Ken Works in a Pharmaceutical Company That Sells Antibiotics at a Low

question 65

Multiple Choice

Ken works in a pharmaceutical company that sells antibiotics at a low cost to several African countries. He later learns that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, of his company's illegal activities. Which of the following statements is true of the given scenario?

• A) The Sarbanes-Oxley Act would protect Ken from retaliation by his employer.
• B) Ken's constitutional right to freedom of speech would protect him from any form of retaliation by his employer.
• C) Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech.
• D) The Data Protection Act would give the company the power to terminate Ken, and the company may or may not face legal action.

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicular damage.

Moral Hazard

Moral Hazard refers to situations where one party is more likely to take risks because the negative consequences of their actions are borne by another party.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable participants in a contract or agreement, often seen in insurance and financial markets.