product. d. the ownership of the business.

Q: Under the Age Discrimination in Employment Act of 1967, a plaintiff must prove that he or she was replaced by a person "outside the protected class."

Q: Sam, the human resources director for Total Personnel Corporation, attempts to comply with the law in dealing with applicants and employees. One of the challenges Sam faces is that the legality of an action is a. always clear. b. never clear. c. sometimes clear. d. usually clear.

Q: Handee Hardware, Inc., grants a franchise to Ivan to open and operate a Handee Hardware store. Handee will likely charge Ivan a. a license fee and a price for supplies. b. a license fee only. c. a price for supplies only. d. neither a license fee nor a price for supplies.

Q: Euro Autos & Trucks, Inc., licenses Fancy Vehicles Corporation, an auto­mobile dealership, to sell its products. This is a. a chain-style franchise. b. a distributorship franchise. c. a manufacturing franchise. d. no franchise.

Q: Under the Age Discrimination in Employment Act of 1967, the plaintiff must show that unlawful discrimination was the reason for an adverse employment action.

Q: A plaintiff who proves unlawful discrimination may be awarded reinstatement, back pay, but not retroactive promotions.

Q: Ace Company manages its employees' retirement benefit plan. With respect to this plan, Ace has a. a fiduciary duty. b. a subsidiary duty. c. a utilitarian duty. d. no duty.

Q: Frooty Drinx, Inc., and Gert have a processing-plant franchise arrange­ment. This involves the transfer of a. a license. b. a trade name. c. the formula to make a certain product. d. the ownership of the business.

Q: Eagle Manufacturing Corporation could demonstrate a commitment to ethical behavior by a. complying with the law only. b. implementing ethical programs only. c. making a profit only. d. complying with the law, establishing ethics codes, and making money.

Q: There is no cap on damages for discrimination in violation of the Civil Rights Act of 1964.

Q: Instead of setting up a business to market her own products, Krissy con­sid­ers entering into a distributorship franchise with Little Breweries Corporation. This involves the transfer of a. a license. b. a trade name. c. the formula to make a certain product. d. the ownership of the business.

Q: Any decision by the management of Standard Business Corporation may significantly affect its a. operators only. b. operators, owners, suppliers, the community, or society as a whole. c. owners only. d. suppliers, the community, or society as a whole only.

Q: Protection against discrimination under the Civil Rights Act of 1964 does not extend to situations in which individuals are harassed by members of the same gender.

Q: Opie buys a franchise from Paradise Clothing Corporation. Because this franchise relationship is, like all other franchise relationships, primarily of a certain type, it is governed by a. contract law. b. the federal service-station franchise termination law. c. the Federal Trade Commission's Franchise Rule. d. the Illinois Franchise Disclosure Act.

Q: Tim works for Universal Sales Company. His job includes putting "spin" on the company's successes and failures. In this context, ethics consist of a. questions of rightness and wrongness. b. the firm's quarterly revenue. c. whatever is legal. d. none of the above.

Q: An employer may be liable for the harassment by nonemployees if the employer knew about the harassment and failed to take corrective action.

Q: When the harassment by co-workers creates a hostile working environment, an employee may have a cause of action against the employer.

Q: Mello Coffee Shops, Inc., sells a franchise to Noah's Arch, a café. Mello is a. a franchisee. b. a franchisor. c. an agent. d. a principal.

Q: Mack is sales manager for National Products, Inc. Compared to Mack's personal activities, his business activities involve a. more complex ethical standards. b. simpler ethical standards. c. the same ethical standards. d. no ethical standards.

Q: Bribery of foreign government officials is both an ethical and a legal issue.

Q: A tangible employment action is a significant change in employment status or benefits.

Q: Worldwide Realtors, Inc., sells a franchise to XL Sales Company. XL is a. a franchisee. b. a franchisor. c. an agent. d. a principal.

Q: Events Promotion Corporation licenses trademarks to Fandom Souvenirs, Inc., to use in selling caps, sweatshirts, and similar goods. This is a. a franchise. b. an entrepreneur. c. a principal-agent relationship. d. a sole proprietorship.

Q: The roles that women play in some foreign countries may present some difficult ethical problems for firms doing business internationally.

Q: Constructive discharge is a theory that plaintiffs can use to establish any type of discrimination claims under the Civil Rights Act of 1964.

Q: In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

Q: An employee's resignation must be the foreseeable result of an employer's discriminatory action to support a showing of constructive discharge.