Question 1

Macro Retail Corporation operates stores in forty-two countries. It is important for the "culture" at Macro, and other domestic, foreign, and international business firms, to distinguish among actions that are

Accepted Answer

A)  ethical and legal. 
B)  unethical and illegal. 
C)  unethical but legal. 
D)  all of the choices. D

Question 2

Mike casts unwarranted doubts on Nina, a co-worker, to gain a job promo?tion. This is unethical

Accepted Answer

A)  only if Mike is caught. 
B)  only if Mike gets the promotion. 
C)  under any circumstances. 
D)  under no circumstances. C

Question 3

Oklahoma enacts a law to require Internet pharmacies to obtain a license from Oklahoma to do business with that state's residents. Most likely this law would be considered

Accepted Answer

A)  acceptable under the dormant commerce clause. 
B)  an exception to federal regulation of Internet commerce. 
C)  an undue burden on interstate commerce. 
D)  a violation of the dormant commerce clause. A

Question 4

In a brief filed in Lea's suit against Mica in a state court, Neil, Lea's attorney, cites, Ole! Cafe v. Pan Foods Corp., an unpublished opinion. With respect to the persuasiveness of unpublished opinions, most states

Accepted Answer

A)  allow their courts to consider such opinions. 
B)  do not allow their courts to consider such opinions. 
C)  impose certain hierarchical rankings. 
D)  require their courts to consider such opinions.

Question 5

International Business Corporation engages in bribery of potential clients, including government agencies, private companies, and the representatives of labor organizations. Bribery is

Accepted Answer

A)  ethical but illegal. 
B)  legal but unethical. 
C)  neither unethical nor illegal. 
D)  wrong.

Question 6

Nevada enacts a law to regulate Internet prescription transactions. New York enacts a ban on the Internet sale of tobacco products to New York residents. Texas prohibits automakers from selling vehicles on their Web sites. State regulation of Internet activities

Accepted Answer

A)  always violates the dormant commerce clause. 
B)  is not subject to evaluation under the dormant commerce clause. 
C)  may violate the dormant commerce clause. 
D)  never violates the dormant commerce clause.

Question 7

Quality Sales Company develops its marketing strategies in terms of what its management perceives as its ethical obligations, which represent its

Accepted Answer

A)  legal liability. 
B)  profitability. 
C)  standards of right and wrong. 
D)  unilateral corporate duties.

Question 8

Capital Credit Company files a suit against Downtown Developers, Inc., and seeks, as part of dis?covery, certain electronic documents in Downtown's possession. Responding to this request will most likely be required if the documents contain data that is relevant and

Accepted Answer

A)  accessible. 
B)  privileged. 
C)  recoverable. 
D)  text only.

Question 9

Commercial Wholesale, Inc., conducts its operations unethically, which, when revealed, will likely affect its

Accepted Answer

A)  good will only. 
B)  profits only. 
C)  reputation only. 
D)  good will, profits, and reputation.

Question 10

Ethical behavior on the part of Beta Products Company may be inhibited by

Accepted Answer

A)  clear ethical standards. 
B)  collective decision making. 
C)  legislative determinations of what represents society's best interest. 
D)  managers' dissent to unethical decisions.

Question 11

In a brief filed in Gene's suit against Hoyt in a federal court, Ilsa, Gene's attorney, cites, Jon v. Klint, an unpublished opinion. According to a ruling of the United States Supreme Court, the judge in Gene's suit

Accepted Answer

A)  may consider the unpublished opinion persuasive. 
B)  must apply the unpublished opinion as binding. 
C)  must ignore the unpublished opinion. 
D)  must issue a judgment in Hoyt's favor.

Question 12

In Eastside Grocery Company's suit against Fresh Foods, Inc., Fresh seeks to recover the cost to provide cop?ies of e-documents to Eastside. This cost could be awarded if

Accepted Answer

A)  all of the parties used the e-documents. 
B)  Eastside's ability to pay is greater than Fresh's. 
C)  Fresh covered the cost, hoping to recover it later. 
D)  the court approved the provision of the e-documents.

Exam 53: Legal and Ethical Issues in Business