MGMT 520 Legal, Political and Ethical Dimensions of Business
Week 1 DQ 1
National and International Ethics (Patent Rights)
Week 1 DQ 2
Disbarment of Lawyers
Read the “Disbarment of Lawyers” case on pages 225 and 226 in the Kubsek text and frame your answer around the four questions for the case study which are located on page 226. In evaluating this scenario, focus upon the question of what you would do if you are directed to do something that you believe is illegal or unethical? What if that person has the power to terminate your employment? What if you have a high level government job, and that person is the President of the United States!
Week 1 Problems
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Chapter 5 Problems (Graded) |
What compelling governmental interests would have to exist for these laws to be sustained? How else could the government justify their enactment? How could the laws be modified so as not to be a deemed an unlawful seizure or taking? Please study the following problems:
Chapter 5, problems 5-16 and 5-17
Week 2
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Week 2 DQ 1 Chapter 5 Problems (Graded) |
What compelling governmental interests would have to exist for these laws to be sustained? How else could the government justify their enactment? How could the laws be modified so as not to be a deemed an unlawful seizure or taking? Please study the following problems:
Chapter 5, problems 5-16 and 5-17
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Week 2 DQ 2Chapter 19 Problems (Graded) |
Did the agencies involved violate Due Process or other Constitutionally mandated safeguards? What type of evidence would the agencies need to justify their actions. How might the aggrieved parties demonstrate that the agencies were acting in an arbitrary and capricious manner? How might the agencies defend against such a charge?
Please study the following problems:
Chapter 19, problems 19-13 and 19-18
Week 2 Assignment:
MGMT 520 Week 2 Administrative Regulations (3300+ Words)
Week 3
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Week 3 DQ 1 Breach of Warranty (Graded) |
Arvo Lake, a retired 71-year-old man, bought an air conditioner in May. The unit was installed and operated according to the manufacturer’s specifications. Unbeknownst to Lake, the unit contained a hole in the refrigeration system that allowed Freon, the coolant, to escape from the unit. By August, the unit had ceased cooling, and Lake’s residence reached a temperature of at least 96 degrees Fahrenheit. The heat caused Lake to suffer from hyperthermia, which caused circulatory failure and then death. The executor of Lake’s estate sued the manufacturer of the air conditioner for damages resulting from breach of warranty.
Which warranties, if any, has the manufacturer of the air conditioner breached?
For a manufacturer to be liable for consequential damages caused by a breach of warranty, the consequential damages must be foreseeable to the manufacturer.
Was Lake’s death a foreseeable consequence of the air conditioner’s failure to operate properly?
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Week 3 DQ 2 Environmental Liability and Due Process (Graded) |
In 1979, Paul and John Reardon purchased 16 acres of land located next to a manufacturing plant in Massachusetts. In 1983, a state environmental agency, responding to a citizen’s report, tested soil samples from both properties and discovered extremely high levels of polychlorinated biphenyls (PCBs) on the plant site and on the Reardons’ property where it bordered the site. Shortly thereafter, the Environmental Protection Agency (EPA) cleaned up the contaminated areas. In 1985, the EPA notified the Reardons that they might be liable for clean-up costs. An EPA investigation of the property in 1987 revealed that some soil was still contaminated. This time, the Reardons cleaned up the property themselves.
Week 3 Assignments:
MGMT 520 Week 3 Case Nadel et al v Burger King (1050+ Words)
MGMT 520 Week 3 CHRISTOPHER NADEL CASE
Week 4
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Week 4 DQ 1 Shirley Parker v. Twentieth Century |
Our textbook discusses monetary and equitable remedies in the event that a contract is breached. These issues presented themselves in the case Shirley Parker v. Twentieth Century Fox Film Corp. (Case 11-4) on page 297 of your eBook. Read Case problem 11-8 on page 307 of your e-book. What were the various parties obligations under the employment contract?
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Week 4 DQ 2 Larry Podder or Harry Potter? (Graded) |
Disclaimer: This is a fictional story. It did not happen.
You are a newly promoted supervisor for Playing with God, a company that makes computer games for a Christian bookstore. One of the directors on the corporate board is Jon Bakker, a long-lost nephew of TV evangelists Jim and Tammy Faye. Jon’s son, Larry Bakker, is a member of your department. He writes the story lines that go into the different games. He has very little computer expertise, but he does have a creative writing degree and writes really great Bible-based game stories. One of his games has won an award in the Christian Video Game arena.
Week 4 Assignments:
MGMT 520 Group Project Thread Week 4
MGMT 520 Scenario Summary Week 4
Week 5
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Week 5 DQ 1 Pusey v. Bator (Graded) |
Please read Case problem 16-13 at the end of Chapter 16 in your eBook regarding the lawsuit by Pusey in the case Pusey v. Bator. Under what theory might Ms. Pusey argue that Greif Brothers Corporation is liable for the death of her son by the security guard? Would the plaintiff be successful under the theory you chose? Why or why not?
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Week 5 DQ 2 The Lemon Tree Dilemma (Graded) |
The website EEOC.gov should be a bookmarked site for any individual who is working as or plans to work as a manager in a business with more than one (i.e., the owner) employee. This website contains the information that the federal government expects companies and businesses to use and follow with respect to hiring, firing, and disciplining its employees. It explains disabilities, how to handle them, and when to use them in making hiring decisions. It also provides information about “protected classes,” in which people must be a member before they can claim “discrimination.”
Week 5 Assignments:
MGMT 520 Week 5 Here is the text of the Lemon Tree Dilemma
MGMT 520 Week 5 Midterm Exam
Week 6
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Week 6 DQ 1 Restraint of Trade and Antitrust (Graded) |
Look at problem 25-14 found on page 718 of your eBook. We will begin our discussion this week by working through this “credit card” problem to help us understand “per se” violations and how they affect how antitrust suits are brought and proven. To get started, let’s answer the following questions about the problem:
Was Visa’s and Mastercard’s conduct illegal under the Sherman Act? Under the Clayton Act? Why or why not?
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Week 6 DQ 2 Consumer Protections (Graded) |
In Week 1, we covered ethics and the role law and politics play with it. As we have discussed this week, the government has attempted to protect consumers against unethical loan practices, collection of debt practices, and product costs will continue to make it more difficult to be profitable.
To start our discussion this week – let’s review Case problem 26-17 on page 761 of your eBook. In addition to the question presented by the problem:
1. What responsibilities did Easton and Source One Associates, Inc. have to the individuals and businesses that were the targets of these information requests?
2. What responsibilities did the clients of Easton and Source One Associates, Inc. have to (a) its clients that made the information/inquiry requests and (b) to the individuals and businesses that were the targets of these information requests?
3. Explain the remedies available to the individuals and businesses that were the targets of these inquiries.
Week 6 Assignments:
MGMT 520 You Decided Week 6 Graded
MGMT 520 Scenario Summary Week 6
Week 7
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Week 7 DQ 1 Multinational Companies (Graded) |
Let’s finish up this term with a discussion about moving our personal and business ethics into the international business realm. Let’s look at how ethics and laws span the concepts of all of our TCOs to date and discuss them in a realistic perspective, with particular emphasis on the multinational company and the effects of laws in other countries on business in the United States, and vice versa. The TCO topics have been the following:
A: Ethics
B: Governmental regulation
C: Warranties and product liability
D: Contract law
E: Employment law and vicarious liability
F: Intellectual property
G: Antitrust and fair trade activities
H: Corporate activities and the SEC
I: International ethics
Do you see any of our TCOs in a different light now at the end of the term than you did at the beginning of the term? If so, which one(s), and why?
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Week 7 DQ 2 SOX and Insider Trading (graded) |
Review problem 24-15, found on page 677 of your eBook. Let’s look at corporate malfeasance, both specifically as it is seen in the case of Mr. Bleakney and NMC, and more generally, at companies across the country. It seems as though there is an outbreak of corporate “bad ethics” that is translating into escalating costs for compliance and policing.
Along with the SEC and their policing and efforts at ending bad business practices that relate to the stock market, we also have the Sarbanes-Oxley Act, also known as SARBOX, or SOX, which is becoming a big buzzword in the business world. We will look at that here and in the other topic. As part of that discussion, start thinking about the different ways different officers of the company will look at and use or follow SOX (i.e., the CEO, CIO, and CFO).
To start this discussion, let’s look at the conduct of Mr. Bleakney. Was his conduct illegal under the Securities and Exchange Act, and more specifically, Section 10(b) and Rule 10b-5? If so, how? If his conduct was not illegal under Section 10(b) and Rule 10b-5, explain why not.
Was his conduct unethical? Why or why not?
Week 8
Final Exam 5 Sets
<pstyle=”color: rgb(102,=”” 102,=”” 102);=”” font-family:=”” verdana,=”” arial,=”” helvetica,=”” sans-serif;=”” text-align:=”” center;=”” background-color:=”” rgb(250,=”” 252,=”” 253);”=””>MGMT 520 FINAL EXAM Set 1
Week 8
1. (TCOs G and I) In the 1930s, after immigrating to the U.S. from a region in central Europe threatened by the onset of World War II, Luigi and Maria Spongee opened a bakery in Chicago. They specialized in snack cakes. Spongee Cup Cakes became so popular in the area that the family stopped being actual bakers and became manufacturers/ food processors of the snack cakes on a regional basis. After returning from the war, their son Steve completed college and began working in television advertising in the early 1950s. Steve approached his parents and his older brother Tom, who was now running the business, about the possibilities of advertising and “going national.” The family liked the idea and began advertising and expanding. In addition, to fuel the expansion, they offered retailers price discounts and other incentives if they prominently positioned the displays set-up by Spongee rack jobbers. By the 1960s, they were a national brand, controlling over 80 percent of the snack food industry………….
…………A child in Idaho, with food allergy problems, even died. Her parents served her the snack, relying on the advertising, not knowing that some of the natural ingredients used in the Canadian-made product were dangerous to her.
The Spongee family seeks your advice and opinion regarding:
(1) Herbal Snacks’s advertising campaign.
(2) The marketing and distribution campaigns both companies have engaged in.
(3) The liability issues Herbal Snacks faces regarding their use of food manufactured outside of the United States
2. (TCOs A, E, F) John and Janet Fonda, siblings and actors, decide to retire after years on the road. They remember a town in New Jersey they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land. ………….As the area near the farm was once occupied by a large chemical plant, when the realtor represents local purchasers, as a precaution, she advises the buyers to get the maximum possible title search and title insurance, and to get all possible inspections done. It is her regular practice to caution local purchasers who she represents about the former chemical plant.
After closing on the property, the Fondas learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties.
3. (TCOs A, E, F)John, Lionel, and Evelyn Harrymore, siblings and actors, decide to retire after years on the road. They remember a town in Illinois they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land. The Harrymores wish to convert the farm to a restaurant-hotel with a dinner theater. They contact the realtor by phone, and make arrangements to buy the parcel. ………….It is her regular practice to caution local purchasers who she represents about the former chemical plant. After closing on the property, the Harrymores learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties.
1. (TCO C) Three professors from Keller’s New Jersey campus, Robinson, Romney, and Obama, decide to visit ABC Go-kart facility together in Pennsylvania. This decision is made after a lengthy faculty brunch, at which unlimited alcoholic mimosas were served. ABC Go-kart advertises at the college’s various campuses and, in fact, the professors use their faculty discount at the facility……………..At autopsy, it was later learned that Professor Robinson had been rendered brain dead by accident at the ABC Go-kart facility.
(a) What claims may Professor Robinson’s widow bring against the various parties?
(b) What defenses might each party bring against the possible claims asserted by Professor Robinson’s widow?
(c) In what state should the case be brought? (Points: 30)
(TCOs A, B, F, H
PART A
Paul and Thomas Hamilton, brothers, are college students and web designers. While at the University of Megalopolis, a private, for-profit college in the “Quad State” area, they started an online chat service called LinkTime. Paul attended and resided at the college’s campus in the State of Quadrahenria. Thomas, who was on probation during college for a low level felony drug conviction, could not be a resident student and took classes at the campus in the Commonwealth of New Guernsey campus. ………..The brothers would like to maintain a majority interest in the business, give about 20 percent to the six friends from their undergraduate days who helped them run the service, and use the remaining interest in the business to attract other investors and use employee incentives. They seek your advice on (a) the form of business they should use, (b) who might have a claim on the business, and (c) how they might protect themselves from claims regarding a computerized internet platform?
PART B
LinkTime has been a phenomenal success for over ten years. They are now a worldwide social networking phenomenon. Over the years and the various incarnations of the business enterprise, they are now a corporation with just under 100 shareholders. In anticipation of a public offering, they have just completed a private stock offering and allowed several of the initial equity owners to exercise stock options. The Hamilton brothers each exercised options to purchase 10,000 shares for $5 a share. ………………Big Profit had formally filed its opposition to the SEC’s regulation when it was proposed. After the public offering was completed, LinkTime stock stabilized at $40 a share, well below the initial offering price of $70 a share. In light of the fiasco of the public offering and the bad press that it generated, users began to drop LinkTime in favor of a new, upstart rival service offered by TronCom. Fearful that the new advertisers would back out of their contracts, the Hamilton brothers sold a great deal of their stock. What issues doesLinkTime, its officers, and stockholders face under (a) state securities law, (b) the Securities Act of 1933, and (b) the Securities and Exchange Act of 1934?
2. (TCOs A, D, E)Marvin worked at the local country club pool as a lifeguard, not a swim teacher, for the summer of 2013. Marvin was a public school physical education teacher. The country club did not do a background check or confirm any references when they hired him. They relied on the “say-so” of Marvin’s brother, a member of the country club board of directors. The country club only did a cursory internet search of the state’s Department of Education website to verify that he had a valid teaching certificate. When one of the swim instructors unexpectedly quit one day, he took over the class. Initially, the class went well. Eventually, Marvin also took over coaching the club’s competitive swim team. …………..
Several parents brought suit against the local country club, Marvin, and the country club director. The young lifeguard has also brought suit. The local country club pool alleges that they are not liable. Discuss the ethical, liability, and agency issues presented by this matter, and all defenses available to the local country club pool.
4. (TCOs A, E, F) John and Edwin Booth, brothers and actors, decide to retire after years on the road. They remember a town in Louisiana they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land. ……………….As the area near the farm was once occupied by a large chemical plant, when the realtor represents local purchasers, as a precaution, she advises the buyers to get the maximum possible title search and title insurance, and to get all possible inspections done. It is her regular practice to caution local purchasers who she represents about the former chemical plant.
After closing on the property, the Booths learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties.
(TCOs B, C, G, I) KWRF, a small market radio station, learns from reading in the industry trade magazine that the Federal Communications Commission (FCC) has proposed a regulation change. The regulation will require radio stations to do an additional 20 minutes of public service announcements each week. As KWRF serves a small niche market, and has minimal advertising revenue, the loss of 20 minutes of air time could bankrupt them. What should KWRF do regarding the proposed change?
(TCOs G and I) In the 1930s, after immigrating to the U.S. from a region in central Europe threatened by the onset of World War II, Bruno and Helga Kreamie opened a bakery in Brooklyn. They specialized in snack cakes. Kreamie Cup Cakes became so popular in the area that the family stopped being actual bakers and became manufacturers/ food processors of the snack cakes on a regional basis………….A child in Oregon, with food allergy problems, even died. Her parents served her the snack, relying on the advertising, not knowing that some of the natural ingredients used in the Mexican-made product were dangerous to her. The Kreamie family seeks your advice and opinion regarding:
(1) Granola Snacks’s advertising campaign.
(2) The marketing and distribution campaigns both companies have engaged in.
(3) The liability issues Granola Snacks faces regarding their use of food manufactured outside of the United States.
(TCOs D, E, F) Frank Jones is a college student who had a plow attached to his jeep so he could earn extra money plowing during the winter. Jones was under contract to plow the driveways of Mr. Washington and Ms. Adams, two neighbors down the street. John Smith lives between Washington and Adams. …………..After Smith’s obnoxious response, Jones yelled: “I will see you in court!” What legal arguments could Jones make to enforce his $600 bill? What legal arguments could Smith make to avoid liability?
(TCOs B, C, G, I) Lonestar Trucking, a large freight carrier servicing the Southwest, learns from reading in the industry trade magazine that the Federal Motor Carrier Safety Administration (FMCSA) has proposed a regulation change………..They are concerned that the field drug tests used by police officers are notorious for giving “false positive” results, and that the proposed regulation will require that a test be given even when “the other diver” is clearly at fault. What should Lonestar Trucking do regarding the proposed change?
(TCO C) Three professors from Keller’s Illinois campus, Favre, Bush, and Clinton, decide to visit XYZ Go-kart facility together in Minnesota. This decision is made after a lengthy faculty brunch, at which unlimited alcoholic mimosas were served…………At the hospital, Favre dies from insulin shock and other complications due to his diabetes while the emergency room doctor was doing a procedure to prevent blood clots and a possible stroke from the head injury. At autopsy, it was later learned that Professor Favre had been rendered brain dead by accident at the XYZ Go-kart facility.
(a) What claims may Professor Favre’s widow bring against the various parties?
(b) What defenses might each party bring against the possible claims asserted by Professor Favre’s widow?
(TCOs A, D, E) Judy Collinsworth, a then-unknown folk singer, signed a three album recording contract with Mercury Apollo Music, Inc. Mercury Apollo Music was a boutique label specializing in folk artists. Collinsworth’s first album for Mercury Apollo was moderately successful. The second album, unfortunately, was panned by the critics and did not sell. Mercury Apollo Music was acquired by NastiCondiMedia, Inc. NastiCondiMedia, in an effort to re-vitalize Collinsworth’s career, encouraged her to leave the folk style she was committed to and do more commercially viable pop material. Collinsworth rejected this request. Furious with NastiCondiMedia, Collinsworth wanted to end the contract. On her own, with what remaining personal funds she had left, she immediately went to an independent recording studio and did sessions toward a third album without approval or consent by NastiCondiMedia. Using her concert band, she recorded tracks for over 30 songs. Due to the financial failure of Collinsworth’s second album and her recent unsuccessful concert tour, NastiCondiMedia did not do the final production work on Collinsworth’s third album.
Collinsworth then entered into a contract with EasyListening Communications, Inc. She began recording a new folk album with EasyListening in conjunction with a concert tour that they financed and produced. At her concerts, Collinsworth would regularly introduce the new material that would be on her new album.
Shortly after the concert tour began, NastiCondiMedia brings suit against Judy Collinsworth and EasyListening Communications, Inc.
(a) What causes of action might NastiCondiMedia bring against Collinsworth and EasyListening?
(b) What causes of action might Collinsworth and EasyListening bring against NastiCondiMedia?
(c) What types of relief might either party seek?
(TCOs A, B, F, H)
PART A
Paul and Thomas Franklin, brothers, are college students and web designers. While at the University of Megalopolis, a private, for-profit college in the “Quad State” area, they started an online chat service called FaceLinked. Paul attended and resided at the college’s campus in the State of Quadrahenria. Thomas, who was on probation during college for a low level felony drug conviction, could not be a resident student and took classes at the campus in the Commonwealth of New Guernsey campus. The chat service began by putting information from the school’s student directory online, and offering blog, chat, and message board features………….The brothers would like to maintain a majority interest in the business, give about 20 percent to the six friends from their undergraduate days who helped them run the service, and use the remaining interest in the business to attract other investors and use employee incentives.
They seek your advice on (a) the form of business they should use, (b) who might have a claim on the business, and (c) how they might protect themselves from claims regarding a computerized internet platform?
PART B
FaceLinked has been a phenomenal success for over ten years. They are now a worldwide social networking phenomenon. Over the years and the various incarnations of the business enterprise, they are now a corporation with just under 100 shareholders. In anticipation of a public offering, they have just completed a private stock offering and allowed several of the initial equity owners to exercise stock options. The Franklin brothers each exercised options to purchase 10,000 shares for $5 a share……………
What issues does FaceLinked, its officers, and stockholders face under (a) state securities law, (b) the Securities Act of 1933, and (c) the Securities and Exchange Act of 1934?
(TCOs A, D, E) Woody worked at the local country club pool as a lifeguard, not a swim teacher, for the summer of 2013. Woody was a public school physical education teacher. The country club did not do a background check or confirm any references when they hired him. They relied on the “say-so” of Woody’s brother, a member of the country club board of directors……….Last year, he was arrested for physically abusing a child he coached at his school. Although the criminal charges were dropped, Woody is on administrative leave from his public school job until an administrative hearing with the state Department of Education can be held in the fall. The incident was reported in several local papers, and his administrative suspension is listed on the state’s database.
Several of the children, ages 6-8, reported to their parents that they had been physically assaulted by Woody while in swim class for not “working hard enough!” The children had bruises on their shoulders…………..The young lifeguard has also brought suit. The local country club pool alleges that they are not liable. Discuss the ethical, liability, and agency issues presented by this matter, and all defenses available to the local country club pool.
(TCOs G and I) In the 1930s, after immigrating to the U.S. from Ireland at the onset of World War II, Shamus and Mary McCream opened a bakery in Boston. They specialized in snack cakes. McCream Cup Cakes became so popular in the area that the family stopped being actual bakers and became manufacturers/ food processors of the snack cakes on a regional basis. After returning from the war, their son Steve completed college and began working in television advertising in the early 1950s………..
In the 1970s, with the advent of the hippie counter-culture and the back-to-Earth movement, a new competitor made an impact on the McCream business. The company, Healthy Snacks, began advertising that their products only used natural ingredients………….Her parents served her the snack, relying on the advertising, not knowing that some of the natural ingredients used in the Dominican Republic-made product were dangerous to her.
The McCream family seeks your advice and opinion regarding:
(1) Healthy Snacks’s advertising campaign.
(2) The marketing and distribution campaigns both companies have engaged in.
(3) The liability issues Healthy Snacks faces regarding their use of food manufactured outside of the United States.
(TCOs A, E, F) John and Edwin Booth, brothers and actors, decide to retire after years on the road. They remember a town in Louisiana they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land……………..It is her regular practice to caution local purchasers who she represents about the former chemical plant. After closing on the property, the Booths learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties.
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MGMT 520 Final Exam Set 2
1. TCO D A well known pharmaceutical company, Robins & Robins, is working through a public scandal. Three popular medications that they sell over the counter have been determined to be tainted with small particles of plastic explosive. The plastic explosives came from a Robins & Robins supplier named Casings, Inc., that supplies the capsule casings for the medication pills. Casings, Inc., also sells shell casings for ammunition. Over $8 million in inventory is impacted. The inventory is located throughout the Western United States, and it is possible that it has also made its way into parts of Canada…………” The accounting firm determines the loss of “good will” value to Robins & Robins as a result of this disaster is $140 million. This clause was buried on page 285 of the contract in small, 9-point type. List any defenses Casings, Inc., may have in trying to avoid the results of this clause of their contract.
2. TCO B. The FDA discovers that, during the public comment process, Robins & Robins bribed one of the members of the administrative panel that decided to pull the rule from consideration. The member of the panel was removed and is being charged criminally. As a result, the FDA immediately implements an emergency order that puts into effect the “tracking bar” requirement and makes the rule retroactive, but only to Robins & Robins. Provide two arguments Robins & Robins can make to have the rule determined to be invalid under the Administrative Procedures Act. Explain your answer.
Name one argument that Robins & Robins could have used to fight against the imposition of a tracking bar (UPC) requirement in the event their lobbying efforts during public comments had failed. Explain the argument and the procedural method Robins would use to fight it. If Robins had not gotten involved in the public comments period, would your answer change? Why?
3. TCO C. Robins & Robins immediately issued a massive recall for the tainted medication upon learning of the situation. Despite the recall, 1,400 children and 350 adults have been hospitalized after becoming very ill upon taking the tainted medication. Each of them had failed to note the recall after having already purchased the medication…………Include (and fully explain) any defenses you feel that Robins & Robins may have. Recall that your boss needs all pertinent information for him to write an announcement to the public after reading your memo.
4. TCO A. It is discovered that Robins & Robins knew about the tainted medication 2 months earlier than they announced the recall. They hid it and, in fact, sent out contract buyers to try to buy up all of the medication off the shelves. Their “fake” recall failed. Using the Blanchard and Peale method of analyzing ethical dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins for the fact that they saved 35 cents/package and are now in the middle of a major, life-threatening recall. Analyze their “fake” recall as well. Show all of the steps of the model and give a recommendation to the CEO of what to do now that the deaths are escalating. What is the “right” thing for the CEO to do in this case?
5. TCO I. A Canadian citizen whose son (resident of Ontario) died from the medication sues Robins & Robins in a California court. The court there is well known for being victim friendly and providing huge payouts to victim families. In Canada, the cap on nonpecuniary damages is around $300,000. Punitive damages in Canada are rarely allowed. Robins & Robins moves to dismiss the case under the theory of sovereign immunity. Will Robins & Robins win this motion using this theory? Why or why not?
Page 2
TCO E and H. A private high school hires a new superintendent, George Forester. The school is owned by a local Lutheran church and is run by a board of directors chosen by church members. Supt. Forester shows up for his first day of work and sends a memo via intercompany mail to all teachers:
TCO E. Pastor Forester claims his firing was illegal because it was based on his being a convicted felon. His contract with the school provides him with defense coverage for any acts he takes while working for the school. Anna and Lisa sue Pastor Forester and the school for sexual harassment and discrimination, and Pastor Forester requests the school pay for his defense. Discuss whether Anna and Lisa will be successful in their claim of sexual harassment and discrimination against the school and Pastor Forester. Discuss whether the school illegally fired Pastor Forester. Will the school have to pay for the pastor’s defense? Analyze and defend your answer.
2. TCO H, E. It was actually in the discovery portion of the injury lawsuit that Pastor Forester’s true background came to light. The convict, Birches, claims the knowledge of his aunt should be imputed to the entire board of directors. Three parents have alleged that their children are now seeing therapists due to abusive comments Birches made to them at various times during his time in the school.The board immediately convenes and discusses “damage control.” The board knows you took a law and ethics course recently and asks you to write it a memo of what liability it has in this case. List the elements of any tort you believe the school may be liable for and what defenses you may have. Include in your memo whether Aunt Theresa’s knowledge will be imputed to the entire board. If so, under what statute, rule, case, or federal law do you base your decision?
Page 3 – Two essays at 30 points each.
TCOs F & G. Laura Etheridge and Rita O’Donnell, the CEO and Creative Director of Clean Clothes (a Texas-based lesbian women’s clothing line) brainstormed together and came up with a tagline for their new slacks line: “Masculine Attitude, Feminine Fit.” They market the product on YouTube, Twitter, and Facebook showcasing their “Funky Femme” slacks collection, made from a material that resembles alpaca wool but is actually organic cotton. ……………
Bank (JOSB). Her comments cause a precipitous drop in sales at both Joseph A. Bank (JOSB) and Clean Clothes. Using the above fact pattern, analyze the following questions fully.
TCO F. Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC) demanding CC stop using M2W’s tagline, which is registered with the Trademark Office. Clean Clothes responds, stating that (a) CC’s tagline is different enough as not to violate the trademark, (b) CC didn’t know about M2W’s tagline so they couldn’t have copied it, and (c) Men2Wimmin has no damages and therefore can’t sue Clean Clothes. Analyze the case for Men2Wimmin, including the elements of any case they have, and explaining any defenses that Clean Clothes might raise against them. What damages can they request, and do you think they will get them? Why or why not?
MGMT 520 Legal, Political and Ethical Dimensions of Business
Final Exam Set 3
Page 1
TCO D. Questions: A well known pharmaceutical company, Robins & Robins, is working through a public scandal. Three popular medications that they sell over the counter have been determined to be tainted with small particles of plastic explosive. The plastic explosives came from a Robins & Robins supplier named Casings, Inc., that supplies the capsule casings for the medication pills. Casings, Inc. also sells shell casings for ammunition. Over $8 million in inventory is impacted. The inventory is located throughout the Western United States, and it is possible that it has also made its way into parts of Canada………
…….Robins & Robins sues Casings, Inc., for indemnification from suits by injured victims from the medication, for the cost of the capsule shells, for attorneys fees, and for punitive damages. List any defences Casings, Inc., would have under contract theory ONLY for the damages caused by the explosives in their drugs, over and above the cost of the capsule shells. (Points:15). (Short answer question)
List any bases Robins & Robins could sue Casings, Inc., under contract theory ONLY for the damages caused by the explosives in their drugs, overand above the cost of the capsule shells. (short answer question) (Points:15)
2. TCO B. The FDA decides to require all pharmaceutical companies to immediately implement the tracking bars (UPC) as a result of the disaster with Robins & Robins. Robins & Robins decides not to challenge this and begins the process of adding them to all of their products. However, McFadden, Inc., a NewYork pharmaceutical company, realizes that this new requirement is going to bankrupt them immediately. McFadden did not participate in the original public comment period. However, this rule is different from the rule that went through that public comment period in that it specifically names four companies as being impacted: Robins & Robins, McFadden, Inc., Bayer, and Johnson & Johnson. On what bases can McFadden challenge this requirement imposed by the FDA, and can they be successful? Provide at least two bases under the Administrative Procedures Act and justify your answer. (Points: 30)
3. TCO C. Robins & Robins immediately issued a massive recall for the tainted medication upon learning of the situation. Despite the recall, 1,400 children and350 adults have been hospitalized after becoming very ill upon taking the taintedmedication. Each of them had failed to note the recall after having already purchased the medication……………List the causes of action (if any) you would file against Robins & Robins, the FDA, and the bribed FDA member. List the elements of the causes of action, and set forth the facts that you have that would support a lawsuit against each of the three named defendants. State any defences any of the three would have. Analyze the success of the defences.
TCO A.
It is discovered that Robins & Robins knew about the tainted medication 2 months earlier than they announced the recall. They hid it and, in fact, sent out contract buyers to try to buy up all of the medication off the shelves. Their “fake” recall failed. Using the Laura Nash method of analyzing ethical dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins for the fact that they saved 35 cents/package and are now in the middle of a major, life-threatening recall. Analyze their “fake” recall as well. Show all of the steps of the model and give a recommendation to the CEO of what to do now that the deaths are escalating. What is the “right” thing for the CEO to do in this case? Did the model help you come to this conclusion, or did you use some other method? Explain.
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Question 2 – 2 essays, 30 points each.
TCO E and H. A private high school hires a new Superintendent, George Forester. The school is owned by a local Lutheran Church and is run by a board of directors chosen by church members. Supt. Forester shows up for his first day of work, and sends a memo via intercompany mail to all teachers:
”Write a brief memo as to whether Pastor Forester committed illegal or discriminatory practices in his brief tenure described in this situation. Then, analyze the potential liability of the school. Discuss agency liability, as well as any employment law aspects. Explain whether you feel that the two injured teachers have cases for recovery against the school. Discuss whether the school being a religious, private school has any bearing on or protection from liability. Include all defences available to the school.
TCO H and E.
In the discovery portion of the case, it is determined that Pastor Forester is really not a Pastor. His real name is Jerry Birches, who is a parolee with convictions for child molestation…………..He claims her knowledge should be imputed to the entire board of directors. He then sues the school for firing him for being convicted felon. He claims that is illegal, and he publicly attacks the church for their “less than Christian” behaviour in firing him.
The board immediately convenes to discuss “damage control.” They know you took a Law and Ethics course recently and ask you to write a news release to the local newspaper, explaining the situation. Using ethical and legal considerations(including the fact you are in the middle of multiple lawsuits), write the brief news release. Then, explain why you wrote it the way you did. (Points: 30)
Page 3 Page 3 – Two essays at 30 points each. (TCOs F & G)
Laura Etheridge and Rita O’Donnell, the CEO and Creative Director of Clean Clothes (a Texas based lesbian women’s clothing line) brainstormed together and came up with a tagline for their new slacks line: “Masculine Attitude, Feminine Fit.” They market the product on YouTube, Twitter, and Face Book showcasing their “Funky Femme” slacks collection, made from a material which resembles alpaca wool, but is actually organic cotton……………
Ellen DeGeneres learns that her likeness is being used to advertise for Clean Clothes. She watches the ad and is incensed. She spends the next week on her show bashing the Clean Clothes company, and states that she would never endorse the use of Alpaca wool for clothing, as she feels shearing them is cruel.(She doesn’t catch that the pants are really made from cotton.) Further, she says she feels that lesbian women should not need to shop at special stores, although she admits she often shops in the men’s department at Joseph A. Bank (JOSB). Her comments cause a precipitous drop in sales at both Joseph A. Bank (JOSB) and Clean Clothes. Using the above fact pattern, analyze fully, the following questions:
TCO F.
Ellen DeGeneres sues Clean Clothes for the use of a look-alike model forth slacks advertisement. She includes Lanham Act, misappropriation, and “Right of Publicity” claims in her complaint. Clean Clothes countersues for product disparagement. Joseph A. Bank (JOSB) sues Ellen for impacting their men’s clothing sales with her unsolicited comment. What facts will Ellen use to support her cases and why will those support her cases? What defenses will Ellen have against Clean Clothes and JOSBs countersuits? Do you think any of the 3 will win their cases? (Why or why not.) Analyze the case for all three parties – who will win and why; what elements will they need to prove, and what defenses can they show?
2. TCO G.
It is discovered that two weeks before the Ellen show, she had sold $2million in JOSB stock (at a gain of about $2,200). The morning after her show, Ellen sold JOSB short (which means she was betting the stock price would go down), and she made another $210,000 in the next week on that trade…………Do you think the SEC will file anything against Ellen for her sales of JOSB? Is there any cause to do so? Analyze her transactions with respect to insider trading activity (based on what you know) – and whether she should be concerned. Is her prior trading activity a defence? Should Ellen have avoided discussing JOSB publicly on her show since she typically trades their stock? (Points: 30)
<pstyle=”color: rgb(102,=”” 102,=”” 102);=”” font-family:=”” verdana,=”” arial,=”” helvetica,=”” sans-serif;=”” text-align:=”” center;=”” background-color:=”” rgb(250,=”” 252,=”” 253);”=””>MGMT 520 Legal, Political and Ethical Dimensions of Business
Final Exam
1. TCO D Short Answer Question and Facts for Page 1
Questions: A well known pharmaceutical company, Robins & Robins, is working through a public scandal. Three popular medications that they sell over the counter have been determined to be tainted with small particles of plastic explosive. The plastic explosives came from a Robins & Robins supplier named Casings, Inc., that supplies the capsule casings for the medication pills. Casings, Inc., also sells shell casings for ammunition. Over $8 million in inventory is impacted……………….This clause was buried on page 285 of the contract in small, 9-point type. List any defenses Casings, Inc., may have in trying to avoid the results of this clause of their contract. (short answer question)(Points: 15)
2. TCO B. The FDA discovers that, during the public comment process, Robins & Robins bribed one of the members of the administrative panel that decided to pull the rule from consideration. The member of the panel was removed and is being charged criminally. As a result, the FDA immediately implements an emergency order that puts into effect the “tracking bar” requirement and makes the rule retroactive, but only to Robins & Robins.
Provide two arguments Robins & Robins can make to have the rule determined to be invalid under the Administrative Procedures Act. Explain your answer. (Points: 30)
Name one argument that Robins & Robins could have used to fight against the imposition of a tracking bar (UPC) requirement in the event their lobbying efforts during public comments had failed. Explain the argument and the procedural method Robins would use to fight it. If Robins had not gotten involved in the public comments period, would your answer change? Why?
3. TCO C. Robins & Robins immediately issued a massive recall for the tainted medication upon learning of the situation. Despite the recall, 1,400 children and 350 adults have been hospitalized after becoming very ill upon taking the tainted medication. Each of them had failed to note the recall after having already purchased the medication…………..Draft the memo utilizing the elements of 402A and negligence. Include (and fully explain) any defenses you feel that Robins & Robins may have. Recall that your boss needs all pertinent information for him to write an announcement to the public after reading your memo.(Points: 30)
Set 3 Questions:
The attorneys stated that but for the lobbying efforts, the recall process would have been automated and the people would not have gotten sick or died. You are an employee with the FDA. You are drafting a memo to your boss analyzing the FDA’s liability and explaining why the FDA did the right thing in deciding not to pass the original tracking bar (UPC) rule. You are specifically being told to respond to the issue of the deaths and illnesses. What would you write? Include (and fully explain) any defenses you feel that the FDA could use against any negligence or public relation cases. Explain what liability (if any) the FDA could have to the victims and their families. (Points: 30)
4. TCO A. It is discovered that Robins & Robins knew about the tainted medication 2 months earlier than they announced the recall. They hid it and, in fact, sent out contract buyers to try to buy up all of the medication off the shelves. Their “fake” recall failed. Using the Blanchard and Peale method of analyzing ethical dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins for the fact that they saved 35 cents/package and are now in the middle of a major, life-threatening recall. Analyze their “fake” recall as well. Show all of the steps of the model and give a recommendation to the CEO of what to do now that the deaths are escalating. What is the “right” thing for the CEO to do in this case?(Points: 30)
5. TCO I. A Canadian citizen whose son (resident of Ontario) died from the medication sues Robins & Robins in a California court. The court there is well known for being victim friendly and providing huge payouts to victim families. In Canada, the cap on nonpecuniary damages is around $300,000. Punitive damages in Canada are rarely allowed. Robins & Robins moves to dismiss the case under the theory of sovereign immunity. Will Robins & Robins win this motion using this theory? Why or why not? (short answer question) (Points: 15)
Question 2 – 2 essays, 30 points each.
TCO E and H. A private high school hires a new superintendent, George Forester. The school is owned by a local Lutheran church and is run by a board of directors chosen by church members. Supt. Forester shows up for his first day of work and sends a memo via intercompany mail to all teachers:
TCO E. Pastor Forester claims his firing was illegal because it was based on his being a convicted felon. His contract with the school provides him with defense coverage for any acts he takes while working for the school. Anna and Lisa sue Pastor Forester and the school for sexual harassment and discrimination, and Pastor Forester requests the school pay for his defense. Discuss whether Anna and Lisa will be successful in their claim of sexual harassment and discrimination against the school and Pastor Forester. Discuss whether the school illegally fired Pastor Forester. Will the school have to pay for the pastor’s defense? Analyze and defend your answer.(Points: 30)
2. TCO H, E. It was actually in the discovery portion of the injury lawsuit that Pastor Forester’s true background came to light. The convict, Birches, claims the knowledge of his aunt should be imputed to the entire board of directors. Three parents have alleged that their children are now seeing therapists due to abusive comments Birches made to them at various times during his time in the school.The board immediately convenes and discusses “damage control.” The board knows you took a law and ethics course recently and asks you to write it a memo of what liability it has in this case. List the elements of any tort you believe the school may be liable for and what defenses you may have. Include in your memo whether Aunt Theresa’s knowledge will be imputed to the entire board. If so, under what statute, rule, case, or federal law do you base your decision?(Points: 30)
Page 3 – Two essays at 30 points each.
TCOs F & G. Laura Etheridge and Rita O’Donnell, the CEO and Creative Director of Clean Clothes (a Texas-based lesbian women’s clothing line) brainstormed together and came up with a tagline for their new slacks line: “Masculine Attitude, Feminine Fit.” They market the product on YouTube, Twitter, and Facebook showcasing their “Funky Femme” slacks collection, made from a material that resembles alpaca wool but is actually organic cotton…………she says she feels that lesbian women should not need to shop at special stores, although she admits she often shops in the men’s department at Joseph A. Bank (JOSB). Her comments cause a precipitous drop in sales at both Joseph A. Bank (JOSB) and Clean Clothes. Using the above fact pattern, analyze the following questions fully.
TCO F.Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC) demanding CC stop using M2W’s tagline, which is registered with the Trademark Office. Clean Clothes responds, stating that (a) CC’s tagline is different enough as not to violate the trademark, (b) CC didn’t know about M2W’s tagline so they couldn’t have copied it, and (c) Men2Wimmin has no damages and therefore can’t sue Clean Clothes. Analyze the case for Men2Wimmin, including the elements of any case they have, and explaining any defenses that Clean Clothes might raise against them. What damages can they request, and do you think they will get them? Why or why not? (Points: 30)
<pstyle=”color: rgb(102,=”” 102,=”” 102);=”” font-family:=”” verdana,=”” arial,=”” helvetica,=”” sans-serif;=”” text-align:=”” center;=”” background-color:=”” rgb(250,=”” 252,=”” 253);”=””>MGMT 520 Legal, Political and Ethical Dimensions of Business
Final Exam Set 5
1. List any bases Robins & Robins could sue Casings, Inc., under contract theory ONLY for the damages caused by the explosives in their drugs, over and above the cost of the capsule shells. (short answer question)
2. TCO B. The FDA discovers that, during the public comment process, Robins & Robins bribed one of the members of the administrative panel that decided to pull the rule from consideration. The member of the panel was removed and is being charged criminally. As a result, the FDA immediately implements an emergency order that puts into effect the “tracking bar” requirement and makes the rule retroactive, but only to Robins & Robins. Provide two arguments Robins & Robins can make to have the rule determined to be invalid under the Administrative Procedures Act. Explain your answer. (Points : 30)
3. TCO C. Robins & Robins immediately issued a massive recall for the tainted medication upon learning of the situation. Despite the recall, 1,400 children and 350 adults have been hospitalized after becoming very ill upon taking the tainted medication. Each of them had failed to note the recall after having already purchased the medication. It is quickly determined that they will need liver transplants and many of them are on a waiting list. During the wait, to date, 12 children have died. Their families are considering suing for both 402A and negligence. The attorneys stated that but for the lobbying efforts, the recall process would have been automated and the people would not have gotten sick or died.
You are the attorney for one of the dead children’s family. List the causes of action (if any) you would file against Robins & Robins, the FDA, and the bribed FDA member. List the elements of the causes of action, and set forth the facts that you have that would support a lawsuit against each of the three named defendants. State any defences any of the three would have. Analyze the success of the defences.
4. TCO A. It is discovered that Robins & Robins knew about the tainted medication 2 months earlier than they announced the recall. They hid it and, in fact, sent out contract buyers to try to buy up all of the medication off the shelves. Their “fake” recall failed. Using the Blanchard and Peale method of analyzing ethical dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins for the fact that they saved 35 cents/package and are now in the middle of a major, life-threatening recall. Analyze their “fake” recall as well. Show all of the steps of the model and give a recommendation to the CEO of what to do now that the deaths are escalating. What is the “right” thing for the CEO to do in this case?
5. TCO I. A Canadian citizen whose son (resident of Ontario) died from the medication sues Robins & Robins in a California court. The court there is well known for being victim friendly and providing huge payouts to victim families. In Canada, the cap on nonpecuniary damages is around $300,000. Punitive damages in Canada are rarely allowed. Robins & Robins moves to dismiss the case under the theory of sovereign immunity. Will Robins & Robins win this motion using this theory? Why or why not? (short answer question) (Points : 15)
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1. TCO E. Pastor Forester claims his firing was illegal because it was based on his being a convicted felon. His contract with the school provides him with defense coverage for any acts he takes while working for the school. Anna and Lisa sue Pastor Forester and the school for sexual harassment and discrimination, and Pastor Forester requests the school pay for his defense. Discuss whether Anna and Lisa will be successful in their claim of sexual harassment and discrimination against the school and Pastor Forester. Discuss whether the school illegally fired Pastor Forester. Will the school have to pay for the pastor’s defense? Analyze and defend your answer.
2. TCO H and E. In the discovery portion of the case, it is determined that Pastor Forester is really not a pastor. His real name is Jerry Birches, a parolee with convictions for child molestation. His parole agreement prohibits him being closer than 1,000 feet to any school. In order to cut costs, the school had stopped doing background checks on new employees, and this slipped through the cracks. The president of the board of directors immediately fires Pastor “Jerry Birches” Forester and notifies his parole officer of the violations. Pastor Forester claims the board knew about his background because one member of the board (his aunt Theresa) knew the truth. He claims her knowledge should be imputed to the entire board of directors.
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1. TCO F. Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC) demanding CC stop using M2W’s tagline, which is registered with the Trademark Office. Clean Clothes responds, stating that (a) CC’s tagline is different enough as not to violate the trademark, (b) CC didn’t know about M2W’s tagline so they couldn’t have copied it, and (c) Men2Wimmin has no damages and therefore can’t sue Clean Clothes. Analyze the case for Men2Wimmin, including the elements of any case they have, and explaining any defenses that Clean Clothes might raise against them. What damages can they request, and do you think they will get them? Why or why not? (Points : 30)
2. TCO G. It is discovered that 2 weeks before the Ellen show, her partner had sold $2 million in JOSB stock (at a gain of about $2,200). The morning after Ellen’s show, Ellen’s partner shorted the JOSB stock (which is a bet that the price will go down), and she made another $210,000 from that trade. The swing in the price was not 100% directly tied to Ellen’s comments, as JOSB had issued a recall of their white, long-sleeved shirts when they were found to have been sewed with brown thread, making them unwearable. Ellen’s partner’s previous trading activity shows that she made it a normal practice to “vigorously trade” the stock of any company with which Ellen did business. A review of her trading activity for the past year showed that she had bought and sold JOSB stock 25 different times. Further, she typically used “short” sales when companies had issues with their products. Do you think the SEC will file anything against Ellen or her partner for these sales of JOSB? Is there any cause to do so? Analyze the transactions with respect to insider trading activity (based on what you know) and whether Ellen or her partner should be concerned. Is the prior trading activity a defense? Analyze and explain fully. (Points : 30)
