MIE 305 Test 2

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1. 
Home Furnishings Company (HFC) markets its products nationwide. When making a decision, HFC must take into account the needs of...
 

a. employees only.

b. owners and shareholders only.

c. society, consumers, and the community only.

d. all of the above.


D - all of the above

 
2. 

Dona, an accountant for Excel Trends, Inc., attempts to apply the duty ap­proach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must...

 
avoid unethical behavior regardless of the consequences.
 
3. 
Transactional Corporation suggests that its employees apply the “categori­cal imperative” to ethical issues that arise at work. Under this standard, employees...
 

weigh the consequences that would follow if everyone took the same action.

 
4. 
Bob, research manager for Agri-Products, Inc., ap­plies utilitarian ethics to determine that an action is morally cor­rect when it produces...
 
the greatest good for the most people
 
5. 
Holly, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on...
 
the consequences of an action.
 
6. 
Owen Is An Attorney. Paula Is A Certified Public Accountant. These Pro­fes­sionals Are Subject To Standards Of Conduct Established By...
 
Codes Of Professional Ethics, Court Decisions, And State Statutes.
 
7. 
International Marketing Corporation’s side payments to government offi­cials in exchange for favorable business contracts in foreign countries are considered, in the United States,
 
illegal and unethical.
 
8. 
American Business Coalition (ABC), a political lobbying group, wants a certain policy enacted into law. If ABC’s policy conflicts with the U.S. Constitution, a law embodying it can be passed by ...
 

a. any state legislature and Congress.

b. any state legislature but not Congress.

c. Congress but not any state legislature.

d. none of the above.


Answer: D

 
9. 
The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that
 

each branch of government may exercise the authority of the other branches.

 
10. 
Wisconsin, like other states, may regulate private activities to protect or promote the public order, health, safety, and general welfare under its
 
police powers
 
11. 

Ohio enacts a transportation statute that impinges on interstate commerce. This statute will be

 
balanced in terms of Ohio’s interest in regulating a certain matter against the burden placed on interstate commerce.
 
12. 
When there is a direct conflict between a decision by a federal Environmental Protection Agency (EPA) administrator on a matter that comes within the EPA’s jurisdiction and a Hawaii state law
 
the EPA’s decision takes precedence.
 
13. 
A New Hampshire state law that directly conflicts with a federal law is invalid under
 
the supremacy clause.
 
14. 
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion’s principles. The First Amendment guarantees Mike’s freedom of
 
religion, speech, and the press.
 
15. 

The Bill of Rights embodies protection for Carol and other individuals against various types of interference by

 
the federal government.
 
16. 
A Tennessee state statute imposes a certain restriction on commercial speech. A court would likely hold this statute to be valid if it
 

a. attempts to implement a substantial government interest.

b. directly advances a substantial government interest.

c. goes no further than necessary to accomplish its objective.

d. all of the above.


Answer: D

 
17. 
The requirement that no person be deprived of “life, liberty, or property without due process of law” is found in
 
the Fifth Amendment and the Fourteenth Amendment.
 
18. 

Owen claims that a Pennsylvania state statute infringes on his “substantive due process” rights. This claim focuses on

 
the content of the statute.
 
19. 
A Rhode Island state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be
 
unconstitutional under the due process clause.
 
20. 
Most federal administrative agencies, like the Food and Drug Administra­tion, are usually created following
 
the passage of enabling legislation by Congress.
 
21. 
The National Highway Traffic Safety Administration utilizes notice-and-comment rulemaking. This process begins with
 
the publication of a notice of proposed rulemaking.
 
22. 
The National Transportation Safety Administration uses notice-and-comment rulemak­ing. This includes
 
notice, a comment period, and publica­tion of the final rule.
 
23. 

To notify the public of a proposed rule, the Nuclear Regulatory Commission, like other federal agencies, publishes it

 
in the Federal Register.
 
24. 
The Consumer Product Safety Commission issues a rule. Like the rules of other federal administrative agencies, this rule is compiled in
 

the Code of Federal Regulations.

 
25. 
The Food and Drug Administration (FDA) is investigating reports that Gamma Pharmaceutical Corporation is putting potentially harmful ad­di­tives in Hyacinth, a new pain-relief medication. The FDA’s demands for particular documents from Gamma
 
must be specific and not unduly burdensome.
 
26. 
The functions of the Environmental Protection Agency, like those of most adminis­trative agencies, include
 
adjudication.
 
27. 

Limitations on the powers of the Securities and Exchange Commission, and other administrative agencies, include

 

a. review by courts of administrative agency actions.

b. political restrictions imposed by Congress and the executive branch.

c. legislation such as the Administrative Procedure Act.

d. all of the above.


Answer: D

 
28. 
With some exceptions, every portion of every meeting of the Federal Communications Commission and other federal administrative agencies must be open to public observation under
 
the Government-in-the-Sunshine Act.
 
29. 

The U.S. Social Security Administration is a federal agency. The Iowa Department of Social Services is a parallel state agency. If these agen­cies’ actions conflict

 

the federal agency’s actions will prevail.

 
30. 
Mary is accused of slander. Slander includes
 
oral defamatory statements only.
 
31. 

Leo hears Mona falsely accuse Nick of stealing from their employer. The

statement is defamatory

 
because a third party heard it.
 
32. 
Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she
 
represents as a fact something that she knows is untrue.
 
33. 

Jill invites Ken into her apartment. Ken commits trespass to land if he

 
refuses to leave when Jill asks him to go.
 
34. 
Beth is injured in a car accident and sues Curt, alleging negligence. Curt claims that Beth was driving more carelessly than he was. Comparative negligence may reduce Beth’s recovery
 
even if Beth was only slightly at fault.
 
35. 
Direct 2U, Inc., floods the e-mail boxes of the employees of Eagle Corporation with unsolicited ads to the extent that the employees cannot e-mail each other. Direct may have committed
 
trespass to personal property.
 
36. 
Able Tool Company makes hedge trimmers. Brad is injured while using an Able trimmer and sues the company for product liability based on negli­gence. To win, Brad must show that
 

Able did not use due care with respect to the trimmer.

 
37. 
Ann is shopping in Beth’s Food Store when a bottle of Carbonated Cola ex­plodes, injuring Ann. Ann files a suit against Delta Company, the bot­tler, from whom she can recover only if she can show that she
 
was injured due to a defect in the product.
 
38. 
Green Country, Inc., makes landscaping tools. Green could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and
 

the omission of a warning renders the product not reasonably safe.

 
39. 
The brakes on a Central Railroad train engine malfunction and it rolls to­wards main­te­nance workers on the tracks. Everyone gets out of the way ex­cept Dick, who wants to show off. The train hits Dick, who sues Eagle, Inc., the brakes’ manufacturer. Eagle can raise the defense of
 
assumption of risk.
 
40. 
Quality Tools Corporation (QTC) makes hammers and other tools. Rita is injured while using a QTC hammer. She sues the company for product li­ability based on negligence. To defend successfully against the suit, QTC may show that
 

Rita’s injury resulted from a commonly known danger.