Business Ethics and Law Concepts Quiz

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Questions and Answers

Which concept involves the mechanisms for identifying the parties responsible for specific actions?

Liability

Due process

Accountability (correct)

Responsibility

What is the purpose of 'liability' within the context of business and ethics?

To maintain well-known and understood laws

To establish the duties of an individual

To allow for the recovery of damages (correct)

To identify responsible individuals

Which concept ensures that laws are well-known, understood, and provide an avenue for appeal?

Accountability

Due process (correct)

Liability

Responsibility

What is the first step in the five-step ethical analysis process?

Identify and describe the facts Signup and view all the answers

Which ethical principle suggests that an action should only be taken if it is acceptable for anyone to take?

Immanuel Kant’s categorical imperative Signup and view all the answers

What does the 'slippery slope rule' advise regarding ethical decision-making?

To avoid taking actions that cannot be repeated Signup and view all the answers

Which principle suggests that the action taken should result in the least amount of harm or potential cost?

Risk aversion principle Signup and view all the answers

What is the main purpose of professional codes of conduct as suggested by the content?

To promise self-regulation in the interest of society Signup and view all the answers

What is the primary function of cookies in the context of internet browsing?

To identify browsers and track site visits. Signup and view all the answers

Which of the following best describes web beacons?

Tiny graphics embedded in emails or web pages to monitor user activity. Signup and view all the answers

Which of these is a characteristic of spyware?

It is installed surreptitiously and may transmit keystrokes or display ads. Signup and view all the answers

What distinguishes the opt-out model from the opt-in model in online privacy?

Opt-out model allows businesses to harvest user information by default unless the user acts to prevent it, while opt-in requires explicit consent. Signup and view all the answers

Which of the following is NOT a technical solution to enhance online privacy?

Complex and ambiguous privacy statements. Signup and view all the answers

Which of the following best defines the concept of privacy?

An individual's claim to be free from surveillance and control information about themselves. Signup and view all the answers

Which of the following is NOT considered intellectual property?

A public domain essay. Signup and view all the answers

What is a key challenge associated with digital media regarding intellectual property rights?

The ease of replicating and transmitting digital media. Signup and view all the answers

Which U.S. Constitutional Amendment protects individuals from unreasonable search and seizure?

The Fourth Amendment Signup and view all the answers

What is the primary focus of the Digital Millennium Copyright Act (DMCA)?

To address challenges to copyright in the digital age. Signup and view all the answers

Fair Information Practices (FIP) principles serve as the basis for:

Most US and European privacy laws. Signup and view all the answers

Which of the following is NOT a principle of the Federal Trade Commission's (FTC) Fair Information Practices (FIP)?

Unlimited Data Storage Signup and view all the answers

What is a key requirement of the EU's General Data Protection Regulation (GDPR)?

Unambiguous, explicit, and informed consent of the customer. Signup and view all the answers

Under the GDPR, what is the potential penalty for a company that does not comply with its regulations?

A fine of 4% of the company’s global annual revenue. Signup and view all the answers

The 'right to be forgotten', strengthened by the GDPR, refers to:

The right of individuals to have their personal data erased. Signup and view all the answers

Which principle establishes a user's right to know how their data is being used?

Notice/awareness principle Signup and view all the answers

What is a key ethical dilemma illustrated by mobile location tracking systems?

The trade-off between enhancing customer service and infringing on privacy. Signup and view all the answers

In the context of business ethics, how are information systems sometimes used in a negative way?

To obscure decisions and actions from public view. Signup and view all the answers

What is the most accurate definition of ethics, as presented in the context?

Principles that guide individuals' choices as free moral agents. Signup and view all the answers

Which scenario best demonstrates an ethical issue arising from recent technologies?

A mobile app gathers users' location data without explicit consent or awareness. Signup and view all the answers

How can we characterize the legal environment relating to user privacy, as presented in the context?

It is currently insufficient and lacks meaningful regulations. Signup and view all the answers

What does the phrase 'free moral agent' refer to, in an ethical context?

A person who is able to make their own decisions about right and wrong. Signup and view all the answers

What is a key concern regarding information systems in the context of business decision making?

The potential to use them to hide unethical judgments. Signup and view all the answers

In relation to mobile tracking technology, what conflict is presented?

The conflict between consumer data privacy and the desire to personalize services. Signup and view all the answers

What is generally considered the most common cause of business system failure?

Poor input data quality Signup and view all the answers

Why are software liability issues complicated from a legal standpoint?

Courts have not generally considered software a 'product' Signup and view all the answers

Under what circumstances is software more likely to be considered a 'product' and be subject to product liability rules?

When it's an essential part of a machine that injures or harms Signup and view all the answers

What mechanisms do software vendors and service providers commonly use to limit their liability?

End user license agreements and contracts Signup and view all the answers

What does 'computer crime' specifically refer to?

Commission of illegal acts by using a computer or against a computer Signup and view all the answers

What differentiates computer abuse from computer crime?

Computer abuse may not be illegal but is considered unethical Signup and view all the answers

What is the key distinction between the U.S. and Europe regarding spam regulations?

Europe has tighter regulations than the U.S. Signup and view all the answers

According to the provided text, what has been the impact of the CAN-SPAM Act in the United States?

It has had a negligible impact Signup and view all the answers

Which of the following is NOT identified as a negative consequence of information technology and systems?

Greater emphasis on leisure activities Signup and view all the answers

What is meant by the term 'digital divide', as it relates to social inequalities?

The gap between those who have access to information technology and those who do not. Signup and view all the answers

According to the content, what potential impact does the reengineering of business processes have?

Possible job displacement Signup and view all the answers

Which of these best describes the potential impact of reduced response time to competition?

A potential 'just-in-time' society Signup and view all the answers

The content suggests that which of these health concerns is associated with technology use?

Repetitive stress injury Signup and view all the answers

Which of the following is NOT mentioned as a potential mental health challenge related to IT?

Increased levels of social interaction Signup and view all the answers

According to the content, what are the concerns surrounding Big Tech?

Concentrating economic and political power Signup and view all the answers

What does the content suggest about the potential effects of the 'Metaverse'?

It may present new risks to physical and mental health Signup and view all the answers

Study Notes

This chapter focuses on ethical, social, and political issues raised by information systems.
Learning objectives include: identifying ethical, social, and political issues; describing principles for ethical decision-making; explaining how contemporary information systems and the internet pose challenges in protecting privacy and intellectual property; discussing issues related to systems quality, accountability, control, and everyday life; and understanding how MIS can benefit careers.
Real-world examples like the Australia news law and the ethical dilemma of app tracking highlight the complex interplay between technology and ethics.
Recent business failures like Robinhood, Volkswagen, Wells Fargo, and Takata demonstrate the potential for unethical decision-making with information systems.
Ethical principles – like the Golden Rule, Kant's categorical imperative, the slippery slope rule, the utilitarian principle, risk aversion principle, and the "no free lunch" rule – are crucial for guiding ethical decisions.

Five Moral Dimensions of the Information Age

These are key areas encompassing ethical considerations: information rights and obligations, property rights and obligations, system quality, accountability and control, and quality of life.

Key Technology Trends

Factors like increasing computing power, declining data storage costs, advancing data analysis, and networking advancements (including mobile devices and AI) drive new ethical challenges.
Specific technologies like profiling (using multiple data sources), NORA, AI, and their applications raise ethical questions concerning data privacy and security.

Information Rights and Privacy

Privacy is the right to be left alone and free from unwarranted surveillance.
The US protects privacy through constitutional amendments and federal statutes, like the Privacy Act of 1974.
Fair Information Practices (FIP) principles are critical for governing information collection and use.
COPPA, Gramm-Leach-Bliley Act, and HIPAA are prominent examples of legislation created in response to FIP principles.
The FTC's FIP principles (e.g., notice/awareness, choice/consent, access/participation, security, enforcement) address essential aspects of privacy in modern digital society.

GDPR highlights the importance of informed consent for personal data collection within the European Union.
EU member nations cannot transfer personal information to countries without similar privacy protections.
The GDPR strengthened the right to be forgotten and set requirements for countries processing EU data. Heavy fines of up to 4% of daily global revenue demonstrate the significance of GDPR compliance.

Internet Challenges to Privacy

Web technologies like cookies, web beacons, and spyware present potential challenges to individual privacy.
The distinction between first-party vs. third-party cookies plays a significant part in determining how personal data is collected and utilized.
The United States allows information gathering regarding transactions for marketing purposes.
Opt-out vs. opt-in models are often employed to establish user consent.

Intellectual Property Rights

Intellectual property (IP) refers to products of the mind, protected through copyrights, patents, trademarks, and trade secrets.
Digital media's characteristics (ease of replication, transmission, alteration, and compactness) pose challenges to IP protection, prompting the Digital Millennium Copyright Act (DMCA).

System Quality and Errors

Acceptable levels of system quality are needed, although flawless software is often not economically feasible.
Poor system performance may result from software bugs, hardware/facility failures, or poor input data.

Accountability and Control

Liability issues surrounding software failures require careful consideration, often addressed by contracts and end-user agreements.
Computer crime includes illegal acts conducted using a computer, and computer abuse encompasses unethical actions involving computers (e.g. spam).

Quality of Life

Negative social and personal consequences from IT and systems include concentrating economic/political power, an increasing digital divide, job loss due to reengineering and competing forces, difficulty maintaining boundaries between work and personal life.
Big Tech has faced criticism for anticompetitive practices. -Physical, mental, and cognitive health risks arise due to use of technology

Ethical Analysis

Identifying facts and higher-order values involved, identifying stakeholders, reasonable options, and potential consequences are pivotal to ethical decision processes. .

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Description

Test your knowledge on key concepts in business ethics and law. This quiz covers liability, ethical principles, professional codes of conduct, and privacy in online environments. Explore how these concepts play a critical role in ethical decision-making and legal frameworks.