Question 1. 1. (TCO A & F) Ownership of property has long been a major benefit of businesses in the U.S. and on the World Stage. Such property varies from Real Property, Tangible Property, and Intangible/Intellectual Property. Define these three types of property in daily business terminology, and give examples of each such property. (Points : 30)
Question 2. 2.
(TCO B,C,G,I) ABC Computers is a manufacturer and seller of personal computers and tablets. ABC entered into agreements with suppliers requiring that such suppliers not sell ABC’s computers below ABC’s suggested minimum retail price and in return, ABC would not sell its products at retail prices in the store owners’ territories. ABC decided not to sell any more computers unless an additional software package was purchased. A competitor informed the Office of the Attorney General of this policy, asserting it was illegal. Additionally, the new model of ABC’s computer has caught on fire, causing injuries to consumers. Explain what ABC should do to protect consumers. Also consider whether there have been any violations under the antitrust and related laws and the governmental agencies involved in these types of cases.
(Points : 30)
Question 3. 3. (TCO C) Prior to the 1935 Case of “McPhearson v. Buick Motors”, manufacturers had little or no liability exposure for malfunctions of their products that lead to injuries or death to individuals from said product failure. What was the specific problem associated with this new Buick Automobile, and what two alternative legal claims did Buick Motors direct Mr. MacPhearson to pursue as opposed to his claim against them? What specific legal liability regarding manufactured products developed from this case, and what is its lasting effect in today’s world of consumer products? (Points : 30)
Question 4. 4. (TCO A, D, E) Drew Big-Mouth is a player agent for NFL players. He is known for his aggressive recruitment of clients. Roger Runner is a graduate student at a Florida University who is anxious to break into the player agent business. Unbeknownst to Drew, Roger begins to recruit clients for Drew hoping that Drew will pay him a finder’s fee or perhaps even hire him. When Roger does land two clients, Drew at first refuses to pay for the referral, but then seeing $ signs in his future and orally agrees to pay Roger on a sliding scale–$10,000 for 1st round signee, $5000 for 2nd round and so forth down to $500 for an undrafted free agent. This proves lucrative to both.
Roger’s recruiting raises ethical issues that NFL Players Association starts investigating. Drew ever protective of his franchise immediately cuts all ties with Roger. Roger in an effort to get back in Drew’s good graces recruits a n sophomore QB from State University who is considered the #1 Pro Prospect in the country, giving him a $20,000 advance against future earnings in violation of collegiate amateur rules. Jill Snoop, an enterprising reporter, learns of the deal and sells the story to Deadspin.com. The resulting fervor leads to the QB being declared ineligible, State University being disqualified from the College Playoffs and having to forfeit all games the QB has played in since accepting the $20,000 from Roger. Thereafter Drew does sign QB to an exclusive agency to represent QB in his NFL contract negotiations and all endorsement deals.
State University sues Drew and Roger for tortious interference with business relationships and demands $50 million in compensatory and punitive damages. Roger in turn sues Drew contending he is an agent of Drew’s and is entitled to compensation for his recruitment of QB.
(10 points) Pursuant to the informal agreement between Drew and Roger, is Roger entitled to compensation for the signing of QB? What argument will Roger make? How will Drew counter Roger’s argument?
(10 points) Is Roger considered an agent of Drew for purposes of the tortious interference lawsuit or does Drew’s cutting of ties with Roger remove him from all responsibility for the actions of Roger?
(10 points) Using Consequential Theories of Ethical Thought, determine whether or not actions of Drew and Roger can be considered ethical in light of what has transpired.
(Points : 30)
Question 5. 5. (TCO E) The city of BigTime, Texas, was suddenly needing to expand their Fire Department to add four new stations, which would require 92 new department employees. The city announced through various media the need for a total of 92 new Fire Department Employees with fairly attractive wages, and very attractive benefits such as health insurance, vacation time, pension funds, etc. Applicants were told they must apply within the next 15 days, and be willing to complete a series of qualification tests. A total of 280 people applied for these Fire Department Positions, 155 men and 125 women. All of these potential employees were first required to complete a background and reading/math test; 119 of the women (95%) and 136 of the men (88%) made satisfactory scores on this initial test, and advanced to the second and final requirement of a physical test. The physical test had a number of requirements including:
Climbing a ladder up to a 3rd floor window, picking up a 100 pound bag of sand, and then climbing back to the ground;
Dragging a 100 foot long piece of a 4 inch hose full of water 200 yards in under 2 minutes; and
Running a mile in under 8 minutes.
Only 11 of the women (9%) and 120 of the men (88%) made passing scores on this physical test, and qualified for further consideration for the 92 new Fire Department jobs. Is this hiring policy acceptable under Title VII of the 1964 Civil Rights Act, and this Federal Statute’s further development over the last 50 years? Does this hiring process involve Disparate Impact? Disparate Treatment? Should the BigTime City Fire Department be required to modify their hiring procedure? (Points : 30)
Question 6. 6. (TCO G) The Sherman Act of 1890 provided the basic Federal Statute for prosecution and ultimate dissolution of the Standard Oil Trust in 1911, which had functioned as a monopoly controlling 92% of the oil and natural gas business in the United States; Also known as the great clash between President Theodore Roosevelt and Exxon Founder John D. Rockefeller. This famous Supreme Court Case was followed by the Clayton Act of 1914, which sought to prevent formation of future monopolies, and outlined a number of prohibited business activities. A century later lawyers, economists, and other business people continue to debate the goals and/or benefits of antitrust legislation, and resulting court decisions. List and discuss the four goals of antitrust statutes, and then identify the specific elements of business activities targeted as “restraint of trade”. (Points : 30)
Question 7. 7. (TCO H) Given that only 12 percent of the Business Organizations functioning in the United States are Corporations, what factors of business characteristics and operations result in Corporations generating 89 percent of business revenue? (Points : 30)
Question 8. 8. (TCO B) Court Process versus ADR: The Federal and State Court Systems throughout the U.S. have become overwhelmed with the backlog of cases awaiting access to trial court. Much of this is attributed to two factors; 1) the United States has 5% of the world’s population, but 65% of the worlds lawyers; and 95% of our cases are settled before going to trial, but 95% of the 95% are settled on the courthouse steps just before the case goes to trial. Therefore there is a growing demand for Alternate Dispute Resolution to substitute for our traditional court process. Such Alternate Dispute Resolution is also increasingly popular in the international business environment. List and define the three most attractive forms of Alternate Dispute Resolution (ADR), and the attractions that they provide over the typical co