1. Dave and Earl decide to open a restaurant and operate the business as a corporation. At the directors' initial meeting, the directors may
Answer
adopt articles of incorporation only.
adopt bylaws only.
choose a corporate name only.
adopt articles of incorporation and bylaws and choose a corporate name.
2.Pat goes to the Cosmic Runners Supply Store in Santa Cruz, California. The sales person shows Pat some running shoes and says, "In a race, these shoes will pick up the cosmic energy from the runners around you and channel it into your legs. This transfer of energy causes everyone with these shoes to run twice as fast as in normal shoes." Yet in Pat's next race, she finishes last; and then she sues the store and the sales person for common law fraud. What would be the likely result of such a lawsuit?
Answer
Pat would win since the statement was not true.
Pat would lose since her reliance on the statement was not justified as reasonable.
Pat would win if she could prove that the sales person intended to deceive her.
Pat would win since a finding of justifiable reliance is not needed under the FTC's regulatory standard for false and deceptive advertising.
3. Best Toy Company begins marketing a new toy that is highly flammable. The Consumer Product Safety Commission may
Answer
ban the toy's future manufacture and sale, and order that the toy be removed from the market.
ban the toy's future manufacture and sale only.
do nothing until there is an injury or damage on which to base an action.
order that the toy be removed from the market only.
4. Adam invests in a franchise with Best Gas Stations, Inc. Best requires Adam to exclusively buy Best products for every phase of the operation. Adam's best argument to challenge this requirement is that it violates
Answer
an implied covenant of good faith and fair dealing.
antitrust laws.
the Federal Trade Commission's Franchise Disclosure Rule.
the U.S. Franchise Agency's Purchase and Sale Regulations.
5.Eve, an employee of First Bank, is injured. For Eve to receive work¬ers' compensation, the injury must be
Answer
accidental and arise out of a preex¬isting disease or condition.
accidental and occur on the job or in the course of employment.
intentional and arise out of a preex¬ist¬ing disease or condition.
intentional and occur on the job or in the course of employment.
6. Which of the following is a correct statement?
Answer
When people's desires conflict, the doctrine of ethical egoism provides a mechanism to arbitrate and settle differences in a fair and balanced manner.
The Sophists believed that ethical principles and moral rules are universal, objective, impersonal, and eternal.
Machiavelli had a positive and laudatory view of people and human nature.
Machiavelli's political philosophy stems logically from the teachings of the Sophists.
7.The Golden Rule, "Do onto others as you would want them to do unto you," is most directly reflected by what ethical theory?
Answer
Ethical relativism
Utilitarianism
Aristotle's Doctrine of the Mean
Kantian ethics
8. One criticism of ethical relativism is that:
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It requires people to be culturally competent.
Some persons would take actions that they believe to be moral, but which most people in society might believe to be immoral.
Decisions require the measurement of quantities and qualities that are not subject to precise measurements.
It really requires one to take several courses in philosophy and ethics to figure out what is moral based on this ethical doctrine.
9.Which of the following is a correct statement?
Answer
Moral rules based on the Natural Law are those legislated by the United Nations.
The failure to comply with the natural law carries a criminal or civil legal sanction.
The Stoics maintained that slavery could be moral pursuant to natural law principles because it was "natural" that some people were superior to others
According to Locke, the natural law is the true standard of morality.
10.The "golden rule," "Do unto others as you would have them do unto you," is most directly reflected in which moral theory?
Answer
Ethical relativism.
Utilitarianism.
Ethical fundamentalism.
Kantian ethics.