The Legal Environment event no longer appears on her credit record, but the bank form asks about all bankruptcies. Although she is perfectly willing to lie on the form, Rob insists that she be honest. But when the bank learns about the bankruptcy, it denies his loan even though her bankruptcy in no way affects his ability to pay the loan. And the incident is ancient history—the dentist’s current finances are strong. Subsequently four other banks also refuse to make the loan. Rob is feeling pretty frustrated. He figures the return on this deal would be 20 percent. Everyone would benefit—the dentist would earn more, her patients would have better technology, he could afford a house in a better school district, and the bank would make a profit. There is one more bank he could try.

Questions
1. Should Rob file loan documents with the bank knowing the dentist has lied?
2. Who would be harmed by this lie?
3. What rationalizations might Rob use?
4. What if Rob pays back the loan without incident? Was the lie still wrong? Do the ends justify the means?
5. What is your Life Principle about telling lies? When is making a misrepresentation acceptable? To protect someone’s life or physical safety? To protect a job? To protect another person’s feelings? To gain an advantage? When others are doing the same? When it makes sense from a cost–benefit perspective?
6. Do you have the same rule when lying to protect yourself, as opposed to benefiting others?