Jennings
T 19. Hank Greenberg was ousted from his position as CEO of AIG.
T 20. Laura Nash provides tools for examining how a company got into an ethical dilemma.
T 21. It is not plagiarism to use facts obtained from several sources that are footnoted or listed
as sources.
T 22. It is plagiarism to rewrite the phrasing of another source and not use quotes or a footnote.
F 23. A conflict of interest is unethical only if those involved actually change their decision
based on the benefits to be derived.
T 24. An illegal act is an unethical act.
T 25. Using positive law as an ethical standard means simply compliance with the law.
T 26. The element of balance in the Blanchard/Peale ethical model requires an examination of
the issue from the perspective of the affected party.
T 27. A valid ethical barometer is the reaction of family and friends outside the business setting
to your proposed decision.
F 28. An agreement by an agent to accept a 10% commission from a seller who will sell goods
to the agent’s employer is ethical so long as the agent would have chosen that seller
anyway.
T 29. A real estate agent who recommends a management firm to an apartment complex buyer
without disclosing that the agent owns 50% of the firm has committed an ethical violation.
F 30. A commercial broker who accepts fees from both the seller and the buyer of the business
without disclosure to either has not committed an ethical violation if both parties are
happy with the transaction.
T 31. A member of the city council who is employed by a waste management firm would have a
conflict of interest in voting on the city’s award of a contract for the handling of the city’s
waste.
F 32. A physician conducting a study on a new prescription drug manufactured by a firm in
which he is a 10% shareholder does not have a conflict of interest so long as his stock
ownership is disclosed in his report on the drug.
T 33. A physical fitness expert retained by a fitness magazine to evaluate walking shoes has a
conflict of interest if she has an endorsement contract with one of the shoe companies
that manufactures the shoes she will be evaluating.
F 34. Giving preferential treatment in contract bidding to the daughter of a member of the
company board is not a conflict of interest.
F 35. A major donation by one of your long-term suppliers to a non-profit organization run by
your spouse should not create perception problems so long as your purchasing decisions
are based on the merits.
F 36. Having loan applicants pay for the expenses of bank officer travel for purposes of
evaluating collateral is not a conflict of interest.
Jennings
T 37. Purchasing agents accepting a pleasure trip from a supplier when no bids are pending is
still an ethical violation.
T 38. Payments of royalties from drug sales by a pharmaceutical firm to the university where a
researcher conducting studies has validated the firm’s claims is a conflict of interest.
T 39. The failure to disclose that your college degree was withheld because of outstanding
parking fines and violations is unethical.
F 40. Taking information from a confidential file accidentally left on your desk is not unethical.
T 41. The failure to speak out when an ethical or legal lapse occurs within your firm is in itself
an ethical violation.
T 42. “Everyone else does it,” is a signal of an ethical pitfall.
F 43. “The lawyers have okayed this,” is a signal that the decision/action is legal and ethical.
T 44. Labeling infertility surgery as “diagnostic surgery” in order to allow the patient to recover
the costs from an insurer is unethical.
T 45. A company executive exerting pressure on a scientist and her university to delay
disclosure of study results harmful to the company and its products would be unethical.
T 46. Ethical choices often prove costly to firms in the short term.
F 47. Taking advantage of a party in a contract situation due to the party’s inexperience, and
not due to any lack of disclosure on your part, is ethical.
T 48. The failure to disclose relevant information about a product or service is unethical.
T 49. Long-term relationships create ethical and legal obligations between the parties through
conduct and accommodations.
T 50. If I worked in purchasing in my company, it would be unethical for me to accept season
tickets for my city's NBA team from the company that has supplied catering for the
company's training sessions.
F 51. If I discover that a fellow employee is reporting falsely his overtime hours, it is best for me
to say nothing and ignore the situation.
F 52. If I discovered that I unintentionally violated a federal environmental regulation, I should
just wait and see if anything happens before taking any action.
F 53. If my supervisor asked me to cover for him by lying about his whereabouts, I should
agree to do it but remind him that I can't make it a habit.
T 54. Your company's policy on company vehicles is that no family members may use them or
ride in them. It would be unethical to use a company car to drive you and your spouse to
a movie.
T 55. You are taking a graduate level course in management that will help you in performing
your duties at work. Each week you must submit case analyses to your professor. Using
work time to complete the analyses would be unethical.
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