A company uses a competitor's trade secrets to develop a new product

without their knowledge. Which of the following legal issues does this

scenario represent?

 a) Trademark infringement

 b) Patent infringement

 c) Trade secret misappropriation

 d) Copyright infringement

 Answer: c) Trade secret misappropriation

 Rationale: Trade secrets are protected under the law, and using a

competitor's trade secrets without permission constitutes misappropriation,

which is a violation of legal ethics.

A business advertises a product by making false claims about its benefits,

leading to customer harm. This scenario is a violation of:

 a) Truth in advertising laws

 b) Consumer protection laws

 c) Product liability laws

 d) Antitrust laws

 Answer: a) Truth in advertising laws

 Rationale: Truth in advertising laws require businesses to make accurate

and non-deceptive claims about their products to protect consumers from

harm.

An employee of a company discovers evidence of financial fraud by the

management. What ethical obligation does the employee have in this

situation?

 a) Report the fraud to the media

 b) Report the fraud to the company's board of directors

 c) Ignore the evidence to avoid conflict

 d) Confront the management directly

 Answer: b) Report the fraud to the company's board of directors

 Rationale: It is the ethical responsibility of an employee to report any

evidence of fraud or misconduct to the appropriate authorities within the

company to maintain integrity and transparency.