MGMT 520 Final
Exam
1. TCO D 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., that
supplies the capsule casings for the medication pills. Casings, Inc., also
sells shell casings for ammunition. Over $8 million in inventory is impacted.
The inventory is located throughout the Western United States, and it is
possible that it has also made its way into parts of Canada. Last fall, the FDA
had promulgated an administrative proposed rule that would have required all
pharmaceutical companies that sold over-the-counter medications to incorporate
a special tracking bar code (i.e., UPC bars) on their packaging to ensure that
recalls could be done with very little trouble. The bar codes cost about 35
cents per package. Robins & Robins lobbied hard against this rule and
managed to get it stopped in the public comments period. They utilized multiple
arguments, including the cost (which would be passed on to consumers). They
also raised privacy concerns, which they discussed simply to get public
interest groups upset. (One of the drugs impacted is used for assisting with
alcoholism treatment specifically for withdrawal symptoms and many
alcoholics were afraid their use of the drug could be tracked back to them.)
Robins & Robins argued that people would be concerned about purchasing the
medication with a tracking mechanism included with the packaging and managed to
get enough public interest groups against the rule. The FDA decided not to
impose the rule. Robins & Robins’ contract with Casings, Inc., states, in
section 14 B.2.a., “The remedy for defects in supplies shall be limited to
the cost of the parts supplied plus any and all damages caused by the defects,
including loss of good will to Robins & Robins, as valued by the accounting
firm selected by Robins & Robins.” The accounting firm determines the
loss of “good will” value to Robins & Robins as a result of this
disaster is $140 million. This clause was buried on page 285 of the contract in
small, 9-point type. List any defenses Casings, Inc., may have in trying to
avoid the results of this clause of their contract. (Points: 15)
2. TCO B. The
FDA discovers that, during the public comment process, Robins & Robins
bribed one of the members of the administrative panel that decided to pull the
rule from consideration. The member of the panel was removed and is being
charged criminally. As a result, the FDA immediately implements an emergency
order that puts into effect the tracking bar requirement and makes the rule
retroactive, but only to Robins & Robins.
Provide
two arguments Robins & Robins can make to have the rule determined to be
invalid under the Administrative Procedures Act. Explain your answer. (Points:
30)
Name
one argument that Robins & Robins could have used to fight against the
imposition of a tracking bar (UPC) requirement in the event their lobbying
efforts during public comments had failed. Explain the argument and the
procedural method Robins would use to fight it. If Robins had not gotten
involved in the public comments period, would your answer change? Why?
3. TCO C. Robins
& Robins immediately issued a massive recall for the tainted medication
upon learning of the situation. Despite the recall, 1,400 children and 350
adults have been hospitalized after becoming very ill upon taking the tainted
medication. Each of them had failed to note the recall after having already
purchased the medication. It is quickly determined that they will need liver
transplants and many of them are on a waiting list. During the wait, to date,
12 children have died. Their families are considering suing for both 402A and
negligence. The attorneys stated that but for the lobbying efforts, the recall
process would have been automated and the people would not have gotten sick or
died. You are the public relations advisor for Robins & Robins, and your
boss tells you to write him a memo that he will use to draft a public
announcement. He needs you to explain to him why Robins & Robins should not
be found negligent for these deaths and illnesses. Draft the memo utilizing the
elements of 402A and negligence. Include (and fully explain) any defenses you
feel that Robins & Robins may have. Recall that your boss needs all
pertinent information for him to write an announcement to the public after
reading your memo.(Points: 30)
4. 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 Blanchard and Peale method of analyzing ethical
dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins
for the fact that they saved 35 cents/package and are now in the middle of a
major, life-threatening recall. Analyze their fake recall as well. Show all
of the steps of the model and give a recommendation to the CEO of what to do
now that the deaths are escalating. What is the right thing for the CEO to do
in this case?(Points: 30)
5. TCO I. A
Canadian citizen whose son (resident of Ontario) died from the medication sues
Robins & Robins in a California court. The court there is well known for
being victim friendly and providing huge payouts to victim families. In Canada,
the cap on nonpecuniary damages is around $300,000. Punitive damages in Canada
are rarely allowed. Robins & Robins
moves to dismiss the case under the theory of sovereign immunity. Will Robins
& Robins win this motion using this theory? Why or why not? (short answer
question) (Points: 15)
Page
2
TCO E and H. A
private high school hires a new superintendent, George Forester. The school is
owned by a local Lutheran church and is run by a board of directors chosen by
church members. Supt. Forester shows up for his first day of work and sends a
memo via intercompany mail to all teachers:
TCO E. Pastor
Forester claims his firing was illegal because it was based on his being a
convicted felon. His contract with the school provides him with defense
coverage for any acts he takes while working for the school. Anna and Lisa sue
Pastor Forester and the school for sexual harassment and discrimination, and
Pastor Forester requests the school pay for his defense. Discuss whether Anna
and Lisa will be successful in their claim of sexual harassment and
discrimination against the school and Pastor Forester. Discuss whether the
school illegally fired Pastor Forester. Will the school have to pay for the
pastor’s defense? Analyze and defend your answer.(Points: 30)
2. TCO H, E. It was
actually in the discovery portion of the injury lawsuit that Pastor Forester’s
true background came to light. The convict, Birches, claims the knowledge of
his aunt should be imputed to the entire board of directors. Three parents have
alleged that their children are now seeing therapists due to abusive comments
Birches made to them at various times during his time in the school.The board
immediately convenes and discusses damage control. The board knows you took a
law and ethics course recently and asks you to write it a memo of what liability
it has in this case. List the elements of any tort you believe the school may
be liable for and what defenses you may have. Include in your memo whether Aunt
Theresa’s knowledge will be imputed to the entire board. If so, under what
statute, rule, case, or federal law do you base your decision?(Points: 30)
Page 3 Two
essays at 30 points each.
TCOs
F & G. Laura Etheridge and Rita ODonnell, the CEO and Creative Director of
Clean Clothes (a Texas-based lesbian womens clothing line) brainstormed together
and came up with a tagline for their new slacks line: Masculine Attitude,
Feminine Fit. They market the product on YouTube, Twitter, and Facebook
showcasing their Funky Femme slacks collection, made from a material that
resembles alpaca wool but is actually organic cotton. To further the
advertising impact, the team uses an Ellen DeGeneres look-alike in the YouTube
video, where the model does the Ellen dance and mouths love the pants as
she points to her legs, and then walks off leading an Alpaca by a halter.
Within months, the slacks are a huge hit in the lesbian community. Clean
Clothes sends a letter to their attorney asking him to trademark their tagline
and moves forward without another thought about it.
Meanwhile,
Men2Wimmin, a French company with a branch in New York, has established a huge
following in the gay and cross-dressing community. It has used the tagline
Feminine Attitude, Masculine Fit for many years to advertise its drag queen
dress collection for men on billboards, the Internet, and television.
Ellen
DeGeneres learns that her likeness is being used to advertise for Clean
Clothes. She watches the ad and is incensed. She spends the next week on her
show bashing the Clean Clothes company and states that she would never endorse
the use of Alpaca wool for clothing as she feels shearing them is cruel. (She
doesnt catch that the pants are really made from cotton.) Further, she says
she feels that lesbian women should not need to shop at special stores,
although she admits she often shops in the mens department at Joseph A. Bank
(JOSB). Her comments cause a precipitous
drop in sales at both Joseph A. Bank (JOSB) and Clean Clothes. Using the above
fact pattern, analyze the following questions fully.
TCO
F. Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC)
demanding CC stop using M2Ws tagline, which is registered with the Trademark
Office. Clean Clothes responds, stating that (a) CCs tagline is different
enough as not to violate the trademark, (b) CC didnt know about M2Ws tagline
so they couldnt have copied it, and (c) Men2Wimmin has no damages and
therefore cant sue Clean Clothes. Analyze the case for Men2Wimmin, including
the elements of any case they have, and explaining any defenses that Clean
Clothes might raise against them. What damages can they request, and do you
think they will get them? Why or why not? (Points: 30)MGMT 520 Final
Exam1. TCO D 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., that
supplies the capsule casings for the medication pills. Casings, Inc., also
sells shell casings for ammunition. Over $8 million in inventory is impacted.
The inventory is located throughout the Western United States, and it is
possible that it has also made its way into parts of Canada. Last fall, the FDA
had promulgated an administrative proposed rule that would have required all
pharmaceutical companies that sold over-the-counter medications to incorporate
a special tracking bar code (i.e., UPC bars) on their packaging to ensure that
recalls could be done with very little trouble. The bar codes cost about 35
cents per package. Robins & Robins lobbied hard against this rule and
managed to get it stopped in the public comments period. They utilized multiple
arguments, including the cost (which would be passed on to consumers). They
also raised privacy concerns, which they discussed simply to get public
interest groups upset. (One of the drugs impacted is used for assisting with
alcoholism treatment specifically for withdrawal symptoms and many
alcoholics were afraid their use of the drug could be tracked back to them.)
Robins & Robins argued that people would be concerned about purchasing the
medication with a tracking mechanism included with the packaging and managed to
get enough public interest groups against the rule. The FDA decided not to
impose the rule. Robins & Robins’ contract with Casings, Inc., states, in
section 14 B.2.a., “The remedy for defects in supplies shall be limited to
the cost of the parts supplied plus any and all damages caused by the defects,
including loss of good will to Robins & Robins, as valued by the accounting
firm selected by Robins & Robins.” The accounting firm determines the
loss of “good will” value to Robins & Robins as a result of this
disaster is $140 million. This clause was buried on page 285 of the contract in
small, 9-point type. List any defenses Casings, Inc., may have in trying to
avoid the results of this clause of their contract. (Points: 15)2. TCO B. The
FDA discovers that, during the public comment process, Robins & Robins
bribed one of the members of the administrative panel that decided to pull the
rule from consideration. The member of the panel was removed and is being
charged criminally. As a result, the FDA immediately implements an emergency
order that puts into effect the tracking bar requirement and makes the rule
retroactive, but only to Robins & Robins.Provide
two arguments Robins & Robins can make to have the rule determined to be
invalid under the Administrative Procedures Act. Explain your answer. (Points:
30)Name
one argument that Robins & Robins could have used to fight against the
imposition of a tracking bar (UPC) requirement in the event their lobbying
efforts during public comments had failed. Explain the argument and the
procedural method Robins would use to fight it. If Robins had not gotten
involved in the public comments period, would your answer change? Why?3. TCO C. Robins
& Robins immediately issued a massive recall for the tainted medication
upon learning of the situation. Despite the recall, 1,400 children and 350
adults have been hospitalized after becoming very ill upon taking the tainted
medication. Each of them had failed to note the recall after having already
purchased the medication. It is quickly determined that they will need liver
transplants and many of them are on a waiting list. During the wait, to date,
12 children have died. Their families are considering suing for both 402A and
negligence. The attorneys stated that but for the lobbying efforts, the recall
process would have been automated and the people would not have gotten sick or
died. You are the public relations advisor for Robins & Robins, and your
boss tells you to write him a memo that he will use to draft a public
announcement. He needs you to explain to him why Robins & Robins should not
be found negligent for these deaths and illnesses. Draft the memo utilizing the
elements of 402A and negligence. Include (and fully explain) any defenses you
feel that Robins & Robins may have. Recall that your boss needs all
pertinent information for him to write an announcement to the public after
reading your memo.(Points: 30)4. 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 Blanchard and Peale method of analyzing ethical
dilemmas, analyze the ethical dilemma faced by the CEO of Robins & Robins
for the fact that they saved 35 cents/package and are now in the middle of a
major, life-threatening recall. Analyze their fake recall as well. Show all
of the steps of the model and give a recommendation to the CEO of what to do
now that the deaths are escalating. What is the right thing for the CEO to do
in this case?(Points: 30)5. TCO I. A
Canadian citizen whose son (resident of Ontario) died from the medication sues
Robins & Robins in a California court. The court there is well known for
being victim friendly and providing huge payouts to victim families. In Canada,
the cap on nonpecuniary damages is around $300,000. Punitive damages in Canada
are rarely allowed. Robins & Robins
moves to dismiss the case under the theory of sovereign immunity. Will Robins
& Robins win this motion using this theory? Why or why not? (short answer
question) (Points: 15)Page
2TCO E and H. A
private high school hires a new superintendent, George Forester. The school is
owned by a local Lutheran church and is run by a board of directors chosen by
church members. Supt. Forester shows up for his first day of work and sends a
memo via intercompany mail to all teachers:TCO E. Pastor
Forester claims his firing was illegal because it was based on his being a
convicted felon. His contract with the school provides him with defense
coverage for any acts he takes while working for the school. Anna and Lisa sue
Pastor Forester and the school for sexual harassment and discrimination, and
Pastor Forester requests the school pay for his defense. Discuss whether Anna
and Lisa will be successful in their claim of sexual harassment and
discrimination against the school and Pastor Forester. Discuss whether the
school illegally fired Pastor Forester. Will the school have to pay for the
pastor’s defense? Analyze and defend your answer.(Points: 30)2. TCO H, E. It was
actually in the discovery portion of the injury lawsuit that Pastor Forester’s
true background came to light. The convict, Birches, claims the knowledge of
his aunt should be imputed to the entire board of directors. Three parents have
alleged that their children are now seeing therapists due to abusive comments
Birches made to them at various times during his time in the school.The board
immediately convenes and discusses damage control. The board knows you took a
law and ethics course recently and asks you to write it a memo of what liability
it has in this case. List the elements of any tort you believe the school may
be liable for and what defenses you may have. Include in your memo whether Aunt
Theresa’s knowledge will be imputed to the entire board. If so, under what
statute, rule, case, or federal law do you base your decision?(Points: 30)Page 3 Two
essays at 30 points each.TCOs
F & G. Laura Etheridge and Rita ODonnell, the CEO and Creative Director of
Clean Clothes (a Texas-based lesbian womens clothing line) brainstormed together
and came up with a tagline for their new slacks line: Masculine Attitude,
Feminine Fit. They market the product on YouTube, Twitter, and Facebook
showcasing their Funky Femme slacks collection, made from a material that
resembles alpaca wool but is actually organic cotton. To further the
advertising impact, the team uses an Ellen DeGeneres look-alike in the YouTube
video, where the model does the Ellen dance and mouths love the pants as
she points to her legs, and then walks off leading an Alpaca by a halter.
Within months, the slacks are a huge hit in the lesbian community. Clean
Clothes sends a letter to their attorney asking him to trademark their tagline
and moves forward without another thought about it.Meanwhile,
Men2Wimmin, a French company with a branch in New York, has established a huge
following in the gay and cross-dressing community. It has used the tagline
Feminine Attitude, Masculine Fit for many years to advertise its drag queen
dress collection for men on billboards, the Internet, and television.Ellen
DeGeneres learns that her likeness is being used to advertise for Clean
Clothes. She watches the ad and is incensed. She spends the next week on her
show bashing the Clean Clothes company and states that she would never endorse
the use of Alpaca wool for clothing as she feels shearing them is cruel. (She
doesnt catch that the pants are really made from cotton.) Further, she says
she feels that lesbian women should not need to shop at special stores,
although she admits she often shops in the mens department at Joseph A. Bank
(JOSB). Her comments cause a precipitous
drop in sales at both Joseph A. Bank (JOSB) and Clean Clothes. Using the above
fact pattern, analyze the following questions fully.TCO
F. Men2Wimmin (M2W) sends a cease and desist letter to Clean Clothes (CC)
demanding CC stop using M2Ws tagline, which is registered with the Trademark
Office. Clean Clothes responds, stating that (a) CCs tagline is different
enough as not to violate the trademark, (b) CC didnt know about M2Ws tagline
so they couldnt have copied it, and (c) Men2Wimmin has no damages and
therefore cant sue Clean Clothes. Analyze the case for Men2Wimmin, including
the elements of any case they have, and explaining any defenses that Clean
Clothes might raise against them. What damages can they request, and do you
think they will get them? Why or why not? (Points: 30)
