Precision engineering inc., like other corporations, is subject to laws that are broad in their purpose and their scope. compliance with these laws is not always sufficient to determine "right" behavior becausea. the law does not codify all ethical requirements.
b. company codes are also sources of law.
c. business decisions can have negative impacts.
d. ethical problems occur in business.

A) the law does not codify all ethical requirements.

Explanation:

Laws are meant to be generally and applicable to all individuals or organizations. It is absolutely impossible that laws could be made specifically for every single person, business, organization, and that it covers all their possible actions.

Imagine that there are over 32.5 million businesses in the US, that means that 32.5 million laws should be made. How many more laws regarding specific circumstances should there be?

Each company should try to have their own business ethics code, which should be followed specially by the upper management. It is a form of self-regulation, but it will all depend on the company to follow it.