TCO D)
Short Answer Question and Facts for Page 1 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 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.” 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 attorney’s fees, and for
punitive damages. List any defenses Casings, Inc., would have under contract
theory ONLY. (short answer question)
2. (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 New York 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)
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 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 defenses any of the three would have. Analyze
the success of the defenses.
Here is a second
version of this question
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.
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
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.
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 pay-outs to victim families. In Canada, the cap on non-pecuniary 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)
6. (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 non-pecuniary damages is
around $300,000. Punitive damages in Canada are rarely allowed. Will this
Canadian citizen be permitted to sue Robins & Robins in
this California court? Why or why not? (short answer question) This
is a same scenario, but the last question is different. See answer below
to the last part.
Page 2
Question 2 – 2
essays, 30 points each.
7. (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:
Dear
Staff:
There is a
new Sheriff in town – and it is me. As your new leader, I am implementing
a dress code that includes no slacks or shorts for women and no earrings
for male teachers. Men shall all be clean shaven. Violators will be
docked one week’s pay; 2ndoffenses will result in a one week
suspension without pay and 3rd offenses, dismissal. All
teachers will address me as “Pastor Forester” or “Amen, Pastor Forester.”
Teachers who fail to abide by these dictates will be docked two points on their
annual evaluations. Amen, Pastor Forester.”
That day, one teacher,
Anna Seenandfeld had a birthday party at the school, having just turned
40. Her frown at the party showed everyone she was not happy about her
party. Pastor Forestor had bought black balloons for her and joked
with the other teachers about the “over the hill” teacher. The next
day, Pastor Forester goes into the teacher’s lounge and calls all non-tenured
teachers into his office. He tells them that he has assigned himself to
be their mentoring teacher and that effectively immediately they will be
evaluated weekly. One teacher, Anna Seenandfelt, begins to
cry. Another teacher, Andy DuFrane, rolls his eyes and says,
“God! These menopausal women should not be allowed around our
students.” Pastor Forester goes to Anna and hugs her, offering her a
tissue. He pats her gently on the behind and whispers, “Act your age,
please.” When she pulls forcefully away from him, Pastor Forester
assigns her to work Saturday detention for the next three weeks to “toughen her
up.”
A pregnant P.E.
teacher, Lisa Ready, is reassigned by Pastor Forester to a math position (even
though she has only three credits in math) because Pastor Forester says this
position is “less strenuous for a pregnant lady.”
On the 3rd week
of detention duty, a student stabs Anna, wounding her severely.
Although she survives and recovers, she loses one kidney as a result of
the injury. The school doesn’t offer health insurance, and Anna
incurs over $55,000 for her hospital bills; the student (and his family) is
insolvent.
One month
later, a parent complains about his student being unable to succeed in his
math course due to the teacher’s (Lisa’s) incompetence, Pastor Forester
fires Lisa Ready for her inability to perform her job. Pastor Forester
tells Lisa in front of her class of students, and then walks her out of the building;
2 hours later, Lisa goes into premature labor and delivers her first son, who
has severe health issues as a result of being premature. The baby’s doctor
states the cause of early labor as being from “intense duress and undue
stress.” Lisa’s husband’s health insurance covers all of the costs of the birth
and the baby’s care….
8. (TCO E) Anna and Lisa both sue the school and Pastor
Forester for discrimination and further, for liability for their injuries (the
stabbing damages and the damages to Lisa’s son’s health.) You are one of the
board of directors and need to analyze the liability of the school. Limit
your answer to the SCHOOL’S liability only.
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.
Here is a second
version of this question
TCO E. Anna and
Lisa both sue Pastor Forester and the school under Title
VII. Analyze their Title VII lawsuit against the school and Pastor
Forester. Explain whether you feel that the two injured teachers have
cases for recovery (describe the theories and whether you feel they will be
successful). Discuss whether the school being a religious, private school has
any bearing on liability or protection from liability. Include all defences
available to the school and Pastor
9. (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 “Jerry Birches”
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 a convicted felon. He claims that is illegal, and he publicly
attacks the church for their “less than Christian” behavior in firing
him….
(Points: 30)
Page 3
Page 3 – Two essays at
30 points each.
10. (TCO F
and G) Laura Etheridge
and Rita O’Donnell, the CEO and Creative Director of Clean Clothes (a
Texas based lesbian women’s 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 Face Book
showcasing their “Funky Femme” slacks collection, made from a material which
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 move 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 their
drag queen dress collection for men on billboards, the internet and
television.
Additional info in
inside the text
11. (TCO
F) Ellen DeGeneres sues Clean Clothes
for the use of a look-alike model for the 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 JOSB’s
countersuits? Do you think any of the 3 will win their cases? (Why or why not.)
12. (TCO
G) It is discovered that two weeks before the Ellen
show, she had sold $2 million 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. Ellen’s 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 defense? Should Ellen
have avoided discussing JOSB publicly on her show since she typically
trades their stock? (Points: 30)
13. (TCO
B) 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 F) Eagle
Standard AInc. (ESI) a major engineering firm specialized in designing aircraft
parts for government contracts. ESI employees project managers and 42 engineers
who are divided into project group of 6-7 members. The majority of project team
leaders have spent time in France and Britain learning new technology. The
Eagle 6 project team consisting of 6 engineers is developing new equipment for
a jet fighter. The project has been ongoing for 18 months and all 6 engineers
have been with this project group since its inception working together on all
projects. Eagle 6 works well together.
However, the Eagle 6
team has the most technical project and its engineers have been working too
much overtime. The senior project manager, Bruce Chanick interviewed and hired
a new engineer to help out Richard Hue. Rich has good qualifications and seems
to be knowledgeable and motivated. The work is challenging and gives him the
opportunity to showcase his computer skills and engineering knowledge. Two
weeks in he quickly became a contributing member of the team showing initiative
and the willingness to work overtime and weekends to research possible
solutions to potential problems. Richard was particularly adept with the
computer system and Bruce is ecstatic about his new hire Richard is a loner on
and off the job. He is from country x a small island with a high power-distance
culture all of the other members of the team member felt Richard flouts his
education and knowledge and none of them like him in fact can’t stand him.
Bruce told Tim that
Richard thinks that the rest of the team are slackers who talk about bowling
and sport instead of working Richard thinks he is disliked because he’s from
Country X. Bruce Wants to keep everyone in the company and more importantly
within the team so how should Bruce handle this problem? Detail what he
should do by applying at least two conflict management methods to enhance group
and team performance include roles and decision making in our response.
1. (TCO B) Faxco
Incorporated is a business with 500 employees. The CEO of the company has
recently learned based on employee surveys. That the employees are not very
happy with the company in fact the CEO is starting to believe that this may be
the reason why Faxco is experiencing slower sales and a recent budget crisis
which threatens to shut down the company in 3 years if it is not fixed.
You are a consultant
and the CEO has asked you to visit the company for a week and analyze what
might be going wrong. Here is your notes form the week (1) Attended
manager 1’s staff meeting. He has 200 employees working under him Manager 1
talking about the recent budget problems that Faxco is having. He said it’s not
like we didn’t know this was coming. The company makes a junky product compared
to our competitor and half the time. I think the manufacturing department is
cutting corners. Overheard manager 1 tells an employee. I don’t blame anyone if
they are looking for work elsewhere.
(2) Overhead three
employees talking after Manager 1’s staff meeting Employees are upset about the
idea that the manufacturing department is cutting corners and creating junky
products. The company advertises its products as having the finest quality and
durability.
(3) Attended Manger
2’s staff meeting he runs the Tech department and has 20 employees. He was very
upset with the Marketing department. He stated someone over in marketing
reported to the CEO that a computer technician from this department was rude to
them. I did not even ask who it was that was supposedly being rude. I know
we’re all techies in this customers do is complain. It us versus them
apparently so we have to watch out. In light of what you learned in MGMT
591 about Diversity job satisfaction and attitudes please write up a neatly
organized analysis for the CEO.
