In order to create a climate of ethical behavior and fairness in a company, managers and supervisors should do all of the following EXCEPT:
A) ensure that employees are treated equitably.
B) adhere to clear standards that are seen as just and reasonable.
C) tell white lies to minimize competition between co-workers.
D) take actions to develop trust between themselves and employees.
Answer: C
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With respect to the legal principles concerning a manufacturer's duty to warn of dangers
associated with its product, which of the following statements is TRUE? A) Warnings about dangers associated with the product must be reasonably communicated B) Warnings need not be given if dangers are discovered after the product has been sold and distributed C) Warnings must only be printed if there have been previous injuries D) Warnings must be printed on the label and describe the specific danger E) A and D
Taylor Tobacco Company is concerned that the company may be held liable in a court of law and ordered to pay a large damage award to a smoker harmed by the company's cigarettes. The characteristics of the judicial system that increase the frequency and severity of loss are known as
A) moral hazard. B) particular risk. C) speculative risk. D) legal hazard.