Question:

> After working as a consultant for the “We Can Help You” firm for seven years, you recently received a promotion to manager. In this new role, you report to a partner and are responsible for various consulting teams. You now create these teams in collabor

> You and two partners operate a graphics design and printing company. The success of this business relates to the high-quality service and products you provide to your clients. To move to the next level requires a considerable financial investment in comp

> As a manager employed by Want-It-Now Rapid Delivery Service, you are responsible for pricing the services involving same-day deliveries. Among your primary concerns is the competitive aspects of your business. You have proposed contractual language that

> Hello-Hello is a U.S. telecommunications company with global operations. Sophia is an assistant vice president of Hello-Hello. She is dispatched to China to handle two situations. First, a shipment of 500 cases of cell phones is stalled in customs. She i

> Can EMW use Colonial Car’s marketing plans without permission?

> The Mayor of the City of New York took issue with a number of works in a Brooklyn Museum temporary exhibit titled “Sensation: Young British Artists from the Saatchi Collection.” Especially troubling to him was a painting by Nigerian artist Chris Ofili, e

> As the vice president for sales of a company that manufactures and sells commercial carpet, you notice an alarming increase in the number of customers filing complaints with your company service representatives. Of particular importance is the number of

> Explain what is meant by the Incorporation Doctrine and how it was used to expand the impact of the due process clause.

> The research director of PharmCo, a midsize pharmaceutical company, tells top management of an important new discovery. After years of effort, one of the company’s research teams has discovered a drug that will reverse pattern baldness, the leading cause

> Sarah works at a small accounting firm. The firm’s handbook contains the following policy: Employees are prohibited from discussing their salary, bonuses, or any other forms of compensation, including benefits and vacation time. Sarah is very careful not

> Delivery Quik Inc. delivers packages to small retail stores from a central distribution point in a major metropolitan area. Drivers both load and unload their packages, some of which weigh close to 100 pounds. Although equipment helps the drivers in thei

> International Paint Company wants to sell a large tract of land with several facilities on it to U.S. Parts Inc. As acquisitions manager for U.S. Parts, what do you need to know before buying this land, other than that International Paint has good owners

> You and a former classmate started a computer software company five years ago. Originally, the two of you were the owners and only employees. The foundation of your company was your combined expertise in creating custom-designed applications addressing t

> Three years following your graduation with a business degree, you and three classmates began operating a consulting business. Your firm specializes in offering support related to payroll-and account-management computer applications. So far, your firm has

> You are chief executive officer of a toy manufacturing firm. Your firm has been inspected by officials at OSHA, the federal Occupational Safety and Health Administration, for alleged violations of workplace safety regulations. The evidence presented to t

> Richard Epstein, a University of Chicago law professor, said in his book Takings that the principles of nuisance illustrate more clearly than any other doctrine how our property-based legal system functions. Required: 1. What did he mean by this statem

> You are the owner of a small firm that manufactures lawn mowers. While using one of your products, a person suffers severe injury and now is suing, claiming that your product was negligently designed because it did not adequately protect the user. You ha

> You are the president of a large corporation which is in the business of manufacturing, among other things, chemical products used to eradicate termites. You have just reviewed a confidential report, prepared by one of your top scientists, questioning th

> (a) A promoter of theatrical productions applied to a municipal board (charged with managing a city-leased theater) for a license to stage the play Hair. Relying on outside reports that because of nudity the production would not be in the best interests

> Three years ago the Darden Corporation bought a thousand acres of land that borders the Potowac River in Washam County. While waiting on development opportunities, Darden cut timber to help repay the mortgage loan it took out to buy the land. On March 2,

> You are senior project manager for Superior Paper, Inc., a paper processing company with plants in several states. Recently, you have been given responsibility for overseeing the construction of a new plant in High Top, Tennessee, on the edge of the Tall

> Two former roommates from college contact you about an opportunity to make big money. Their idea is to start a business to market a new video game system (the computer science major developed the software, the engineer created the hardware). They estimat

> XYZ Company is a U.S. firm that makes communication software used in a variety of consumer goods manufactured and sold in the United States. XYZ recently learned that one of the manufacturing firms it supplies, ABC Company, is exporting finished goods to

> You own University Heights Apartments, a business that rents primarily to students. One evening, your tenant Sharon is attacked by an intruder who forces the lock on the sliding glass door of her ground-floor apartment. Sharon’s screams attract the atten

> As the chief executive officer of a Silicon Valley software company, you become aware that your chief competitor is working on a new computer program that will revolutionize interactive voice based applications. You know that if you can find out about se

> For years, your small electronics company has given all its employees one week’s pay and a turkey each Christmas. But now a recession is eroding profitability and the company is operating at a significant loss, so you consider canceling the Christmas pre

> You just had one of those days—exciting and overwhelming. As your company’s director of human relations, you have dealt with an employee asking how much leave he can take when his wife has their first baby next month. A phone call from the company’s CFO

> When Maria Suarez got her new job, she was happy. As an oil rigger, she would make enough money to support herself and her two children. But after a week of working with a primarily male crew, her happiness was gone. Her co-workers were the reason. At fi

> Suppose it has been two years since your graduation. During the time you have worked for a large energy company. In your work, you have been exposed to the numerous ways your employer is investing in energy. These sources include oil, coal, natural gas,

> (a) What is meant by the phrase “paper fortress”? (b) How does maintaining a paper fortress aid the employer when the employee claims unfair treatment?

> While you are attending a business conference in South America, someone approaches you and says, “A private property system might work well in your country, but it will never work in mine. There are only a few wealthy families in my country who own almos

> You are the manager of a used car firm known as Reliant Motor Company. Your lawyer has called to tell you that John Doe, a customer you have been dealing with for several months, has filed a lawsuit against the firm. The customer claims the vehicle he pu

> You have spent the past four weeks away from work serving as a juror in a case deciding whether a pharmaceutical company should be held liable for the heart attack of a woman who took its painkiller, Oxxy-1. The lengthy case has taken a toll on your prof

> As the vice president of finance for a company producing and selling electronic switchboards, you are considering foreign investment to build a plant to assemble electronic components. A source in China advises you that a town near Shenzhen may be an exc

> A drug company applied for the approval of the Food and Drug Administration (FDA) to market a miracle drug that the company believed could cure some cancers. During the period that the application was under consideration the company’s stock rose to $65 p

> You are feeling very good about your life. This positive feeling is due in large part to your recent promotion to national sales manager of Ever-Present Technologies Inc. Your company offers full-service consulting and computer sales to manufacturers, es

> You are the Marketing Manager for We-Can-Furnish-It Office Supply Company. In your role, you work with your company’s sales staff. This staff is divided between personnel who travel to make face-to-face calls and those who answer the phones and accept or

> The regulation of deceptive trade practices under Section 5 of the FTC Act, the disclosures required by the Truth-in-Lending Act, and the provisions of many other consumer protection laws aimed at helping consumers by preventing business activities that

> As a new sales representative for Misco Equipment Corporation, you take a customer out to dinner. Before dinner is over, you have shaken hands on a deal to sell the customer nearly a half-million dollars’ worth of industrial equipment. In writing up the

> (a) Name the four sanctions used to enforce the Sherman Act. (b) What is the relationship between the criminal sanction and suits for triple damages? (c) What is the impact of the nolo contendere plea?

> Describe how business organizations can be found criminally responsible for their actions. What is the way such organizations are punished?

> The Justice Department filed a civil suit claiming Grinnell Corporation had a monopoly in the operation of central station hazard-detecting devices. These security devices are used to prevent burglary and to detect fires. They involve electronic notifica

> (a) Are franchise agreements which allocate an exclusive territory to the franchisee always illegal? Explain. (b) Give an example of a product where intrabrand competition is as important as interbrand competition.

> (a) Describe the situations when a supplier can legally fix the minimum price that a customer must charge to its buyers. (b) What analysis do courts use when judging the legality of a vertical price-fixing plan? Why is this legal analysis the appropriate

> (a) Is it ethical to advertise tobacco products in association with a desirable, exciting, or sophisticated lifestyle? (b) Is it ethical to advertise these products in association with a cartoon character that is appealing to young people?

> A headline from The Wall Street Journal read “U.S. Companies Pay Increasing Attention to Destroying Files.” The article discussed how many companies are routinely shredding files in the ordinary course of business to prevent future plaintiffs from obtain

> As amended in 1988, the Foreign Corrupt Practices Act prohibits bribery as a practice for U.S. companies to use in obtaining business in other countries. In passing the act, Congress expressed the concern that bribery was inherently wrong. Which major sy

> Give examples of why a key controversy at the heart of environmental regulation concerns how much certainty of harm is required to justify regulatory intervention.

> Articulate an example that would constitute trademark dilution, but not infringement. Can you come up with one that constitutes infringement but not dilution?

> The NLRB conducted a certification election, and the union won by a vote of 22–20. Management refused to bargain with this union. The reason for this refusal to recognize the union as the employees’ bargaining agent was that the union had used “recogniti

> Tammy was shopping in Save-a-Lot Grocery Store when Stewart, an employee, brushed Tammy’s ankle with a grocery cart. A short time later, while still shopping, Tammy told Stewart that he should say “Excuse me,” and then people would get out of his way. St

> There are three distinct levels of proof required by law depending upon the kind of case involved. Describe them and when they are used.

> In light of recent court decisions restricting the use of peremptory challenges, should they be eliminated from litigation altogether? Would the elimination of peremptory challenges improve the efficiency of the trial process?

> (a) What were the two basic purposes for Congress’s passing the Landrum-Griffin Act? (b) What are the additional unfair labor practices added by this law?

> (a) List the six unfair labor practices created by the Taft-Hartley Act. (b) Describe a situation for each of these unfair labor practices.

> Ed is discharged for allegedly stealing property from his employer. He asks his union to have him reinstated because his discharge violates the collective bargaining agreement in force. However, the union does not investigate the incident until it is too

> (a) Under what circumstances is the president authorized to order parties in a labor dispute back to work for 80 days? (b) Describe the procedures that must be followed to invoke this cooling-off period.

> (a) Why is it important for courts to use the rule of reason analysis when considering actions allegedly in violation of the Sherman Act? 503 (b) What is the significance of the per se analysis under the rule of reason?

> To secure a loan, Rubin pledges stock that he represents as being marketable and worth approximately $1.7 million. In fact, the stock is nonmarketable and practically worthless. He is 544 charged with violating the Securities Act of 1933. He claims that

> (a) What are the two important documents required by the Securities Act of 1933? (b) Under the provisions of the federal Securities Act of 1933, there are three important time periods concerning when securities may be sold or offered for sale. Name and d

> What are the forces that Justice Cardozo says shape the judicial process? How is the law made? In light of the liberal versus conservative divisions in the courts, are Cardozo’s observations still relevant?

> For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Albert’s authority to collect payments from customers. However, neither Paulette nor Albert told any customers of Albert’s termination. Yesterday, Theresa, one

> Why are concurring and dissenting opinions important?

> Define judicial activism. Compare and contrast judicial restraint and judicial activism.

> A marketing consultant to your firm comments that being ethical in business means nothing more than obeying the law. Discuss.

> (a) The FTC has responsibility for preventing unfair methods of competition and unfair and deceptive business practices. Describe three examples of business activities that could be declared unlawful by the FTC pursuant to these powers. (b) Does the FTC

> A group of lawyers in private practices who regularly acted as court-appointed counsel for indigent defendants in District of Columbia criminal cases agreed at a meeting of the Superior Court Trial Lawyers Association (SCTLA) to stop providing such repre

> (a) Explain the difference between a cease and desist order and a consent order. Which type of order is used most frequently at the FTC for consumer protection? Why do you suppose this type of order is most often used? (b) What is a trade regulation rule

> You are the sales representative for a manufacturer of insulation. A customer that accounts for approximately one-third of your sales suddenly asks for a discount because of the volume of its purchases. You are politely told that a refusal will cause the

> Ortega, an employee of ABC Inc. recently joined a church that forbids working on Saturdays, Sundays, and Mondays. Ortega requested that his employer change his work schedule from eight-hour days, Monday through Friday, to ten-hour days, Tuesday through F

> Ace Tennis Co. hires only employees who speak English. Does this policy illegally discriminate against Hispanic job applicants who speak only Spanish? Discuss.

> Muscles-Are-You Inc. a bodybuilding spa targeted primarily toward male bodybuilders, refused to hire a woman for the position of executive director. The spa’s management stated that the executive director must have a “macho” image to relate well with the

> (a) What are the names given to the three parties typically involved in an agency relationship? (b) Describe the general purpose of the agency relationship.

> (a) What is the “specific” sense of corporate governance? (b) Why might some managers try to artificially raise or “puff up” the market price of their stocks? Describe several ways they could do this.

> The Smelting Department of Mathews Company has the following production and cost data for November. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 8,

> Data for Cascio Company are given in BE16-7. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconcili

> Production costs chargeable to the Finishing Department in June in Cascio Company are materials $16,000, labor $29,500, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Compute the unit costs for material

> Trek Company has the following production data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion co

> Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. (a) Compute the variable- and fixed-cost elements using the high-low method. (b) Estimate the total cost if the company produces 9,2

> Goode Company has the following production data for selected months. Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process. Ending Work in Process % Complete as to

> Factory labor data for Weber Company are given in BE16-2. Manufacturing overhead is assigned to departments on the basis of 200% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments.

> Data for Weber Company are given in BE16-1. Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $35,000 of the factory labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the c

> Hindi Co. started 3,000 units during the period. Its beginning inventory is 500 units one-fourth complete as to conversion costs and 100% complete as to materials costs. Its ending inventory is 300 units one-fifth complete as to conversion costs and 100%

> Sanchez Co. has zero units of beginning work in process. During the period, 12,000 units were completed, and there were 500 units of ending work in process one-fifth complete as to conversion cost and 100% complete as to materials cost. What were the equ

> At Ely Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to production.

> Larissa Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $140,000. Compute the break-even point in units using (a) the mathematical equation and (b) contribution margin per unit.

> Weber Company purchases $45,000 of raw materials on account, and it incurs $60,000 of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not paid until April.

> Overton Company has gathered the following information. Units in beginning work in process ……………………………………20,000 Units started into production …………………………………………..164,000 Units in ending work in process ………………………………………..24,000 Percent

> The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units. Instructions: Pre

> The ledger of Hannon Company has the following work in process account. Production records show that there were 800 units in the beginning inventory, 30% complete, 1,200 units started, and 1,500 units transferred out. The units in ending inventory were

> The Smelting Department of Polzin Company has the following production and cost data for September. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units started and finish

> The Cutting Department of Keigi Company has the following production and\ cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Keigi Company uses the FIFO method to com

> Using the data in E16-15, assume Royale Mortgage Company uses the FIFO method. Also assume that the applications in process on September 1 were 100% complete as to materials (forms) and 40% complete as to conversion costs. Data in E16-15: Royale Mortgag

> Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to Se

> Remington Shipping, Inc. is contemplating the use of process costing to track the costs of its operations. The operation consists of three segments (departments): receiving, shipping, and delivery. Containers are received at Remington’s

> The Welding Department of Thorpe Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Instructions: Prepare a production cost report for the Welding Department for

> Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

> Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $

> Shown below are the job cost related accounts for the law firm of Jack, Bob, and Will and their manufacturing equivalents: Law Firm Accounts …………………………………… Manufacturing Firm Accounts Supplies …………………………………………………… Raw Materials Salaries and Wages Pay

> Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month