- Globalization? Answer
- Globalization has several advantages and disadvantages.
- Output and productivity
- Technological improvement
- Fall in prices
- Good transport facilities
- Exploitation of Underdeveloped Countries
- Increase in Unemployment
MGMT 520 Legal, Political and Ethical Dimensions of Business Week 5- Mid Term answer
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.
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.
(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)
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.
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.
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.
MGMT 520 Lgl, Poli, Ethcl Dimns of Busn Week 8_Final Term answer Set 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., 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 barcodes 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.” Casings, Inc., had negotiated that clause into the contract after a lawsuit from a person who was shot by a gun resulted in a partial judgment against Casings for contributory negligence. Robins & Robins sues Casings, Inc., for indemnification from suits by injured victims from the medication, for the cost of the capsule shells, for attorneys fees, and for punitive damages. List any defences Casings, Inc., would have under contract theory ONLY for the damages caused by the explosives in their drugs, overand above the cost of the capsule shells. (Points:15). (Short answer question)
Set 3 Questions:
List any bases Robins & Robins could sue Casings, Inc., under contracttheory ONLY for the damages caused by the explosives in their drugs, overand above the cost of the capsule shells. (short answer question) (Points:15)
- 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 to all of their products. However, McFadden, Inc., a NewYork pharmaceutical company, realizes that this new requirement is going to bankrupt them immediately. McFadden did not participate in the original public comment period. However, this rule is different from the rule that went through that public comment period in that it specifically names four companies as being impacted: Robins & Robins, McFadden, Inc., Bayer, and Johnson & Johnson. On what bases can McFadden challenge this requirement imposed by the FDA, and can they be successful? Provide at least two bases under the Administrative Procedures Act and justify your answer. (Points: 30)
- 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 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, 12children 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 attorney for one of the dead children’s family. List the causes of action (if any) you would file against Robins & Robins, the FDA, and the bribed FDA member. List the elements of the causes of action, and set forth the facts that you have that would support a lawsuit against each of the three named defendants. State any defences any of the three would have. Analyze the success of the defences.
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, 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? Did the model help you come to this conclusion, or did you use some other method? Explain.
Question 2 – 2 essays, 30 points each.
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:
”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. Explain whether you feel that the two injured teachers have cases for recovery against the school. Discuss whether the school being a religious, private school has any bearing on or protection from liability. Include all defences available to the school.
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, the school had stopped doing background checks on new employees, and this slipped through the cracks. The President of the Board of Directors immediately fires Pastor “JerryBirches” Forester and notifies his parole officer of the violations. Pastor Forester claims the board knew about his background, because one member of the board(his aunt Theresa) knew the truth. He claims her knowledge should be imputed to the entire board of directors. He then sues the school for firing him for being convicted felon. He claims that is illegal, and he publicly attacks the church for their “less than Christian” behaviour in firing him.
The board immediately convenes to discuss “damage control.” They know you took a Law and Ethics course recently and ask you to write a news release to the local newspaper, explaining the situation. Using ethical and legal considerations(including the fact you are in the middle of multiple lawsuits), write the brief news release. Then, explain why you wrote it the way you did.
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 unsolicited comment. What facts will Ellen use to support her cases and why will those support her cases? What defenses will Ellen have against Clean Clothes and JOSBs countersuits? Do you think any of the 3 will win their cases? (Why or why not.) Analyze the case for all three parties – who will win and why; what elements will they need to prove, and what defenses can they show
- 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 that they had been sewn together with white thread. Ellens previous trading activity shows that she made it a normal practice to “vigorously trade” the stock of any company with which she did business. A review of her trading activity for the past year showed that she had bought and sold JOSB stock 25 different times, including short sales like this one. Her overall trading for JOSB stock for the last 12 months was a net loss of $82,000.00. Do you think the SEC will file anything against Ellen for her sales of JOSB? Is there any cause to do so? Analyze her transactions with respect to insider trading activity (based on what you know) – and whether she should be concerned. Is her prior trading activity a defence? Should Ellen have avoided discussing JOSB publicly on her show since she typically trades their stock? (Points: 30)
MGMT 520 Legal, Political and Ethical Dimensions of Business Week 7- Discussion 2_Answer – Enron and Others
SOX and Insider Trading
Review Problem 5 of Chapter 21, found on page 764 of your e-book. Let’s look at corporate malfeasance, both specifically as in the case of Mr. Winans, and more generally, at companies across the country. It seems as though there is an outbreak of corporate “bad ethics” that is translating into escalating costs for compliance and policing.
Along with the SEC and their policing and efforts at ending bad business practices that relate to the stock market, we also have the Sarbanes-Oxley Act, also known as SARBOX, or SOX, which is becoming a big buzzword in the business world. We will look at that here and in the other thread. As part of that discussion, start thinking about the different ways different officers of the company will look at and use or follow SOX (i.e., the CEO, CIO, and CFO).
To start this threaded discussion, let’s look at the conduct of Mr. Winans and his coconspirators. Was their conduct illegal under the Securities and Exchange Act and, more specifically, Section 10(b) and Rule 10b-5? If so, how? If their conduct was not illegal under Section 10(b) and Rule 10b-5, explain why not.
Was their conduct unethical? Why or why not? We have to wonder how effective laws and regulations are at deterring this type of conduct and the conduct we hear about in the news. Or even internal company policies. For example, you might be interested to read the Enron Code of Ethics:
Weren’t there laws already on the books prior to SARBOX that prohibited this type of conduct? How many laws are enough? How many are too much?
Timber King is a new Midwest company in the portable saw mill industry Answer
Timber King is a new Midwest company in the portable saw mill industry. You have been asked to give Timber King’s new CEO, general advice and guidelines to assist him in doing an external analysis of the portable saw mill industry.
Part A: Explain three benefits of conducting an external analysis.
Part B: Educate Mr. Perry on some of the challenges of conducting an external analysis. Part C: Explain the two perspectives on the environment.
Part D: Explain the primary responsibility of Mr. Perry’s managers in conducting external analysis. Your response should be a minimum of one
(1) single-spaced page to a maximum of two
(2) pages in length answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format
MBA 737 Advanced Cost Concepts Final Exam Winter 2015 ANSWER
Part 1 Multiple Choice: There are 15 questions each are worth 2 points. You get to skip any one of your choice by putting any X on the answer sheet. It is two free points. You cannot get extra credit by doing all 15, you can only hurt yourself. If you do not pick a skip, I will pick number 15 for you. Please put your answers in the summary sheet below:188.8.131.52.184.108.40.206.220.127.116.11.13.14.15. 737 Final Pages
- Cost drivers are:
- activities that cause costs to increase as the activity increases.
- accounting techniques and practices used to control costs.
- accounting reimbursements used to evaluate whether performance is proceeding according to plan
.D. a mechanical basis, such as machine hours, computer time, or factory square footage, used to assign costs to activities.
- None of the above.
- Which of the following costs is both a prime cost and a conversion cost? direct materials
- direct labour
- manufacturing overhead
- administrative costs
- marketing costs
737 Final Page 33. The cost of the direct labour will be treated as an expense on the income statement when the resulting:
- payroll costs are paid
- .B. payroll costs are incurred
- .C. products are completed
- .D. products are sold
- None of the above.
- A Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required five (5) direct labour hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labour hour?
- None of above.
- The term “relevant range” as used in cost accounting means the range over which: 737 Final Page 4
- relevant costs are incurred.
- costs may fluctuate.
- cost relationships are valid.
- cost data is available
- none of the above
- Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that:
- cost A has remained unchanged. cost
B has decreased.
- cost A has decreased.
- cost B has remained unchanged. All costs will change
- Which of the following changes to a company’s contribution income statement will always lower the break-even point (either in units or in dollars)?
- Sales price increases by 10%
.B. Sales price decreases by 5%
.C. Variable costs increase by 10% and fixed costs decrease by 5%.
- Variable costs decrease by 5% and fixed costs increase by 10%
.E. This answer cannot be determined.
737 Final pg 5 8.. What are the transfers-out from the Finished Goods Inventory called?
- Cost of Goods Manufactured.
- Cost of Goods Available.
- Cost of Goods Completed.
- Cost of Goods Sold
.E. The Balance sheet
- An equivalent unit of conversion costs is equal to the amount of conversion costs required to:
- starts a unit.
- starts and completes a unit.
- transfers a unit in.
- transfers a unit out.
- The what is considered the main benefit and risk of a standard costing approach?
- Standard costs are a way to reduce conversion cost but risk non compliance with GAAP
- Standard costs typically simplify job costing, but create the risk of overstating WIP inventory
- Standard costs simplify the accounting for large scale process costing, but risk more over/under applications of Direct and Conversion costs
- Standard costing is only appropriate if combined with ABC and risks significantly overstating finished goods inventory Continued
737 final page 6E. Standard costing is extremely time consuming and increase accounting workload while risking incanting poor spending behaviour by managers
- In an ABC costing system there are many potential benefits, but there can be many reasons why they fail. Which of the following is typically NOT a reason for failure:
- ABC reveals that there are activities being performed that provide no value and should be stopped
- A lack of support by the CFO
- Managers “gaming” the system to get the lowest possible overhead
- Too much complexity with too little systems support
- The information is not actually used to change the costing of allocated overhead
- Internal controls include all of the following except:
A using contingent compensation plans
.B. requiring management authorization for use of a company’s assets
- reconciling various sets of accounting records
- requiring employees to take vacations
- Internal audit reviews
- Residual income is a performance evaluation that is used in conjunction with, or instead of, return on investment (ROA). In many cases, residual income is preferred to ROA because:
- residual income is a measure over time, while ROA represents the results for one period.
- residual income concentrates on maximizing absolute dollars of income rather than a percentage return, as with ROA. Continued on next page 737 final pg 7
- the imputed interest rate used in calculating residual income is more easily derived than the target rate that is compared to the calculated ROA
- average investment is employed with residual income while year-end investment is employed with ROA.
14.. Fenway Telecom has three divisions, commercial, retail, and consumer, that share the common costs of the company’s computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year: What is the allocation rate for the upcoming year, assuming Fenway Telecom uses the single-rate method and allocates common costs based on the number of connections?
- Why would GM want to transfer price products between sub component and production divisions?
- Creates more accurate accounting records continued on next page 737 final pg 8
- Is required under GAAP
- Increases the income of the company as you have more sales among divisions
- Allows for a better view of competitive performance with other brands cars
- Incants the component division to charge the highest cost
BZ480 International Management Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements.Discuss the appropriateness of using the same leadership style across all EU countries. Include in your discussion the research results for both views given in your textbook.