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Connect Business Law Homework 2

Q1. The study of what is good or right is ____________.

legal philosophy
dependent on the individual’s conscience
ethics
social responsibility
religious thought

Q2. Business ethics is not adequately pursued just by obeying the law because __________.

to obey the law is not to favor its continued existence
law and ethics function on two different levels
ethics by business leaders need to be expanded
obedience to the law can be only halfhearted
ethics asks us not just what the law is, but what it should be

Q3. Business ethics provide a set of standards for ethical behavior, but they can never provide ________.

proof of the good will of those operating the business
profits at a maximum level
absolute right answers
a legal guarantee
expanded rights for everyone

Q4. Establishing a code of ethics can benefit the firm but has the following limitation.

The code may be disobeyed in secret.
The code may be written in one country, but the firm has business in a different country.
Government regulations may prevent obedience to the code of ethics.
It can never provide the firm with a single best answer for what it should do
The code may be written by the human resources office and never understood by top management.

Q5. Business ethics shape the development of the law in what fashion?

The ideals and standards of business ethics point lawmakers in directions where additional laws are needed
The codes of ethics of firms are similar to the codes of ethics for lawmakers.
Both have a similar history.
To be meaningful, ethics must recognize the complexity of commercial activities.
Those who make the law often come from the business world.

Q6. The WPH framework would be incomplete without which of the following?

Well-educated corporate leaders.
Practical guidelines that assist in determining how to respond to an ethical dilemma
A solid grounding in accounting and marketing.
An explanation of the complexity of each aspect of modern business.
A code of corporate conduct.

Q7, If when making the decision about whether to move their plant to Honduras, Smooth Ride management considered how they would feel if details of the move were the focus of a headline story on the front page of the Wall Street Journal, which test would they be applying?

The public disclosure and universalization tests.
None of the listed tests are being applied.
The universalization test.
The golden rule.
The public disclosure test.

Q8. Use the decision-making process taught in this chapter to create a socially responsible ethical decision for Smooth Ride. They know that whatever they do, they will displease people they do not wish to disappoint. Yet as with all tough ethical decisions, they have little choice but to make a decision that will allow them to thrive, while being true to their ethical vision.

Smooth Ride Tires is experiencing economic hard times. Their current revenue stream is simply not covering their costs. Although the management of Smooth Ride has not made a definite commitment yet, they are leaning toward moving their facilities to Honduras. The reasons are many. The labor force in Honduras, while not as well-trained as the American workforce, is almost half as expensive. In addition, the Honduran government has promised that soldiers will be used to stop any effort by the Honduran workforce to organize a union. Finally, the weak environmental protection laws in Honduras will provide a much friendlier production environment for a manufacturing process that is often “dirty.” The daughter of a major stockholder is threatening to go to the press to “expose” the motivations of management. How should management respond if it is going to live up to its image as “one of the most ethical firms in the modern marketplace?”

When making the decision as to whether to move the plant to Honduras, which of the following would be a relevant stakeholder or stakeholders?

customers.
management and customers.
owners or shareholders.
All of the listed entities would be relevant stakeholders
employees

Q9. Why is the question raised by Smooth Ride’s consideration of a move to Honduras an ethical dilemma?

The corporate core values could be tied somehow to the problem.
It is a question about right and wrong business conduct with no clear right or wrong answer
The stakeholders indicate to the firm that the problem is ethical.
Smooth Ride always tries to behave in an ethical manner.
Honduras is an especially poor country where the soldiers will be used to prevent unionization.

Q10. Why is it not ethical necessarily for Smooth Ride to decide where it locates by simply obeying the law?

Social responsibility is a concept derived not from law, but from social expectations.
Obedience to the law doesn’t matter in cases of global competition.
The law is guided by politics, not values.
Core values differ among firms.
The law does not cover all aspects of human conduct that have ethical effects

Q11. What does it mean when we say that ethics guides the law?

We mean that it has an effect, but not a large one.
When people want business to be socially responsible, they want the law to enforce it.
The evolution of the law moves in a direction that legislatures and courts see as more ethical
The universalization principle is the basis for all legal principles.
The law is persistently shaping the behavior that we call “ethical” when business managers do it.

Q12. Treating others as persons of rational dignity like you is an example of which of the following ethical guidelines?

Public disclosure test.
Universalization test.
The Golden Rule
Absolutism.
Deontology.

Q13. The following are true of “values” EXCEPT?

They are positive abstractions.
They underlie our ethical decisions.
Their definitions are self-evident.
They represent the basic unit of business ethics.
They have multiple meanings.

Q14. Farmer John wanted to apply a new fertilizer to his crops that would guarantee an increase in yields of over 25 percent. The fertilizer, however, would inevitably run off into the river nearby and affect the water quality of a nearby community. Thus, Farmer John decided against using the fertilizer, reasoning that if others were to follow his example, the world would be worse off than now. Farmer John is likely appealing to which of the following principles?

Moral absolutism.
Ethical relativism.
Situational ethics.
Public disclosure test.
Universalization test.

Q15. Read the case below and answer the questions that follow.

Margoli’s is a hypothetical manufacturing company located in Wayne County, Michigan. All of its employees are residents of Michigan, and most of its customers are also located in the state. One day, the primary deliveryman called in sick. Carlos, one of the managers, had to fill in to make a delivery in Bowling Green, located in Wood County, Ohio. Worried about being away from the plant for too long, Carlos exceeded the speed limit as he drove toward Bowling Green. As he drove through Lucas County, Ohio, he was unable to control his truck as he made a sharp turn. He drove up onto the sidewalk and hit a pedestrian who was standing at the intersection waiting to cross the street. As a result, Carlene, the pedestrian, suffered injuries that resulted in her becoming a paraplegic, ending her career as tennis pro. Carlene is suing both Margoli’s and Carlos.

In the case of the reckless deliveryman, Margoli’s and all of its employees are located in Michigan. When the manager, Carlos, was making a delivery, he exceeded the speed limit and struck Carlene. Carlene is now a paraplegic and must abandon her career as a tennis pro. The accident took place in Ohio. Which of the following facts will cause the jurisdiction to shift from concurrent federal jurisdiction to state jurisdiction?

Carlos resides in Ohio and Carlene sues the Wisconsin company that made Carlos’s truck.
Carlene had seen Carlos coming but chose not to move out of the way.
Carlos was a resident of Ohio, not Michigan
Carlos was not violating the speed limit at the time he hit Carlene.
Carlene also sued the manufacturer of the delivery truck, a company located in Wisconsin.

Q16. In the case of the reckless deliveryman, the court could acquire jurisdiction over the out-of-state defendants by using the long-arm statutes and serving them. Which of the following provide an alternative to obtaining jurisdiction over the defendant?

Attachment jurisdiction.
Quasi in rem jurisdiction.
In rem jurisdiction.
All of these
None of the listed items (the trial court must have in personam jurisdiction over both parties).

Q17. In the case of the reckless deliveryman, Margoli’s and all of its employees are located in Michigan. When the manager, Carlos, was making a delivery, he exceeded the speed limit and struck Carlene. Carlene is now a paraplegic who must abandon her career as a tennis pro. The accident took place in Ohio. Carlene is from Lucas County. If it is discovered that Carlos is actually from Wood County, Ohio, in which court or courts can Carlene now file her case against Carlos and Margoli’s?

Federal district court located in Wayne County.
Wood County Court of Common Pleas or Lucas County Court of Common Pleas
Any of the listed courts.
Wood County Court of Common Pleas.
Lucas County Court of Common Pleas.

Q18. If the plaintiff, Carlene, files a case in the state court in Lucas County, Ohio, and the defendant, Carlos, wants the case heard in a federal district court in Michigan, what would Carlos have to do?

He would have to file a motion for a change of venue.
He would have to file a motion to exercise his right of removal and then file a motion for a change of venue
He would have to file a motion to exercise his right of removal.
He is out of luck because the plaintiff chooses where the case will be heard by filing it in that court.
He would have to file a motion for change of jurisdiction.

Q19. Which of the following acts would probably constitute minimum contacts that would allow an Ohio court to serve a Michigan defendant to obtain in personam jurisdiction over him?

All of the contacts described provide sufficient contacts for in personam jurisdiction
None of the contacts described provides sufficient contacts for in personam jurisdiction.
The Michigan defendant got into an automobile accident in Ohio.
The Michigan defendant signed a contract in Ohio with an Ohio business.
The Michigan defendant sold products in the state of Ohio that injured the purchasers.

Q20. In addition to concurrent federal jurisdiction, and state jurisdiction, a third type of subject-matter jurisdiction is exclusive federal jurisdiction. Which of the following items do not fall under exclusive federal jurisdiction?

All of the listed cases fall under exclusive federal jurisdiction.
Patent cases.
Bankruptcy cases.
Cases involving the determination of whether a federal law violates a person’s rights under the U.S. Constitution.
Cases where one state is suing another.

Q21. Which of the following items are contained in the complaint?

The relief the plaintiff is seeking.
The basis for the court’s subject-matter jurisdiction over the case
The names of the parties to the case.
A request for a jury.
All of these are included in the complaint

Q22. Preventing the case from going to trial is the purpose of which of the following step(s) in civil litigation?

Only interrogatories.
Only a reply.
Only a motion for judgment on the pleadings.
Only a motion for summary judgment.
A motion for judgment on the pleadings and a motion for summary judgment

Q23. Which document initiates the lawsuit?

Reply.
Interrogatory.
Motion for summary judgment.
Complaint
Answer

Q24. At the same time the parties filed interrogatories, they could have also filed a request for the production of documents. Which of the following documents could have been requested?

A photograph
Medical records
A contract
A report from a mental examination
All of these

Q25. A reply by the plaintiff is similar to a(n) _______________ by the defendant.

answer
motion for summary judgment
counterclaim
interrogatory
None of the items listed

Q26. Which of the steps in civil litigation is considered a part of the discovery process in the case?

A motion for judgment on pleadings is filed.
A motion for summary judgment is filed.
Both parties file interrogatories.
A pretrial conference is held.
None of these is considered a part of the discovery process.

Q27. A motion for change of venue can be used to

move the case from the court in one geographic location to another within the same system.
move the case from the federal to the state court system.
move the case from the state to the federal court system.
move the case from the court in one geographic location to another within the same system and move the case from the federal to the state court system.
move the case from the court in one geographic location to another within the same system and move the case from the state to the federal court system.

Q28. For purposes of determining subject matter jurisdiction, a corporation is a resident of

the state in which it is incorporated.
the state which is its primary place of business.
any state in which it does business.
the state in which it is incorporated and the state which is its primary place of business.
the state in which it is incorporated and any state in which it does business.

Q29. Concurrent federal jurisdiction exists when

no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case.
the case addresses a federal question.
one state is suing another state.
no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case or the case raises a federal question.
no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case and one state is suing another state.

Q30. Appellate courts

are the known as court of original jurisdiction for civil cases.
hold trials.
decide cases when they first enter the legal system.
have the power to review previous judicial decisions passed by trial courts

Q31. Trial courts

have the power to overrule appellate courts’ decisions on questions of law.
decide questions of fact only.
hear and decide cases when they first enter the legal system.
are called district courts in the state courts systems.

Q32. Based on the subject matter, which of the following law cases will fall under exclusive federal jurisdiction?

Cases related to bankruptcy.
Diversity-of-citizenship cases.
Federal-question cases.
Cases related to product liability and negligence.

Q33. To have a diversity-of-citizenship case,

the controversy should concern an amount in excess of $150,000.
the controversy must happen in a state that borders another country.
the plaintiff and the defendant know each other prior to the occurrence of the accident.
the plaintiff and defendant live in different states.

Q34. Courts of __________ jurisdiction have the power to review previous judicial decisions to determine whether trial courts erred in their decisions.

original
deferred
appellate
in personam

Q35. Courts of __________ jurisdiction have the power to hear and decide cases when they first enter the legal system.

original
deferred
appellate
in personam

Q36. __________ jurisdiction is a court’s power to render a decision affecting the rights of specific persons before the court.

Original
Deferred
Homo sapiens
In personam

Q37. Why have most states enacted a long-arm statute?

It enables courts to serve defendants outside the state as long as the defendant has sufficient minimum contacts within the state.
It enables district courts to handle both questions of law and questions of fact for cases within their states.
If a defendant has property in a state, it allows a plaintiff to file suit against the owner instead of his or her property.
It allows trial courts to overrule appellate courts’ decisions when no trial evidence supports the appellate court’s finding.

Q38. The United States Supreme Court is most likely to issue a writ of certiorari in all but which of the following instances?

A state court of last resort has ruled that a state law is invalid.
The case presents a substantial federal question that the United States Supreme Court has not yet addressed.
Multiple circuit courts of appeal have decided the issue of the case in different ways.
A federal court has ruled that an act of the United States Congress is unconstitutional.

Q39. Jurisdiction refers to:

A defendants interest in having an impartial jury preside over a case
The plaintiff’s interest in having a case heard in district court.
The courts’ power to render binding decisions on parties before them.
The power of the plaintiff to file a lawsuit in any court of his choosing.
The power of a defendant to have a case removed to an unbiased court.

Q40. In what state is XYZ Bank, a federally chartered bank, considered a citizen?

The bank is considered a citizen of any state in which it is located, meaning any state in which the bank has branches.
The bank is considered a citizen of the state in which it is located, meaning the state in which its main office, as specified in its articles of incorporation, is located.
The bank is considered a citizen only of Washington D.C.
The bank is considered a citizen only of the state in which it does its largest volume of business.
The bank is considered a citizen of Washington D.C. and also of the state in which it does its largest volume of business.

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