Daniel Hudson, the general counsel of eHarbour, has received a letter from a dissatisfied eHarbour user. The user downloaded the eHarbour app to his phone and used the navigation software to compete in a local regatta. The user claims that the app stopped working during the regatta when he was leading the race and that he ended up placing fourth rather than winning the regatta. An internal investigation shows that the software indeed had a temporary service outage on the day of the race for approximately 10 minutes for selected users. The customer is demanding $100,000, including the $5,000 prize awarded to the first-place winner, and emotional damages in the amount of $95,000 for not winning the race. The company is worried about the bad publicity with a lawsuit but does not want to pay such a large settlement. Discuss the different types of alternative dispute resolution that could be used to avoid litigation. In your role as a paralegal or legal assistant at eHarbour, give a recommendation on which form of alternative dispute resolution you think would be best in this situation and explain your recommendation.
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- Donald Waddell got a job at the Boyce Thompson Institute for Plant Research. Waddell did not have an employment contract for a fixed term, and the institute’s employee manual said that his job was “terminable at will.” Soon after he was hired, the institute implemented a whistleblower policy designed to encourage “the highest standards of financial reporting and lawful and ethical behavior.” Waddell repeatedly told his supervisor, Sophia Darling, that she needed to file certain financial documents more promptly. Darling fired Waddell, telling him that he was disrespectful and insubordinate. Define “at will” employment and wrongful termination. Based on the evidence given, was Waddell wrongfully terminated? Why, or why not.arrow_forwardGeek Chic Company provides computer repair services for the community. Obie Won’s computer was not working, and he called Geek Chic for a home repair visit. Geek Chic Company’s technician arrived at 2:00 pm to begin work. By 4:00 pm, the problem was diagnosed as a failed circuit board. Unfortunately, the technician did not have a new circuit board in the truck because the technician’s previous customer had the same problem and a board was used on that visit. Replacement boards were available back at Geek Chic Company’s shop. Therefore, the technician drove back to the shop to retrieve a replacement board. From 4:00 to 5:00 pm, Geek Chic Company’s technician drove the round trip to retrieve the replacement board from the shop.At 5:00 pm, the technician was back on the job at Obie’s home. The replacement procedure is somewhat complex because a variety of tests must be performed once the board is installed. The job was completed at 6:00 pm. Please chk the attachment1. If you were in…arrow_forwardAn employee at an electrical engineering firm was unhappy about being overlooked for a promotion opportunity and decided to resign. He started working at a competing firm in the same city. The former firm soon realized that their innovative designs in engineering solutions were being made available at the new firm where the employee was now working. After a thorough investigation, it was found that the disgruntled employee’s account and password (and therefore his access to confidential designs) were still active. The investigation indicated that the employee had regularly accessed his account and reviewed the confidential designs. REQUIRED Identify and explain the type of fraud that has taken place. What must have motivated the employee to commit the fraud? Explain your answer. List two contributing factors to the type of fraud that had taken place.arrow_forward
- WBM Motorworks is a manufacturer of high-end touring and off-road motorcycles. On November 30, the company was sued by a customer who was injured when the front shock absorber on the WBM Series 3 motorcycle cracked during use. The company conducted a preliminary investigation into the matter during December and found evidence of amanufacturing defect in the shock absorber. While it is uncertain whether the manufacturing defect is the source of the product failure, the company has voluntarily recalled the front shock absorbers on the Series 3 motorcycles. The company is uncertain how the lawsuit will be resolved. Similar lawsuits against other manufacturers have been settledfor approximately $2,000,000.Write a brief memo to the president of WBM Motorworks, U. D. Mach III,discussing how the lawsuit might be reported in the financial statements.arrow_forwardAble, a Certified Fraud Examiner, interviewed a suspect involved in an environmental crime. The suspect, Blake, admitted to purposely polluting the environment. Blake’s action eventually caused almost thirty people to develop serious environmentally related illness. Upon hearing this fact from Blake, Able should: A. Scold Blake for his conduct. B. Make no comment whatever. C. Treat Blake with decency and respect. D. Ask Blake to apologize to the victims.arrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Mr. Arty works for Smile Accounting Firm as a senior accountant. Currently, he is doing a review of rental property compliance testing of rental receipts and expenses of the property owned by the client. He determines that the staff accountants tested only two tenants per property, instead of the three required by the audit program based on materiality considerations. However, to request more information from the client would cause massive delays, and the manager on the engagement is pressing hard for the information now. The manager did approach the client, who stated that she “needed the report yesterday.” The manager reminds Arty that no problems were found from the testing of the two properties, in past years the workpapers called for just two properties to be reviewed, the firm has never had any accounting issues with respect to the client, and he is confident the testing is sufficient. Explain the relationship between the manager’s explanations and the judgment tendencies.arrow_forwardHunn injured herself when she slipped and fell on a loose plank while walking down some steps. The night before, while entering the hotel, she had noticed that the steps were dangerous, and although she knew from her earlier stays at the hotel that another exit was available, she chose that morning to leave via the dangerous steps. The hotel was aware of the hazard, as one of the other guests who had fallen that night had reported his accident to the desk clerk then on duty. Still, the hotel did not place cautionary signs on the steps to warn of the danger, and they were not roped off or otherwise excluded from use. Hunn brought an action against the hotel for injuries she sustained as a result of her fall. Should she recover? Explain.arrow_forwardA fertilizer manufacturing company wants to relocate to Yellowstone County. A report from a fired researcher at the company indicates the company’s product is releasing toxic by-products. The company suppressed that report. A later report commissioned by the company shows there is no problem with the fertilizer.Should the company’s chief executive officer reveal the content of the unfavorable report in discussions with Yellowstone County representatives? Discuss.arrow_forward
- The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 2013. The store was closed for four months (Sept – Dec 2013) and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: The amount of sales Carlson would have made if the hurricane had not struck; and Whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The table below shows the sales data for the 48 months preceding the storm. The following table reports total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Management…arrow_forwardWhich of the following MOST likely indicates a clear violation of an NFPO’s code of conduct? John Adams, a volunteer for the local pet shelter, also owns a pet store and has offered a discount on pet food to the local shelter. Cecilia Lam used inappropriate language on her Facebook page when referring to the NFPO for which she worked. Mark Adams, an employee for a legal society, used the organization’s computer to research a new job. Hanpreet Kaur, the accountant for a sports rehabilitation society, offered the society’s services to his sister free of charge without her needing to qualify.arrow_forwardHere is a scenario where you would have to deal with a customer who is being rude and abusive. You work for as a customer service representative at a call center for a company that makes exercise equipment. A customer calls in complaining that her treadmill motor is smoking. She has called in previously and was informed that her warranty has been voided because she did not follow the maintenance instructions in the handbook for her machine. She is upset because no one ever told her about maintenance when she bought the machine. She starts calling you a crook for robbing her, and continues to call you names (including some we can’t print). Explore what steps you would take in this situation to remain calm and relaxed. How would you go about de-escalating the situation? How do you avoid correcting the customer and putting her on the defensive? If it became absolutely necessary, how would you phrase a warning to refrain from personal attacks?arrow_forward
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage