Solutions and Test Bank For Legal Environment of Business Part 2

32) One criticism of ethical fundamentalism is that ________. A) it is far too permissive B) it does not permit people to determine right and wrong for themselves C) it treats morality as a mathematical calculation D) it provides no universal ethical rules to guide a person's conduct Answer: B 33) Utilitarianism ________. A) dictates that people choose the action or follow the rule that provides the greatest good to society B) dictates that people choose the action or follow the rule that provides the greatest good for the greatest number of people C) dictates that people choose the action or follow the rule that provides the individual actor with the greatest level of pleasure D) dictates that people must choose the action or follow the rule that provides the maximum profit Answer: A 34) Billionaire Jonathon Apple convinced the Goudaville Town Council that they should condemn the Old McDonald Dairy so he can build an electronics plant on the land, arguing that the benefits to the community in the form of new jobs and extra tax revenues to be generated by the plant will far outweigh the detriment to the McDonald family from shuttering their business. Jonathon's argument is an example of ________. A) ethical fundamentalism B) Kantian ethics C) ethical relativism D) utilitarianism Answer: D 35) In Kantian ethics, the mandate, "Do unto others as you would have them do unto you" is referred to as ________. A) the proletariat manifesto B) the categorical imperative C) the golden ratio D) the manifest destiny Answer: A 36) Under the social contract theory of morality, it is presumed that each person in a society has entered into a social contract with all others in the society to ________. A) maximize profit B) obey the mandates of religious institutions C) do that which provides the greatest good to society D) obey moral rules that are necessary for people to live in peace and harmony Answer: D 37) The "veil of ignorance" is a term most associated with ________. A) Rawls's social justice theory B) Kantian ethics C) ethical relativism D) utilitarianism Answer: A 38) The proposition that the least advantaged in a society must receive special assistance to realize their potential is most closely associated with ________. A) Kantian ethics B) ethical relativism C) Rawls's theory of social justice D) ethical fundamentalism Answer: C 39) Fred routinely cheats on his taxes. Fred has decided that based on his personal feelings cheating on his taxes is the right thing to do, and that no one else can criticize him for this stance. What moral theory does Fred apparently follow? A) Kantian ethics B) ethical relativism C) Rawls's theory of social justice D) ethical fundamentalism Answer: B 40) Under the moral theory of ________, a person looks to an outside source for ethical rules or commands. A) ethical fundamentalism B) utilitarianism C) ethical relativism D) Rawlsian ethics Answer: A 41) ________ is a moral theory with origins in the works of Jeremy Bentham and John Stuart. A) Perspectivism B) Social contract C) Ethical fundamentalism D) Utilitarianism Answer: D 42) The moral theory that dictates that people should choose the action or follow the rule that provides the greatest good to society is referred to as ________. A) perspectivism B) social contract C) utilitarianism D) ethical fundamentalism Answer: C 43) ________ is one of the two principles of Kantian ethics according to which the actor must abide by the rule he or she uses to judge the morality of someone else's conduct. A) Consistency B) Reversibility C) Irreversibility D) Inconsistency Answer: B 44) Kantian ethics is also referred to as ________ ethics. A) duty B) moral C) permissive D) relative Answer: A 45) According to Rawls's social justice theory, ________ is considered the essence of justice. A) duty B) legality C) profitability D) fairness Answer: D 46) Rawls's social justice theory is based on the ________ theory of morality proposed by John Locke and Jean-Jacques Rousseau. A) religious B) utilitarian C) social contract D) duty Answer: C 47) Under the moral theory of ________, if a person meets his or her own moral standard in making a decision, no one can criticize him or her for it. A) utilitarianism B) ethical fundamentalism C) social contract D) ethical relativism Answer: D 48) Under ethical fundamentalism, a person looks to an outside source for ethical rules or commands. Answer: TRUE 49) The main criticism about ethical fundamentalism is that it does not allow people to decide for themselves what is right and what is wrong. Answer: TRUE 50) Utilitarianism postulates doing the greatest good for the greatest number of people. Answer: FALSE 51) Kantian ethics is also known as duty ethics. Answer: TRUE 52) Kant believed that people owe moral duties that are based on universal rules. Answer: TRUE 53) Kantian ethics is based on the premise that people can use reasoning to reach ethical decisions. Answer: TRUE 54) The principle of inconsistency of Kantian ethics postulates treating all ethical cases differently. Answer: FALSE 55) According to Kantian ethics, one would be obligated to abide by a contract even if that contract turns out to be detrimental to the obligated party. Answer: TRUE 56) Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself. Answer: FALSE 57) The social contract theory is derived from Rawls's social justice theory. Answer: FALSE 58) According to Rawls's social justice theory, a person who is in his or her "veil of ignorance" is best fit to select the fairest possible ethical principles. Answer: TRUE 59) According to Rawls's social justice theory, moral duties are based on an implied social contract. Answer: TRUE 60) Ethical relativism holds that moral standards ought to be based on an individual's feelings of what is right and what is wrong. Answer: TRUE 61) According to ethical relativism, an action that is usually thought to be unethical would not be considered unethical if the perpetrator thought it was ethical. Answer: TRUE 62) Explain the two principles on which the universal rules of Kantian ethics are based. Answer: The universal rules of Kantian ethics are based on two important principles: (1) Consistency–that is, all cases are treated alike, with no exceptions–and (2) Reversibility–that is, the actor must abide by the rule he or she uses to judge the morality of someone else's conduct. Thus, if one makes an exception for oneself, that exception becomes a universal rule that applies to all others. 63) What is ethical relativism? Answer: Ethical relativism holds that individuals must decide what is ethical based on their own feelings about what is right and wrong. Under this moral theory, if a person meets his or her own moral standard in making a decision, no one can criticize him or her for it. Thus, there are no universal ethical rules to guide a person's conduct. This theory has been criticized because action that is usually thought to be unethical would not be unethical if the perpetrator thought it was ethical. Few philosophers advocate ethical relativism as an acceptable moral theory. 64) Describe the major tenets of Rawls's Social Justice Theory and identify two criticisms of this theory. Answer: Developed by Harvard University philosopher John Rawls, Rawls's social justice theory considers fairness as the essence of justice. Further, this theory holds that the principles of justice should be chosen by persons who do not yet know their station in society–thus, their "veil of ignorance" would permit the fairest possible principles to be selected. Rawls also proposed that the least advantaged in society must receive special assistance to realize their potential. Rawls's theory of social justice is criticized for two reasons. First, establishing the blind "original position" for choosing moral principles is impossible in the real world. Second, many persons in society would choose not to maximize the benefit to the least advantaged persons in society. 65) What is the social contract theory of morality? Answer: Proposed by John Locke and Jean-Jacques Rousseau, the social contract theory of morality posits that each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony. This implied contract states, "I will keep the rules if everyone else does." These moral rules are then used to solve conflicting interests in society. 66) What does "maximizing profits" as a social responsibility theory in business imply? A) A corporation must consider the effects of its actions on persons other than its shareholders. B) A corporation's duty is to make a profit while avoiding causing harm to others. C) A corporation owes a duty to take actions that increase profits for its shareholders. D) A corporation has the prime responsibility of increasing its profits in order to benefit the society at large. Answer: C 67) A social responsibility theory of business according to which a corporation's duty is to make a profit while avoiding causing harm to others is referred to as ________. A) stakeholder interest B) corporate citizenship C) maximizing profits D) moral minimum Answer: D