(a)
Case summary:The company D made a product CC. The companies C and D had one-third of the market share in the product CC and agreed to fix the price of the product. After a few years, person R became the president of D and decided to influence other competitors to rejoin the conspiracy. After an investigation by US Department of Justice, the court convicted R for conspiracy and for the violation of section 1 of the Sherman act.
To find: The justification for the enhancement of the punishment of R on the basis of his position as a supervisor or a manager.
(b)
Case summary: The company D made a product choline chloride. Both companies C and D had one-third of the market share in the product and agreed to fix the price of the product. The person R became the president of D and decided to influence other competitors to join the conspiracy. After an investigation by US Department of Justice, the court convicted the R for conspiracy and for the violation of Section 1 of the Sherman act.
To find: The unethicalness in the decision of R and other competitors.
Case summary: The company D made a product choline chloride. Both companies C and D had one-third of the market share in the product and agreed to fix the price of the product. The person R became the president of D and decided to influence other competitors to join the conspiracy. After an investigation by US Department of Justice, the court convicted the R for conspiracy and for the violation of Section 1 of the Sherman act.
To find: The way R might have behaved ethically.
Want to see the full answer?
Check out a sample textbook solutionChapter 27 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- A computer manufacturer terminating an electronic store retailer's contract to sell the manufacturer's computers because the electronic store sold the manufacturer's computers at a price which the manufacturer deemed too low is: a per se violation of the Sherman Act. resale price maintenance subject to a rule of reason review. price fixing. none of the above.arrow_forwardPrice Fixing. Together, EMI, Sony BMG MusicEntertainment, Universal Music Group Recordings, Inc., andWarner Music Group Corp. produced, licensed, and distributed 80 percent of the digital music sold in the United States.the companies formed MusicNet to sell music to online services that sold the songs to consumers. MusicNet required allof the services to sell the songs at the same price and subject tothe same restrictions. Digitization of music became cheaper,but MusicNet did not change its prices. Did MusicNet violatethe antitrust laws? Explain. [Starr v. Sony BMG Music Entertainment, 592 F.3d 314 (2d Cir. 2010)] (See Section 1 of theSherman Act.)arrow_forwardNo Plagiarism Please! Compare the major antitrust acts of the United States. Specify the intent and purpose of each, and draw conclusions about their effectiveness.arrow_forward
- Preparation Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, or responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and national or international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appeár to further some social good, beyond the interests of the firm and that which is required by law." The aim is to increase long- term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. Every year,…arrow_forwardMalaysian Business law: Company secretary and auditors Tangen Sdn Bhd is a company which manufactures mugs and cups. The company's issued share capital is 50,000 ordinary shares with a par value of RM1 per share. Alfred is one of the shareholders in the company. He is unhappy with the fact that Tangen Sdn Bhd engages the services of the auditor for management and advisory services. He thinks it is necessary for the company to engage some other person. Based on the above facts, answer the following questions: a. Tangen Sdn Bhd wishes to remove its auditor by way of written resolution. b. The auditor did not detect the fraud committed by the management of the company for the year 2019. c. Do you agree with Alfred?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
- Describe the conditions set out by the Supreme Court, under which the federal antitrust laws must defer to states' regulatory choices.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_forwardOver the years, the Red Cross has been guided in its use of donations by honoring donor intent. This policy helped the organization deal with a major ethical challenge after the terrorist attacks of September 11, 2001. The Red Cross received more than $1 billion in donations and initially diverted some money to ancillary operations, such as creating a strategic blood reserve. After donors objected, however, the organization reversed its decision and – honoring donor intent – used the contributions to directly benefit people affected by the tragedy. Should the American Red Cross have reversed its initial decision to divert some of the money donated for September 11 relief efforts to pressing but ancillary operations? Support your chosen position.arrow_forward
- Corporate Liability of Bp oil about the deepwater horizon oil spill in 2010arrow_forwardIn 1992 the state of California charged Sears Auto Centers with overcharging customers for unneeded or unperformed repairs. Sears agreed to a settlement that could cost as much as $20 million. Sears had compensated its salespeople with commissions based on total sales. Following the settlement, Sears dropped the commissions and went to a straight salary. Sears recently indicated that it is planning to reinstate commissions for salespeople in their Auto Centers. It even plans on paying commissions for selling customers brake jobs and wheel alignments. These two products were the core of the 1992 scandal. Sears says that it has taken steps to prevent a recurrence of past problems. In particular, the decision right to recommend repairs is granted to mechanics who are paid a straight salary. Sales consultants are paid commissions for selling repair services but are not authorized to recommend repairs. Under the old system that caused problems, these individuals diagnosed repair…arrow_forwardprinciples of SEC Code Governance that Enron Company has violatedarrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education