Devry MGMT520 Midterm Exam 1 ANSWERS

MGMT 520 Midterm Exam 1 ANSWERS
Question :
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 as voluntary income tax and get a statement
from the IRS that they have done so. The law sunsets on December 31, 2012. List
two bases under which someone impacted by this law could argue to have the law
overturned.
Points Received:
15 of 15
2.
Question :
TCO F. When Vanna White sued Samsung for appropriation and under
the Lanham Act, she won her case under the California common law right of
publicity claim and under the Lanham Act. List the eight Sleekcraft factors
that are required to prove a Lanham Act complaint.
Points Received:
15 of 15
3.
Question :
(TCO C) Bud Johnson owns a General Motors dealership in Pierre,
South Dakota. At the request and expense of General Motors, Bud traveled 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 have lived there over 10 years. Newcomers are
particularly vulnerable to the disease because the exposure to dust seems to
build up immunity among the residents.
Bud became quite ill and brought suit against the car manufacturer
that invited him for its failure to warn him about the valley fever phenomenon
before he came out to the testing grounds. Answer the following questions, and
use cases and theories from the text to support your arguments:
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)
Points Received:
40 of 40
4.
Question :
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
checkbook 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 eyepatch 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 Received:
40 of 40
5.
Question :
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.
An oil travesty has occurred. In the Gulf Coast, British
Petroleum’s deep-sea oil well has had a major malfunction and has 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
has 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
United States. 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 question using the most
relevant facts you know.
Using Marianne Jenning’s article, would an international code of
ethics have assisted with the handling of this crisis? Would it have helped BP
avoid this crisis? Do you see this as an ethical issue? Support your answer
with concepts from her article, as well as other ethical reasons.
Points Received:
40 of 40
6.
Question :
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 Received:
40 of 40