MGMT 520 Midterm Exam (Summer 2016)

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MGMT 520 - Legal, Political and Ethical Dimensions of Business

Guide for DeVry Students

Midterm Exam, Question 1: Possibility 1 requires you to discuss the ethics and legality of the Federal Government recording or tracking calls or performing internet searches without a warrant. You might wish to discuss the USA Patriot Act and the impact of national security concerns. What about the 4th Amendment?

  1. (TCO A) Under what circumstances might it be ethical for the federal government to record or track calls or Internet searches without any sort of warrant? Analyze and evaluate the various issues presented while arguing and debating the connections between business, law, politics, and ethics. Midterm Exam, Question 2: Possibility 3: What type of legal theories might be involved in a lawsuit about separating tires (remember the cord/tread separations for Firestone tires which resulted in accidents and deaths?). (Discuss express warranties and the implied warranty of merchantability. What about strict liability resulting from either a design defect or a manufacturing defect? Could there also be a failure to warn which would also constitute strict liability? What about potential defenses for the manufacturer?)

  2. (TCO B) In thinking about the different types of product defects discussed in your text, which types of legal theories of recovery might be involved in a lawsuit about separating tires? Analyze and evaluate the various issues presented while arguing and debating the connections between business, law, politics, and ethics. Be specific when discussing the various causes of action and what defenses might be argued. Midterm Exam, Question 3: Possibility 1 and 2: Because tires are a part of an inherently dangerous activity (Driving) should manufacturers and retailers be subject to strict liability for defective tires? Why or why not? What defenses might be argued? Would they be successful? (Discuss strict liability which normally means no defenses for design defect, manufacturing defect or failure to warn. Almost research express warranties and the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. Would negligence exist here as well? What about defenses such as assumption of the risk, contributory negligence, misuse of the product?
  3. (TCO C) If tire manufacturers or retailers were sued for defective tires, would they have any defenses? Why or why not? Discuss what legal theories of recovery might be presented by an injured plaintiff. Analyze and evaluate the various issues presented while arguing and debating the connections between business, law, politics, and ethics. Be specific when describing causes of action and possible defenses. Midterm Exam, Question 4: Two possibilities relate to our contracts with credit card companies and their ability to change interest rates and dictate the terms of the agreement. Discuss the differential in power and examine the concept of an unconscionable contract. Would such a concept apply here? Is the credit card contract written in reasonably understandable terminology and an adequate font? Would the nonwaivable good faith provision in the Uniform Commercial Code Section 1-304 affect this situation? What restrictions has Congress placed in recent years on the issuance and solicitation of credit? What further legislation would be appropriate for regulating the credit card industry?
  4. (TCO E) With the credit-card contracts, credit-card companies can unilaterally change the interest rate. Discuss whether there should be any requirements of reasonableness or fair dealing implied in the agreement. Please define the concept of an unconscionable contract. Could such a concept apply in the case of credit card contracts? Would the non-waivable good faith provision in Uniform Commercial Code Section 1-304 affect this situation? In recent years what restrictions have been passed into law dealing with the solicitation of credit and the issuance of credit cards? Analyze and evaluate the various issues presented while arguing and debating the connections between business, law, politics, and ethics. Midterm Exam, Question 5: Two possibilities talk about technology or trade secrets, but basically you are to describe the criteria for qualifying for a patent, a copyright, a trademark and a trade secret. If your intellectual property rights are infringed, what relief could you request in court?

  5. (TCO G) What makes something a trade secret? What steps should a company take to ensure that a trade secret remains a trade secret? Also describe in generic terms the criteria for qualifying for a patent, a copyright, and a trademark. If your intellectual property rights are infringed, what relief could you request in court? Analyze and evaluate the various issues presented while arguing and debating the connections between business, law, politics, and ethics.

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