Case Scenario:
Giant Batteries, Inc. is a large corporation that manufactures batteries for large industrial and agricultural vehicles. Over the past few months, it has experienced an overwhelming amount of legal problems and litigation. The president of Giant Batteries, Ima Dummie, consults with the law firm at which you work seeking legal advice and counsel relative to the company's various legal issues. The senior partner for the firm has asked that you research each of the issues presented by Mr. Dummie and prepare an interoffice memorandum outlining the law as it relates to the issues as well as an analysis of the actions that the corporation should take in remedying the situation, if necessary. The senior partner of your firm has asked you to address the following six (6) issues in an interoffice memorandum of no more than six (6) pages:
Problem 1. One of Giant Batteries salespersons, Joe, anxious to make a sale, intentionally quoted a price to a customer that was $600 lower than Giant has authorized for that particular product. The customer purchased the product at the quoted price. When Giant learns of the deal, it claims that it is not legally bound to the sales contract because it did not authorize Joe to sell the product at that price. Is Giant Batteries bound by the contract? Fully discuss.
Problem 2. One day, Tina, a Giant Battery employee, suffered a serious burn when she accidentally spilled some acid on her hand. The accident occurred because another employee, who was suspected of using illegal drugs, carelessly bumped into her. The hand required a series of skin grafting operations before it healed sufficiently to allow Tina to return to work. Tina wants to obtain compensation for her lost wages and medical expenses. Giant claims that it is not legally required to compensate Tina in that regard. Fully discuss the law as it relates to Giant's legal responsibilities for compensating Tina.
Problem 3. After Tina's injury, Giant decides to conduct random drug tests on all of its employers. Several employees claim that the testing violates their privacy rights. If the dispute is litigated, what factors will the court consider in deciding whether the random drug testing is legally permissible?
Problem 4. The Federal Trade Commission (FTC) has learned that Giant Batteries engages in deceptive advertising practices. What actions can the FTC take against Giant?
Problem 5. Giant faces stiff competition from Bigger Batteries, Inc., another battery manufacturer. To acquire control over Bigger, Giant makes a tender offer to Bigger's shareholders. If Giant succeeds in its attempt and Bigger is merged into Giant, will the merger violate any antitrust laws? Suppose the merger falls through. The vice president of Giant's battery division and the president of Bigger agree to divide up the market between them so they will not have to compete for customers. Is this agreement legal? Fully explain.
Problem 6. Ima Dummie learns that Giant's shareholders are contemplating a takeover of a rival. Mr. Dummie tells his wife about the possibility. His wife calls their broker who purchases shares in the target corporation for both her and her husband. Has Mr. Dummie violated any security laws? Has his wife? Has the broker? Fully explain.
Prepare an interoffice memorandum answering the six (6) issues mentioned above and advising your senior partner on the most advisory course of action for Giant Battery to take. Be sure to support your analysis with cites to applicable case law and other scholarly legal authority.