Ronald R. and Edith Johnston were married and had 3 sons ranging in age from 12 to 16 when the parties separated. Edith filed for divorce the same year. The Johnstons owned a primary residence worth $186,000, with no mortgage on it. Ronald was a successful entrepreneur. He owned Depot Distributors, Inc., a business involved in selling and installing bathroom cabinets. He also owned several other businesses. In the 4 years leading up to the divorce, Ronald’s income was $543,382, $820,439, $1,919,713, and $1,462,712. Ronald invested much of his income in commercial and residential real estate that was held in his name only. At the time of the divorce trial, the real estate was valued at $11,760,000 and was subject to mortgages of $4,966,343. After their separation, Ronald engaged in certain transfers of property and distributions of property, in violation of the court’s order, which obfuscated his income and net worth. The trial court judge therefore accepted Edith’s appraisals of the value of the real estate. The trial court judge applied the equitable distribution doctrine of Massachusetts and awarded Edith real estate totaling $2,446,000, the family residence, and alimony of $1,200 per month. The trial court judge awarded Ronald real estate valued at $9,314,000 subject to mortgages of $4,966,343, for a net value of $4,347,657. The judge characterized this as a roughly 60–40 split of the real estate (i.e., 60 percent for Ronald and 40 percent for Edith). Ronald appealed the split of real estate and the award of alimony as violating the equitable distribution doctrine. Under the doctrine of equitable distribution, is the trial court’s award fair, or should Ronald win on appeal? Johnston v. Johnston, 649 N.E.2d 799, 1995 Mass. App. Lexis 429 (Appeals Court of Massachusetts)
> “Marketers need to be extra sure their product works as promised when the first introduce it.” How does this statement relate to what we know about consumers’ evoked sets?
> In his book Blink: The Power of Thinking without Thinking, author Malcolm Gladwell argues that hallowed marketing research techniques like focus groups aren’t effective because we usually react to products quickly and without much conscious thought so it
> What is prospect theory? Does it support the argument that people are rational decision makers?
> What is purchase momentum, and how does it relate (or not) to the model of rational decision-making?
> Describe a heuristic a couple might use when they make a decision, and provide an example of it.
> What is a kin-network system?
> What are some differences between “traditional” and “modern” couples in terms of how they allocate household responsibilities?
> What is the difference between an autonomic and syncretic decision?
> List three roles employees play in the organizational decision-making process.
> What are some of the ways in which organizational decisions differ within each class?
> Summarize the buyclass model of purchasing. How do decisions differ within each class?
> What is a prediction market?
> Consumers who participate in the sharing economy seem willing to interact with total strangers. Despite safety and privacy concerns, what is the long-term outlook for this change in the way we think about interacting with people whom we don’t know? How c
> What are some factors that influence how an organizational buyer evaluates a purchase decision?
> What is the difference between a non-compensatory and a compensatory decision rule? Give one example of each.
> Describe the difference between inertia and brand loyalty.
> List three product attributes that consumers can use as product quality signals and provide an example of each.
> Why can “mindless” decision making actually be more efficient than devoting a lot of thought to what we buy?
> What is consumer involvement? How does this concept relate to motivation?
> What is mood congruency and how to advertisers use it?
> What is the difference between a mood and an emotion?
> List three types of perceived risk and give an example of each?
> Name the levels in Maslow’s Hierarchy and give an example of a marketing appeal that is focused at each level.
> The clothing chain H&M features computer-generated models on its Web site. The company drew criticism for presenting only picture-perfect people; for example, the Norwegian Broadcasting Corporation accused the chain of “creating unrealistic physical ide
> Go to www.victoriassecret.com. How does this famous website use enhancement of the self to attract consumers? Would you expect males to visit the site as well as females? How could the site make it easier for males to purchase from the site (remember, ma
> The Farmer’s Cooperative of Arkansas and Oklahoma (Co-Op) was an agricultural cooperative that had approximately 23,000 members. To raise money to support its general business operations, Co-Op sold promissory notes to investors that were payable on dema
> While Nigeria, an African nation, was in the midst of a boom period due to oil exports, it entered into $1 billion of contracts with companies in various countries to purchase huge quantities of Portland cement from those companies. Nigeria was going to
> Nagib Giha (husband) filed a complaint for divorce from Nelly Giha (wife) on the grounds of irreconcilable differences. On May 20, the parties reached an agreement for the disposition of their property which provided that they would divide equally the ne
> Homer and Edna Jones, husband and wife, executed a joint will that provided “We will and give to our survivor, whether it be Homer Jones or Edna Jones, all property and estate of which the first of us that dies may be seized and possessed. If we should b
> Milton Mende purchased the Star Midas Mining Co., Inc., a Nevada corporation, for $6,500. This corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities Corporation (American Equities) and hired Be
> The archdiocese of Miami established a health and welfare plan to provide medical coverage for its employees. The archdiocese purchased a stop-loss insurance policy from Lloyd’s of London (Lloyd’s), which provided insurance against losses that exceeded t
> Gary and Ila Fedderson owned and operated Whiskey Flow, a restaurant and bowling alley located in Howard, South Dakota. After operating the business for some time, the Feddersons purchased a $1 million insurance policy from Columbia Insurance Group (Colu
> Middleton Tract consisted of approximately 560 acres of land located in the Santa Cruz Mountains in San Mateo County, California. The land, which had once been owned by William H. Middleton, had been subdivided into 80 parcels of various shapes and sizes
> Moe and Joe Rappaport (Tenants) leased space in a shopping mall owned by Bermuda Avenue Shopping Center Associates, L.P. (Landlord), to use as an indoor golf arcade. The lease was signed, and Tenants were given possession of the leased premises. Landlord
> Victor and Phyllis Garber acquired a piece of real property by warranty deed. The deed was recorded. The property consisted of 80 acres enclosed by a fence that had been in place for more than 50 years. The enclosed area was used to graze cattle and prod
> Darryl Kulwin was employed by Nova Stylings, Inc. (Nova), as a jewelry salesman. In that capacity, he traveled throughout the country, carrying with him jewelry owned and manufactured by Nova to show to prospective buyers. Kulwin was visiting Panoria Rus
> When Dr. Arthur M. Edwards died, leaving a will disposing of his property, he left the villa-type condominium in which he lived, its “contents,” and $10,000 to his stepson, Ronald W. Souders. Edwards left the residual of his estate to other named legatee
> Corn Products Refining Company (Corn Products) manufactured corn syrup, or glucose (a principal ingredient of low-priced candy), at 2 plants, one located in Chicago, Illinois, and the other in Kansas City, Missouri. Corn Products sold glucose at the same
> Metropolitan Edison Company owned and operated two nuclearfueled power plants at Three Mile Island near Harrisburg, Pennsylvania. Both power plants were licensed by the NRC after extensive proceedings and investigations, including the preparation of the
> Colgate-Palmolive Co. (Colgate) manufactured and sold a shaving cream called Rapid Shave. Colgate hired Ted Bates & Company (Bates), an advertising agency, to prepare television commercials designed to show that Rapid Shave could shave the toughest beard
> A statute of the state of Wisconsin forbids the practice of medicine without a license granted by the Examining Board (Board), a state administrative agency composed of practicing physicians. The statute specifically prohibits certain acts of professiona
> Kaiser Aluminum & Chemical Corporation entered into a collective bargaining agreement with the United Steelworkers of America, a union that represented employees at Kaiser’s plants. The agreement contained an affirmative-action program to increase the re
> McDonald’s Corporation operates the largest fast-food restaurant chain in the United States and the world. It produces famous foods such as the Big Mac hamburger, Chicken McNuggets, the Egg McMuffin, french fries, shakes, and other foods. A McDonald’s su
> Warner-Lambert Company has manufactured and distributed Listerine antiseptic mouthwash since 1879. Its formula has never changed. Since Listerine’s introduction, the company has represented the product as being beneficial in preventing and curing colds a
> Texas Gulf Sulphur Co. (TGS), a mining company, drilled an exploratory hole—Kidd 55—near Timmins, Ontario. Assay reports showed that the core from this drilling proved to be remarkably high in copper, zinc, and silver. TGS kept the discovery secret, camo
> Zapata Off-Shore Company (Zapata) was a Houston, Texas–based U.S. corporation that engaged in drilling oil wells throughout the world. Unterweser Reederei, GMBH (Unterweser), was a German corporation that provided ocean shipping and towing services. Zapa
> Banco Nacional de Costa Rica is a bank wholly owned by the government of Costa Rica. It is subject to the rules and regulations adopted by the minister of finance and the central bank of Costa Rica. The bank borrowed $40 million from a consortium of priv
> Prior to 1918, the Petrograd Metal Works, a Russian corporation, deposited a large sum of money with August Belmont, a private banker doing business in New York City under the name August Belmont & Co. (Belmont). In 1918, the Soviet government nationaliz
> To stabilize its currency, Argentina and its central bank, Banco Central (collectively, Argentina), issued bonds called Bonods. The bonds, which were sold to investors worldwide, provided for repayment in U.S. dollars through transfers on the London, Fra
> At the time George Neville and Tina Neville were married, George was 31 years old and a practicing attorney and Tina was a 23-year-old medical student. After 7 years, Tina became a licensed physician. Soon after, George filed for divorce from Tina becaus
> Dr. Duncan R. Danforth, a 75-year-old man of substantial means, married 21-year-old Loretta Ollison. Immediately following the ceremony, the newlyweds went to a lawyer’s office, where Danforth executed a newly prepared will, naming Ollison a principal be
> Mr. and Mrs. Campbell were out in a small boat on Hyatt Lake near Ashland, Oregon. The boat capsized near the middle of the lake sometime in the afternoon. No one saw the capsizing or either of the Campbells in the water. The deputy sheriff was called to
> During his first marriage to Miriam Talbot, Robert Mirkil Talbot executed a will in multiple originals that bequeathed his entire estate to Miriam, or if she should predecease him, to his friend J. Barker Killgore. After his first wife’s death, Robert ma
> Martha Jansa executed a will naming her 2 sons as executors and leaving all her property to them. The will was properly signed and attested to by witnesses. Thereafter, Martha died. When Martha’s safe-deposit box at a bank was opened, the original of thi
> Ethel M. Ramchissel executed a will that made the following bequests: (1) one-half of the stock she owned in Pabst Brewing Company (Pabst) to Mary Lee Anderson, (2) the stock she owned in Houston Natural Gas Corporation (Houston Natural Gas) to Ethel B
> Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers & Lybrand (Coopers), a national CPA firm that prepared audited financial statements for the company. The Lindner Fund, Inc., and the Lindner D
> Giant Stores Corporation (Giant) hired Touche Ross & Co. (Touche), a national CPA firm, to conduct audits of the company’s financial statements for 2 years. Touche gave an unqualified opinion for both years. Touche was unaware of any specific use of the
> Michael H. Clott was chairman and chief executive officer of First American Mortgage Company, Inc. (FAMCO), which originated loans and sold the loans to investors, including E. F. Hutton Mortgage Corp. (Hutton). FAMCO employed Ernst & Whinney, a national
> Brandon Apparel Group, Inc. (Brandon) made and sold clothing and licensed the making and selling of clothing in exchange for a percentage of the licensees’ sales revenues. Brandon began borrowing money from Johnson Bank and in 2 years owed the bank $10 m
> When Michael A. Jaffe, a child psychiatrist practicing in California, was accused of Medi-Cal fraud and theft, he requested that his malpractice insurer, Cranford Insurance Company (Cranford), provide his criminal defense. Cranford refused to defend Jaff
> Donald Barker, a wealthy Oregon resident, went to the law firm Winokur, Schoenberg, Maier, Hamerman & Knudson to have his estate planned. An attorney at the firm repeatedly told Barker that he could convey half of his $20-million estate to his wife tax f
> Antonio Munoz and Jacinto Segura won some money from 2 unidentified men in a craps game in a Los Angeles park. When Munoz and Segura left the park in Segura’s car, the 2 men followed them in another car. They chased Segura’s car for several miles and the
> Jowenna Surber owned a Mercedes-Benz automobile that she insured through an insurance broker, Mid-Century Insurance Company (Mid-Century). Mid-Century secured a policy for Surber with the Farmers Insurance Company (Farmers). Surber gave permission to her
> Richard Usher’s home was protected by a homeowners’ policy issued by National American Insurance Company of California. The policy included personal liability insurance. A provision in the policy read, “Personal liability and coverage do not apply to bod
> The defendants are approximately 80 tenants of a 300-unit luxury apartment building on the upper east side of Manhattan. The monthly rents in the all-glass-enclosed building, which won several architectural awards, were very high. The landlord brought a
> Title III of the Americans with Disabilities Act (ADA) requires that public accommodations must be “readily accessible to and usable by individuals with disabilities.” The U.S. Department of Justice (DOJ) is empowered to adopt regulations to enforce the
> Joseph and Helen Naab purchased a tract of land in a subdivision of Williamstown, West Virginia. At the time of purchase, there were both a house and a small concrete garage on the property. Evidence showed that the garage had been erected sometime prior
> W.E. and Jennie Hutton conveyed land they owned to the Trustees of Schools of District Number One of the Town of Allison, Illinois (School District), by warranty deed “to be used for school purpose only; otherwise to revert to Grantor.” The School Distri
> Burl Brunson purchased a parcel of real property in Newark, New Jersey. The deed for the property was properly recorded and indexed by the county recorder. Subsequently, Brunson borrowed $50,000 from The Howard Savings Bank, secured by a mortgage that wa
> Police officers of the city of Miami, Florida, responded to reports of a shooting at the apartment of Carlos Fuentes. Fuentes had been shot in the neck and shoulder, and shortly after the police arrived, he was removed to a hospital. In an ensuing search
> James D. Merritt leased a storage locker from Nationwide Warehouse Co., Ltd. (Nationwide), and agreed to pay a monthly fee to lease the locker. Merritt placed various items in the leased premises but never informed Nationwide as to the nature or quantity
> Victor Gruen was a successful architect. Victor purchased a painting titled Schloss Kammer am Attersee II by a noted Austrian modernist, Gustav Klimt, for $8,000. Four years after acquiring the painting, Victor wrote a letter to his son Michael, then an
> Sisters of Charity of the Incarnate Word, d.b.a. St. Elizabeth Hospital of Beaumont, operates a health and wellness center. Phil Meaux was a paying member of the health center. The rules of the center, which Meaux had been given, state, “The Health & Wel
> Alex Franks was a guest staying at a Comfort Inn in Searcy, Arkansas, while he was working on a highway project. Franks found a bundle of money in plain view in the left part of the left drawer in the dresser in his room. Franks notified the hotel manage
> Lipton Tea Co. (Lipton) was the second largest U.S. producer of herbal teas, controlling 32 percent of the national market. Lipton announced that it would acquire Celestial Seasonings, the largest U.S. producer of herbal teas, which controlled 52 percent
> Mercedes-Benz of North America (MBNA) was the exclusive franchiser of Mercedes-Benz dealerships in the United States. MBNA’s franchise agreements required each dealer to establish a customer service department for the repair of Mercedes-Benz automobiles
> Maricopa County Medical Society (Society) is a professional association that represents doctors of medicine, osteopathy, and podiatry in Maricopa County, Arizona. The society formed the Maricopa Foundation for Medical Care (Foundation), a nonprofit Arizo
> Law school students, after they graduate from law school, must take and pass a bar exam before they can become a lawyer in a state. Most law students take a preparatory bar exam course before they take the exam. Harcourt Brace Jovanovich Legal (HBJ) was
> Douglas Hoflin was the director of the Public Works Department for Ocean Shores, Washington. During a period of 7 years, the department purchased 3,500 gallons of paint for road maintenance. As painting jobs were finished, the 55-gallon drums that had co
> The Reserve Mining Company (Reserve) owned and operated a mine in Minnesota that was located on the shores of Lake Superior and produced hazardous waste. Reserve obtained a permit from the state of Minnesota to dump its wastes into Lake Superior. The per
> Leslie Salt Company owned a 153-acre tract of undeveloped land south of San Francisco. The property abutted the San Francisco National Wildlife Refuge and was approximately one-quarter mile from Newark Slough, a tidal arm of San Francisco Bay. Originally
> FBNH Enterprises, Inc. (FBNH), was a distributor of a product known as French Bronze Tablets. The purpose of the tablets was to allow a person to achieve an even tan without exposure to the sun. When ingested, the tablets imparted color to the skin throu
> Barry Engel owned and operated the Gel Spice Co., Inc. (Gel Spice), which specialized in the importation and packaging of various food spices for resale. All the spices Gel Spice imported were unloaded at a pier in New York City and taken to a warehouse
> The Federal Mine Safety and Health Act requires the secretary of labor to develop detailed mandatory health and safety standards to govern the operation of the nation’s mines. The act provides that federal mine inspectors are to inspect underground mines
> George Carlin, a satiric humorist, recorded a 12-minute monologue called “Filthy Words.” He began by referring to his thoughts about “the words you couldn’t say on the public airwaves” and then proceeded to list those words, repeating them over and over
> Johns-Manville Corporation is a profitable company that makes a variety of building and other products. It was a major producer of asbestos, which was used for insulation in buildings and for a variety of other uses. It has been medically proven that exc
> Sun-Diamond Growers of California is a trade association that engages in marketing and lobbying activities on behalf of its 5,000 member-growers of raisins, figs, walnuts, prunes, and hazelnuts. Sun-Diamond gave Michael Epsy, U.S. secretary of agricultur
> Papa John’s International, Inc., is the third-largest pizza chain in the United States, with more than 2,050 locations. Papa John’s adopted a new slogan—“Better Ingredients. Better Pizza.”—and applied for and received a federal trademark for this slogan.
> Leslie Neadeau was the president of T.O.N.M. Oil & Gas Exploration Corporation (TONM). Charles Lazzaro was a registered securities broker employed by Bateman Eichler, Hill Richards, Inc. (Bateman Eichler). The stock of TONM was traded in the over-the-cou
> Continental Enterprises, Inc. (Continental), had 2,510,000 shares of stock issued and outstanding. Louis E. Wolfson and members of his immediate family and associates owned in excess of 40 percent of those shares. The balance was in the hands of approxim
> McDonald Investment Company was a corporation organized and incorporated in the state of Minnesota. The principal and only place of business from which the company conducted operations was Rush City, Minnesota. More than 80 percent of the company’s asset
> Dare To Be Great, Inc. (Dare), was a Florida corporation that was wholly owned by Glenn W. Turner Enterprises, Inc. Dare offered self-improvement courses aimed at improving self-motivation and sales ability. In return for an investment of money, the purc
> James O’Hagan was a partner in the law firm Dorsey & Whitney in Minneapolis, Minnesota. Grand Metropolitan PLC (Grand Met), a company based in London, England, hired Dorsey & Whitney to represent it in a secret tender offer for the stock of the Pillsbury
> Determine what the real interest rates are in the following countries, given their nominal interest rates and inflation rates: Canada: inflation is 4.5%, and the nominal risk-free interest rate is 6.0%. Switzerland: inflation is 1.25%, and the nominal ri
> The Wall Street Journal lists forward rates for Japanese yen. Say that the current listings are: 1-month forward rate (indirect) 103.17 3-month forward rate (indirect) 102.68 6-month forward rate (indirect) 101.88 First, is the anticipated inflation rat
> Scott currently owns 500 shares of Twelve Colonies, Incorporated. Twelve Colonies has a high-payout dividend policy, and this year will pay $2.00 cash dividend on its shares selling currently at $18.00. Scott wants a low dividend policy of 2% of the stoc
> Carmen owns 300,000 shares of Wiseguy Entertainment. Wiseguy has just declared a $0.20 per share dividend on a stock selling at $25.20. What must Carmen do if she wants no cash dividends at this time, $40,000 of dividends, or $80,000 worth of dividends?
> Erik owns 2,000,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of $0.05 per share. The stock is currently selling for $5.00. If Erik wants an annual “dividend income” from his stock holdings of $50,000, $100,000, or $250,000,
> Go to a web source such as Yahoo.com and find the recent dividend payment history of Coca-Cola and predict the next dividend change in size and timing. (Note: We used data from 2008-2011) Coca-Cola Company Cash Dividend History Date of Dividend Amount
> Refer to Table 17.2 and predict the next dividend using a percent change pattern, a dollar change pattern, and your expectation given the actual pattern change. PepsiCo Quarterly Cash Dividend History Table 17.2 PepsiCo Quarterly Cash Dividend Hist
