MGMT 520 Midterm Exam 1 ANSWERS
\nQuestion :
\nTCO B. Infuriated when Harry Reid is re-elected during the 2010
\nfall election, the Republicans in Congress decide to take matters into their
\nown hands. In 2011, the House of Representatives passes a new \u00e2\u0080\u009cFreedom isn\u00e2\u0080\u0099t
\nFree Act\u00e2\u0080\u009d that requires that anyone who wants to vote in the 2012 presidential
\nelection must prove that they paid at least $200 in federal income tax in the
\npast year, including people aged 18 (who typically are deducted on their
\nparents\u00e2\u0080\u0099 returns and do not pay income tax). Anyone who received the \u00e2\u0080\u009cearned
\nincome credit\u00e2\u0080\u009d is barred from voting unless they return the payment from the
\ngovernment. Proof of payment of the tax can be made by showing a copy of the
\nprior year\u00e2\u0080\u0099s W2, a copy of the prior year\u00e2\u0080\u0099s tax return, or a signed statement
\nfrom the IRS stating that the payment of more than $200 in federal income tax
\nhas been made. Citizens who do not pay taxes can still vote if they donate
\n$200.00 to the federal government as voluntary income tax and get a statement
\nfrom the IRS that they have done so. The law sunsets on December 31, 2012. List
\ntwo bases under which someone impacted by this law could argue to have the law
\noverturned.
\nPoints Received:
\n15 of 15
\n2.
\nQuestion :
\nTCO F. When Vanna White sued Samsung for appropriation and under
\nthe Lanham Act, she won her case under the California common law right of
\npublicity claim and under the Lanham Act. List the eight Sleekcraft factors
\nthat are required to prove a Lanham Act complaint.
\nPoints Received:
\n15 of 15
\n3.
\nQuestion :
\n(TCO C) Bud Johnson owns a General Motors dealership in Pierre,
\nSouth Dakota. At the request and expense of General Motors, Bud traveled to
\nPhoenix, Arizona, for purposes of the demonstration of a new vehicle called the
\nRoughrider, designed to compete against the current offering of SUVs. Bud went
\nto the proving grounds in the desert around Phoenix and spent a day watching
\nthe vehicle demonstrations. Bud and other dealers drove the vehicles, and much
\ndust resulted from their driving. A few weeks later, Bud became ill with
\nflu-like symptoms. He was finally diagnosed as having coccidioidomycosis or
\n\u00e2\u0080\u009cvalley fever.\u00e2\u0080\u009d Valley fever is a disease well known to Arizona residents, and
\nmost have had it if they have lived there over 10 years. Newcomers are
\nparticularly vulnerable to the disease because the exposure to dust seems to
\nbuild up immunity among the residents.
\nBud became quite ill and brought suit against the car manufacturer
\nthat invited him for its failure to warn him about the valley fever phenomenon
\nbefore he came out to the testing grounds. Answer the following questions, and
\nuse cases and theories from the text to support your arguments:
\nWas there negligence in the failure of General Motors to warn Bud?
\n(15 points)
\nDiscuss all defenses General Motors may have. (15 points)
\nDoes strict liability in torts apply to this situation? Why or why
\nnot? (10 points)
\nPoints Received:
\n40 of 40
\n4.
\nQuestion :
\nTCO D: Barney and his 16-year-old son BamBam are riding in Fred\u00e2\u0080\u0099s
\ncar. Fred had taken some prescription medication that morning that stated on
\nthe bottle, \u00e2\u0080\u009cWarning, may cause drowsiness.\u00e2\u0080\u009d The truck in front of them suffers
\na blow-out, and swerves uncontrollably. The tire remnants fly into the road,
\nFred swerves and hits a car to his left. He avoids hitting the truck with the
\nblow-out but suffers damage to the left side of his car. BamBam hits his head
\non the side of the car, getting a concussion and permanently losing the sight
\nin his right eye. Fred has state law required auto insurance with the minimum
\npolicy limits.
\nFred\u00e2\u0080\u0099s wife, Wilma, immediately calls Betty, BamBam\u00e2\u0080\u0099s mom, and
\napologizes when she finds out about BamBam losing his eye. Wilma says to Betty,
\n\u00e2\u0080\u009cPlease don\u00e2\u0080\u0099t worry. We will pay for anything the insurance doesn\u00e2\u0080\u0099t cover,
\nincluding the loss of BamBam\u00e2\u0080\u0099s sight and anything else he needs to recover and
\nlive a normal life.\u00e2\u0080\u009d Betty sobs and says, \u00e2\u0080\u009cYou are too good to us. We can\u00e2\u0080\u0099t
\naccept that.\u00e2\u0080\u009d Wilma says, \u00e2\u0080\u009cOf course you can.\u00e2\u0080\u009d Betty cries harder and says,
\n\u00e2\u0080\u009cThank you so much but (unintelligible)\u00e2\u0080\u009d and hangs up.
\nFred and Wilma own a house worth $450,000, a car worth $20,000, a
\nfull-size T. rex skeleton for which a museum has offered $200,000 in the past,
\nand some stocks and bonds worth $700,000.
\nA lawsuit ensues and a judgment against Fred and for BamBam is
\nentered for $300,000. The insurance company paid their cap of $250,000, leaving
\n$50,000 remaining due. Fred and Wilma immediately pay BamBam $50,000. Further,
\nWilma buys a designer eye-patch for BamBam made specifically by Calvin Klein
\nwith a picture of Fred and Wilma\u00e2\u0080\u0099s daughter, Pebbles, on it. Wilma hugs BamBam
\nwhen she brings over his new eye patch and says, \u00e2\u0080\u009cAnything. Anything you need.
\nWe will take care of it for you.\u00e2\u0080\u009d Fred rolls his eyes at Barney, and Barney
\nsighs and shakes his head. Betty and Wilma both cry at how adorable BamBam
\nlooks with his new eye patch. Barney buys BamBam a new car, specially designed
\nfor people with one eye. Wilma finds out and calls Betty, asking how much the
\ncar was. Betty says they are making payments on the car of $450\/month for the
\nnext 4 years. Wilma writes Betty a check for $450, and sends her one every
\nmonth for the next 8 months.
\nEight months after the judgment was rendered, BamBam is discovered
\nto have more damage to his head than originally thought. He loses sight in his
\nother eye and now is totally blind. BamBam\u00e2\u0080\u0099s parents sue Fred and Wilma again
\nfor personal injury, but the case is thrown out as the first case already
\ndecided the injury case. Fred refuses to pay more to BamBam, and he takes the
\ncheckbook away from Wilma when he discovers she\u00e2\u0080\u0099s been making BamBam\u00e2\u0080\u0099s car
\npayments. The two families stop speaking to each other. BamBam throws away his
\nnow useless eyepatch and becomes despondent. His dreams of being a drag racer
\nseem to be over. BamBam\u00e2\u0080\u0099s attorney refiles the case, this time on grounds that
\nWilma\u00e2\u0080\u0099s statement to Betty was a binding contract that requires that Wilma pay
\nany remaining damages to BamBam, for the remainder of his life.
\nWas Wilma\u00e2\u0080\u0099s statement a binding contract? Using the law of
\ncontracts, explain why or why not. Does BamBam\u00e2\u0080\u0099s age have anything to do with
\nyour answer? Can Fred be bound by the potential contract Wilma may have entered
\ninto? Use the law of agency to explain your answer to that question. Did
\nWilma\u00e2\u0080\u0099s purchase of the eye-patch give BamBam a greater leg to stand on in
\ncourt? What about the car payments she made? Explain fully your answer to these
\nquestions.
\nPoints Received:
\n40 of 40
\n5.
\nQuestion :
\nTCO I. Marianne Jennings wrote an article, \u00e2\u0080\u009cWhy an International
\nCode of Ethics would be good,\u00e2\u0080\u009d which was assigned to be read at the beginning
\nof the course. As you have worked throughout this session, you should have
\nconsidered this article and how it may or may not have impacted different
\nsituations in the world economic\/business\/legal\/political environments. The
\nessay you will write on the next question should show that you have read
\nMarianne\u00e2\u0080\u0099s article and can apply her theories and thoughts from that article to
\nthe scenario provided. Feel free to rely on the information you know about the
\nsituations (if real) or analogize to another one, if you wish. Include in your
\nanswer at least two specific concepts from Marianne\u00e2\u0080\u0099s article, and apply those
\nconcepts to your reasoning in your answer. You will be graded on your knowledge
\nof the article as well as the application of ethical theories to international
\nsituations.
\nAn oil travesty has occurred. In the Gulf Coast, British
\nPetroleum\u00e2\u0080\u0099s deep-sea oil well has had a major malfunction and has exploded. The
\nexplosion killed many oil workers. The oil well began spewing oil into the
\nGulf, and now the entire southern portion of the United States coastal areas
\nhas been destroyed.
\nBP initially came out with advertisements using the CEO of the
\ncompany apologizing and promising to make this right for the citizens of the
\nUnited States. Then, the CEO was removed by BP from working the disaster. The
\ncrisis continues. Based on the \u00e2\u0080\u009ctiming\u00e2\u0080\u009d of the crisis and resolutions that have
\noccurred at the time of your exam, answer the following question using the most
\nrelevant facts you know.
\nUsing Marianne Jenning\u00e2\u0080\u0099s article, would an international code of
\nethics have Helped with the handling of this crisis? Would it have helped BP
\navoid this crisis? Do you see this as an ethical issue? Support your answer
\nwith concepts from her article, as well as other ethical reasons.
\nPoints Received:
\n40 of 40
\n6.
\nQuestion :
\nTCO A. Use the fact pattern you received in the above Marianne
\nJennings \u00e2\u0080\u009cInternational Code of Ethics\u00e2\u0080\u009d question to answer this question.
\nAnalyze and propose a solution to the problem you received above using the
\nBlanchard and Peale method. Show the steps, apply the facts, and provide a
\nproposed solution you would suggest.
\nPoints Received:
\n40 of 40<\/p>\n","protected":false},"excerpt":{"rendered":"
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