Question 1

Law sets the rules and ethics sets the values and standards on which the rules are based.

Accepted Answer

A) True 
 B)False  True

Question 2

A person's understanding of the law will be determined by their:

Accepted Answer

A) religious and ethical views. 
B) moral views and standards. 
C) political views. 
D) all of the above. 
A) religious and ethical views. 
B) moral views and standards. 
C) political views. 
D) all of the above. D

Question 3

Which of the following would be an example of a conflict of interest in a business context?

Accepted Answer

A) The director of a company votes in favour of a contract for services to be provided by his family company. 
B) A real estate agent regularly refers clients to a firm of solicitors of which his wife is the principal solicitor. 
C) The purchasing officer for a business accepts a commission to place orders exclusively with a particular company. 
D) All of the above. 
A) The director of a company votes in favour of a contract for services to be provided by his family company. 
B) A real estate agent regularly refers clients to a firm of solicitors of which his wife is the principal solicitor. 
C) The purchasing officer for a business accepts a commission to place orders exclusively with a particular company. 
D) All of the above. D

Question 4

Current law requires all businesses to have a corporate code of conduct for ethical business practices.

Accepted Answer

A) True 
 B)False

Question 5

Morals are concerned with:

Accepted Answer

A) acting in the best interests of society. 
B) the distinction between right and wrong. 
C) acting in your own best interests. 
D) being good members of society. 
A) acting in the best interests of society. 
B) the distinction between right and wrong. 
C) acting in your own best interests. 
D) being good members of society.

Question 6

The difference between the letter and the spirit of the law is a moral or ethical question.

Accepted Answer

A) True 
 B)False

Question 7

Why is insider trading unethical?

Accepted Answer

A) Because the buyer of shares who is acting on inside information has effectively stolen the increase in share price from the seller. 
B) Because it is unconscionable for the person with inside information to keep that information to themselves. 
C) Because the person who sells their shares to a buyer acting on inside information has not done so willingly. 
D) Because it is illegal. 
A) Because the buyer of shares who is acting on inside information has effectively stolen the increase in share price from the seller. 
B) Because it is unconscionable for the person with inside information to keep that information to themselves. 
C) Because the person who sells their shares to a buyer acting on inside information has not done so willingly. 
D) Because it is illegal.

Question 8

What was the ethical issue raised by the McCabe case?

Accepted Answer

A) Whether smokers make an informed decision to smoke and are therefore responsible for their own decision. 
B) Whether Mrs.McCabe produced the requested documents in a timely manner. 
C) Whether the destruction of the documents made a fair trial impossible for Mrs.McCabe. 
D) Whether Mrs.McCabe withheld key evidence that was being sought by the defendant. 
A) Whether smokers make an informed decision to smoke and are therefore responsible for their own decision. 
B) Whether Mrs.McCabe produced the requested documents in a timely manner. 
C) Whether the destruction of the documents made a fair trial impossible for Mrs.McCabe. 
D) Whether Mrs.McCabe withheld key evidence that was being sought by the defendant.

Question 9

As a general rule,an organisation's integrity program should include:

Accepted Answer

A) a code of conduct. 
B) systems for reporting breaches and auditing compliance. 
C) training to ensure compliance with the corporation's legal obligations. 
D) all of the above. 
A) a code of conduct. 
B) systems for reporting breaches and auditing compliance. 
C) training to ensure compliance with the corporation's legal obligations. 
D) all of the above.

Question 10

List some examples of legal rules with ethical considerations.

Accepted Answer

•Insider trading
•Giving and receiving g

Question 11

The idea that the end does not justify the means is an example of which theory of ethics?

Accepted Answer

A) Deontological ethics. 
B) Utilitarianism. 
C) Consequentialism. 
D) Moral relativism. 
A) Deontological ethics. 
B) Utilitarianism. 
C) Consequentialism. 
D) Moral relativism.

Question 12

Business ethics is about how we conduct our business affairs.

Accepted Answer

A) True 
 B)False

Question 13

ACME Inc.manufactures high-in-demand electronic components.As part of its sales contracts with customers,ACME Inc.requires that customers agree not to hold ACME Inc.liable for more than fair market value for defective components and that customers mediate any dispute they may have with ACME Inc.Is ACME Inc.'s contract unconscionable?

Accepted Answer

A) Yes,ACME Inc.'s contract is unconscionable,if it is marginally unfair to customers and against good conscience. 
B) Yes,ACME Inc.'s contract is unconscionable because its terms are one-sided and grossly unfair to customers. 
C) No,ACME Inc.'s contract is not unconscionable because it is transparent about the exact terms. 
D) No,ACME Inc.'s contract is not unconscionable because customers still have rights under the contract. 
A) Yes,ACME Inc.'s contract is unconscionable,if it is marginally unfair to customers and against good conscience. 
B) Yes,ACME Inc.'s contract is unconscionable because its terms are one-sided and grossly unfair to customers. 
C) No,ACME Inc.'s contract is not unconscionable because it is transparent about the exact terms. 
D) No,ACME Inc.'s contract is not unconscionable because customers still have rights under the contract.

Question 14

Why might a business choose to behave in an ethical manner?

Accepted Answer

A) To avoid legislative intervention by government to protect consumers or the market. 
B) To avoid a community backlash and adverse consequences in the market. 
C) To avoid adverse and damaging publicity. 
D) All of the above. 
A) To avoid legislative intervention by government to protect consumers or the market. 
B) To avoid a community backlash and adverse consequences in the market. 
C) To avoid adverse and damaging publicity. 
D) All of the above.

Question 15

To be sound,ethical opinions must be based on which of the following?

Accepted Answer

A) Reason. 
B) Self interest. 
C) Appearance. 
D) All of the above. 
A) Reason. 
B) Self interest. 
C) Appearance. 
D) All of the above.

Question 16

Why is tax evasion considered to be unethical?

Accepted Answer

A) The taxpayer is trying to avoid paying their share towards community services. 
B) Tax money is often used for purposes with which the taxpayer does not agree. 
C) It is illegal. 
D) Everyone pays tax in some form. 
A) The taxpayer is trying to avoid paying their share towards community services. 
B) Tax money is often used for purposes with which the taxpayer does not agree. 
C) It is illegal. 
D) Everyone pays tax in some form.

Question 17

The distinction between the letter and the spirit of the law is largely a moral or ethical question.

Accepted Answer

A) True 
 B)False

Question 18

Deontological ethics means that the end justifies the means.

Accepted Answer

A) True 
 B)False

Question 19

As officers of the court,lawyers are expected to act within the spirit of the law.

Accepted Answer

A) True 
 B)False

Question 20

What kind of unethical business practice was identified in the case of Australia v Competition and Consumer Commission v Keshow [2005] FCA 558?

Accepted Answer

A) Making improper payments to a foreign government in order to bypass UN sanctions for commercial advantage. 
B) Taking unconscionable advantage of the lack of education and commercial experience of customers. 
C) Using bogus offshore transactions and a foreign accounting firm to avoid paying tax on income earned in Australia. 
D) Using the doctrine of separate legal entity of a company to avoid liability for compensation claims. 
A) Making improper payments to a foreign government in order to bypass UN sanctions for commercial advantage. 
B) Taking unconscionable advantage of the lack of education and commercial experience of customers. 
C) Using bogus offshore transactions and a foreign accounting firm to avoid paying tax on income earned in Australia. 
D) Using the doctrine of separate legal entity of a company to avoid liability for compensation claims.

Exam 27: Ethics and Business Practice

Law sets the rules and ethics sets the values and standards on which the rules are based.

A person's understanding of the law will be determined by their:

Which of the following would be an example of a conflict of interest in a business context?

Current law requires all businesses to have a corporate code of conduct for ethical business practices.

Morals are concerned with:

The difference between the letter and the spirit of the law is a moral or ethical question.

Why is insider trading unethical?

What was the ethical issue raised by the McCabe case?

As a general rule,an organisation's integrity program should include:

List some examples of legal rules with ethical considerations.

The idea that the end does not justify the means is an example of which theory of ethics?

Business ethics is about how we conduct our business affairs.

Why might a business choose to behave in an ethical manner?

To be sound,ethical opinions must be based on which of the following?

Why is tax evasion considered to be unethical?

The distinction between the letter and the spirit of the law is largely a moral or ethical question.

Deontological ethics means that the end justifies the means.

As officers of the court,lawyers are expected to act within the spirit of the law.

What kind of unethical business practice was identified in the case of Australia v Competition and Consumer Commission v Keshow [2005] FCA 558?

Legal Foundations

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Criminal Law in a Business Context

Competition Law

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

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