parties. Research has shown that one of the benefits of e-mediation is that it allows people the time needed to
“cool down” when they have to explain their feelings in an email, as opposed to speaking to others in person.
In addition to technological advancements, new findings in psychology are influencing how disputes are
resolved, such as the rising interest in canine-assisted mediation (CAM), in which the presence of dogs is
posited to have an impact on human emotional health. Since the presence of dogs has a positive impact on
many of the neurophysiological stress markers in humans, researchers are beginning to explore the use of
therapy animals to assist in dispute resolution.
11. c
13. In binding arbitration, the decision of the arbitrator is final, and except in rare circumstances, neither party
can appeal the decision through the court system. In non-binding arbitration, the arbitrator’s award can be
thought of as a recommendation: it is only finalized if both parties agree that it is an acceptable solution.
15. c
Chapter 3
1. Acceptable levels of behavior for each individual who makes up the organization.
3. b
5. a
7. The earliest published book about the topic is Corporate Responsibility of the Businessman, published in 1953.
This book introduced the concept of companies giving back as a form of investment in the future. This idea
came from a generation that had survived some of the hardest times in our world and wanted to make it a
better place for generations to come.
9. d
Chapter 4
1.
The authority of the federal government to regulate interstate commerce has, at times, come into conflict with
state authority over the same area of regulation. The courts have tried to resolve these conflicts with reference
to the police power of the states.
Police power refers to the residual powers granted to each state to safeguard the welfare of their inhabitants.
Examples of areas in which states tend to exercise their police power are zoning regulations, building codes,
and sanitation standards for eating places. However, there are times when the states’ use of police power
impacts interstate commerce. If the exercise of the power interferes with, or discriminates against, interstate
commerce, then the action is generally deemed to be unconstitutional. The limitation on the authority of
states to regulate in areas that impact interstate commerce is known as the dormant commerce clause.
In using the dormant commerce clause to resolve conflicts between state and federal authority, the courts
consider the extent to which the state law has a legitimate purpose. If it is determined that the state law has a
legitimate purpose, then the court tries to determine whether the impact on interstate commerce is in the
interest of the citizens of the state, and will rule accordingly. For instance, an ordinance that banned spray
paint, issued in the city of Chicago, was challenged by paint manufacturers under the dormant commerce
clause, but was ultimately upheld by the U.S. Court of Appeals because the ban was intended to reduce graffiti
and related crimes.
3. d
5. c
7. c
9. a
Chapter 5
1. White collar crimes are characterized by deceit, concealment, or violation of trust. They are committed by
business professionals. They generally involve fraud, and the employees committing the crimes are motivated
by the desire for financial gains or fear of losing business standing, money, or property. Fraud is the
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Answer Key
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