MGMT 200 FINAL || QUESTIONS WITH 100%
ACTUAL SOLUTIONS.
Caveat emptor correct answers Let the buyer beware
How are law and ethics intertwined? correct answers The "law" is societies codification of
ethics; laws and regulations make certain unethical conduct legal.
Ethics correct answers Determining the right thing to do, via moral reasoning
Wall Street Article involving ethics correct answers In a study, 1/3 of people who worked on
WallStreet who said they made more than $500,000 annually, contend they have 'witnessed
or have firsthand knowledge of workplace wrongdoings'. 1/5 feel financial service
professionals must engage in unethical/illegal activity to be successful in finance and overall
that ethics in finance remains unchanged since the 2008 crisis.
This problem is compounded because if you perceive that others are cheating, to stay
competitive you are more likely to cheat too. This is an example of a positive feedback loop.
What is a positive feedback loop? correct answers Causes a system to change further in the
same direction.
How do the following conflict: freedom, virtue, and welfare? correct answers Freedom: To
make your own decisions, free from government rules (core belief of libertarians' who prize
liberty over all else)
Virtue: To do what you know is right
Welfare: To do something "for the common good". (key tenet of utilitarianism; seeks the
greatest good for the greatest number of people)
Libertarianism correct answers An ideology that upholds liberty as the core principle. They
seek to maximize minimal freedom, freedom of choice, individualism, and limited
government intervening.
Utilitarianism correct answers Idea that the goal of society should be to bring about the
greatest happiness for the greatest number of people. Upholds pleasure of society and benefits
it more than it disadvantages.
Tradegy of the Commons correct answers The idea that where there is no clear ownership of
rights to a natural resource, the users of the resource are likely to overexploit it. This becomes
an argument either for strong government intervention or for privatization of rights to the
resource.
When individuals neglect the well-being of society in pursuit of personal gain.
Transferable Quotas correct answers Permits given by a government to individuals to allow
an individual to "catch or transfer" a certain portion of total allowable catch
,Describe the federal law that would stop online bots from purchasing products in limited
supply correct answers This law would curb the freedom bot makers have to buy as much as
they wanted to, in a free and open marketplace, for resale, against the utilitarian view of
getting products into as many hands as possible, at a fair price (brought by Senator Shumer).
Shumer believes people should not be allowed to purchase products in short supply.
Ex. Guy charged with price gauging hand sanitizer during a pandemic
Price gauging during an emergency is... correct answers criminal.
Ex. Guy who hoarded hand sanitizer; had to donate it to charities
Duty-Based Ethics correct answers People act ethically when they follow pre-existing ethical
rules to resolve ethical dilemmas. In other words, the results of your acts don't determine if
actions were ethical, its the fact you were following a clear morally sound preexisting rule
that determines if conduct is okay.
Duty-based ethics are based off of... correct answers religious principles. As long as you are
following the rules, you don't need to be concerned about the outcome.
A follower of Kant believes... correct answers that you need to evaluate what would happen if
your actions became the universal rule, which everyone engaged in.
Kant's Categorical Imperative correct answers A person should not act unless he or she is
willing to have the rule or conduct on which one acts becomes universal law.
Issues with duty-based ethics correct answers Duty-based ethics are rigid, and occasionally
lead to results you are uncomfortable with
Example of duty based ethics causing an issue correct answers Imagine a situation during the
September West Coast Fire events where a family of refugees displaced from their home
without fault of their own, steal a bottle of milk to give to their infant child. If you were
inherent to duty-based ethics, you could not get passed that which may lead to death of an
infant or other horrible results.
Procedural Justice correct answers A type of duty-based ethics that focuses on whether the
procedures, laws, or system is properly followed, regardless of the end result. This sometimes
leads to unjust results.
Example of procedural justice leading to unjust results correct answers Alton Harris: People
only followed procedures when it came to Alton Harris but it lead to an innocent man in
prison for 20 years. Procedural justice is rigid and hard to move around.
Disclosure Rule correct answers A rule of duty-based ethics that states to test whether
something is ethical or not, imagine how you would feel about your action being published
on the front page of the New York Times (similar to the idea of transparency).
Utilitarisnism is outcome _____________________. correct answers determinative (results
matter).
,Consequentialism/Utilitarianism correct answers Consequentialism focuses on the
OUTCOME of conduct to assess whether conduct was ethical or not (results matter).
Utilitarianism is a form of consequentialism. If you choose the choice of action that leads to
the greatest good for the greatest number of people, you are acting ethically.
Problems with utilitarianism correct answers The difficulty is in how to measure whether the
increase in happiness ten people get from an event is MORE important than the discomfort
that one person may feel from the same action.
Additionally, some people (and governments) have used consequentialism/utilitarianism to
justify conduct (because they argue, it benefits the greater good) that other people consider
violations of human rights (ex. WWII Japanese Imprisonment Camps)
Cost-Benefit Analysis correct answers In modern America, businesses and governments call
utilitarianism cost-benefit analysis. CBA requires businessmen to assess how various
stakeholders, with competing interests might be affected by a decision the business takes.
Stakeholders correct answers Entities affected by the business
Applying utilitarianism requires: correct answers 1.) Knowing who will be affected
2.) An assessment of the positive/negative impacts on these people by cost-benefit analysis
3.) An assessment of the positives
4.) A decision to pursue the greatest good, for the greatest number of people
The Ford Pinto Case correct answers When foreign countries stopped sending oil to the US,
cost of gas shot up. Ford thus, set out to create a 2,000 lb car for $2,000 with great gas
mileage called the Ford Pinto, to compete with their other foreign competitors. However,
after completed a flow was found in the car, in which it would set on fire if involved in a
rear-end collision. Ford completed a cost-benefit analysis and they determined that it would
cost more to recall all of the cars they have already sold to fix them than it would be to just
stop selling the car and pay of injury charges to those hurt who still had the Pintos. However,
this CBA did not take into account how this decision would impact the company's reputation.
When the public found out and Ford was taken the Court, the jury found Ford's conduct
extremely wrong and unethical that they took no steps to fix the car. Therefore, the jury
decided to punish Ford by making Ford pay $127 million in damages to youth impacted by
the car's flaw.
How would a business determine the cost of a human life (for example when trying to
determine if back-up cameras in cars are worth it)? correct answers They would add up the
cost of putting back-up cameras on cars and then add up the number of kids that would be
projected to be killed by getting backed into. Divide one number into the other and that is the
cost of a human life.
Distributive Justice correct answers Another consequentialist model, this is the idea of how
profits or other awards can be fairly distributed in a company.
Ex. COVID affects the government. Tax revenues are down, and expenditures (for public
safety) are way up.
, Ethical Relativism correct answers What is proper/ethical in one country may not be proper
in another country.
Ethical principles are partly the result of history and culture and are further defined by
various periods of time in history, a societies traditions, the special circumstances of the
moment, and personal opinion.
There is no universal ethical standards on which people around the world could agree.
In many societies, individual liberty has a lower cultural value than the common god/doing
things for the community.
100 years ago, you were essentially _________________ when it came to choosing products
to purchase. correct answers on your own
Privity correct answers The idea that you had to have a contractual relationship with the other
party in order to sue them - and as we industrialized and people moved to the city, middlemen
(retailers) made it impossible to sue the manufacturer.
Was privity abandoned? When? correct answers Not until the 1900s was privity abandoned
(in courts) and consumers were able to sue based upon product liability law.
Example of privity correct answers If you bought canned meat at the grocery store, and it
ended up being rancid and made you sick, you could not sue the factory which made the
meat. You could only sue the grocery store/retailer.
Consumerism correct answers The idea that people and the government want to empower
customers to make informed decisions, have the information to do so, promote safety, and tell
businesses that they must comply with the modern market.
The modern era of consumer rights began with President Kennedy, who argued that
consumers have rights that included: correct answers 1.) The right to make informed choices
among products and services
2.) The right to expect that the consumers health and safety will be protected in the
marketplace
3.) The right to choose
4.) Right to be heard (access to courts)
5.) Right to privacy
Reasons for consumer movement: correct answers 1.) Complex products have enormously
complicated the choices consumers make when they go shopping
2.) Services have become more specialized
3.) When businesses sell through advertising, things may get distorted (may be lies)
4.) In past, product safety has been overlooked. While lawsuits may result in victims being
compensated, the goal should be safety first, compensation later
5.) Technology has allowed companies to collect your private info. That is hard to control.
(states like WA have responded by passing laws that require data breaches to be disclosed).
Example of Consumer protection (government stepping in to protect consumers) correct
answers Pubic towing companies have an agreement with the city government that they have
