Section 1: Fill-in-the-blank

1. [———-] Which approach to liability completely relieves the corporation of

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2. [———-] Who of the authors you read argues that capitalism’s reputation is in bad

shape and could be rehabilitated if capitalism were oriented around the common good?

3. [———–] What term is used to describe an exchange in which both parties to an exchange

enter it voluntarily and are fully informed of its terms?

4. [————-] Which classical philosopher-economist argues that human nature goes

beyond self-interest to include love and concern for others and the approval of society?

5. [————-] Which approach to liability allows a corporation to be held

responsible even if its product is not defective?

Section 2: True/False

1. The strict liability framework is equivalent to the buyer-beware liability framework.

2. Mackey believes that stakeholder theory makes being a CEO more difficult.

3. Free market theorists argue that strict liability laws impose excessive costs on businesses

and corporations

4. Stakeholder theory includes only buyers, sellers, and CEOs within its framework of ethical


5. According to Galbraith, advertising creates wants and desires in people where there are




and taste our undisputed quality.