5. A local shoe store runs sales each quarter. The large sign in the window reads, *1/2 OFF SALE. The smaller print under these words reads, "Buy your first pair at regular price, and get the second pair of equal or lesser value for X off". The size difference in these two lines is significant, which causes many patrons to take two pair of shoes to the check-out counter, to learn that both pairs are not 50%off the marked price. In fact, if you do the math, they are really getting two pair for 25% off (if both pair are the same price). A. This is a buyer beware situation, but totally legal and ethical. B. This can be construed as false advertising and questionably unethical. C. This can be construed as competitive advertising and definitely legal. D. The company does this so the sales reps will continue to point out the promotion to all consumers who approach the counter 7. According to the Sarbanes-Oxley Act, which addresses questionable accounting and auditing practices in publicly traded firms, A. Whistleblowers may report their concerns anonymously. B. When cases go to court, the firm must always pay the whistleblower a bonus for their findings, and continue to provide them with employment at that level or higher C. Whistleblowers may receive a bonus through the court system, but they are never provided back pay if they are dismissed without cause. D. Whistleblowers can make lots of different accounting accusations, but they can never accuse a company official of insider trading. This does not fall under Sarbanes-Oxley prevue. 8. GDY Care, Inc. is a social business. In that Respect, Muhammad Yunus would tell us: A. Its bottom line must always be a 15% return on equity. B. Its bottom line must be large enough to pay the salaries of the employees. C. Its bottom line must be large enough to pay the taxes for the organization. D. Its bottom line is about how many persons it has served, rather than how much money it made. 9. The Motorola story in Chapter 4, titled, "Culture Clash", A. Reflects the differences in cultural values, which can lead to differences in ethical values. B. Reflects the need for firms doing business abroad to run a tight ship and require employees to be in compliance with company policies that originate in the firm's country of origin. C. Reflects the need for an international policy that works in every country. D. Reflects the similarities of cultural values in employees, and how these values need to be understood and respected. 10. George, owner of George's Gadgetry, Inc., holds a patent for a product idea he recently invented. He recently learned that Frank, who owns Frank's Favorite Things, Inc., has created and started selling a product which appears identical to George's patented product. George's patent protection gives him the right to sue Frank in a court of law. He has contacted his lawyer, who will proceed with the legal documents to go to court. George's actions constitute: A Statutory law B Common law C. Basic Law D. Tort Law