1 What is the Sarbanes-Oxely Act, its intent and its major provisions? Have the markets benefitted from this act? If so how; if not why?
2 Consider the Microsoft case discussed in Chapter 25.
a. A. What were the facts and issues in the Microsoft case? What was the judgment(s)?
b. Use the Chicago School and/or the Harvard School to argue, Did Microsoft participate in:
i. Specific conduct
ii. Exclude competitors
iii. Raise barriers to entry
iv. Foreseeable consequences of an action
v. Passive or active collusion
c. How do the Clayton Act and Sherman Act apply to this case? What are the specific references in the law that might apply here? Do you agree this is restriction of trade or is it a solid biz decision based on intellectual property? Support your answer.
3 Kirk Daley, a 36-year old attorney, was killed when his Buick Opel collided with a metal fence on the Harbor freeway in Los Angeles. He was travelling at a speed of between 50-70 MPH. After the collision, the car spun and the driver's door opened. Daley was ejected from the car and sustained fatal head injuries. Had the door stayed closed, he would have sustained relatively minor injuries. Daley was not wearing a seat belt. Discuss the negligence theory for recovery in this suit. Daley's widow has brought suit against General Motors, the makers of the Buick Opel. Discuss any defenses the might have.
4The James' were negotiating the purchase of the Smith's home but requested a termite inspection. The inspection came back clear from the ABC Bug Co. The James' bough the house and immediately began to notice signs of termite infestation. They called Goodby Bug Co. and their technician confirmed significant termite infestation and damage. The technician said he had inspected the home for the Smith's a few weeks earlier, but was never asked to repair and exterminate. The James' want out of the contract. Do they have a basis? What are the Smith's defenses?
5 Gardner-Denver(GD) is the US's largest manufacturer of ratchet wrenches. Rogers, a former GD employee, formed D. E. Rogers and began selling ratchet wrench parts. From 1964 to 1971, the two competed with Rogers charging prices 30% below GD's. In August, 1971, GD began a dual-price system: Blue list - discounts for quantities of 5 or more (which were largely Roger's parts); White list - non-Rogers parts. The Blue list was given only to GD sales reps. A price war followed with Rogers filing an anti-trust suit. Are there any anti-trust violations?
6 In the Marianne Jennings article, Why an international code of business ethics would be good for business, what are the premises that Ms Jennings postulates. Do you agree? If so or not, support your discussion with evidence.