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Business Ethics 2016 - QUIZ & ANSWERS (6) - Torts and Strict Liability

Business Ethics 2016

BUSINESS ETHICS 2016

Case study guides and test bank and answer keys (2016)

The Legal Environment of Business and Online Commerce, 8e (Cheeseman)

 

 

The Legal Environment of Business and Online Commerce, 8e (Cheeseman)

Chapter 6   Torts and Strict Liability

 

1) The threat of immediate harm or offensive contact is termed ________.

  1. A) battery
  2. B) assault
  3. C) disparagement
  4. D) libel

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

2) Which of the following statements is true of the tort of assault?

  1. A) An assault is considered an unintentional tort.
  2. B) An attack is considered an assault only if the defendant was provoked to attack a plaintiff.
  3. C) An attack is not considered an assault if the defendant was provoked to attack a plaintiff.
  4. D) Actual physical contact between plaintiff and defendant is not necessary.

Answer:  D

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

3) John Harley was on his way home when an assailant stopped his car and threatened to physically harm him. John can sue the assailant to recover damages for ________.

  1. A) assault
  2. B) battery
  3. C) libel
  4. D) disparagement

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

 

4) Which of the following best describes the tort of battery?

  1. A) unauthorized and harmful or offensive physical contact with another person that causes injury
  2. B) an action that arouses reasonable apprehension of imminent harm
  3. C) oral or written defamation of another person's character
  4. D) intentional confinement or restraint of another person without that person's consent

Answer:  A

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

5) Which of the following torts constitutes battery?

  1. A) stealing a person's wallet
  2. B) threatening to shoot a person
  3. C) blackmailing a person
  4. D) poisoning a person's drink

Answer:  D

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

6) Which of the following statements is true of battery?

  1. A) Battery refers to intentional infliction of emotional distress.
  2. B) Assault and battery often occur together.
  3. C) Actual physical contact is not necessary for a tort to be battery.
  4. D) Indirect physical contact between the victim and the perpetrator is not battery.

Answer:  B

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

 

7) Harvey was at his college reunion where he noticed Raymond, his former roommate. Harvey and Raymond did not get along well at the reunion. Offended by something Raymond mentioned, Harvey punched him in the face and broke his jaw. Harvey is liable for ________.

  1. A) breach of duty of care
  2. B) disparagement
  3. C) battery
  4. D) assault

Answer:  C

Diff: 2

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

8) Which of the following actions would make Sarah liable for battery?

  1. A) She publishes an article which calls for the current U.S. president to quit because she thinks he is not doing a good job.
  2. B) She extends the boundary of her plot of land encroaching two feet of her neighbor's plot.
  3. C) She smuggles marijuana into the country.
  4. D) She slaps her ex-husband because he denied her alimony.

Answer:  D

Diff: 2

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

9) Jessica is babysitting Kyle one afternoon when Kyle starts bleeding from his nose. Jessica manages to stop the bleeding and rushes out to the nearest pharmacy–three miles away–to get medication for him. While doing so, she locks the house from outside and asks Kyle not to leave the house till she returns. The only way he can get out of the house is by breaking a window. Due to a roadblock on her way back, Jessica is delayed by an hour. Which of the following statements is true in this case?

  1. A) Jessica is liable for kidnapping.
  2. B) Jessica is liable for negligence as well as breach of duty of care.
  3. C) Jessica can be sued for false imprisonment.
  4. D) Jessica is not liable for prosecution for an intentional tort.

Answer:  D

Diff: 3

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

 

10) ________ refers to an attempt by another person to take over a living person's name or identity for commercial purposes.

  1. A) Invasion of the right to privacy
  2. B) The tort of appropriation
  3. C) Defamation of character
  4. D) Disparagement

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

11) The tort of defamation of character requires a plaintiff to prove that the defendant ________.

  1. A) publicized a private fact about the plaintiff
  2. B) insulted people closely related to the plaintiff, such as family or friends
  3. C) published an untrue statement of fact about the plaintiff to a third party
  4. D) made one or more financial deals with the plaintiff under a false identity

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

12) Gary Govetty is a famous movie star. A tabloid published an interview with his ex-girlfriend in which she falsely claimed that Gary was completely bald and had been wearing a wig for several years. Gary can sue his ex-girlfriend for ________.

  1. A) slander
  2. B) invasion of the right to privacy
  3. C) tort of appropriation
  4. D) negligent infliction of emotional distress

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

 

13) Libel and slander constitute ________.

  1. A) the tort of outrage
  2. B) defamation of character
  3. C) the tort of appropriation
  4. D) intentional misrepresentation

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

14) Actual physical contact is not necessary for a tort to be considered an assault.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

15) Direct physical contact, such as intentionally hitting someone with a fist, is considered battery.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

16) Assault and battery are mutually exclusive torts that do not occur together.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

17) A threat of future harm or moral pressure is not considered false imprisonment.

Answer:  TRUE

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

 

18) If a shoplifting suspect is detained for an unreasonably long time and is found to be innocent, the merchant is liable for the tort of malicious prosecution.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

19) If a defendant makes an untrue statement of fact about the plaintiff and the statement was intentionally or accidentally published to a third party, the defendant is held liable for misappropriation of the right to publicity.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

20) If a magazine publishes a false statement about a public personality, it is liable for invasion of the right to privacy.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

21) If a newspaper review calls a commercially successful actor talentless, it is liable for defamation of character.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

22) Unauthorized and harmful or offensive physical contact with another person is called ________.

Answer:  battery

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

23) The intentional confinement or restraint of another person without authority or justification and without consent is called ________.

Answer:  false imprisonment

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

24) False statements that appear in a letter, newspaper, magazine, book, photograph, movie or video are ________.

Answer:  libel

Diff: 1

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

25) How is assault different from battery?

Answer:  Assault is (1) the threat of immediate harm or offensive contact or (2) any action that arouses reasonable apprehension of imminent harm. Actual physical contact is unnecessary. Battery is unauthorized and harmful or offensive physical contact with another person that causes injury. Direct physical contact, such as intentionally hitting someone with a fist, is battery. Indirect physical contact between the victim and the perpetrator is also battery, as long as injury results.

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

26) Explain the torts of appropriation and invasion of the right to privacy with examples.

Answer:  Any attempt by another person to appropriate a living person's name or identity for commercial purposes is actionable. The wrongdoer is liable for the tort of misappropriation of the right to publicity (also called the tort of appropriation). For example, if an advertising agency places Megan Fox's photo on a billboard advertising a product without Megan Fox's permission, it has engaged in the tort of misappropriation of the right to publicity.

The law recognizes each person's right to live his or her life without being subjected to unwarranted and undesired publicity. A violation of this right constitutes the tort of invasion of the right to privacy. If a fact is public information, there is no claim to privacy. Secretly taking photos of another person with a cell phone camera in a men's or women's locker room would constitute invasion of the right to privacy.

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

27) Monica told a prospective patient that a certain cosmetic surgeon had been banned from practicing by the American Medical Council, but this is untrue. Is Monica liable for prosecution? Why?

Answer:  Monica is liable for prosecution for defamation of character. The tort of defamation of character requires a plaintiff to prove that:

  1. The defendant made an untrue statement of fact about the plaintiff.
  2. The statement was intentionally or accidentally published to a third party. In this context, publication simply means that a third person heard or saw the untrue statement. It does not require appearance in newspapers, magazines, or books.

Diff: 2

Skill:  Factual Application

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Application of knowledge

Classification:  Application

 

28) When and how can a plaintiff claim damages if the defendant has breached a duty of care?

Answer:  Even though a defendant's negligent act may have breached a duty of care owed to the plaintiff, this breach is not actionable unless the plaintiff suffers injury or injury to his or her property. That is, the plaintiff must have suffered some injury before he or she can recover any damages. The damages recoverable depend on the effect of the injury on the plaintiff's life or profession.

Diff: 2

Skill:  Legal Concepts

LO:  6.1 List and describe intentional torts against persons.

AACSB:  Analytical thinking

Classification:  Concept

 

29) ________ is a doctrine that says a person is liable for harm that is the foreseeable consequence of his or her actions.

  1. A) The tort of outrage
  2. B) The tort of misappropriation
  3. C) Disparagement
  4. D) Unintentional tort

Answer:  D

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

30) Michael wanted to try out his new hand gun. He set up a target in his back yard for firing practice. Stella's house, which is located on the lot directly behind Michael's property, happened to be directly in the line of fire. Michael's first shot missed the target and the bullet crashed through Stella's kitchen window, striking and seriously injuring her. Which of the following legal theories would be best for Stella's attorney to use in a lawsuit against Michael?

  1. A) doctrine of unintentional tort
  2. B) doctrine of proximate cause
  3. C) res ipsa loquitur
  4. D) gross negligence

Answer:  D

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

31) The obligation people owe each other not to cause any unreasonable harm or risk of harm is termed ________.

  1. A) libel
  2. B) res ipsa loquitur
  3. C) Good Samaritan law
  4. D) the duty of care

Answer:  D

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

32) Throwing a lit match on the ground in the forest and causing a fire is a breach of ________.

  1. A) appropriation
  2. B) Good Samaritan law
  3. C) the duty of care
  4. D) res ipsa loquitur

Answer:  C

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

 

33) Which of the following is true about the duty of care?

  1. A) Breach of the duty of care is not actionable unless the plaintiff suffers personal injury or injury to his or her property.
  2. B) The reasonable person standard is used to determine the amount of damages that a defendant owes a plaintiff.
  3. C) A firefighter who refuses to put out a fire when his safety is not at stake does not breach his duty of care.
  4. D) The damages recoverable for breach of the duty of care are independent of the effect of the injury on the plaintiff's life or profession.

Answer:  A

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

34) George, Jerry, and Harry are passengers on a flight from Chicago to New York. They injure their legs when their seatbelts do not fasten during take-off. The airline is sued by all three together for injuries caused, and the airline is found to be negligent and is directed by the court to pay damages to the injured parties. Which of the following parties is entitled to recover maximum damages?

  1. A) George, a retired professor who gets a pension of $50,000 a year
  2. B) Jerry, a football player who earns $2 million a year
  3. C) Harry, a chartered accountant who earns $200,000 a year
  4. D) All the men recover the same amount of damages, irrespective of their income or profession.

Answer:  B

Diff: 3

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

35) What is meant by "causation in fact"?

  1. A) the facts stated by a plaintiff during trial
  2. B) a defendant's negligent act that caused the plaintiff's injuries
  3. C) a defendant's defense against a case of negligence
  4. D) a defendant's plea of guilt due to negligence

Answer:  B

Diff: 1

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

36) ________ is a point along a chain of events caused by a negligent party after which this party is no longer legally responsible for the consequences of his or her actions.

  1. A) Causation in fact
  2. B) The point of reason
  3. C) The point of appropriation
  4. D) Proximate cause

Answer:  D

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

37) If a lawyer fails to file a document with the court on time, causing his client's case to be dismissed, he would be liable for ________.

  1. A) professional malpractice
  2. B) intentional misrepresentation
  3. C) tort of appropriation
  4. D) breach of the duty of care

Answer:  A

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

38) Martha is walking along a street with her son when he is hit by a passing car just as he steps off the pavement. He dies in his mother's arms, leaving her traumatized. The court hearing the case rules that Martha's son was not responsible for the accident. Martha can sue the person who killed her son to recover damages for ________.

  1. A) the tort of outrage
  2. B) breach of the duty of care
  3. C) negligent infliction of emotional distress
  4. D) transfer of intent

Answer:  C

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

 

39) ________ is the violation of a statute that proximately causes an injury.

  1. A) Disparagement
  2. B) Res ipsa loquitur
  3. C) Negligence per se
  4. D) Misappropriation

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

40) In order to claim damages for negligence per se, the plaintiff has to prove that ________.

  1. A) the defendant was in exclusive control of the situation
  2. B) the plaintiff was within a class of persons meant to be protected by the violated statute
  3. C) the defendant made a false representation of material fact
  4. D) the plaintiff was affected by malicious statements made by the defendant about his/her character

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

41) A pedestrian trips and falls on a poorly lit sidewalk in front of Kate Geller's house and is injured. If the pedestrian sues for damages, which of the following parties would most likely be liable to pay the damages?

  1. A) the civic authority
  2. B) Kate Geller
  3. C) the residents' association of the locality
  4. D) the pedestrian

Answer:  B

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

42) ________ is a doctrine that raises a presumption of negligence and switches the burden to the defendant to prove that he or she was not negligent.

  1. A) Res ipsa loquitur
  2. B) Negligence per se
  3. C) The doctrine of proximate cause
  4. D) The doctrine of comparative negligence

Answer:  A

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

43) ________ is a statute that relieves medical professionals from liability for ordinary negligence when they stop and render aid to victims in emergency situations.

  1. A) A Good Samaritan law
  2. B) Assumption of the risk
  3. C) The duty of care
  4. D) Res ipsa loquitur

Answer:  A

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

44) ________ refers to a doctrine that says a plaintiff who is partially at fault for his or her own injury cannot recover against the negligent defendant.

  1. A) Assumption of the risk
  2. B) Comparative fault
  3. C) Contributory negligence
  4. D) Comparative negligence

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

45) A person driving over the prescribed speed limit in a suburban area hits and injures a pedestrian jaywalking against a red "Do Not Walk" sign. The jury finds that the driver was 80 percent responsible for the accident and the jaywalker was 20 percent responsible. The pedestrian suffered $100,000 in injuries. If the state in which this case is heard adopts the doctrine of contributory negligence to interpret such cases, the pedestrian is entitled to recover ________.

  1. A) no damages from the driver
  2. B) $100,000 from the driver
  3. C) $20,000 from the driver
  4. D) $80,000 from the driver

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

46) The term ________ refers to a defense that says a person who is injured by a defective product but has been negligent and is partially responsible for his or her own injuries cannot recover from the defendant.

  1. A) comparative negligence
  2. B) contributory negligence
  3. C) assumption of the risk
  4. D) negligence per se

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

47) Ruggers is a maker of a range of highly popular cruise motorcycles. Tim buys a Ruggers motorcycle from a dealership and suffers an accident. While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously unknown defect in their braking systems. Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50,000 in damages. The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest. Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case?

  1. A) Tim cannot recover any damages from the motorcycle manufacturer.
  2. B) Tim can recover $25,000 worth of damages from the Ruggers and the rest from the dealership from which he purchased the motorcycle.
  3. C) Tim can recover $50,000 worth of damages plus any punitive damages that may be awarded by the jury.
  4. D) Tim can recover $50,000 worth of damages from the motorcycle manufacturer.

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

48) The reasonable person standard is a test used to determine whether a tort is intentional or unintentional.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

49) If a plaintiff is injured, the damages recoverable depend on the effect of the injury on the plaintiff's life or profession.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

50) Causation in fact refers to a point along a chain of events caused by a negligent party after which this party is no longer legally responsible for the consequences of his or her actions.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

51) If the defendant's act caused the plaintiff's injuries, there is causation in fact.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

52) John watches his brother being killed in a road accident. The perpetrator was driving under the influence of alcohol. John can recover damages for negligent infliction of emotional distress for the mental trauma he suffered from watching his brother die.

Answer:  TRUE

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Concept

 

53) Res ipsa loquitur is a tort in which the violation of a statute or an ordinance constitutes the breach of the duty of care.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

54) A doctor driving on the wrong side of the road crashes into an eight-year-old boy riding a bicycle. Fearing the consequences, the doctor flees without reporting the accident or giving first-aid to the boy. The doctor is liable for professional malpractice.

Answer:  FALSE

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

55) A lawyer who fails to file a document with the court on time, causing the client's case to be dismissed, is liable for legal malpractice.

Answer:  TRUE

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

56) If a woman is informed of her husband being run over by a bus the previous night, she can recover damages for negligent infliction of emotional distress.

Answer:  FALSE

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

57) The violation of a statute that proximately causes an injury is termed as negligence per se.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

58) A homeowner is liable for negligence per se if he or she fails to repair a damaged sidewalk in front of his or her home and a pedestrian who trips on the unrepaired sidewalk is injured.

Answer:  TRUE

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

59) Assumption of the risk is a defense a defendant can use against a plaintiff who knowingly and voluntarily participates in a risky activity that results in injury.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

60) Comparative negligence is a doctrine that says a plaintiff who is partially at fault for his or her own injury cannot recover against the negligent defendant.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

61) Statutes often establish duties owed by one person to another.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

62) Res ipsa loquitur switches the burden to the plaintiff to prove that the defendant was negligent.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

63) Res ipsa loquitur applies when the plaintiff had exclusive control of the instrumentality or situation that caused his or her own injury.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

64) If a nurse administers CPR to save the life of a dying man and negligently injures the man's arm in the process, the nurse cannot be sued as he or she is protected by Good Samaritan statutes.

Answer:  TRUE

Diff: 2

Skill:  Factual Application

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Application of knowledge

Classification:  Application

 

65) ________ is a doctrine that says a person is liable for harm that is the foreseeable consequence of his or her actions.

Answer:  Unintentional tort

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

66) A failure to exercise care or to act as a reasonable person would act is a breach of the ________.

Answer:  duty of care

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

67) A tort in which the violation of a statute or an ordinance constitutes the breach of the duty of care is ________.

Answer:  negligence per se

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

68) ________ is a doctrine that raises a presumption of negligence and switches the burden to the defendant to prove that he or she was not negligent.

Answer:  Res ipsa loquitur

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

69) A(n) ________ is a statute that relieves medical professionals from liability for ordinary negligence when they stop and render aid to victims in emergency situations.

Answer:  Good Samaritan law

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

70) ________ is a defense a defendant can use against a plaintiff who knowingly and voluntarily enters into or participates in a risky activity that results in injury.

Answer:  Assumption of the risk

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

 

71) A doctrine under which damages are apportioned according to fault is known as ________.

Answer:  comparative negligence

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

72) ________ is the liability of a professional who breaches his or her duty of ordinary care.

Answer:  Professional malpractice

Diff: 1

Skill:  Legal Concepts

LO:  6.2 List and explain the elements necessary to prove negligence.

AACSB:  Analytical thinking

Classification:  Concept

 

73) Making false statements about a competitor's products, services, property, or business reputation could make a company liable for ________.

  1. A) intentional misrepresentation
  2. B) the tort of appropriation
  3. C) disparagement
  4. D) the misappropriation of the right to publicity

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

74) Which of the following instances depict the tort of outrage?

  1. A) A farmer's crops are set on fire by an unidentified miscreant.
  2. B) A gym teacher verbally abuses an overweight kid in every gym class and the kid suffers severe emotional distress.
  3. C) A cosmetics company uses Julia Roberts' image without her consent to depict her as its brand ambassador.
  4. D) A beverage-manufacturer claims that its competitor uses coffee beans of poor quality.

Answer:  B

Diff: 3

Skill:  Factual Application

LO:  6.3 List and describe business-related torts.

AACSB:  Application of knowledge

Classification:  Application

 

 

75) Sending an objectionable telegram to a third party and signing another's name constitutes the tort of ________.

  1. A) invasion of the right to privacy
  2. B) defamation of character
  3. C) battery
  4. D) intentional misrepresentation

Answer:  D

Diff: 2

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

76) One student actor wins a part in a play over another student actor. To get back at the winning student, the rejected student files a lawsuit against the winning student alleging intentional infliction of emotional distress, defamation, and negligence. The jury returns a verdict exonerating the defendant. The defendant is now entitled to sue the plaintiff for ________.

  1. A) the tort of outrage
  2. B) malicious prosecution
  3. C) intentional misrepresentation
  4. D) misappropriation of the right to publicity

Answer:  B

Diff: 2

Skill:  Factual Application

LO:  6.3 List and describe business-related torts.

AACSB:  Application of knowledge

Classification:  Application

 

77) Which of the following is an intentional tort?

  1. A) breach of the duty of care
  2. B) defect in product manufacture
  3. C) disparagement
  4. D) negligence

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

 

78) Disparagement is an untrue statement made by one person or business about the products, services, property, or reputation of another business.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

79) Intentional misrepresentation occurs when a wrongdoer deceives another person out of money, property, or something else of value.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

80) If a person did not have knowledge that his representation of facts was false, he is still liable for fraud.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

81) In a lawsuit for malicious prosecution, the original defendant sues the original plaintiff.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

82) Jessica files a frivolous lawsuit against Thomas claiming emotional distress because he plucked flowers from her garden without her permission. The judge exonerates Thomas. Thomas can now sue Jessica for malicious prosecution.

Answer:  TRUE

Diff: 2

Skill:  Factual Application

LO:  6.3 List and describe business-related torts.

AACSB:  Application of knowledge

Classification:  Application

 

 

83) Disparagement refers to the liability of a professional who breaches his or her duty of ordinary care.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

84) Malicious prosecution is a tort that permits a person to recover for emotional distress caused by the defendant's negligent conduct.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

85) A bystander who suffers severe emotional distress on witnessing a heinous crime can claim damages for intentional infliction of emotional distress.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

86) ________ is the making of false statements about a competitor's products, services, property, or business reputation.

Answer:  Disparagement

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

87) A civil action lawsuit in which the original defendant sues the original plaintiff for damages is known as ________.

Answer:  malicious prosecution

Diff: 1

Skill:  Legal Concepts

LO:  6.3 List and describe business-related torts.

AACSB:  Analytical thinking

Classification:  Concept

 

 

88) ________ is a tort doctrine that makes manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault.

  1. A) Absolute liability
  2. B) Contingent liability
  3. C) Superior responsibility
  4. D) Strict liability

Answer:  D

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

89) Henry is undergoing a surgery at Sacred Heart Hospital to insert an artificial pacemaker that will keep his heartbeat regular. The pacemaker is manufactured by Benford, Inc. In this case, Dr. DeBenedetto, the surgeon, is considered as the dominant element. In the event that the pacemaker fails to function as expected after the surgery, who would be strictly liable for its failure?

  1. A) Benford, Inc.
  2. B) Dr. DeBenedetto
  3. C) Henry
  4. D) Sacred Heart Hospital

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Application of knowledge

Classification:  Application

 

90) Which of the following statements is true about strict liability?

  1. A) It applies only to manufacturers of a defective product.
  2. B) It is liability without fault.
  3. C) It requires privity of contract between the plaintiff and the defendant.
  4. D) It covers casual sales and transactions.

Answer:  B

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

 

91) Allenby Spares, Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel, Inc. from Allenby Spares and is involved in an accident due to the use of the faulty brake in his vehicle. Which of the following is true in this situation?

  1. A) Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel.
  2. B) TurboDiezel cannot be held strictly liable as the company is not the seller in this case.
  3. C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake.
  4. D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

Answer:  D

Diff: 2

Skill:  Factual Application

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Application of knowledge

Classification:  Application

92) Martin wins a car in a lottery. As he already owns a car, he decides to sell the new one to his friend Ted. While driving the car, Ted gets into a head-on collision with another car. Due to a defect in the vehicle's Supplemental Restraint System (SRS), the airbag does not deploy and Ted is seriously injured. Which of the following statements is true of this situation?

  1. A) Martin can be held strictly liable because he sold the car to Ted.
  2. B) The car manufacturer cannot be held strictly liable as Ted had not bought the car from them.
  3. C) Martin cannot be held strictly liable as the sale of the car counts as a casual transaction.
  4. D) The driver of the other car can be held strictly liable due to his or her involvement in the accident.

Answer:  C

Diff: 2

Skill:  Factual Application

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Application of knowledge

Classification:  Application

 

93) Bertha, a surgeon, performed a kidney transplant on one of her patients. The surgery was not successful and the patient did not survive. Which of the following statements is true in this case?

  1. A) Bertha cannot be held strictly liable as she was providing a service.
  2. B) Bertha can be held strictly liable for the death of her patient.
  3. C) Bertha and the medical staff assisting the surgery are strictly liable for the death.
  4. D) The donor of the kidney can be held strictly liable for the death of the patient.

Answer:  A

Diff: 2

Skill:  Factual Application

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Application of knowledge

Classification:  Application

 

 

94) The ________ refers to all manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers involved in a transaction.

  1. A) demand chain
  2. B) chain of command
  3. C) chain of distribution
  4. D) value chain

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

95) According to the doctrine of strict liability, which of the following parties is strictly liable for injuries caused by a defective product?

  1. A) only the manufacturers of the products
  2. B) only the parties directly involved in the sale of the product to the customer
  3. C) all parties providing services related to the product
  4. D) all parties in the chain of distribution

Answer:  D

Diff: 2

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

96) Betty buys a lawnmower, manufactured by FlatPlanes, Inc., from Harvey's department store. A defect in the design of the blades causes the lawnmower to kick back on operation, injuring Betty. Which of the following remedial actions is Betty entitled to?

  1. A) Betty can sue Harvey's department store for negligence.
  2. B) Betty can sue either Harvey's department store or FlatPlanes, Inc. for strict liability.
  3. C) Betty can only sue FlatPlanes, Inc. for strict liability as they manufactured the defective lawnmower.
  4. D) Betty can only sue Harvey's department store for strict liability as they sold her the defective lawnmower.

Answer:  B

Diff: 2

Skill:  Factual Application

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Application of knowledge

Classification:  Application

 

 

97) Strict liability applies to services but not products.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

98) Under the doctrine of strict liability, bystanders who are injured by a defective product are entitled to the same protection as the product's consumers.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

99) The doctrine of strict liability holds the manufacturers of a defective product solely liable for injuries caused by that product.

Answer:  FALSE

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

100) A defendant who has not been negligent but who is made to pay a strict liability judgment can bring a separate action against the negligent party in the chain of distribution to recover its losses.

Answer:  TRUE

Diff: 2

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

101) A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

Answer:  FALSE

Diff: 2

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

 

102) Casual sales and transactions are not covered under the strict liability doctrine.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

103) ________ is liability without fault.

Answer:  Strict liability

Diff: 1

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

104) Explain the doctrine of strict liability with examples.

Answer:  Strict liability is liability without fault. That is, a participant in a covered activity will be held liable for any injuries caused by the activity, even if he or she was not negligent. This doctrine holds that (1) there are certain activities that can place the public at risk of injury even if reasonable care is taken and (2) the public should have some means of compensation if such injury occurs. Strict liability is imposed for abnormally dangerous activities that cause injury or death. Activities such as crop dusting, blasting, fumigation, burning of fields, storage of explosives, and the keeping of animals and pets are usually considered activities to which strict liability applies.

Diff: 2

Skill:  Legal Concepts

LO:  6.4 Define the doctrine of strict liability.

AACSB:  Analytical thinking

Classification:  Concept

 

105) Which of the following statements is true about the strict liability doctrine?

  1. A) Privity of contract between the injured party and defendant is mandatory.
  2. B) Injured bystanders cannot recover damages under the strict liability doctrine.
  3. C) Parties in the chain of distribution are strictly liable only to the customer who buys the product.
  4. D) Injured bystanders are entitled to the same protection as the product's consumer.

Answer:  D

Diff: 2

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

 

 

106) Mary was getting a ride home in John's new car. On the way, a malfunctioning brake caused an accident and both Mary and John were injured. Which of the following statements is true of this situation?

  1. A) Mary can recover in a strict liability lawsuit against the manufacturer of John's car.
  2. B) Mary can file a strict liability lawsuit against John.
  3. C) Mary can file a negligence lawsuit against the dealership that sold John his car.
  4. D) John can file a negligence lawsuit against the dealership from which he bought the car.

Answer:  A

Diff: 2

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

107) ________ damages refer to monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff.

  1. A) Reliance
  2. B) Consequential
  3. C) Punitive
  4. D) Nominal

Answer:  C

Diff: 1

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

 

108) The manufacturer or seller is not liable if a product is materially altered or modified after it leaves the seller's possession and the alteration or modification causes an injury.

Answer:  TRUE

Diff: 1

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

 

109) When the containers of a product are not tamperproof, this is a(n) ________.

Answer:  defect in packaging

Diff: 1

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

 

 

110) A(n) ________ refers to an alteration or a modification of a product by a party in the chain of distribution that absolves all prior sellers from strict liability.

Answer:  supervening event

Diff: 1

Skill:  Legal Concepts

LO:  6.5 Apply the doctrine of strict liability to product defects.

AACSB:  Analytical thinking

Classification:  Concept

 

------

Free Business Ethics Resources

1. See full list of videos: 

Link 1 - Youtube channel www.youtube.com/ecomftu2012

Link 2 - Youtube channel 

2. Free Business Ethics - 2016 Ebooks (free download)

Legal Environment of Business: Online Commerce, Ethics, and Global Issues, 8th Edition, 2016, Henry R. Cheeseman

REVEL for Ethics and the Conduct of Business -- Access Card, 8th Edition, 2016, John R Boatright, Jeffery D. Smith

Business Ethics: Concepts and Cases, 7th Edition, 2012, Manuel G. Velasquez, Santa Clara University

 

3. Link to power point slides (Free Download)

REVEL for Ethics and the Conduct of Business -- Access Card, 8th Edition, 2016, John R Boatright, Jeffery D. Smith

LINK DOWNLOAD FREE PPT - LINK

Legal Environment of Business: Online Commerce, Ethics, and Global Issues, 8th Edition, 2016, Henry R. Cheeseman

LINK DOWNLOAD FREE PPT - LINK

Business Ethics: Concepts and Cases, 7th Edition, 2012, Manuel G. Velasquez, Santa Clara University

4. Test Bank - Free download

Legal Environment of Business: Online Commerce, Ethics, and Global Issues, 8th Edition, 2016, Henry R. Cheeseman

Link - Test bank - free download 

REVEL for Ethics and the Conduct of Business -- Access Card, 8th Edition, 2016, John R Boatright, Jeffery D. Smith

Link - Test bank - free download

 

For Test Bankz, Quiz Answers and Case study Guides, email to: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Good Luck and Success, Enjoy Your Study !

 

----------

 

 

       

 

Business Ethics 2016, Lecture, Video, Case Study Guides and Quiz, Test Bank, Free Download
------
Revel for Ethics and the Conduct of Business, 8th Edition, 2016, John R Boatright, Jeffery D. Smith
Legal Environment of Business: Online Commerce, Ethics, and Global Issues, 8th Edition, 2016, Henry R. Cheeseman
Business Ethics: Concepts and Cases, 7th Edition, 2012, Manuel G. Velasquez, Santa Clara University

------
1. Ethics in the World of Business
2. Ethical Decision Making
3. Ethical Theories
4. Whistle-Blowing
5. Business Information and Conflict of Interest
6. Privacy
7. Discrimination and Affirmative Action
8. Employment Rights
9. Health and Safety
10. Marketing and Advertising
11. Ethics in Finance
12. Corporate Social Responsibility
13. Governance, Accountability, and Compliance
14. International Business Ethics
------
Part I: Legal and Ethical Environment

1. Legal Heritage and the Digital Age
2. Ethics and Social Responsibility of Business
3. Courts, Jurisdiction, and Administrative Law
4. Judicial, Alternative, and E-Dispute Resolution

Part II: Constitution and Public Law
5. Constitutional Law for Business and E-Commerce
6. Torts and Strict Liability
7. Criminal Law and Cyber Crimes
8. Intellectual Property and Cyber Piracy

Part III: Contracts, Commercial Law, and E-Commerce
9. Formation and Requirements of Contracts
10. Performance and Breach of Contracts
11. Digital Law and E-Commerce
12. UCC Sales Contracts, Leases, and Warranties
13. Credit, Secured Transactions, and Bankruptcy

Part IV: Business Organizations, Corporate Governance, and Investor Protection
14. Small Business, General Partnerships, and Limited Partnerships
15. Limited Liability Companies, Limited Liability Partnerships, and Special Forms of Business
16. Corporations and Corporate Governance
17. Investor Protection and E-Securities Transactions

Part V: Agency, Employment, and Labor Law
18. Agency Law
19. Equal Opportunity in Employment
20. Employment Law and Worker Protection
21. Labor Law and Immigration Law

Part VI: Government Regulation
22. Antitrust Law and Unfair Trade Practices
23. Consumer Protection
24. Environmental Protection
25. Real Property and Land Use Regulation

Part VII: Global Environment
26. International and World Trade Law

Part VIII: Accounting Profession
27. Accountants’ Duties and Liability
------
PART ONE Basic Principles

Chapter 1 Ethics and Business
Introduction
1.1 The Nature of Business Ethics
ON THE EDGE: Was National Semiconductor Morally Responsible?
1.2 Ethical Issues in Business
ON THE EDGE: A Traditional Business
1.3 Moral Responsibility and Blame
ON THE EDGE: WorldCom’s Whistleblower
ON THE EDGE: Gun Manufacturers and Responsibility
CASES FOR DISCUSSION
Slavery in the Chocolate Industry
Aaron Beam and the HealthSouth Fraud

Chapter 2 Ethical Principles in Business
Introduction
2.1 Utilitarianism: Weighing Social Costs and Benefits
2.2 Rights and Duties
ON THE EDGE: Should Companies Dump Their Wastes In Poor Countries?
ON THE EDGE: Working for Eli Lilly & Company
ON THE EDGE: Conflict Diamonds
ON THE EDGE: ExxonMobil, Amerada Hess, and Marathon Oil in Equatorial Guinea
CASES FOR DISCUSSION
Traidos Bank and Roche’s Drug Trials in China

PART TWO The Market and Business

Chapter 3 The Business System: Government, Markets, and International Trade
Introduction
3.1 Free Markets and Rights: John Locke
3.2 Free Markets and Utility: Adam Smith
3.3 Free Trade and Utility: David Ricardo
3.4 Marx and Justice: Criticizing Markets and Free Trade
ON THE EDGE: Commodification or How Free Should Free Markets Be?
ON THE EDGE: Marx’s Children
3.5 Conclusion: The Mixed Economy, the New Property, and the End of Marxism
ON THE EDGE: Napster’s Lost Revolution
ON THE EDGE: Brian’s Franchise
CASES FOR DISCUSSION
The GM Bailout Accolade versus Sega

Chapter 4 Ethics in the Marketplace
Introduction
4.1 Perfect Competition
4.2 Monopoly Competition
ON THE EDGE: Drug Company Monopolies and Profits
4.3 Oligopolistic Competition
4.4 Oligopolies and Public Policy
ON THE EDGE: Fixing the Computer Memory Market
ON THE EDGE: Oracle and Peoplesoft
CASES FOR DISCUSSION
Intel’s “Rebates” and Other Ways It “Helped” Customers
Archer Daniels Midland and the Friendly Competitors

PART THREE Business and Its External Exchanges: Ecology and Consumers

Chapter 5 Ethics and the Environment
Introduction
5.1 The Dimensions of Pollution and Resource Depletion
5.2 The Ethics of Pollution Control
5.3 The Ethics of Conserving Depletable Resources
ON THE EDGE: Ford’s Toxic Wastes
ON THE EDGE: The Auto Companies in China
ON THE EDGE: Exporting Poison
CASES FOR DISCUSSION
The Ok Tedi Copper Mine
Gas or Grouse?

Chapter 6 The Ethics of Consumer Production and Marketing
Introduction
6.1 Markets and Consumer Protection
6.2 The Contract View of Business Firm’s Duties to Consumers
6.3 The Due Care Theory
ON THE EDGE: The Tobacco Companies and Product Safety
6.4 The Social Costs View of the Manufacturer’s Duties
ON THE EDGE: Selling Personalized Genetics
6.5 Advertising Ethics
ON THE EDGE: Advertising Death to Kids?
ON THE EDGE: New Balance and the “Made in USA” Label
6.6 Consumer Privacy
CASES FOR DISCUSSION
Becton Dickinson and Needle Sticks
Reducing Debts at Credit Solutions of America

PART FOUR Business and Its Internal Constituencies

Chapter 7 The Ethics of Job Discrimination
Introduction
7.1 Job Discrimination: Its Nature
ON THE EDGE: Helping Patients at Plainfield Healthcare Center
7.2 Discrimination: Its Extent
7.3 DISCRIMINATION: UTILITY, RIGHTS, AND JUSTICE
7.4 Affirmative Action
ON THE EDGE: Driving for Old Dominion
ON THE EDGE: Peter Oiler and Winn-Dixie Stores
CASES FOR DISCUSSION
Should Kroger pay now for what a Ralphs’ Employee did in the Past
Wal-Mart’s Women

Chapter 8 Ethics and the Employee
Introduction
8.1 The Rational Organization
8.2 The Political Organization
8.3 The Caring Organization
ON THE EDGE: HP’s Secrets and Oracle’s New Hire
ON THE EDGE: Insider Trading or: What Are Friends For?
ON THE EDGE: Delivering Pizza
ON THE EDGE: Sergeant Quon’s Text Messages
ON THE EDGE: Employment at Will at Howmet Corporation?
CASES FOR DISCUSSION
Death at Massey Energy Company
Who Should Pay?
------
key words
Ethics,
Ethical Decision Making,
Ethical Theories,
Whistle-Blowing,
Conflict of Interest,
Privacy,
Discrimination, Affirmative Action,
Employment Rights,
Health and Safety,
Ethics in Finance,
Corporate Social Responsibility,
Governance, Accountability, Compliance,
International Business Ethics,

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