Chapter 10 Moral Issues Facing Employees

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Question #1

According to Norman Bowie, whistle-blowing can never be justified because it involves violating one’s duties to the organization.

A False

B True

Question #2

According to the traditional law of agency, which statement is true?

A The law of agency is not a legal concept but a moral standard of loyalty that employees today seldom follow.

B an employee’s work contract is irrelevant to his or her moral obligations for legal reasons.

C no moral value is more important than loyalty, whether to a person or an organization.

D employees are under a legal obligation to act loyally and in good faith and to carry out lawful instructions.

Question #3

By definition, whistle-blowing can only be done by a past or present member of the organization.

A True

B False

Question #4

The authors of your textbook make the case that the FCPA illegitimately imposes parochial American standards on foreign countries.

A True

B False

Question #5

An employee can have a conflict of interest even if he or she is not acting to the detriment of the organization.

A False

B True

Question #6

The law precisely defines the concept of a trade secret, just as it does patents and copyrights.

A False

B True

Question #7

Insider trading is the buying or selling of stocks by business “insiders” on the basis of information that has not yet been made public and is likely to affect the price of the stock.

A True

B False

Question #8

Companies have a right to prevent employees in technical fields from quitting and working for another company.

A True

B False

Question #9

In discussing the case of the truck stop cashier who is asked to write up phony receipts, the authors of your textbook argue that in at least one scenario

A she should resign immediately.

B she should never whistle-blow and report the misconduct.

C it may be appropriate for her prudential concerns take precedence over moral ones on a temporary basis.

D there is nothing wrong with writing up the receipts.

Question #10

According to Professor Norman Bowie, which of the following factors is primarily relevant to the motivation of whistle-blowers?

A public interest morally outweighs loyalty to the organization.

B the whistle-blower’s feelings of duty to obey the law.

C belief that internal channels have been exhausted.

D their whistle-blowing has some chance of success.

Question #11

Which act provided sweeping new legal protection for employees who reported possible securities fraud, making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?

A Sarbanes-Oxley Act of 2002

B Foreign Corruption Act

C Economic Espionage Act

D U.S. vs. O’Hagan

Question #12

The Foreign Corrupt Practices Act of 1977 forbids companies to pay kickbacks in the United States, but permits them to pay kickbacks to companies outside the United States.

A True

B False

Question #13

The Donald Wohlgemuth case shows that

A trade secrets often become an integral part of an employee’s total job skills and capabilities.

B “noncompete” or “nondisclosure” contracts are always legally valid.

C employees need to divest themselves of any skill acquired while handling trade secrets.

D trade secrets can be patented.

Question #14

A “trade secret”

A is legally equivalent to a patent or copyright.

B is a narrow, precise concept that the law defines in great detail.

C need not be treated confidentially by the company in order to be protected.

D can be almost any information not generally known if it is valuable to its possessor and treated confidentially.

Question #15

According to Norman Bowie’s definition, whistle-blowing by definition is restricted to reporting on activities that are harmful to third parties, violations of human rights, or contrary to the public purpose and legitimate goals of the organization.

A True

B False

Question #16

U.S. companies had a history of paying off foreign officials for business favors. Such acts were declared illegal by

A the U.S. Customs department.

B the Foreign Corrupt Practices Act (FCPA) of 1977.

C the United Nations.

D the Vice President.

Question #17

When an employee’s interests are likely to interfere with the employee’s ability to exercise proper judgment on behalf of the organization, what exists?

A a balance of power

B a conflict of interest

C a disaster

D a golden opportunity

Question #18

In determining the morality of giving and receiving gifts in a business situation, which of the following factors is MOST relevant?

A the size of the business giving the gift.

B whether the company receiving the gift is privately held or publicly held.

C amount of cash given as a gift.

D the purpose of the gift and whether the gift might influence the recipient’s judgment.

Question #19

The use of one’s official position for what always raises moral concerns and questions?

A personal gain

B power trips

C egos

D stepping stones to success

Question #20

A bribe is remuneration for the performance of an act that’s inconsistent with the work contract or the nature of the work one has been hired to perform.

A True

B False

Question #21

Prudential reasons are reasons that refer to the interests of others and the demands of morality.

A False

B True

Question #22

The Supreme Court has rejected the idea that inside trading involves “misappropriating” confidential information.

A False

B True

Question #23

As a general rule, if the contents of the work agreement that exists between the employee and the employer are legal and if the employee freely consents to them, then the employee is under an obligation to fulfill the terms of the agreement.

A False

B True

Question #24

According to the Supreme Court

A insider trading violates the interstate commerce clause of the Constitution.

B anyone buying/selling stock based on nonpublic information is guilty of inside trading.

C even if you are not an insider, you can be guilty of insider trading if you misappropriate sensitive information.

Question #25

A whistle-blower

A is any employee who spreads gossip for personal gain.

B far from being disloyal, may be acting in the best interest of the organization.

C doesn’t have to be a past or present member of the organization.

D doesn’t have to report activity that is illegal, immoral, or harmful.

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Chapter 10 Moral Issues Facing Employees

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