Case Summary: A Company L along with 19 other companies participated in the global market for CRT products. CRT’s were used as a component in several consumer goods which included television sets as well. They were sold in large numbers in the US including the state of Washington. A lawsuit was filed by the state in the Washington state court against the company L and other foreign companies. The lawsuit claimed that these companies are conspiring for raising prices of CRTs and setting its production level in the market, which was in violation with the state consumer protection statute. In response, a motion was filed by the defendant to dismiss the case on the grounds of lack of personal jurisdiction.
To Explain: If the motion of dismissal should be granted.
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Chapter 2 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- Determine the legality of the transaction. KlineCorp wants to conduct business with Company B in another country. While visiting Company B, the management team of Company A offers some of the foreign employees some free products from their company. Legal or illegal, depending on the purpose Legal bribe Illegal bribearrow_forward"French survivors of the Holocaust sued Yahoo USA because French citizens were purchasing Nazi memorabilia on Yahoo’s U.S. website. The lawsuit also charged Yahoo USA with hosting the websites of anti-Semitic groups.arrow_forwardRed Cross insurance company provide 8 million Americans with health-care financing. They paid millions of dollars for care attributable to illnesses related to tobacco use. In 1998, to recover some of this money, they sued the tobacco companies alleging fraud. They claimed that since 1953 the defendants conspired to addict millions of Americans to cigarettes and other tobacco products by misrepresenting the safety of nicotine and its addictive properties. The defendants’ success caused lung, throat, and other cancers, as well as heart disease, stroke, emphysema, and other illnesses to members of Red Cross plans, which Red Cross was required to pay. At trial, the defendants asked the court to dismiss the case on the ground that the plaintiffs did not have standing to sue. Does Red Cross have standing in this case? © a. No, Red Cross does not have standing because their claim should be filed against the insured who chose to smoke and risked these illnesses. b.…arrow_forward
- Sungsam, Inc., a Taiwanese company, and nineteen other Asian companies (the Companies) collaborated to manufacture and sell transistors internationally. These transistors were used in a multitude of consumer goods, millions of which were sold in the United States, including Georgia. The state of Georgia sued the Companies in Georgia, alleging violating consumer protection laws. The Companies filed a motion to dismiss for lack of personal jurisdiction. In response, Plaintiff alleged that the Companies sold the transistors into international streams of commerce with the intent that they would be incorporated into millions of consumer products sold in the United States, including Georgia. Should the Companies motion be granted? © a. No because the Companies did not sell any products directly to Georgia consumers and did not conduct any business in Georgia. b. Yes because a foreign manufacturer’s placement of goods into the stream of commerce of the state of Georgia, with…arrow_forwardThe Endangered Species Act (ESA) charges the National Marine Fisheries Service (a federal agency) with the duty to “ensure” that any proposed action by the council does not “jeopardize” any threatened or endangered species. The Steller sea lion is on the list of endangered species. The agency developed a North Pacific marine fishery plan that permitted a significant harvest of fish by commercial fisheries in the area. Greenpeace, an environmental group, challenged the agency on the grounds that the plan was not based on a sufficient number of biological studies on the impact of the allowed fishing on the Steller sea lion. Greenpeace’s biologic opinion concluded that the fishery plan would reduce the level of food for the sea lions by about 40% to 60% if the juvenile fish were not counted in that figure. Greenpeace’s expert maintained that counting juvenile fish was misleading because they were not capable of reproducing and the government agency’s figure was, as a result, much lower at…arrow_forwardWidget Corporation is the manufacturer of many popular children’s toys but have seen a great decrease in sales and the board of directors is worried that the business may no longer be viable. The board decides to aggressively sue other toy manufacturers that have likely been infringing on Widget’s intellectual property, enter into a joint venture with a another company to build a new factory to reduce costs, and make large and notable donations to children hospitals as part of a PR campaign to raise the corporation's image. Additionally, the board decides to start manufacturing medical equipment to make up for the projected shortfalls in budget, even though the corporation was formed to make toys. Some shareholders are upset and sue the board of directors. (a) Which of the board’s actions fall into their express power and which are their implied power? Please explain why the actions would be categorized that way. (b) Would the ultra vires doctrine play a role in the shareholders suit…arrow_forward
- Indian Coffee Company, a coffee roaster in Pittsburgh, Pennsylvania, sold its Breakfast Cheer coffee in the Pittsburgh area, where it had an 18 percent market share, and in Cleveland, Ohio, where it had a significant, but smaller, market share. Late in 1971, Folger Coffee Company, then the leading seller of branded coffee west of the Mississippi, entered the Pittsburgh market for the first time. In its effort to gain market share in Pittsburgh, Folger granted retailers high promotional allowances in the form of coupons. Retail customers could use these coupons to obtain price cuts. Redeeming retailers could use the coupons as credits against invoices from Folger. For a time, Indian tried to retain its market share by matching Folger’s price concessions, but because Indian operated in only two areas, it could not subsidize such sales with profits from other areas. Indian, which finally was forced out of business in 1974, later filed a Robinson—Patman suit against Folger. At trial,…arrow_forwardthe major federal legislation in Canada that defines illegal practices, including price fixing, bid rigging, price discrimination, predatory pricing, double ticketing, resale price maintenance, bait and switch selling, and pyramid selling occurs when false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property comprise principle and standards that guide behaviour in the world of business may be incurred when an unfair and untrue statement is made about a competitor in writing the statement becomes actionable when it is communicated to a third party and can be interpreted as damaging the company the foundation for partnering-style relationship, product, customer, and presentation strategies an attempt to influence the person receiving the "gift"prohibits joining a competing firm for a year after they leave mutual exchange of benefits, as when a firm buys products from its customer the buyer wants to do business with an institution…arrow_forwardInternal misuse of information and communications technology by public sector employeesICT may be both the target of criminal activity, as well as a tool used to facilitate criminal acts (Choo, Smith & McCusker 2007). Instances of misuse of ICT within the public sector may fall within the definition of fraud provided in the Commonwealth Fraud Control Guidelines 2011 (the Guidelines), namely ‘dishonestly obtaining a benefit, or causing a loss, by deception or other means’ (AGD 2011: 5). According to KPMG (2013), the most concerning frauds against organisations are those perpetrated by employees, as they tend to be committed for longer periods and may cause more reputational damage than external fraud. Over a three year period between 2008 and 2011, the estimated value of internal fraud against the Commonwealth has steadily increased, from $1.9m in 2008–09 (Lindley & Smith 2011) to $3m in 2010–11 (Jorna & Smith 2013). Internal misuse of ICT is an important area of concern as…arrow_forward
- Internal misuse of information and communications technology by public sector employeesICT may be both the target of criminal activity, as well as a tool used to facilitate criminal acts (Choo, Smith & McCusker 2007). Instances of misuse of ICT within the public sector may fall within the definition of fraud provided in the Commonwealth Fraud Control Guidelines 2011 (the Guidelines), namely ‘dishonestly obtaining a benefit, or causing a loss, by deception or other means’ (AGD 2011: 5). According to KPMG (2013), the most concerning frauds against organisations are those perpetrated by employees, as they tend to be committed for longer periods and may cause more reputational damage than external fraud. Over a three year period between 2008 and 2011, the estimated value of internal fraud against the Commonwealth has steadily increased, from $1.9m in 2008–09 (Lindley & Smith 2011) to $3m in 2010–11 (Jorna & Smith 2013). Internal misuse of ICT is an important area of concern as…arrow_forward"7. Freedom of Speech. Wandering Dago, Inc. (WD), operates a food truck in Albany, New York. WD brands itself and the food it sells with language generally viewed as ethnic slurs. Owners Andrea Loguidice and Brandon Snooks, however, view the branding as giving a “nod to their Italian heritage” and “weakening the derogatory force of the slur.” Twice, WD applied to participate as a vendor in a summer lunch program in a state-owned plaza. Both times, the New York State Office of General Services (OGS) denied the appli-cation because of WD’s branding. WD filed a suit in a federal district court against RoAnn Destito, the commissioner of OGS, contending that the agency had violated WD’s right to free speech. What principles apply to the government’s regula-tion of the content of speech? How do those principles apply in WD’s case? Explain. [Wandering Dago, Inc. v. Destito, 879 F.3d 20 (2d Cir. 2018)] (See Business and the Bill of Rights.)"arrow_forwardFor the scenario below, determine the legality of the company's actions. Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an agreement wherein Bigcorp may not charge more than $300 for a speaker system. Strictly illegal Legal Illegal, depending on impactarrow_forward
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