Deck 7: Blowing the Whistle

Question 1

It is argued that the actions of whistle-blowers are not always motivated by their integrity, but by money or by their egos.

Answer 1

True

Question 2

If there is evidence that the employee is carrying out an individual vendetta against the company, the legitimacy of his or her whistle-blowing should be questioned.

Answer 2

True

Question 3

External whistle-blowing occurs when an employee brings the misconduct of the organization-that he or she is employed by-to the attention of law enforcement officials.

Answer 3

True

Question 4

Whistle-blowers are often severely criticized since they have in some way breached the trust and loyalty they owe to their employers.

Question 5

The federal Civil False Claims Act prevents whistle-blowers from implicating the government in any way.

Question 6

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.

Question 7

When a whistle-blower's immediate supervisor does not act, the employee should exhaust the company's internal procedures and chain of command to the board of directors.

Question 8

Internal whistle-blowing involves an employee bringing the organization's misconduct to the attention of his or her manager or supervisor and taking the complaint through appropriate channels within the organization.

Question 9

If there is evidence that the employee is motivated by the opportunity for financial gain, the legitimacy of his or her whistle-blowing should be questioned.

Question 10

The False Claims Act was amended in 1986 to make the penalization for whistle-blowers stiffer.

Question 11

Internal whistle-blowing occurs when an employee discovers corporate misconduct within his or her organization and brings it to the attention of law enforcement agencies and/or the media.

Question 12

Whistle-blowing is not considered ethical under any circumstances.

Question 13

A whistle-blower is an individual who discovers corporate misconduct and chooses not to do anything about it.

Question 14

If an individual reports a company-that he or she is not employed by-for misconduct, the individual is called an external whistle-blower.

Question 15

If an employee's personal value system prompts him or her to speak up about the misconduct of the organization he or she works for, the employee takes on the role of a whistle-blower.

Question 16

Under the federal Civil False Claims Act, whistle-blowers are referred to as "relators."

Question 17

Qui tam lawsuits are illegal under the False Claims Act.

Question 18

Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to a minimum of 75 percent of the amount recovered.

Question 19

Whistle-blowing is ethical in situations where the company, through a product or decision, will cause serious and considerable harm to the public.

Question 20

An employee can never benefit from whistle-blowing in the corporate sector.

Question 21

The "Office of the Whistleblower" was created by the Securities and Exchange Commission.

Question 22

Before the Whistleblower Protection Act of 1989 was passed, whistle-blowers were not entitled to any sort of monetary reward from the government.

Question 23

The whistle-blower hotline is used by the government to keep track of whistle-blowers.

Question 24

The Whistleblower Protection Act of 1989 first addressed the issue of retaliation against corporate employees who bring accusations of unethical behavior.

Question 25

The Whistleblower Protection Act of 1989 is also known as the Corporate and Criminal Fraud Accountability Act.

Question 26

For a whistle-blower hotline to work, trust must be established between employees and their employer.

Question 27

An employee can anonymously alert a company of suspected misconduct within the organization using the whistle-blower hotline.

Question 28

Organizations can prevent the embarrassment and potential financial ruin caused by whistle-blowing by creating an internal system that gives whistle-blowers the option of being heard, thus resolving the issue in private.

Question 29

The abbreviation "qui tam" establishes a whistle-blower as a deputized petitioner for the government in cases that expose fraudulent behavior of companies.

Question 30

The Whistleblower Protection Act of 1989 introduced a new reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

Question 31

Currently, legal protection for whistle-blowers who are federal employees exists only through legislation that encourages the moral behavior of employees who feel compelled to speak out, without offering any safeguards against retaliation aimed at them.

Question 32

Tracking the history of internal whistle-blowing is easier than tracking the history of external whistle-blowing.

Question 33

The Sarbanes-Oxley Act of 2002 not only prohibits retaliation against whistle-blowers but also encourages the act of whistle-blowing itself.

Question 34

The Whistleblower Protection Act of 1989 did not apply to federal employees.

Question 35

The Dodd-Frank Wall Street Reform and Protection Act of 2010 stipulates that if more than $1 million is collected, the whistle-blower is entitled to between 10 and 30 percent of the monies collected.

Question 36

The evidence of a company's misconduct-even if supported by genuine, documented proof-will be rejected and the case dismissed if there is evidence that the whistle-blower was motivated by financial gain.

Question 37

Whistle-blowers, throughout history, have always been granted legal protection against retaliatory behavior.

Question 38

Becoming a whistle-blower and taking the story public should be seen as the first resort rather than the last.

Question 39

The False Claims Act of 1863 specifically protected whistle-blowers from retaliatory behavior.

Question 40

Under the Dodd-Frank Wall Street Reform and Protection Act of 2010, a whistle-blower is penalized stiffly for acting against the Commodity Futures Trading Commission.

Question 41

A _____ is a lawsuit brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.

A)quo warranto lawsuit
B)qui tam lawsuit
C)pro tanto lawsuit
D)per curiam lawsuit

Question 42

Whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered under the federal _____.

A)Civil False Claims Act
B)Fair Employment Practice Act
C)Enforcement Act
D)Civil Liberties Act

Question 43

Which of the following statements is true of qui tam lawsuits?

A)They imprison or penalize federal whistle-blowers under the False Claims Act of 1863.
B)They are lawsuits filed against whistle-blowers who are motivated by financial rewards.
C)They do not accept the testimonies of whistle-blowers who are motivated by revenge.
D)They establish whistle-blowers as deputized petitioners for the government in a case.

Question 44

The two types of whistle-blowing, internal and external, are categorized based on:

A)whom the whistle-blower chooses to inform.
B)the motivation of the whistle-blower.
C)the type of organizational misconduct.
D)the nationality of the whistle-blower.

Question 45

The False Claims Act was strengthened in 1986 to:

A)deter whistle-blowers from speaking up by penalizing them.
B)protect nonfederal employees from corporate retaliation.
C)reject evidence provided by nonfederal whistle-blowers.
D)make it easier and safer for whistle-blowers to come forward.

Question 46

Which of the following is true of corporate whistle-blowing?

A)Corporate whistle-blowing is heavily discouraged by the Sarbanes-Oxley Act of 2002.
B)Corporate whistle-blowers are no longer protected by law from retaliatory behavior.
C)Corporate whistle-blowing has considerable potential for financial gain in some areas.
D)Corporate whistle-blowers are no longer protected by the Whistleblower Protection Act.

Question 47

Which of the following employees is an external whistle-blower?

A)Laura, who files a complaint against one of her company's suppliers for not meeting a project requirement within the specified time
B)Evelyn, who reports to a senior manager that her supervisor deliberately stocks expired food products on the shelves of the super market
C)Benjamin, who alleges to the federal government that the company he works for is fixing prices with its competitors
D)Ray, who discovers and ignores the fact that his company's main competitor is engaging something unethical

Question 48

Which of the following is a difference between internal and external whistle-blowing?

A)Unlike external whistle-blowing, the examples of internal whistle-blowing receive no media attention.
B)Unlike internal whistle-blowing, the history of external whistle-blowing is impossible to track.
C)Unlike external whistle-blowing, internal whistle-blowing does not harm a company's public image.
D)Unlike internal whistle-blowing, incidents of external whistle-blowing are rarely documented.

Question 49

_____ whistle-blowing involves an employee bringing corporate misconduct to the attention of his or her manager or supervisor, who then follows established procedures to address the misconduct within the organization.

A)External
B)Internal
C)Involuntary
D)Assertive

Question 50

In internal whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

A)his or her relatives.
B)the media.
C)the government.
D)his or her manager or supervisor.

Question 51

Alan, an employee at Urania Corp., finds a major discrepancy in the company's inventory list. Upon further investigation, he discovers that his department head has been tampering with the inventory data for personal profits. He immediately reports it to a higher authority within the organization with proof. In this scenario, Alan plays the role of an _____ whistle-blower.

A)explicit
B)internal
C)assertive
D)implicit

Question 52

The original reason for the enactment of the Civil False Claims Act was to:

A)protect the government from fraudulent defense contractors.
B)prevent corporate retaliation against federal whistle-blowers.
C)impose specific performance deadlines in processing whistle-blower complaints.
D)prevent whistle-blowers from filing cases against multinational corporations.

Question 53

It is difficult to track the history of internal whistle-blowing because:

A)it rarely receives attention from the media.
B)it is illegal under the Sarbanes-Oxley Act.
C)corporate whistle-blowing is usually ignored.
D)corporate wrongdoing is a rare phenomenon.

Question 54

Prior to 2002, legal protection for whistle-blowers existed only through legislation that:

A)safeguarded federal employees from retaliatory behavior aimed at them.
B)encouraged the moral behavior of employees who felt compelled to speak out.
C)safeguarded only nonfederal employees from corporate retaliatory behavior.
D)encouraged whistle-blowers to act without any monetary rewards.

Question 55

In _____ whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of law enforcement agencies and/or the media.

A)external
B)internal
C)incurred
D)exact

Question 56

Sandra, an executive officer of a company, has collected reports which prove that the CEO has been misappropriating company and investor funds. She takes the matter public and issues a statement against the CEO. Sandra is an _____ whistle-blower.

A)indexed
B)expiate
C)internal
D)external

Question 57

Which of the following statements is true of whistle-blowers?

A)They are universally lauded for their decision to speak out.
B)They are individuals who typically have low levels of integrity.
C)They seldom harm anybody with their decision to speak out.
D)They are often criticized and considered troublemakers.

Question 58

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the _____ of 1863.

A)Foreign Corrupt Practices Act
B)Civil False Claims Act
C)Civil Liberties Act
D)Fair Employment Practice Act

Question 59

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(n) _____.

A)whistle-blower
B)history-sheeter
C)agent provocateur
D)criminal informant

Question 60

In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

A)the chief executive officer of his or her organization.
B)his or her supervisor.
C)the law enforcement agencies.
D)his or her human resource manager.

Question 61

The Sarbanes-Oxley Act of 2002 is also known as:

A)the Employee Protection and Care Act.
B)the Comprehensive Crime Control Act.
C)the Dodd-Frank Wall Street Reform and Protection Act.
D)the Corporate and Criminal Fraud Accountability Act.

Question 62

Which of the following is true of a whistle-blower hotline?

A)It is a secure telephone line through which a whistle-blower can communicate with federal employees.
B)It is a government-owned service that addresses the concerns a potential whistle-blower might have.
C)It is a telephone line linked to various law enforcement agencies used by external whistle-blowers.
D)It is a telephone line that employees use to anonymously alert a company of suspected misconduct.

Question 63

Which of the following statements is true of the Sarbanes-Oxley Act?

A)It prohibits retaliation against whistleblowers and encourages the act of whistle-blowing itself.
B)It discouraged the act of corporate whistle-blowing.
C)It does not protect employees from retaliatory behavior aimed at them.
D)It does not offer protection to federal employees for the act of whistle-blowing.

Question 64

Which of the following is a major risk faced by whistle-blowers by speaking out about an organization's misconduct?

A)They risk losing their career and financial stability.
B)They risk being ignored by both the company and media.
C)They risk being penalized under the Whistleblower Prevention Act.
D)They risk imprisonment under the False Claims Act.

Question 65

A _____ is an employee who discovers corporate misconduct and chooses to bring it to the attention of others.

Question 66

Which of the following statements is true of the federal Civil False Claims Act?

A)It rejected cases brought by whistle-blowers who were motivated by monetary gain.
B)It penalized whistle-blowers heavily if they had no evidence to support their claims.
C)It did not reward whistle-blowers if their cases implicated the government in any way.
D)It did not offer whistle-blowers protection from retaliatory behavior aimed at them.

Question 67

The Dodd-Frank Wall Street Reform and Protection Act stipulated that if more than $1 million is collected, the whistle-blower is entitled to _____ of the monies collected.

A)between 10 and 30 percent
B)a minimum of 50 percent
C)a minimum of 75 percent
D)between 50 and 75 percent

Question 68

The federal Civil False Claims Act is also known as "_____ Law."

Question 69

The _____ of 1989 guaranteed the anonymity of federal employees, but not that of other employees.

A)Sarbanes-Oxley Act
B)Whistleblower Protection Act
C)Fair Employment Practice Act
D)Civil Liberties Act

Question 70

The _____ introduced a reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

A)Employee Protection and Care Act
B)Comprehensive Crime Control Act
C)Dodd-Frank Wall Street Reform and Protection Act
D)Corporate and Criminal Fraud Accountability Act

Question 71

An _____ whistle-blower is an employee who discovers corporate misconduct and chooses to bring it to the attention of law enforcement agencies and/or the media.

Question 72

Which of the following is true of the Whistleblower Protection Act of 1989?

A)It imposed specific performance deadlines in processing whistle-blower complaints.
B)It made it mandatory to disclose the name of the whistle-blower in all circumstances.
C)It failed to safeguard federal employees from retaliatory behavior aimed at them.
D)It only safeguarded nonfederal employees from retaliatory behavior against them.

Question 73

A(n) _____ is a telephone line where employees can leave messages to alert a company of suspected corporate misconduct without revealing their identity.

A)whistle-blower hotline
B)criminal informant hotline
C)employee assistance helpline
D)internal corporate helpline

Question 74

Under the federal Civil False Claims Act, whistle-blowers are referred to as _____.

Question 75

Which of the following statements is true of the False Claims Act of 1863?

A)It guaranteed the anonymity of nonfederal whistle-blowers.
B)It was designed to prevent profiteering from the Civil War.
C)It addressed the issue of retaliation against federal employees.
D)It imposed deadlines in processing whistle-blower complaints.

Question 76

An _____ whistle-blower is an employee who discovers corporate misconduct and brings it to the attention of his supervisor, who then follows established procedures to address the misconduct within the organization.

Question 77

Ken reported misconduct in his organization to the Securities and Exchange Commission. He was able to provide substantial evidence and won the case. The amount recovered was over $1 billion. Which of the following laws states that Ken is eligible to receive between 10 and 30 percent of the amount recovered?

A)The Corporate and Criminal Fraud Accountability Act
B)The Fair Employment Practice Act
C)The Corporate and Civil False Claims Act
D)The Dodd-Frank Wall Street Reform and Consumer Protection Act

Question 78

The Whistleblower Protection Act of 1989 guaranteed the anonymity of the whistle-blower unless:

A)the individual is a federal employee.
B)revealing the name would protect public safety.
C)the individual is an immigrant.
D)revealing the name would attract huge media attention.

Question 79

The "Office of the Whistleblower" was created by the _____.

A)Merit Systems Protection Commission
B)Commodity Futures Trading Commission
C)Securities and Exchange Commission
D)Consumer Product Safety Commission

Question 80

The _____ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

A)Sarbanes-Oxley Act of 2002
B)Whistleblower Protection Act of 1989
C)False Claims Act of 1863
D)Rehabilitation Act of 1973