MGMT 520 Final Exam

MGMT 520 Legal, Political and Ethical Dimensions of Business - DeVry  

1. Page 1......... TCO D. Questions: A well known pharmaceutical company, Robins & Robins, is working through a public scandal. Three popular medications that they sell over the counter have been determined to be tainted with small particles of plastic explosive. The plastic explosives came from a Robins & Robins supplier named Casings, Inc.,,………………..List any defences Casings, Inc., would have under contract theory ONLY for the damages caused by the explosives in their drugs, over and above the cost of the capsule shells.  (Points:15). (Short answer question)
2. Question:  List any bases Robins & Robins could sue Casings, Inc., under contract theory ONLY for the damages caused by the explosives in their drugs, over and above the cost of the capsule shells. (short answer question) (Points:15)
3. 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……………..? Provide at least two bases under the Administrative Procedures Act and justify your answer. (Points: 30)
4. TCO C. Robins & Robins immediately issued a massive recall for the tainted medication upon learning of the situation. Despite the recall, 1,400 children and350 adults have been hospitalized after becoming very ill upon taking the taintedmedication. Each of them had failed to note the recall after having already purchased………….. Analyze the success of the defences.
5. 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………………? Did the model help you come to this conclusion, or did you use some other method? Explain.
6. Have you defined the problem accurately?
7. How would you define the problem if you stood on the other side of the fence?
8. How did this situation occur in the first place?
9. To whom and to what do you give your loyalty as a person and as a member of the organization?
10. What is your intention in making this decision?
11. How does this intention compare with the probable results?
12. Can you discuss the problem with the affected parties before you make your decision?
13. Are you confident that your position will be as valid over a long period of time as it seems now?
14. Could you disclose without qualm your decision or action to your boss, your CEO, your family, society as a whole?
15. What is the symbolic potential of your action if understood? If misunderstood?
16.  Under what conditions would you allow exceptions to your stand?
17. Page 2.........”Write a brief memo as to whether Pastor Forester committed illegal or discriminatory practices in his brief tenure described in this situation. Then, analyze the potential liability of the school. Discuss agency liability, as well as any employment law aspects…………... Discuss whether the school being a religious, private school has any bearing on or protection from liability. Include all defences available to the school.
18. TCO H and E. In the discovery portion of the case, it is determined that Pastor Forester is really not a Pastor. His real name is Jerry Birches, who is a parolee with convictions for child molestation. His parole agreement prohibits him being closer than 1000 feet to any school. In order to cut costs,…………….Then, explain why you wrote it the way you did. (Points: 30)
19. Page 3........TCO F. Ellen DeGeneres sues Clean Clothes for the use of a look-alike model forth slacks advertisement. She includes Lanham Act, misappropriation, and “Right of Publicity" claims in her complaint. Clean Clothes countersues for product disparagement. Joseph A. Bank (JOSB) sues Ellen for impacting their men’s clothing sales with her unso………………..who will win and why; what elements will they need to prove, and what defenses can they show? 
20. TCO G. It is discovered that two weeks before the Ellen show, she had sold $2million in JOSB stock (at a gain of about $2,200). The morning after her show, Ellen sold JOSB short (which means she was betting the stock price would go down), and she made another $210,000 in the next week on that trade. 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………………..? Should Ellen have avoided discussing JOSB publicly on her show since she typically trades their stock? (Points: 30)