Multiple choice problems | Human Resource Management homework help

Question 1

Miriam, a smart and sharp MBA student, is on spring break flying home to see her family. At the airport, there is the usual delay. So, Miriam goes to the nearest airport bar to have a glass of wine. At a table near the bar are some nicely dressed business executives who clearly have had too much to drink and are talking very loudly and annoyingly – but about the merger of their company with a bigger company and how much of the big company’s stock they are going to receive in return for their shares for the purchase of their company. Miriam puts down her glass of wine and notes on the cocktail napkin the name of the companies. When she gets home, she immediately calls her broker and tells him to buy shares of stock in the executives’ company. The merger takes place and Miriam makes a great deal of money on the transaction. Miriam likely has acted:

Illegally since she traded on inside information.

Illegally since the business executives probably breached a duty of confidentiality.

Illegally since her stock purchase was not a fair one, and as a business student Miriam “should have known better.”

Legally since she was lucky, smart, and bold.

Question 2

Liquor company has an advertisement for its wine-coolers on television which shows several young-looking (though over 21) boys and girls having fun sailing a boat. The ad is a very sexy one, as the young people are very attractive and in bathing suits and are frolicking about the boat; but the ad does not show the young people actually drinking the product. Pursuant to the Federal Trade Commission’s deceptive advertising standards, this ad is best described as:

Legal since nothing is false about it and the actors are over 21 and naturally one would expect that they be good-looking, and thus the ad meets all FTC standards for advertising.

Legal so long as the FTC first approves it and the ad is not placed on any TV shows geared for children, such as Saturday morning cartoon shows.

Illegal since it could be misleading in the sense that young people could be misled into believing that drinking and boating can be mixed safely.

Illegal because all advertising is, in essence, lies, deceptions, and half-truths.

Question 3

Viola works for a small company. She is an employee at-will. She is discharged to make room for the owner’s “niece,” who is really his paramour. Viola most likely has been treated:

Legally under the employment at-will doctrine but likely immorally

Legally but only if she is given reasonable notice and a severance package.

Illegally since preferring one’s paramour is clearly sexual harassment.

Illegally since all office romance is prohibited by the Civil Rights Act.

Question 4

Barb owns Barb’s Salon, which owes back rent to Capital Properties, a landlord. Barb agrees to pay a percentage of her profit each month until the debt is paid. Capital Properties is

Barb’s creditor and partner.

Barb’s creditor only.

Barb’s partner only.

neither Barb’s creditor nor partner.

Question 5

Janet is hired as a driver for Speedy Delivery, Inc. as an employee at-will. Her boss tells her that she MUST speed on the roads to deliver packages in a timely manner just like all the other Speedy drivers do. Janet refuses since this is a dangerous, reckless, as well as illegal practice. Her boss fires her for not following orders. The boss also tells Janet that she cannot sue Speedy for wrongful discharge since she is only an employee at-will. Which of the following is the most accurate statement?

The boss is right as anyone can be fired for virtually anything if one is an employee at-will.

The boss is right since everyone speeds.

The boss is wrong if Janet is a lesbian.

The boss is wrong since being fired under these circumstances is likely a violation of the Public Policy doctrine.

Question 6

General Construction contracts to build a store for Home Stores for $1 million. In mid-project, Home repudiates the contract, and General stops working. General incurred costs of $600,000 and would have made a profit of $100,000. General’s measure of damages likely is

$1 million.




Question 7

Fast Freddy, a local DJ, tells Rhonda his used car is truly a great one for her, as the car is really “fast and sexy,” “just like me and you,” and that she will be very pleased with it. Based on these statements, Rhonda buys the car; but is not pleased with the car at all since it “hesitates” and at times stalls out. She takes it to a dealer who says the sensors and the computers have to be fixed for a cost of almost $1000. Rhonda is incensed and sues Fast Freddy for fraudulent misrepresentation (deceit). What problems will Rhonda have in her lawsuit?

Fast Freddy’s comments could be deemed to be merely “puffing” or sales talk and not as statements of fact.

Rhonda may not be able to get evidence of Fast Freddy’s intent to deceive.

Rhonda may not be able to convince a jury that she reasonably relied on Fast Freddy’s statements.

All of the above are problems for Rhonda.

Question 8

Digital Products Company agrees to sell to Eagle Manufacturing, Inc., a customized software system. If Eagle materially breaches the contract, the remedies available to Digital include the right

to cancel the contract only.

to recover damages only.

to cancel the contract and recover damages.

none of the above.

Question 9

American Sales Company and B2C Corporation enter into a contract over the Internet. The contract says nothing about the UETA. The UETA applies to

none of the contract.

only the part of the contract that does not involve computer information.

only the part of the contract that involves computer information.

the entire contract.

Question 10

Owen and Pat are partners in Quality Investments, a partnership. Owen convinces Roy, a customer to invest in a nonexistent gold mine. Owen absconds with Roy’s money. If Roy sues Pat, Roy will:

lose, because partners are not jointly and severally liable.

lose, because only partnership assets are available to pay the judgment

win, because partners are jointly and severally liable

win, because partnership assets are available to pay the judgment

Question 11

Yard Work, Inc., makes and sells garden tools. Under the strict liability doctrine, a tool could be unreasonably dangerous and defective

only if, in making the tool, Yard Work failed to use a less dangerous but economically feasible alternative.

only if the tool is dangerous beyond the ordinary consumer’s expectation.

if, in making the tool, Yard Work failed to use a less dangerous but economically and practically feasible alternative.

none of the above.

Question 12

Greg enters into a contract with Holly that indirectly benefits Ira, although neither Greg nor Holly intended the result. Ira is

a delegatee.

an assignee.

an incidental beneficiary.

an intended beneficiary.

Question 13

Fast Eddie, a minor, who looks older, buys a used car on credit when he is 16 for “cruisin'” and “girl pick-up” purposes. He pays a small down payment and agrees to pay a monthly payment. When he turns 18 he continues to use the car and to make payments to the used car dealership. He does this for several months after turning 18 years of age. However, he then attempts to “drag race” with a friend to impress a girl, but crashes the car. He is not badly injured, but the car is seriously damaged. Fast Eddie then has the car towed back to the used car dealership, and says: “Yo, I was only 16 when I bought this car. I was a minor and I want all my money back. You can have what’s left of the car. Yo!” What is the likely legal result of this situation?

Fast Eddie can disaffirm the contract with the car dealership since he was a minor when he purchased it.

Fast Eddie cannot disaffirm the contract since the car was a “necessity.”

Fast Eddie cannot disaffirm since he impliedly ratified the contract he made when he was a minor.

Fast Eddie can disaffirm since the used car dealer should have asked Fast Eddie his age regardless of his appearance.

Question 14

Shareholders of X Investment Corporation believe their corporation was harmed when the directors followed the advice of certain financial “experts” who advised them to have the corporation invest in mortgage backed securities. The shareholders want the directors to bring suit in the corporation’s name against these so-called experts; but the directors refuse to do so saying the lawsuit would be costly and a difficult one to win. Nonetheless, the shareholders want the corporation to sue. The shareholder’s best approach would be to institute:

A pooling agreement.

A voting trust

A shareholder derivative lawsuit

Cumulative voting.

Question 15

Frankie attempts to incorporate his company as Frankie’s Pizza Co., Inc. However, when he sends the articles of incorporation to the state for approval, he carelessly forgets to list the name and address of the registered agent for the corporation, which is a statutory requirement to incorporation. The articles of incorporation otherwise is fine, but the state rejects the document due to the missing information, and tells Frankie to submit the document again. However, in the meantime, Frankie, mistakenly thinking that he had a corporation formed, had been doing business as Frankie’s Pizza Co., Inc, and, unfortunately, one of Frankie’s delivery persons, while making a pizza delivery, negligently caused an automobile accident, injuring a third party. The third party sues Frankie personally for damages for the injuries sustained in the accident, contending that his corporation does not exist. Frankie’s best defense to such a lawsuit in most states would be:

The “piercing the corporate veil” doctrine

The de facto corporation doctrine

The de jure corporation doctrine

The corporation by estoppel doctrine.

Question 16

Tomas is a business student with a very good business idea for academia. Tomas, with the help of his school’s entrepreneurship center, then develops a detailed business plan for an academic online course registration system. The faculty at the entrepreneurship center thinks that Tomas’ concept and plan have economic potential and thus are quite marketable. Tomas places on his business plan a Confidentiality statement, and also when he “shops” his plan to potential investors and school administrators he asks them to sign a Non-Disclosure Agreement. Based on the aforementioned facts, which statement is likely TRUE?

Tomas has protected his business plan by means of federal patent law.

Tomas has protected his business plan by means of federal copyright law.

Tomas has failed to protect his business plan by trade secret law since a plan, concept, or idea is too “soft” information, as opposed to a “hard” formula or device, for legal trade secret protection.

Tomas has protected his business plan by means of state trade secret law.

Question 17

Internet Services, Inc. (ISI), is an Internet service provider. ISI does not create, but disseminates, a defamatory statement by Jill, its customer, about Ron. Liability for the remark may be imposed on

ISI and Jill.

ISI or Jill, but not both.

ISI only.

Jill only.

Question 18

Frank, an officer of Gamma, Inc. learns that Gamma has developed a new source of energy. Frank tells Gail, an outsider. They each buy Gamma stock. When the development is announced, the stock price increases and they each immediately sell their stock. Subject to liability for insider trading is or are:

Frank and Gail.

Frank only.

Gail only.

neither Frank nor Gail.

Question 19

Juanita walks into Freddie’s Fast Food Restaurant one day and slips and falls on a wet floor that had just been mopped by one of Freddie’s employees, who neglected to put up a “Caution – Wet Floor” warning sign. The employee did not mean any harm; he just forgot to put up the sign. Juanita, however, is injured and sues Freddie. Her lawsuit is:

Breach of warranty-based.

Strict liability-based.

Intentional tort-based.


Question 20

Pursuant to the commercial speech doctrine under U.S. constitutional law:

commercial speech is not constitutionally protected since the motive is for business to make money

commercial speech is will not protect legal, adult-like activities and products like tobacco, alcohol, and gambling since they are regarded as “vices” and thus should be prohibited

commercial speech is not constitutionally protected since most commercials on television, especially around dinner-time, are loud, annoying, and gross

commercial speech must be true and non-deceptive and involve a legal product or service to gain constitutional protection.

Question 21

President Abraham Lincoln very succinctly explained his rationale for his condemnation of and opposition to slavery, to wit: “As I would not be a slave, so I shall not be a master.” Lincoln’s reasoning best exemplifies what ethical theory?

Legal Positivism of Thomas Hobbs
Ethical Relativism of the Sophists

The Categorical Imperative of Immanuel Kant

Utilitarianism of Bentham and Mills.

Question 22

Pursuant to Legal Positivism,

There is no such thing as a bad or unjust law.

The law is the basis for morality.

If one is acting legally, then one is acting morally.

All are true.

Question 23

Bribery, though commonly thought wrongful, arguably can be considered moral pursuant to:

Utilitarian ethics if the overall greater good is achieved by paying the bribe even though there are certain negative consequences for some stakeholders (such as the competition and the host society).

Ethical egoism from the vantage point of the company paying the bribe if they really need the contract with the foreign government and they have a policy of “letting the locals deal with the locals.”

Ethical relativism if making the “gifts” (that is, “bribe” payments”) to foreign government officials is considered to be an acceptable and appropriate practice and custom in the host county.

All of the above.

Question 24

The “golden rule,” “Do unto others as you would have them do unto you,” is most directly reflected in which moral theory?

Ethical relativism.


Ethical fundamentalism.

Kantian ethics.

Question 25

Which of the following is FALSE about Socrates?

He believed that there was universal, objective, and permanent truth to ethics and morality.

He believed along with the Sophists that virtue comes from having money and the best reputation that money can buy.

His Socratic Method contained an important element of inductive reasoning and argumentation.

He equated virtue with knowledge.

Question 26

Ethics is best described as:

The metaphysical study of ultimate reality.

The theoretical study of morality.

The constitutional analysis of equal protection and due process decisions

None of the above.

Question 27

Eve, an employee of First Federal Bank, takes an outcome-based or consequences or stakeholder approach to ethics. Eve likely believes that she must

achieve the greatest good for the most people.

avoid unethical behavior regardless of the consequences.

conform to society’s standards.

place her employer’s interest first.

Question 28

The British economist and philosopher Adam Smith would best say that:

Ethical egoism is bad since it encourages selfish behavior.

Satisfying one’s desires leads to sensuality and lust and therefore is evil.

The government will serve as the “invisible hand” to take care of people.

Satisfying one’s desires and achieving one’s goals are very laudable principles of action and morality.

Question 29

Roberto, the research manager for Agri-Products, Inc., applies Utilitarian ethics to determine that an action is morally correct when it produces

The greatest good for Roberto

The greatest good for the most people

The least good for the fewest people

The least good for the most people.

Question 30

According to Machiavelli,

People are generally selfish, greedy, treacherous, cowardly, irrational, gullible, short-sighted, and stupid.

Achieving power and success and ultimately fame and glory are the most important moral criteria for any person or enterprise.

A “virtuous” action is any one that can successfully achieve a desired end, even if the action has been traditionally designated as “bad” or “immoral.”

All of the above.

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