Question 1

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

Accepted Answer

The Office of the Whistleblower was created by the Securities and Exchange Commission to encourage people to come forward and report possible securities law violations.

Question 2

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

Accepted Answer

As far back as the False Claims Act of 1863, designed to prevent profiteering from the Civil War, the government has been willing to split up to 50 percent of the recovered amount with the person filing the petition.

Question 3

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

Accepted Answer

The whistle-blower hotline is a telephone line by which employees can leave messages to alert a company of suspected misconduct without revealing their identity.

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

The Sarbanes-Oxley Act of 2002 is also known as the Corporate and Criminal Fraud Accountability Act.

Question 6

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

Accepted Answer

For employees to feel comfortable using a whistle-blower hotline, they must trust their employer to take their reports seriously and handle them confidentially. Without trust, employees may fear retaliation or that their concerns will not be addressed. Therefore, building trust is crucial for the effectiveness of a whistle-blower hotline.

Question 7

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

Accepted Answer

Whistle-blower hotlines allow employees to report suspected misconduct within the organization anonymously, providing protection against retaliation.

Question 8

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.

Accepted Answer

This statement is true. Organizations can establish an internal reporting system that allows employees or insiders to report any unethical behavior, fraud, or illegal activities without fear of retaliation. By doing so, they can address and resolve the issue in private while preventing any potential negative media attention or legal consequences that might arise from external whistle-blowing. This system can also help organizations identify and address any systemic or cultural problems that may lead to unethical behavior or misconduct, improving their overall ethical standards and compliance.

Question 9

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

Accepted Answer

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

Question 10

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).

Accepted Answer

The Dodd-Frank Wall Street Reform and Protection Act of 2010 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 11

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.

Accepted Answer

The Whistleblower Protection Act of 1989 addressed the issue of retaliation against federal employees who bring accusations of unethical behavior. The act imposed specific performance deadlines in processing whistle-blower complaints and guaranteed the anonymity of the whistle-blower unless revealing the name would prevent criminal activity or protect public safety.

Question 12

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

Accepted Answer

Since internal whistle-blowing rarely receives media attention, it is impossible to track the history of such actions.

Question 13

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

Accepted Answer

The Sarbanes-Oxley Act of 2002 includes provisions that protect whistle-blowers from retaliation and encourage the disclosure of information about fraudulent or illegal activities within a company. This is aimed at promoting transparency and accountability in corporate governance.

Question 14

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

Accepted Answer

The Whistleblower Protection Act of 1989 applied only to federal employees.

Question 15

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.

Accepted Answer

This statement is true. Section 922 of the Dodd-Frank Act established a whistleblower program that rewards individuals who provide original information about violations of securities laws to the Securities and Exchange Commission. If the information leads to a successful enforcement action and the recovery of more than $1 million, the whistleblower can receive between 10 and 30 percent of the amount collected.

Question 16

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.

Accepted Answer

Whether the choice is based on ethical or financial considerations, a company's misconduct is still wrong and a matter of legal consideration.

Question 17

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

Accepted Answer

Prior to 2002, legal protection for whistle-blowers existed only through legislation that encouraged the moral behavior of employees who felt themselves compelled to speak out, without offering any safeguards against retaliation aimed at them.

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

The False Claims Act of 1863 offered no specific prohibitions against retaliatory behavior.

Question 20

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.

Accepted Answer

Under the Dodd-Frank Wall Street Reform and Protection Act of 2010, a whistle-blower is rewarded if he or she reports securities law violations to the Commodity Futures Trading Commission.

Quiz 7: Blowing the Whistle