MGMT 520 Entire Course Legal Political Ethical Dimension of Business

Product DescriptionMGMT 520 Entire Course Legal Political Ethical Dimension of Business Keller  MGMT 520 Discussions ALL 7 Weeks Posted by All Students 483 Pages Keller  MGMT 520 National and International Ethics-Patent Week 1 Discussions 1 All Students Posts 41 Pages KellerClass in this thread we will seek to address essentially corporate citizenship. In other words, when the necessity from help arrives and your organization is the only organization that has what can deliver the society in which you operate in from peril, what do you do? In your discussion of the Bayer problem you will find yourself balancing and wondering, how do you overcome some of the barriers of doing the right thing from the corporate perspective?  In the fall of 2001, anthrax was used as a weapon of terror in the United States, when it was sent to numerous media and political organizations and individuals, including Tom Brokaw of NBC News, Dan Rather of CBS News, and U.S. senators…. MGMT 520 Disbarment of Lawyers Week 1 Discussions 2 All Students Posts 35 Pages KellerClass I want to introduce to some “Wolves of Wall Street” who handled business in a Bernie Madoff type fashion, the Ponzi scheme way.  Allow me to introduce you to former attorney, Marc Dreier.  Many of you have never heard of him, but what he has done to my profession and the business community as a whole is earth shattering.   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…  MGMT 520 Chapter 5 Problems Week 2 Discussions 1 All Students Posts 35 Pages KellerClass just as advised above we will begin our discussion with Chapter 5.  And just so you know, rational basis is the lowest standard of review by the Supreme Court. The highest of course is strict scrutiny.   You must understand what rational basis is. Rational basis says that a law is upheld if it is related to a legitimate governmental purpose.  Once determined, the question then in turn becomes, does this unduly burden interstate commerce?  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?… MGMT 520 Chapter 19 Problems Week 2 Discussions 2 All Students Posts 33 Pages KellerClass in this thread we will discuss how the law can become law, but how we as citizens have a say in whether it becomes law.  Administrative Law is essentially an offshoot of Constitutional Law, which we will be discussing in both threads this week.  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?… MGMT 520 Breach of Warranty Week 3 Discussions 1 All Students Posts 38 Pages KellerPoor, poor Mr. Arvo, a victim of detrimental reliance on a manmade contraption to serve as a form of comfort and enjoyment in his home.  Right?  Well in this particular thread we are going to deal with the topic of Torts Law essentially.  In this thread we will cover the concepts of intentional torts, negligence, strict liability, and warranties.  So let’s begin our discussion based on the facts given above.   You will begin your analysis and discussion based on the questions above.   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?… MGMT 520 Environmental Liability and Due Process Week 3 Discussions 2 All Students Posts 34 Pages Keller 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.In March 1989, the EPA placed a lien for an unspecified amount on all of the Reardons’ property to secure payment for any clean-up costs for which the Reardons might be liable. The EPA told the Reardons that they could settle the claims against them for $336,709 but noted that this amount did not limit the Reardon’s potential liability.The Reardons filed a motion for an injunction, arguing that filing a lien against their property without any prior notice or hearing violated their due process rights under the Fifth Amendment, which states that no person can be deprived of life, liberty, or property without due process of law.Superfund (the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, of 1980, as amended in 1986) gives the government several powerful tools to use when attempting to collect clean-up costs from responsible parties. Among those tools is the authority to place a lien on a responsible party’s property without providing for a reasonable hearing before placing the lien.Is the power to place a lien on a piece of property without prior opportunity to be heard in a court of law or administrative hearing constitutional? Why or why not?…  MGMT 520 Shirley Parker v. Twentieth Week 4 Discussions 1 All Students Posts 39 Pages KellerClass, welcome to Week 4, we are halfway there. In this particular thread this week we will discuss contract matters.  This thread will move fast. So hold tight and let’s drive!  Always remember to start your thought process for contracts with:  Is this a valid contract?  How do I know it is a valid contract?  What does it take to form contract?  What kind of contract is it?  Bilateral or unilateral? Expressed or an implied contract?  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?… MGMT 520 Larry Podder or Harry Potter Week 4 Discussions 2 All Students Posts 35 Pages KellerIn this thread we will discuss those property rights. The purpose of copyright, trademark, and patent protections is to foster the creation of new ideas and creations. You will need to learn and know the difference between each of them and also trade secrets too.  As we discussed in Week 1, we saw how Bayer was very apprehensive in just releasing their product for the greater good. In this world, people want to be paid for their originality. Here, our initial problem will be to discuss Podder v. Potter. Take it one question at a time and you should be fine. 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….  MGMT 520 Week 4 Group Discussions 32 Pages Keller
  1. Can Big Bank’s president rescind the contract? Under what circumstances can a contract be rescinded by either party? What facts have to be alleged and proven? What is the result of a contract that is rescinded?
First we’ll take a look at what circumstances must exist in order for a contract to be rescinded.
  1. The easiest is for both parties to agree and give consent in written form of rescinding the contract.  This is not an option since the President of Systems Inc. would like to resolve the current issue without losing a customer.
  2. Contracts can be rescinded on the basis of fraud.
  3. If the contract was created with mistakes in the document itself, this can warrant rescinding the document.  If any of the parties that entered into the contract does not have the capacity to enter into such an agreement or was coerced under duress of influence, which can be the basis for rescinding.  This is not the case here.
  4. Systems Inc. has already provided results on 4 of the 6 conversions and therefore have already shown substantial performance.
  5. A breach of contract occurs under these situations:  refusal of one party to perform the actions outlined in the contract, not meeting the obligations of the contract,…
  MGMT 520 Pusey v. Bator Week 5 Discussions 1 All Students Posts 40 Pages KellerIn this thread we will discuss the laws of agency and acting within the scope of employment. We will begin our discussion with thePusey case. I know that some of you will be shocked and appalled by the fact that someone possibly doing wrong can sue, but it happens more often than we hear about. 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?…
MGMT 520 The Lemon Tree Dilemma Week 5 Discussions 2 All Students Posts 39 Pages KellerThe 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.”
You should plan to visit the EEOC website during this week to help work through this ethical dilemma faced by Paul and Mary, two managers in the company in “The Lemon Tree.” Read through the fictional dilemma, and then choose the subject of discrimination discussed therein, planning to debate the ramifications of that with your classmates and your instructor. Some of this seems obvious, but others aren’t as easy to determine as they seem. Your instructor will bring in new and different “twists and turns” as we go along. Read the dilemma, and then let’s discuss. (The dilemma is found on the left tree, entitled “The Lemon Tree Dilemma.” )
1. What is one aspect of Title VII that has been violated by the company?
2. Which actions by the two employees that call their credibility into question are you allowed, as an employer, to consider? Or, what types of actions are you not allowed to use and why? Are there any you wish you could use?… MGMT 520 Restraint of Trade and Antitrust Week 6 Discussions 1 All Students Posts 42 Pages KellerClass Antitrust Law was one of my favorite topics in law school. We will begin the thread dealing with the key rule in Antitrust Law in the US and that is the Sherman Act.  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?  Are exclusive dealing agreements a “per se” violation?…MGMT 520 Consumer Protections Week 6 Discussions 2 All Students Posts 35 Pages KellerTo 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…. MGMT 520 Multinational Companies Week 7 Discussions 1 All Students Posts 33 Pages KellerLet’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 ethicsDo 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?…MGMT 520 SOX and Insider Trading Week 7 Discussions 2 All Students Posts 33 Pages KellerReview 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?… Weekly Assignments Are Listed Below:MGMT 520 Administrative Regulations Assignment Week 2 Keller A+ Pick an administrative agency of either the federal or a state government. Find where the current and proposed regulation changes for that agency are located on the Internet (i.e., the Federal Register or the State Administrative Agency website.) Regulations.gov is a good place to begin your research. Pick one proposed regulation change currently under consideration (if you find one that has already closed out but interests you, you can use that instead) and write the following regarding it:
  1. State the administrative agency that controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you, or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The proposed regulation can be submitted as either a separate Word document (.doc) or Adobe file (.pdf). This means you will submit two attachments to the Week 2 Dropbox: (a) a Word document with the questions and your answers, and (b) a copy of the proposed regulation you used for this assignment. (10 points)
  2. Describe the proposal/change. (10 points)
  3. Write the public comment that you would submit to this proposal. If the proposed regulation deadline has already passed, write the comment you would have submitted. Explain briefly what you wish to accomplish with your comment.(10 points)
  4. Provide the “deadline” by which the public comment must be made. (If the date has already passed, please provide when the deadline was).(5 points)
    1. Once you have submitted your comment, what will you be legally entitled to do later in the promulgation process (if you should choose to do so)? (See the textbook’s discussion of the Administrative Procedure Act.)
    2. If the proposal passes, identify and explainthe five legal theoriesyou could use in an attempt to have (any) administrative regulation declared invalid and overturned in court.
    3. Which of these challenges would be the best way to challenge the regulation you selected for this assignment if you wanted to have the regulation overturned, and why?
Answer all of these questions for #5 even if you are in favor of your proposed regulation.The response to question 5 should be a minimum of 2–3 paragraphs long. (15 points)Regulations are set by the authorities or governmental agencies in order to carry out objectives of the ratified laws by Congress.  This implies that their enforcement ability is limited in scope. It is because of the aforementioned that regulations become a challenge in enforcement. The comments that are herein proposed might not have necessarily gone through…MGMT 520 Assignment Week 3 A+ For this assignment, you will need to access the LexisNexis database in the Keller Library, from the Student Resources area under Course Home.
Go to Kubasek, Chapter 13, page 369, problem 13-16. Use LexisNexis in the Keller library and look up the Nadel et al. v. Burger King Corp. & Emil, Inc. case. Use the citation you find in your book to do the search. Read the case and answer these questions. Copy and paste this information into a Word document, include your name on that document, and answer the questions.
  1. What must a party establish to prevail on a motion for summary judgement? (3 points)
  2. What court decided the case in the assignment? (2 points)
  3. Briefly state the facts of this case, using the information found in the case in LexisNexis. (5 points)
  4. According to the case, why was this not defamation, and what tort did the court approve a filing for? (5 points)
  5. According to the case, why didn’t the court approve summary judgment for product liability claims? (5 points)
  6. Do you agree with this decision? Why or why not? (5 points)
Now, in the library, click the “Shepardize” button in the top right of the LexisNexis page while on the case. This provides you with all of the cases which have used Nadel et al. v. Burger King Corp. & Emil, Inc. case as “precedent” since its publication. Out of the cases listed, pick one, click the link, read the case, and provide the following information:
  1. the name and citation of the case (5 points);
  2. the name of the court which decided the case (3 points);
  3. the year of the decision (2 points);
  4. the facts of the case (5 points);
  5. the issue of the case (5 points);
  6. the “decision” of the case (5 points);
  7. the principle of law the case was used (cited) for in the case (5 points); and
Following the directions in the library, download a Word document copy of the case, and include your name in the “note” section of the download. Attach a copy of the document with your assignment this week. (10 points)Part 1Two criteria must be met before summary judgment may be properly granted: (1) there must be no genuine issues of material fact, and (2) the Movant must be entitled to judgment as a matter of law. A genuine issue implies that certain facts are disputed. Usually a party opposing summary judgment must introduce evidence that contradicts …Part TwoThe Nadels – Paul, Evelyn (i.e. Paul’s mother), Christopher (i.e. Paul’s son) and two of Paul’s daughters were in a car that Paul was driving when they stopped at a Burger King drive-thru to order some breakfast sandwiches and two cups of coffee.  Evelyn tasted the coffee and found it too hot. Some of it even spilled on her leg… MGMT 520 You Decide Contract Dispute Group Discussion (75 point) Week 4 Graded 100%, 32 Pages Scenario SummaryYou are the manager of a large data processing project. Your company, Systems Inc., worked very hard to obtain a contract with Big Bank to do their conversions from their recent acquisition, Small Bank. The bank met with several companies to discuss who would do the best work on the contract. During your meeting with Big Bank, you told them that you had “never missed a conversion deadline.” At the time, your company had never missed a conversion deadline, but the company had only done three conversions. You also told them that your data processing systems were the fastest around.” After months of negotiation, Big Bank signed the contract. The president of Big Bank said, “We like fast, and you guys are fast. We choose you.” You started work on the data…This group project covers a contract dispute situation. As a group, work through the following questions. Feel free to ask further questions in the thread of your group members, and answer your group members questions as well. The best work will be where all group members work together to get the questions answered. You will be graded on the quality of your posts, but points will be deducted if your answers are duplicates of your group members’. Take turns and build on posts. The questions below have more than one part within each of them so work through them together. Have fun with this! The main thing is that you learn from this exercise, along with creating some quality collaboration with your group. Read the Group Project under Course Home or the Assignments page for this week for the full grading rubric for this group project. Good luck!32 Pages of Group Discussions A +MGMT 520 You Decide Week 6 Graded 100% Correct Scenario Summary – Week 6 Individual Project (100 points)Virginia Pollard worked as a cashier and clerk for Teddy’s Supplies, a family-owned chain of film production equipment supply stores in Pennsylvania and New Jersey. During a routine performance evaluation, Virginia’s supervisor at Teddy’s complained that she made too many personal phone calls when she worked in the West Orange store. The supervisor noted this on Virginia’s annual review, and warned her to keep personal calls to a bare minimum while at work. Soon thereafter, Teddy transferred Pollard to guard film equipment in the main warehouse behind the storefront; Virginia couldn’t make personal calls there, and her work became exemplary. Her performance evaluation three months after her transfer was “meeting expectations” with no negative comments….
  1. Teddy’s Supplies’ CEO has asked you to advise him on the facts of the case and your opinion of their potential liability. He wants to settle the case. Write a memo to him that states your view of whether the company is exposed to liability on all issues you feel are in play. Include in your memo any laws that apply and any precedent cases either for or against Teddy’s case that impact liability. Include in the memo your suggested “offer of settlement” to Virginia. Back up your offer using your analysis of the case against Teddy’s.
  2. The circuit court overturned the decision of the NJ Human Rights Commission that had found that Pollard was the victim of sexual harassment and disparate treatment. Please answer these questions:…
  3. The CEO asks you to review the sexual harassment policy currently in place that Virginia signed. He wants you to provide him with suggestions for changes to it. Review the policy and give three recommendations for changes, enhancements, and ideas for making the policy stronger. Include your reasons for these suggestions. If you find information online for making these changes, include citations and/or links to that information. Explain how your suggestions may have protected Teddy’s in this case. Support these recommendations with current case law.
  4. How would Pollard’s case be impacted if her replacement had been a female? Would her case be different? Would her damages be different? Explain your answer.
MGMT 520 Midterm Exam Legal, Political, Ethical Dimension of Business Keller 100% Correct (TCO I)  Marianne Jennings wrote an article, “Why an International Code of Ethics would be good,” which was assigned to be read at the beginning of the course.  As you have worked throughout this session, you should have considered this article and how it may or may not have impacted different situations in the world economic/business/legal/political environments.  The essay you will write on the next question should show that you have read Marianne’s article and can apply her theories and thoughts from that article to the scenario provided.  Feel free to rely on the information you know about the situations (if real) or analogize to one that is real, if you wish. Include in your answer at least two specific concepts from Marianne’s article, and apply those concepts to your reasoning in your answer.  You will be graded on your knowledge of the article as well as the application of ethical theories to international situations.   Arguably, the United States and other countries have been experiencing one of the longest and hardest hitting economic crises since the Great Depression over the last few years.   This economic downturn is a result of multiple things, but the housing bubble burst was one major event that continues to ripple throughout the bank/lending world.  As a result of the downturn in housing sales, foreclosures, bank lending overvaluations, and bank failures, lending practice changes and bank bailouts have become the norm.The U.S. financial crisis has not gone unnoticed in the international world.  The impact has been worldwide.  The value of securities tied to real estate fell, which damaged financial institutions globally.  New rules regarding appraisers, appraisals, and bank oversight have gone into place, but not in time to save many investors and foreign banks from huge losses.  Many people think that this crisis could have been avoided if better regulations had been in place.  Some feel that the U.S. bank/lending and borrowing ethical standards may have partially responsible for this downturn.Argue for or against an ethical basis for housing bubble collapse.  Use Marianne Jennings’ article as a basis for a solution to … (Points: 40)(TCO A) Use the fact pattern you received in the above Marianne Jennings “International Code of Ethics” question to answer this question.  Analyze and propose a solution to the problem you received above using the Professional Obligation School of Social Responsibility method.  Show the steps, apply the facts, and provide a proposed solution you would suggest. (Points : 40) (TCO I) Marianne Jennings wrote an article, “Why an International Code of Ethics would be good,” which was assigned to be read at the beginning of the course. As you have worked throughout this session, you should have considered this article and how it may or may not have impacted different situations in the world economic/business/legal/political environments. The essay you will write on the next question should show that you have read Marianne’s article and can apply her theories and thoughts from that article to the scenario provided. Feel free to rely on the information you know about the situations (if real) or analogize to another one, if you wish. Include in your answer at least two specific concepts from Marianne’s article, and apply those concepts to your reasoning in your answer. You will be graded on your knowledge of the article as well as the application of ethical theories to international situations.In 2009–10, Toyota experienced a troubling “gas pedal” sticking issue, which impacted its global reputation and income and caused it to stagger in its, until then, position as one of the top, world-wide, respected, and best-selling car companies on the globe. Over the first few months of the crisis, Toyota waffled on its message to its customers, both denying and then accepting responsibility for the issue. Research into the situation shows that the problem had been brought to its attention for a long time and either ignored, disbelieved, or grudgingly accepted, depending on the time and place of the issue.For this question, think about the facts of the Toyota recall and its impact on Toyota car owners worldwide, including the value (or loss thereof) of customer’s trade-ins, car dealer’s business valuation losses, loss in used car sales to used car dealers and owners, and also the loss of lives and injuries to those who were grossly impacted by the gas pedal issue.  Also, think about the cost to stockholders and the other stakeholders involved. Now think about Marianne Jenning’s international code of ethics article. Would an international code of ethics have impacted how this entire Toyota travesty played out in the real world? What if the “world of business” had agreed to one? Would Toyota have been somehow required to behave differently, which would have protected so many stakeholders from losses and people from injury? Or, would nothing really have changed? Feel free to argue both sides of this, and include in your answer, please, at least two or three things you would have included (or Marianne Jennings recommended to include) in an international code of ethics and how that would (or wouldn’t) really have impacted the Toyota crisis. Evaluate, analyze, and synthesize your answer using everything you have learned this session about ethics, law, politics, and business. (Points: 40)(TCO A) Use the fact pattern you received in the above Marianne Jennings “International Code of Ethics” question to answer this question.  Analyze and propose a solution to the problem you received above using the Laura Nash method.  Show the steps, apply the facts, and provide a proposed solution you would suggest. (Points : 40)The first question in the Laura Nash method is, “Have you defined the problem accurately?”. To this, the answer would be yes, the problem was that Toyota’s gas pedal sticking problem caused many car accidents and deaths among the people who… (TCO I) Marianne Jennings wrote an article, “Why an International Code of Ethics would be good,” which was assigned to be read at the beginning of the course. As you have worked throughout this session, you should have considered this article and how it may or may not have impacted different situations in the world economic/business/legal/political environments. The essay you will write on the next question should show that you have read Marianne’s article and can apply her theories and thoughts from that article to the scenario provided. Feel free to rely on the information you know about the situations (if real) or analogize to another one, if you wish. Include in your answer at least two specific concepts from Marianne’s article, In 2009–10, Toyota experienced a troubling “gas pedal” sticking issue, which  impacted its global reputation and income and caused it to stagger in its, until then, position as one of the top, world-wide, respected, and best-selling car companies on the globe. Over the first few months of the crisis, Toyota on its message to its customers, both denying and then accepting responsibility for the issue. Research into the situation shows that the problem had been brought to its attention for a long time and either ignored, disbelieved, or grudgingly accepted, depending on the time and place of the issue…..Evaluate, analyze, and synthesize your answer using everything you have learned this session about ethics, law, politics, and business. (Points : 40)(TCO A) Use the fact pattern you received in the above Marianne Jennings “International Code of Ethics” question to answer this question.  Analyze and propose a solution to the problem you received above using the front page of the newspaper method. Show the steps, apply the facts, and provide a proposed  solution you would suggest and apply those concepts to your reasoning in your answer. You will be graded on your knowledge of the article as well as the application of ethical theories to international situations. (Points: 40) (TCO I) Marianne Jennings wrote an article, “Why an International Code of Ethics would be good.” which was assigned to be read at the beginning of the course.  As you have worked throughout this session, you should have considered this article and how it may or may not have impacted different situations in the world economic/business/legal/political environments. The essay you will write on the next question should show that you have read Marianne’s article and can apply her theories and thoughts from the article to the scenario provided.  Feel free to reply on the information you know about the situations (if real) or analogize to another one, if you wish. Include in your answer at least two specific concepts from Marianne’s article and apply those concepts to your reasoning in your answer.  You will be graded on your knowledge of the article as well as the application of ethical theories to international situations.An oil travesty has occurred. IN the Gulf Coast British Petroleum’s deep sea oil well has had a major malfunction and haws exploded.  The explosion killed many oil workers.   The oil well began spewing oil into the Gulf and now the entire southern portion of the United States coastal areas gas been destroyed.BP initially came out with advertisements using the CEO of the company apologizing and promising to make this right for the citizens of the USA.  Then the CEO was removed by BP from working the disaster. The crisis continues. Based on the Timing of the crisis and resolutions that have occurred at the time of your exam answer the following questions using the most relevant facts you know.Using Marianne Jennings’s article would an international code of ethics have assisted with the handling….(Points: 40)(TCO A) Use the fact pattern you received in the above Marianne Jennings “International Code of Ethics” question to answer this question.  Analyze and propose a solution to the problem you received above using the Blanchard and Peale method.  Show the steps, apply the facts, and provide a proposed solution you would suggest. (Points: 40) (TCO F) Target sells bags that appear to be Prada, Gucci, and Coach handbags but are priced much lower. The brand labels on the bags say “Pardna,” “Guchy,” and “Coaching.” The prices are about 65% less than the typical brand-name bags. If the owners of the Prada, Coach, and Gucci names sue Target for palming off or counterfeiting, what would they need to prove to try to win? Do you think they would win? (short answer) (Points: 15) (TCO D) Barney and his 16-year-old son BamBam are riding in Fred’s car. Fred had taken some prescription medication that morning that stated on the bottle, “Warning, may cause drowsiness.” The truck in front of them suffers a blow-out, and swerves uncontrollably. The tire remnants fly into the road, Fred swerves and hits a car to his left. He avoids hitting the truck with the blow-out but suffers damage to the left side of his car. BamBam hits his head on the side of the car, getting a concussion and permanently losing the sight in his right eye. Fred has state law required auto insurance with the minimum policy limits.Fred’s wife, Wilma, immediately calls Betty, BamBam’s mom, and apologizes when she finds out about BamBam losing his eye. Wilma says to Betty, “Please don’t worry. We will pay for anything the insurance doesn’t cover, including the loss of BamBam’s sight and anything else he needs to recover and live a normal life.” Betty sobs and says, “You are too good to us. We can’t accept that.” Wilma says, “Of course you can.” Betty cries harder and says, “Thank you so much but (unintelligible)” and hangs up. Fred and Wilma own a house worth $450,000, a car worth $20,000, a full-size T. rex skeleton for which a museum has offered $200,000 in the past, and some stocks and bonds worth $700,000.  A lawsuit ensues and a judgment against Fred and for BamBam is entered for $300,000. The insurance company paid their cap of $250,000, leaving $50,000 remaining due. Fred and Wilma immediately pay BamBam $50,000. Further, Wilma buys a designer eye-patch for BamBam made specifically by Calvin Klein with a picture of Fred and Wilma’s daughter, Pebbles, on it. Wilma hugs BamBam when she brings over his new eye patch and says, “Anything. Anything you need. We will take care of it for you.” Fred rolls his eyes at Barney, and Barney sighs and shakes his head. Betty and Wilma both cry at how adorable BamBam looks with his new eye patch. Barney buys BamBam a new car, specially designed for people with one eye. Wilma finds out and calls Betty, asking how much the car was. Betty says they are making payments on the car of $450/month for the next 4 years. Wilma writes Betty a check for $450, and sends her one every month for the next 8 months.Eight months after the judgment was rendered, BamBam is discovered to have more damage to his head than originally thought. He loses sight in his other eye and now is totally blind. BamBam’s parents sue Fred and Wilma again for personal injury, but the case is thrown out as the first case already decided the injury case. Fred refuses to pay more to BamBam, and he takes the check book away from Wilma when he discovers she’s been making BamBam’s car payments. The two families stop speaking to each other. BamBam throws away his now useless eye patch and becomes despondent. His dreams of being a drag racer seem to be over. BamBam’s attorney refiles the case, this time on grounds that Wilma’s statement to Betty was a binding contract that requires that Wilma pay any remaining damages to BamBam, for the remainder of his life.Was Wilma’s statement a binding contract? Using the law of contracts, explain why or why not. Does BamBam’s age have anything to do with your answer? Can Fred be bound by the potential contract Wilma may have entered into? Use the law of agency to explain your answer to that question. Did Wilma’s purchase of the eye-patch give BamBam a greater leg to stand on in court? What about the car payments she made? Explain fully your answer to these questions. (Points: 40) (TCO B) The “public comment” period closes on an OSHA proposed regulation, and your business had filed a public comment against the proposed regulation explaining that the regulation would not fix the problem that OSHA was trying to remedy, that the regulation would cost more than the problem itself, and that the regulation was a tax, not a safety change. List two arguments available to your company that may succeed in overturning the regulation. (Points: 15)One argument is that the proposed regulation is arbitrary and capricious in that it is not clear how a new tax regulation can improve the safety of employees’ work environments. Since the OSHA’s responsibility is to ensure the safety of workers… (TCO C)  One summer, David Baxter and his wife, Melissa, were on their new boat with another couple, tubing on the Mississippi river. David and the other couple had been drinking all day, “about seven or eight beers each and some Crown Royal,” although Melissa wasn’t drinking due to being pregnant. As he prepared to jump into the water to tube, David’s feet slipped out from under him, and he fell into the water, hitting the back of his head and neck on the ladder, knocking him out cold. He slipped under the water and drowned. The other members of the party didn’t notice his absence until a passing barge pilot got their attention. He had seen the entire thing through his binoculars; he had been watching Melissa and her friend Angela (who were in bathing suits). Despite an immediate search and rescue attempt by the coast guard, David was not saved. Melissa alleged that the surface of the boat floor where David was standing and preparing to jump into the water was unreasonably slippery. In fact, at issue in the case was the manufacturing process used in coating the flooring. Melissa (and her attorney) felt that a nonslip surface should have been placed on the floor of the boat. The safety manual that came with the boat included these clauses:“CAUTION: Wet surfaces can be slippery. Passengers should wear adequate deck shoes while boarding and underway to avoid accidental slipping and injury.”“CAUTION: Deck areas and swim platform are slippery when wet. Passengers must be careful when passing through companionway to prevent accidental slipping or tripping. Passengers should wear adequate deck shoes at all times to prevent accidental slipping. Passengers must stay off swim platform while underway to prevent falling overboard.”
No warnings existed, however, in view of the passengers on the boat.(25 points) What potential legal theories of recovery can and should Melissa allege against the following parties (provide support for your answer)?
  1. The boat manufacturer
    II.  The boat seller
    III.  The coast guard
(15 points) What legal theories of defense can and should each of the above three parties use?  Provide support of your answer.  (Points : 40)  There are three theories involved in product liability: Negligence Theory, Breach of Warranty Theory and Strict Liability Theory. The negligence theory of liability… (TCO C) Will E. Chancit, a 36-year-old attorney, was killed when his Ford Fairlane collided with some metal fence on the Harbor Freeway in Los Angeles. He was traveling at a speed between 50 and 70 mph. What happened was this: A city of Los Angeles construction crew had placed a “left lane closed ahead” sign with a “60 mph” speed limit sign under it. (The usual speed limit in that area was 70 mph.)  However, the actual closed lane was the right lane. Speculation is that Will noticed at the last minute that he was in the wrong lane and over corrected, and that’s how he slid off the road and hit the fence.
After the collision, the car spun and the driver’s door flew open. Chancit was ejected from the car and sustained fatal head injuries. Had the door stayed closed, his injuries would have been relatively minor. Chancit was not wearing his seat belt, and his wife claims he had been up all night the night before after getting food poisoning at the local Chi-Chi’s.
  1. Discuss the negligence or other theory for recovery in the suit Chancit’s widow has brought against Ford Motor Company, the makers of the Ford Fairlane. (15 points)
  2. Discuss all defenses Ford Motor Company might have. (10 points)
III. Discuss any liability the City of Los Angeles may have. (10 points)
  1. Discuss any liability Chi-Chi’s may have. (5 points)
(Points: 40) (TCO F) In Midler v. Ford Motor Co., Bette Midler sued Ford for unauthorized appropriation. Explain what appropriation is. Tell me what type of civil claim appropriation is and what a person has to prove to win damages for it. (short answer only). (Points: 15)The tort of appropriation is a form of privacy invasion where someone’s right of publicity is invaded. In particular, appropriation is the unauthorized use of someone’s photograph, personality, or name for the benefit of another.  This means that certain elements of the plaintiff’s personality are appropriated for commercial purpose without … (TCO B) Infuriated when Harry Reid is re-elected during the 2010 fall election, the Republicans in Congress decide to take matters into their own hands. In 2011, the House of Representatives passes a new “Freedom isn’t Free Act” that requires that anyone who wants to vote in the 2012 presidential election must prove that they paid at least $200 in federal income tax in the past year, including people aged 18 (who typically are deducted on their parents’ returns and do not pay income tax). Anyone who received the “earned income credit” is barred from voting unless they return the payment from the government. Proof of payment of the tax can be made by showing a copy of the prior year’s W2, a copy of the prior year’s tax return, or a signed statement from the IRS stating that the payment of more than $200 in federal income tax has been made. Citizens who do not pay taxes can still vote if they donate $200.00 to the federal government…(Points: 15)One basis for overturning this law is the U.S. Bill of Rights. In particular, Section 1 of the 15thAmendment indicates that… (TCO C) Bud Johnson owns a General Motors dealership in Pierre, South Dakota. At the request and expense of General Motors, Bud travelled to Phoenix, Arizona, for purposes of the demonstration of a new vehicle called the Roughrider, designed to compete against the current offering of SUVs. Bud went to the proving grounds in the desert around Phoenix and spent a day watching the vehicle demonstrations. Bud and other dealers drove the vehicles and much dust resulted from their driving. A few weeks later, Bud became ill with flu-like symptoms. He was finally diagnosed as having coccidioidomycosis or “valley fever.” Valley fever is a disease well known to Arizona residents, and most have had it if they…Was there negligence in the failure of General Motors to warn Bud? (15 points) Discuss all defenses General Motors may have. (15 points) Does strict liability in torts apply to this situation? Why or why not? (10 points) Total (Points: 40)Yes, Bud can file a claim of negligence against General Motors for their failure to provide a warning of the environment condition in Phoenix, Arizona. The four elements of negligence include the duty of care, the breach of duty, factual causation, and damages. Duty of … (TCO D) (This is a fictional scenario.) Billy Joel decided he wanted to learn to play the violin for his next set of concerts.   He called a violin salesman in New York and asked if he had any for sale.  The salesman stated he had a Stradivarius and a Guarnerius (two famous brands of violins) and offered to sell them to Billy for $80,000, respectively.  Billy agreed, over the phone, to purchase the violins from the salesman and told him he would be in town the next week to pick them up.Billy didn’t show up for two months, and when he entered the store, the salesman wasn’t there.  His wife, Margaret, was there in the store, however, and she had full knowledge of the deal cut between her husband and Billy.  (She’d heard her husband whining, complaining, and wailing about Billy not showing up for the last 2 months-and she was really sick of hearing about it.)Billy asked to see the violins, and Margaret showed him both of them.  Billy stated he would agree to pay $65,000 for both of them, and Margaret, knowing that there were counterfeits and only worth $2,000 AND realizing that their house was about to go into foreclosure, agreed to the reduction in price and sold Billy the two violins for $65,000.  She gave him a bill of sale that she wrote out on a note pad on the counter, which said, “Pain in full.  Stradivarius and Guarnerius $65,000.  Chk#4301 Billy Joel.  Salesperson: Margaret Madoff.” The notepad was one she had brought home from their last vacation to Las Vegas and was from the Flamingo hotel there.  Billy took home the violins and proceeded to learn to play, albeit very poorly.Meanwhile, the salesman discovers that Margaret sold the violins for less than he had bargained for.  He sues Billy Joel for the $39,000 difference, stating that Margaret was not an employee of the store and had no authority to change the deal he and Billy had made.During the pendency of the suit, and after his next concert, the newspapers stated, “Billy Joel should give up playing the violin!  He stinks!”  Billy takes his violins to a music store to sell …(Points: 40)Billy can sue the salesman and his wife for breach of warranty, which also translates to a breach of contract. In particular, Bernard gave Billy an express warranty that he has Stradivarius and Guarnerius violins. Implied warranty can also be applied here in that since… (TCO B) After the 2010 full election, the democrats in congress decided to take matters into their own hands. During the lame duck session, they passed a new “election are free act” that required single people who make more than $75,000/year or married couples who make more than $150,000/year to provide a copy of their tax return to their local county officials before being allowed to register to vote.The return must prove that they have paid at least 15% of their total income in taxes or they are not allowed to register to vote.List two bases under which some one impacted by this law could argue to have this law overturned.One basis for overturning this law is the U.S. Bill of Rights. In particular, Section 1 of the 15thAmendment indicates that “the right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of… (TCO D) SpongeBob is a farmer who contracted with Progresso to provide 6 tons of clams worth $3,000/ton to be delivered at Progresso each month. Progresso needs this particular amount of clams each month for their soup in order to meet their production expectations for their customers. The contract contained some very lopsided provisions that excused Progresso from purchasing the clams in the event of many outlined reasons (25 pages of the contract listed out all of the reasons why Progresso could refuse to accept the clams), but prevented SpongeBob from selling his clams elsewhere without permission. After a gulf coast oil disaster, the price of clams went up to $8,000/ton. SpongeBob delivered his clams to Progresso on time, but Progresso (who had lost a case filed against Progresso by Campbell’s for infringing on Campbell’s clam chowder soup recipe) refused to accept delivery. SpongeBob requested permission to sell the clams to Campbell’s (who had just doubled their own clam chowder sales), but Progresso refused to grant permission. The terms of SpongeBob’s contract with Progresso stated,“In no event will Progresso’s refusal to accept delivery of clams excuse SpongeBob from being required to follow all other terms of this contract, including the “no sale to competitors without written permission of Progresso” clause. Progresso may withhold permission for any reason.”Another clause says, “In the event that a court finds any portion of this contract to be illegal or void, all other portions will remain valid and enforceable.”Another clause says, “Progresso’s liability cap on this contract is no more than the total value of the contract as stated. No third party liability is assumed under this contract.”At the time of Progresso’s refusal to grant permission, Campbell’s had…On what bases can SpongeBob sue and recover, and what will be his damages? What defenses does Progresso have? Can Progresso include Campbell’s in…Spongebob can file a case against Progresso on the basis of the contract’s unonscionability. In particular, the contract’s terms and conditions were unfair in that they clearly favoured Progresso, the buyer, over Spongebob, the seller. Mitigations for the risks that Progresso may encounter were clearly indicated, but there were no… (TCO F) When Vanna White sued Samsung for appropriation and under the Lanham Act, she won her case under California common law right of publicity claim and under the Lanham Act. List the eight sleek craft factors that are required to prove a Lanham Act complaint.These eight factors are the following: 1.) Strength of the mark 2.)… MGMT 520 Final Exam Legal, Political, Ethical Dimension of Business Keller 100% Correct (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. When he became the swimming coach, Marvin effectively stopped “teaching” the swim classes. Instead, he had all the swimmers in the classes do races and train for competitive meets during the 30 minute lessons. Marvin had done this many times during the summer. His boss, the country club director, knew this and, as the swim team was winning, ignored complaints from parents and students. Marvin raced with the swimmers and pushed the winners out of the way when they tried to touch the side of the pool so that Marvin’s team would win each time. This was not the first time that Marvin had injured swimmers. Last year, he was arrested for physically abusing a child he coached at his school. Although the criminal charges were dropped, Marvin 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 Marvin while in swim class for not “working hard enough!” The children had bruises on their shoulders. Marvin began “kidding” an 18-year-old college student who worked as a lifeguard and assisted Marvin with the coaching. Over time, Marvin’s “jokes” that were directed at the young man became very aggressive. Marvin continued, even though the young man asked him to stop. In fact, after the young man told Marvin to stop, as he felt harassed, Marvin hired another lifeguard to assist him with the coaching. The country club director was aware of this situation, but as the swim team was winning, he took the position that it was an interpersonal issue that the two should work out among themselves.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. (Points: 30) (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.
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 Spongee business. The company, Herbal Snacks, began advertising that their products only used natural ingredients. They even began running a commercial in which a mother and child compared their Herbal Snacks with a lampooned product named “Cup Cake Spungies,” stating that it tasted like poison and dog food! Very-Large-Tom, a counter-culture pop star with a late night UHF and cable show, joined in on the controversy created by the commercial and stated that he did not understand how people, “could buy such poisonous dog food and serve it to their children as snacks!” Market studies showed that Spongee Cup Cakes sales suffered. As a result, Spongee began a more aggressive shelf space and display marketing campaign to combat Herbal Snacks’s television advertising. Spongee’s marketing efforts were successful. By also offering volume discount incentives, they had prevailed upon retailers in their traditional East Coast and Midwest markets to prominently display their products. To counter this strategy, Herbal Snacks offered a deep discount to TargetMart, a Southwest and West Coast discount chain, in exchange for an agreement to exclusively sell only their snack foods.
In reality, Spongee Cup Cakes used only FDA approved ingredients and preservatives and were made in American plants that always passed inspections. In contrast, although Herbal Snacks’s pilot plant was in Montana, it had subcontracted the bulk of its production to a plant in Canada. As a result, to maintain a level of quality, Herbal Snacks used the maximum amount of preservatives allowed under Canadian law for the imported product. The level was so high, reactions to the food were often reported. The levels were higher than those allowed by FDA regulations, but allowed per an agricultural import/export treaty between the United States and Canada. Several people who ate these Herbal Snacks required emergency room visits. 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. (Points : 30) (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. The Fondas 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. The Fondas plan on travelling to New Jersey prior to the closing to look things over, but are unable to do so due to their touring schedule. The realtor, whose commission is technically paid by the proceeds to the seller, and who has a listing contract with the seller, advises the Fondas that she will handle everything. New Jersey custom, law, and practice does not require a purchaser of land to have an attorney. The realtor does only the bare minimum needed for title to transfer to the Fondas. On their behalf, she only has a minimal title search and minimal inspections done, and she obtains a minimal coverage title insurance policy. 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. (Points : 30) (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. The Harrymores plan on travelling to Illinois prior to the closing to look things over, but are unable to do so due to their touring schedule. The realtor, whose commission is technically paid by the proceeds to the seller, and who has a listing contract with the seller, advises the Harrymores that she will handle everything. Illinois custom, law, and practice does not require a purchaser of land to have an attorney. The realtor does only the bare minimum needed for title to transfer to the Harrymores. On their behalf, she only has a minimal title search and minimal inspections done, and she obtains a minimal coverage title insurance policy. 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 Harrymores learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties. (Points: 30) (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 the facility signs are posted everywhere in bold: “BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK OF ANY DEATH OR INJURY THAT MAY RESULT. “ Additionally, the professors hurriedly sign a contract, which states: “YOU ARE GIVING UP ALL LEGAL RIGHTS”; “ABC WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR DEATH”; and “THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN THE STATE OF PENNSYLVANIA.”Professor Robinson, who lives in New York City, is sick and sweating profusely after consuming a great deal of alcohol. He decides not to race. He suspects that he is having a minor reaction as he is diabetic and drank more than he intended. In the Waiting Area, which is located next to the track, he takes off his helmet. There is a sign posted that says “KEEP YOUR RACE HELMET ON WHILE IN THE WAITING AREA!”Obama and Romney, who dislike each other for unknown reasons, are the only ones on the track. They use go-carts manufactured by Kartmatic. As they begin the race they drive very aggressively. Unbeknownst to either party, Fred, ABC’s mechanic, fed up with low pay, did not do the usual morning inspection of the brakes and tires on either vehicle that morning. ABC had been contemplating firing Fred due to his erratic work habits. ABC instructed Fred to inspect the Kartmatics daily as they never trusted their brake mechanism. Kartmatics are regularly marketed to amusement parks. Their instruction manual states that they are not to be used for racing.After two laps, Obama’s brakes fail as he tries to aggressively pass Romney. He crashes into Romney’s kart near the waiting area. The brakes on both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits Professor Robinson in the head, rendering him unconscious and bleeding from head injuries. His helmet is lying on the ground nearby. An ambulance is called. The medical technicians, seeing the head injuries, fail to notice the medical alert bracelet on Professor Robinson’s wrist. At the hospital, Robinson 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 Robinson had been rendered brain dead by accident at the ABC Go-kart facility.
  1. What claims may Professor Robinson’s widow bring against the various parties?
  2. What defenses might each party bring against the possible claims asserted by Professor Robinson’s widow?
  3. In what state should the case be brought? (Points: 30)
 (TCOs A, B, F, H)PART APaul 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. FaceLinked was such a hit that within a year, the school advised the brothers that they had to remove FaceLinked from the university’s server as it was utilizing too many resources. This was not a problem as the Franklins found advertisers, so they were able to move FaceLinked to a private server without charging user fees. In fact, FaceLinked was earning so much revenue that the Franklin brothers were able to pay themselves and the six friends who helped them start and operate it salaries. The Franklin brothers are graduating from the University of Megalopolis and will be attending separate graduate programs. Paul will attend Quadrahenria State University, and Thomas the College of New Guernsey. As FaceLinked is so successful, the brothers not only plan to expand it to the two new colleges that they are attending, but to as many other colleges within the four states comprising the “Quad State” area as possible. They even have hopes of “going national.” As part of their plan to expand to other campuses, they expect to recruit a student from each of the new schools “to get them in.” They wish to formalize FaceLinked by organizing it as a proper business. 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?(TCOs A, B, F, H)
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. Also in anticipation of the public offering, pursuant to the early intervention drug plea he made while in college, Thomas Franklin had his conviction expunged. In addition, FaceLinked sold $10 million in two year advertising contracts, which would allow the clients to back out for a 90 percent refund. These unusual contracts increased their current revenue by 15%. As FaceLinked is such a phenomenon, the hype regarding the public offering has been enormous. Even college students are attempting to buy the stock. Days before the public offering, the following occurred: (a) a broker at their underwriter, Silversmith &Baggs, showed a pension fund director a draft version of the prospectus; (b) Paul sold 1000 shares of the stock that he purchased through the stock option plan for $45 a share, telling the private investor that the issue price for the public offering would be at least $60 a share; and (c) several of the people who bought stock in the private offering sold it at a nice profit. The initial public stock offering had many problems. The NASDAQ computer system, which was implemented pursuant to a recent regulation change by the Securities And Exchange Commission (SEC), could not keep up with the demand. The system could not accurately report the price, and many day traders, including Big Profit Hedge Fund, lost money. Big Profit had formally filed its opposition to the SEC’s regulation when it was proposed. After the public offering was completed, FaceLinked 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 FaceLinked in favor of a new, upstart rival service offered by TronCom. Fearful that the new advertisers would back out of their contracts, the Franklin brothers sold a great deal of their stock.
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? (Points : 60)  (TCOs A, B, F, H)PART APaul 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 chat service began by putting information from the school’s student directory online, and offering blog, chat and message board features. LinkTime was such a hit that within a year, the school advised the brothers that they had to remove LinkTime from the university’s server as it was utilizing too many resources. This was not a problem as the Hamilton found advertisers, so they were able to move LinkTime to a private server without charging user fees. In fact, LinkTime was earning so much revenue that the Hamilton brothers were able to pay themselves and the six friends who helped them operate it salaries. The Hamilton brothers are graduating from the University of Megalopolis and will be attending separate graduate programs. Paul will attend Quadrahenria State University, and Thomas the College of New Guernsey. As LinkTime is so successful, the brothers not only plan to expand it to the two new colleges that they are attending, but to as many other colleges within the four states comprising the “Quad State” area as possible. They even have hopes of “going national.” As part of their plan to expand to other campuses, they expect to recruit a student from each of the new schools “to get them in.” They wish to formalize LinkTime by organizing it as a proper business. 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?(TCOs A, B, F, H) PART BLinkTime  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. Also in anticipation of the public offering, pursuant to the early intervention drug plea he made while in college, Thomas Hamilton had his conviction expunged. In addition, LinkTime sold $10 million in two year advertising contracts, which would allow the clients to back out for a 90 percent refund. These unusual contracts increased their current revenue by 15%. As LinkTime is such a phenomenon, the hype regarding the public offering has been enormous. Even college students are attempting to buy the stock. Days before the public offering, the following occurred: (a) a broker at their underwriter, Silversmith &Baggs, showed a pension fund director a draft version of the prospectus; (b) Paul sold 1000 shares of the stock that he purchased through the stock option plan for $45 a share, telling the private investor that the issue price for the public offering would be at least $60 a share; and (c) several of the people who bought stock in the private offering sold it at a nice profit. The initial public stock offering had many problems. The NASDAQ computer system, which was implemented pursuant to a recent regulation change by the Securities And Exchange Commission (SEC), could not keep up with the demand. The system could not accurately report the price, and many day traders, including Big Profit Hedge Fund, lost money. 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? (Points: 60) (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. 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 store displays set-up by Kreamie rack jobbers. By the 1960s, they were a national brand, controlling over 80 percent of the snack food industry.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 Kreamie business. The company, Granola Snacks, began advertising that their products only used natural ingredients. They even began running a commercial in which a mother and child compared their Granola Snacks with a lampooned product named “Cup Cake Creamies,” stating that it tasted like poison and dog food! Not-So-Tiny-Tim, a counter-culture pop star with a late night UHF and cable show, joined in on the controversy created by the commercial and stated that he did not understand how people, “could buy such poisonous dog food and serve it to their children as snacks!” Market studies showed that Kreamie Cup Cakes sales suffered. As a result, Kreamie began a more aggressive shelf space and display marketing campaign to combat Granola Snacks’s television advertising. Kreamie’s marketing efforts were successful. By also offering volume discount incentives, they had prevailed upon retailers in their traditional East Coast and Midwest markets to prominently display their products. To counter this strategy, Granola Snacks offered a deep discount to WackoMart, a Southwest and West Coast discount chain, in exchange for an agreement to exclusively sell only their snack foods.In reality, Kreamie Cup Cakes used only FDA approved ingredients and preservatives and were made in American plants that always passed inspections. In contrast, although Granola Snacks’s pilot plant was in Arizona, it had subcontracted the bulk of its production to a plant in Mexico. As a result, to maintain a level of quality, Granola Snacks used the maximum amount of preservatives allowed under Mexican law for the imported product. The level was so high, reactions to the food were often reported. The levels were higher than those allowed by FDA regulations, but allowed per an agricultural import/export treaty between the United States and Mexico. Several people who ate these Granola Snacks required emergency room visits. 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:
  • Granola Snacks’s advertising campaign.
  • The marketing and distribution campaigns both companies have engaged in.
  • The liability issues Granola Snacks faces regarding their use of food manufactured outside of the United States. (Points : 30)
 (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. Jones took it upon himself to plow Smith’s lot the seven times this past winter when there were storms and when he plowed the other two lots. Jones had never spoken to Smith about it, and Smith never objected. In the spring, Jones personally appeared at Smith’s house and presented him with a bill. Smith refused to pay Jones, stating that, “he never agreed to any contract.” That statement was made after Jones presented him with a bill of $600, which he calculated as the reasonable value of his services. 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? (Points : 15) (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. The regulation, proposed pursuant to a statute that restricts drivers from operating/driving a truck for more than twelve (12) hours a day, will now require drug testing of any driver involved in an accident. The regulation was proposed due to political pressure from Mothers Against Impaired Driving (MAID), a group dedicated to eliminating deaths due to people driving while impaired. Lonestar Trucking is concerned, not just about the costs of implementing such a regulation, but how it will comply with its requirements since accidents often occur far from their base of operations. Lonestar Trucking’s employees and their union are also very upset with the proposal. 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? (Points : 15) (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. XYZ Go-kart advertises at the college’s various campuses and, in fact, the professors use their faculty discount at the facility. At the facility signs are posted everywhere in bold: “BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK OF ANY DEATH OR INJURY THAT MAY RESULT. “ Additionally, the professors hurriedly sign a contract, which states: “YOU ARE GIVING UP ALL LEGAL RIGHTS”; “XYZ WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR DEATH”; and “THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD IN THE STATE OF MINNESOTA.”
Professor Favre, who lives in Wisconsin, is sick and sweating profusely after consuming a great deal of alcohol. He decides not to race. He suspects that he is having a minor reaction as he is diabetic and drank more than he intended. In the Waiting Area, which is located next to the track, he takes off his helmet. There is a sign posted that says “KEEP YOUR RACE HELMET ON WHILE IN THE WAITING AREA!”
Clinton and Bush, who dislike each other for unknown reasons, are the only ones on the track. They use go-carts manufactured by PrimoKarts. As they begin the race they drive very aggressively. Unbeknownst to either party, Ritchie, XYZ’s mechanic, fed up with low pay, did not do the usual morning inspection of the brakes and tires on either vehicle that morning. XYZ had been contemplating firing Ritchie due to his erratic work habits. XYZ instructed Ritchie to inspect the PrimoKarts daily as they never trusted their brake mechanism. PrimoKarts are regularly marketed to amusement parks. Their instruction manual states that they are not to be used for racing.
After two laps, Clinton’s brakes fail as he tries to aggressively pass Bush. He crashes into Bush’s kart near the waiting area. The brakes on both vehicles fail to hold. A tire dislodges at a high-rate of speed, and hits Professor Favre in the head, rendering him unconscious and bleeding from head injuries. His helmet is lying on the ground nearby. An ambulance is called. The medical technicians, seeing the head injuries, fail to notice the medical alert bracelet on Professor Favre’s wrist. 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?(c) In what state should the case be brought? (Points : 30) (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? (Points : 30) (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. 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, Woody also took over coaching the club’s competitive swim team. When he became the swimming coach, Woody effectively stopped “teaching” the swim classes. Instead, he had all the swimmers in the classes do races and train for competitive meets during the 30 minute lessons. Woody had done this many times during the summer. His boss, the country club director, knew this and, as the swim team was winning, ignored complaints from parents and students. Woody raced with the swimmers and pushed the winners out of the way when they tried to touch the side of the pool so that Woody’s team would win each time. This was not the first time that Woody had injured swimmers. 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. In addition, Woody began “kidding” an 18 year old black college student who worked as a lifeguard and assisted Woody with the coaching. Over time, Woody’s “jokes” toward the young man became very aggressive. Woody continued even though the young man asked him to stop. In fact, after the young man told Woody to stop as he felt harassed, Woody hired another lifeguard to assist him with the coaching. The country club director was aware of this situation, but as the swim team was winning, he took the position that it was an interpersonal issue that the two should workout among themselves.
Several parents brought suit against the local country club, Woody, 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. (Points : 30) (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. 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 store displays set-up by McCream rack jobbers. By the 1960s, they were a national brand, controlling over 80 percent of the snack food industry.
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. They even began running a commercial in which a mother and child compared their Healthy Snacks with a lampooned product named “Cup Cake McCrumbs,” stating that it tasted like poison and dog food! Tiny-Big- Brian, a counter-culture pop star with a late night UHF and cable show, joined in on the controversy created by the commercial and stated that he did not understand how people, “could buy such poisonous dog food and serve it to their children as snacks!” Market studies showed that McCream Cup Cakes sales suffered. As a result, McCream began a more aggressive shelf space and display marketing campaign to combat Healthy Snacks’s television advertising. McCream’s marketing efforts were successful. By also offering volume discount incentives, they had prevailed upon retailers in their traditional East Coast and Midwest markets to prominently display their products. To counter this strategy, Healthy Snacks offered a deep discount to WaySafeMart, a Southwest and West Coast discount chain, in exchange for an agreement to exclusively sell only their snack foods.
In reality, McCream Cup Cakes used only FDA approved ingredients and preservatives and were made in American plants that always passed inspections. In contrast, although Healthy Snacks’s pilot plant was in Florida, it had subcontracted the bulk of its production to a plant in the Dominican Republic. As a result, to maintain a level of quality, Healthy Snacks used the maximum amount of preservatives allowed under the law of the Dominican Republic for the imported product. The level was so high, reactions to the food were often reported. The levels were higher than those allowed by FDA regulations, but allowed per an agricultural import/export treaty between the United States and the Dominican Republic. Several people who ate these Healthy Snacks required emergency room visits. A child in Georgia, 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 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. (Points : 30) (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. The brothers 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. The Booth brothers plan on traveling to Louisiana prior to the closing to look things over, but are unable to do so due to their touring schedule. The realtor, whose commission is technically paid by the proceeds to the seller, and who has a listing contract with the seller, advises the Booths that she will handle everything. Louisiana custom, law, and practice does not require a purchaser of land to have an attorney. The realtor does only the bare minimum needed for title to transfer to the Booths. On their behalf, she only has a minimal title search and minimal inspections are done, and she obtains a minimal coverage title insurance policy. 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. (Points : 30)  (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. The inventory is located throughout the Western United States, and it is possible that it has also made its way into parts of Canada.Last fall, the FDA had promulgated an administrative proposed rule that would have required all pharmaceutical companies that sold over-the-counter medications to incorporate a special tracking bar code (i.e., UPC bars) on their packaging to ensure that recalls could be done with very little trouble. The bar codes cost about 35 cents per package.Robins & Robins lobbied hard against this rule and managed to get it stopped in the public comments period. They utilized multiple arguments, including the cost (which would be passed on to consumers). They also raised “privacy” concerns, which they discussed simply to get public interest groups upset. (One of the drugs impacted is used for assisting with alcoholism treatment – specifically for withdrawal symptoms – and many alcoholics were afraid their use of the drug could be tracked back to them.) Robins & Robins argued that people would be concerned about purchasing the medication with a tracking mechanism included with the packaging and managed to get enough public interest groups against the rule. The FDA decided not to impose the rule.Robins & Robins’ contract with Casings, Inc., states, in section 14 B.2.a., “The remedy for defects in supplies shall be limited to the cost of the parts supplied.” Casings, Inc. had negotiated that clause into the contract after a lawsuit from a person who was shot by a gun resulted in a partial judgment against Casings for contributory negligence.Robins & Robins sues Casings, Inc., for indemnification from suits by injured victims from the medication, for the cost of the capsule shells, for attorney’s fees, and for punitive damages. List any defenses Casings, Inc., would have under contract theory ONLY. (short answer question) (Points : 15) (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 New York 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) (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 defenses any of the three would have. Analyze the success of the defenses. (Points : 30) (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 diedYou are the public relations advisor for Robins & Robins, and your boss tells you to write him a memo that he will use to draft a public announcement.  He needs you to explain to him why Robins & Robins should not be found negligent for these deaths and illnesses. 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) (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.(Points: 30) (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 pay-outs to victim families. In Canada, the cap on non-pecuniary 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) (TCO I)   A Canadian citizen whose child died from the medication sues the FDA for allowing the sale of dangerous medication in Canada.  The lawsuit is filed in the International Court of Justice (ICJ).  Is this the proper court to hear this case?  Why or why not? (short answer question) (Points: 15) (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 non-pecuniary damages is around $300,000. Punitive damages in Canada are rarely allowed.  Will this Canadian citizen be permitted to sue Robins & Robins in this California court?  Why or why not? (short answer question)   (Points: 15) (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:Dear Staff: There is a new Sheriff in town – and it is me. As your new leader, I am implementing  a dress code that includes no slacks or shorts for women and no earrings for male teachers.  Men shall all be clean shaven.  Violators will be docked one week’s pay; 2nd offenses will result in a one week suspension without pay and 3rd offenses,  dismissal. All teachers will address me as “Pastor Forester” or “Amen, Pastor Forester.”  Teachers who fail to abide by these dictates will be docked two points on their annual evaluations.  Amen, Pastor Forester.”That day, one teacher, Anna Seenandfeld  had a birthday party at the school, having just turned 40. Her frown at the party showed everyone she was not happy about her party. Pastor Forestor had bought black balloons for her and joked with the other teachers about the “over the hill” teacher. The next day, Pastor Forester goes into the teacher’s lounge and calls all non-tenured teachers into his office.  He tells them that he has assigned himself to be their mentoring teacher and that effectively immediately they will be evaluated weekly.   One teacher, Anna Seenandfelt, begins to cry.  Another teacher, Andy DuFrane, rolls his eyes and says, “God! These menopausal women should not be allowed around our students.”  Pastor Forester goes to Anna and hugs her, offering her a tissue. He pats her gently on the behind and whispers, “Act your age, please.”  When she pulls forcefully away from him, Pastor Forester assigns her to work Saturday detention for the next three weeks to “toughen her up.”A pregnant P.E. teacher, Lisa Ready, is reassigned by Pastor Forester to a math position (even though she has only three credits in math) because Pastor Forester says this position is “less strenuous for a pregnant lady.”On the 3rd week of detention duty, a student stabs Anna, wounding her severely.  Although she survives and recovers, she loses one kidney as a result of the injury.  The school doesn’t offer health insurance, and Anna incurs over $55,000 for her hospital bills; the student (and his family) is insolvent.One month later, a parent complains about his student being unable to succeed in his math course due to the teacher’s (Lisa’s)  incompetence, Pastor Forester fires Lisa Ready for her inability to perform her job.  Pastor Forester tells Lisa in front of her class of students, and then walks her out of the building; 2 hours later, Lisa goes into premature labor and delivers her first son, who has severe health issues as a result of being premature. The baby’s doctor states the cause of early labor as being from “intense duress and undue stress.” Lisa’s husband’s health insurance covers all of the costs of the birth and the baby’s care.Pastor Forester is really not a Pastor. His real name is Jerry Birches, who is a parolee with convictions for child molestation. His parole agreement prohibits him being  closer than 1000 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. This comes to the attention of the school board, and 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.(TCO F and 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.  To further the advertising impact, the team uses an Ellen DeGeneres look-alike in the YouTube video, where the model does the “Ellen dance” – and mouths “love the pants” as she points to her legs and then walks off leading an Alpaca by a halter.  Within months, the slacks are a huge hit in the lesbian community.  Clean Clothes sends a letter to their attorney asking him to trademark their tagline, and move forward without another thought about it.Meanwhile, Men2Wimmin, a French company with a branch in New York, has established a huge following in the gay and cross-dressing community.  It has used the tagline “Feminine Attitude, Masculine Fit” for many years to advertise their drag queen dress collection for men on billboards, the internet and television.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 for the 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 JOSB’s countersuits? Do you think any of the 3 will win their cases? (Why or why not.) (Points: 30) (TCO G)  It is discovered that two weeks before the Ellen show, she had sold $2 million 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.  The swing in the price was not directly tied to her comments, but was suspected to be a result of a recall JOSB made on their entire line of men’s black and brown dress slacks when it was discovered that they had been sewn together with white thread.  Ellen’s previous trading activity shows that she made it a normal practice to “vigorously trade” the stock of any company with which she did business. A review of her trading activity for the past year showed that she had bought and sold JOSB stock 25 different times, including short sales like this one.  Her overall trading for JOSB stock for the last 12 months was a net loss of $82,000.00.   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 defense? Should Ellen have avoided discussing JOSB publicly on her show since she typically trades their stock? (Points: 30)
(TCO B)  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? (TCO F) Eagle Standard AInc. (ESI) a major engineering firm specialized in designing aircraft parts for government contracts. ESI employees project managers and 42 engineers who are divided into project group of 6-7 members. The majority of project team leaders have spent time in France and Britain learning new technology. The Eagle 6 project team consisting of 6 engineers is developing new equipment for a jet fighter. The project has been ongoing for 18 months and all 6 engineers have been with this project group since its inception working together on all projects. Eagle 6 works well together.However, the Eagle 6 team has the most technical project and its engineers have been working too much overtime. The senior project manager, Bruce Chanick interviewed and hired a new engineer to help out Richard Hue. Rich has good qualifications and seems to be knowledgeable and motivated. The work is challenging and gives him the opportunity to showcase his computer skills and engineering knowledge. Two weeks in he quickly became a contributing member of the team showing initiative and the willingness to work overtime and weekends to research possible solutions to potential problems. Richard was particularly adept with the computer system and Bruce is ecstatic about his new hire Richard is a loner on and off the job. He is from country x a small island with a high power-distance culture all of the other members of the team member felt Richard flouts his education and knowledge and none of them like him in fact can’t stand him.Bruce told Tim that Richard thinks that the rest of the team are slackers who talk about bowling and sport instead of working Richard thinks he is disliked because he’s from Country X. Bruce Wants to keep everyone in the company and more importantly within the team so how should Bruce handle this problem?  Detail what he should do by applying at least two conflict management methods to enhance group and team performance include roles and decision making in our response. (Points: 45) (TCOs D, E, F) State Senator Leghornne, while filibustering the opposition party’s proposed statute on public education, accuses State Senator Gentile, the bill’s sponsor, of being an “unabashed child lover.” It is common knowledge that State Senator Gentile, who is gay, recently married an 18-year-old college intern who had worked in his legislative offices. The relationship and the marriage were covered in the local papers. Although many conservative people had “their opinions” on the matter, most dealt with the situation with decorum and respect. State Senator Leghornne had recently and vehemently opposed the state’s same sex marriage law. State Senator Gentile’s spouse was so distraught and upset by the comments made during the filibuster that he attempted suicide by overdosing on sleeping pills. Fortunately, State Senator Gentile returned home in time to call an ambulance, and all are now doing fine.
Senator Gentile’s spouse seeks your advice about possible legal actions that he could bring against State Senator Leghornne. He points out to you that he met State Senator Gentile when he was 18, an adult allowed to marry under state law, and that their marriage and relationship are perfectly proper pursuant to the state’s same sex marriage law. (Points : 15) (TCOs D, E, F) Benjamin is a long-time key salesman for Morton and Dunderfield, a business supply company in Eastern Pennsylvania. The company decides to change its formal employer/employee relationship with all of its sales people, including Benjamin. Instead of compensating them with salary and a bonus based on quarterly sales, they change the relationship to that of an independent contractor who earns a sizeable percentage commission each month. With the change in this relationship, Morton and Dunderfield require all of their sales people to sign employment contracts which contain a clause that states upon leaving Morton and Dunderfield’s employ, they will not contact any former customers for a period of two (2) years. Benjamin, fearing he will lose his job, signs the agreement. After the first month, he realizes he will earn much less that he formerly did.
He seeks your advice on his options. (Points : 15)(TCOs B, C, G, I) Vineyard Air, a small business with one twin engine airplane that shuttles people from Boston to Martha’s Vineyard, learns from reading in the industry trade magazine that the Federal Aviation Administration (FAA) has proposed a regulation change. Instead of requiring planes to undergo a major 48 hour maintenance and inspection process after 1000 hours of flight time, the proposed regulation will require airplanes to undergo this process after either 1000 hours of flight time or 500 flights – whichever occurs first. As Vineyard Air’s typical flight is 25 minutes, the change will require them to triple their major plane overhauls. As Vineyard Air has only one plane and services a small niche market, this change could bankrupt them.
What should Vineyard Air do regarding the proposed change? (Points : 15)   (TCOs A, D, E) Anita Baker, a then-unknown jazz singer, signed a three album recording contract with Beverly Glen Music, Inc. Beverly Glen Music was a boutique label specializing in jazz artists. Baker’s first album for Beverly Glen was moderately successful. The second album, unfortunately, was panned by the critics and did not sell. Beverly Glen Music was acquired by MegaMedia, Inc. MegaMedia, in an effort to re-vitalize Baker’s career, encouraged her to leave the smooth jazz style she was committed to and do more commercially viable pop material. Baker rejected this request. Furious with MegaMedia, Baker 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 MegaMedia. Using her concert band, she recorded tracks for over 30 songs. Due to the financial failure of Baker’s second album and her recent unsuccessful concert tour, MegaMedia did not do the final production work on Baker’s third album.
Baker then entered into a contract with Elysium Communications, Inc. She began recording a new jazz album with Elysium in conjunction with a concert tour that they financed and produced. At her concerts, Baker would regularly introduce the new material that would be on her new album.
Shortly after the concert tour began, MegaMedia brings suit against Anita Baker and Elysium Communications, Inc.(a) What causes of action might MegaMedia bring against Baker and Elysium?(b) What causes of action might Baker and Elysium bring against MegaMedia(c) What types of relief might either party seek? (Points : 30) (TCOs A, D, E) Jane worked at the local country club pool as a lifeguard, not a swim teacher, for the summer of 2013. Jane was a public school physical education teacher. The country club did not do a background check or confirm any references when they hired her. They relied on the “say-so” of Jane’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 she had a valid teaching certificate. When one of the swim instructors unexpectedly quit one day, she took over the class. Initially, the class went well. Eventually, Jane also took over coaching the club’s competitive swim team. When she became the swimming coach, Jane effectively stopped “teaching” the swim classes. Instead, she had all the swimmers in the classes do races and train for competitive meets during the 30 minute lessons. Jane had done this many times during the summer. Her boss, the country club director, knew this and, as the swim team was winning, ignored complaints from parents and students. Jane raced with the swimmers and pushed the winners out of the way when they tried to touch the side of the pool so that Jane’s team would win each time. This was not the first time that Jane had injured swimmers. Last year, she was arrested for physically abusing a child she coached at her school. Although the criminal charges were dropped, Jane is on administrative leave from her 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 her 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 Jane while in swim class for not “working hard enough!” The children had bruises on their shoulders. In addition, Jane began “approaching” an 18-year-old college student who worked as a lifeguard and assisted Jane with the coaching. Over time, Jane’s “advances” toward the young man became very aggressive. Jane continued even though the young man asked her to stop. In fact, after the young man told Jane to stop, as he felt harassed, Jane hired another lifeguard to assist her with the coaching. The country club director was aware of this situation, but as the swim team was winning, he took the position that it was an interpersonal issue that the two should workout among themselves.
Several parents brought suit against the local country club, Jane, and the country club director. The young lifeguard has also brought suit. The local country club pool alleges that it is not liable. Discuss the ethical, liability, and agency issues presented by this matter, and all defenses available to the local country club pool. (Points : 30) 
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