MGMT520 Midterm Exam 2
1. 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)
2. 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)
3. (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)?
I. 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 for your answer. (Points: 40)
The legal theories of recovery against each of the three parties and their respective defense are discussed below
4. 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 and $24,000, 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 they 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, "Paid in full. Strativarus and Granruius violans. $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 them and discovers they are only worth $2,000 and that they are not Stradivarius and Guarnerius violins but are instead counterfeits.
He wants to countersue the salesman and asks you on what basis can he do so. Using contract, agency, and any other legal concepts you have learned this session, on what bases can Billy sue the salesman and his wife? What defenses will they have? Do you think Billy can recover? Further, will Margaret's husband (his name is Bernard) be able to collect against Billy for the difference in price from the original deal? Explain your answer fully as to the why's, wherefore's, and why not's for both parties. Use bullet points and "issue spotting" to assist you in your answer.
5. 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 been partially responsible for this downturn.
Argue for or against an ethical basis for the housing bubble collapse. Use Marianne Jennings' article as a basis for a solution to avoiding a future collapse such as this. Can you think of a way that an international code of ethics would have helped avoid this crisis or could keep another one from occurring in the future? What challenges would there be in implementing ethical codes that may prevent such a situation in the future? Be sure to include specific ideas from Marianne's article along with your own thoughts, analysis, and evaluation of this essay question.
6. 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)
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