Deck 5: Ethics and Contracts

Question 1

Failure to disclose the dangers of a diet program is an ethical issue.

Answer 1

True

Question 2

The Cornell researchers did not have a conflict because the funding for their lung cancer research did not come directly from the tobacco companies.

Answer 2

False

Question 3

With respect to #4, it is not necessary for the company to take any action to correct the problem or refund money for those who already own the new calculator.

Answer 3

False

Question 4

Intentional breach of a contract carries a legal remedy, but it is also unethical.

Question 5

The failure to correct a known defect in a product is both an ethical lapse and a basis for a negligence claim.

Question 6

The failure to disclose material information in negotiations is an ethical breach.

Question 7

Long-term relationships create ethical and legal obligations between the parties through conduct and accommodations.

Question 8

Telling a customer he needs repair work done on a vehicle when the vehicle is in fine condition is unethical and misrepresentation.

Question 9

The Red Cross disclosed that 9-11-01 funds would be used for administrative purposes.

Question 10

How much money had Intel spent developing the Pentium chip?

A)$150 million
B)$500 million
C)$600 million
D)$1 billion

Question 11

What error did Intel discover in its Pentium chip in July 1994?

A)That the chip was contaminated
B)That there was a floating point error that caused errors in division calculations
C)That the chip could cause computer viruses
D)None of the above

Question 12

Checking the books and records of an organization is one method for establishing the legitimacy of its claims.

Question 13

Nonprofits have fallen victim to widespread Ponzi schemes.

Question 14

What did Intel discover when it ran tests on the Pentium chip?

A)That it would make an error once every 27,000 years
B)That the chance of an error was one in 9 billion
C)That the floating point error problem was not one that required attention
D)a and b only
E)a, b and c

Question 15

Nonprofits are permitted to use raised funds in any manner they deem acceptable.

Question 16

The Red Cross CEO resigned in protest over the use of Red Cross funds.

Question 17

The withholding of material information in a contract relationship is an ethical issue as well as misrepresentation.

Question 18

Nonprofits and their boards need not be concerned with conflicts of interest.

Question 19

Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator.The calculator adds when the subtract button is pressed if there are more than three figures to the right of the decimal point.Since it is not your area, you should do and say nothing.

Question 20

Taking advantage of a party in a contract situation due to the party's inexperience, and not due to any lack of disclosure on your part, is ethical.

Question 21

"Wiggle room" in minority-owned businesses means:

A)That a male business owner who has his wife own 51% of his business qualifies as a women or minority-owned business.
B)That these businesses are not required to perform the contract according to industry standards.
C)That very few businesses qualify for minority- or women-owned businesses.
D)That percentages of ownership or work time can be rounded up.

Question 22

Intel's biggest obstacle in its Pentium chip flaw was:

A)The cost of replacement.
B)Admitting that there was a problem and acknowledging it to the public.
C)The hit to earnings if the sales were not made.
D)Both a and c
E)None of the above

Question 23

What company changed Intel's reaction to the flawed chips?

A)Dell
B)Microsoft
C)IBM
D)Apple

Question 24

The crux of Mr.Blagojevich's defense was:

A)"That's the way it has always been done."
B)"It's a gray area."
C)There was no conflict.
D)Phone conversations are not evidence of a crime.

Question 25

What was the total cost if Intel replaced all chips?

A)$100 million
B)$200 million
C)$260 million
D)$360 million

Question 26

Which category of ethical dilemma did the conduct of the Yale University researchers breach in their submission of time allocation?

A)False impression
B)Conflict of interest
C)Balancing ethical dilemmas
D)Organizational abuse

Question 27

What relationships are now being regulated as a result of underfunded pension plans?

A)Auditors of the funds and their clients
B)Union officials and auditors of pension funds
C)Actuaries of funds and the pension plan sponsors
D)All of the above

Question 28

The shift of consumers from the use of computers to smart phones and its impact on Facebook:

A)Was fully disclosed in the original prospectus for the company's IPO
B)Was not material for purposes of disclosure on its IPO
C)Was not fully disclosed in Facebook's prospectus
D)Was not relevant to Facebook's profitability

Question 29

What was Intel's original proposal on the flawed chips?

A)To replace them without questions
B)To replace them only for computer users who had to do calculations
C)To replace them only for a fee
D)None of the above

Question 30

Facebook's IPO was:

A)The third largest in Wall Street history.
B)A fraud.
C)Issued without registration.
D)Postponed indefinitely.

Question 31

What is Chase's policy on pay-day loans?

A)Chase makes the loans after full disclosure
B)Chase is re-examining allowing pay-day lenders access to customers' checking accounts
C)Chase is the number one pay-day lender in the United States
D)Chase refuses to make withdrawals for pay-day lenders

Question 32

Who provides the data for investment requirements for pension funds?

A)Investment advisers
B)Actuaries
C)The federal government
D)ERISA

Question 33

What was the basis for suits against Subway for their 12-inch claims about sandwiches that were only 11 inches long?

A)Fraud
B)Deceptive advertising
C)Consumer fraud
D)There is no basis for litigation

Question 34

Which of the following have received tax incentives for locating plants or companies in certain states?

A)Nike
B)Susette Kelo
C)John Cougar Mellencamp
D)All of the above

Question 35

Who paid fines in relation to the Facebook IPO?

A)Morgan Stanley
B)NASDAQ
C)Both a and b
D)No one was fined because the IPO was not issued yet

Question 36

What was a reason for the city of Detroit's bankruptcy?

A)The disparity between the amount due in pension payments and the amount in the fund and coming in
B)Payments for gun-related crimes
C)The GM pension plan
D)All of the above

Question 37

How long after the Facebook IPO was issued was litigation filed?

A)Two months
B)There is no litigation because the IPO was postponed indefinitely
C)Three months
D)Three days

Question 38

Who made the Intel error problem public?

A)Intel
B)A mathematician professor
C)IBM
D)None of the above

Question 39

What is a condition to most pay-day loans?

A)That the borrower pay 75% interest
B)That the borrower agree to some type of collateral
C)That the borrower agree to give the lender access to the borrower's checking account
D)That the borrower waive the right to litigation

Question 40

Former Governor Rod Blagojevich:

A)Was convicted of asking for kickbacks.
B)Was convicted of bribery.
C)Was convicted of lying to the FBI.
D)Was acquitted on all charges.

Question 41

Develop a policy for universities for disclosure by researchers of funding sources.

Question 42

The MERS system:

A)Allows for anyone to sign a deed and have it be valid.
B)Is the same as the public land recording system.
C)Allows for fictitious signatures for mortgage foreclosure.
D)None of the above

Question 43

In the Kelo case, what happened after the court ruled against the homeowners?

A)Their houses were torn down and Pfizer built its facilities
B)The city changed its plans and the houses were not torn down
C)The houses were torn down, but the site remains undeveloped
D)The homeowners appealed again and won the right to keep their homes

Question 44

Into what ethical category did "robo-signing" fit?

A)False impression
B)Taking unfair advantage
C)Not following the rules
D)All of the above

Question 45

Which of the following have removed plants, companies, or offices from states or local areas after having received benefits for locating there?

A)Pfizer
B)GM
C)Nike
D)Oliver Stone