Gm520 midterm exam (2)

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GM520 Midterm Exam (2)
1. TCO C) Bud Johnson owns a General Motors dealership in Pierre,
South Dakota. At the request and expense of General Motors, Bud
traveled to Phoenix, Arizona, for purposes of the demonstration of a new
vehicle called the Roughrider, designed to compete against the current
offering of SUVs. Bud went to the proving grounds in the desert around
Phoenix and spent a day watching the vehicle demonstrations. Bud and
other dealers drove the vehicles, and much dust resulted from their
driving. A few weeks later, Bud became ill with flu-like symptoms. He
was finally diagnosed as having coccidioidomycosis or "valley fever."
Valley fever is a disease well known to Arizona residents, and most
have had it if they have lived there over 10 years. Newcomers are
particularly vulnerable to the disease because the exposure to dust seems
to build up immunity among the residents. Bud became quite ill
and brought suit against the car manufacturer that invited him for its
failure to warn him about the valley fever phenomenon before he came
out to the testing grounds. Answer the following questions, and use
cases and theories from the text to support your arguments: Was
there negligence in the failure of General Motors to warn Bud? (15
points) Discuss all defenses General Motors may have. (15
points) Does strict liability in torts apply to this situation? Why or
why not? (10 points) (Points : 40)
2. TCO I. Marianne Jennings wrote an article, "Why an International
Code of Ethics would be good," which was assigned to be read at the
beginning of the course. As you have worked throughout this session,
you should have considered this article and how it may or may not have
impacted different situations in the world
economic/business/legal/political environments. The essay you will
write on the next question should show that you have read Marianne's
article and can apply her theories and thoughts from that article to the
scenario provided. Feel free to rely on the information you know about

2. the situations (if real) or analogize to one that is real, if you wish.
Include in your answer at least two specific concepts from Marianne's
article, and apply those concepts to your reasoning in your answer. You
will be graded on your knowledge of the article as well as the
application of ethical theories to international situations.
Arguably, the United States and other countries have been experiencing
one of the longest and hardest hitting economic crises since the Great
Depression over the last few years. This economic downturn is a result
of multiple things, but the housing bubble burst was one major
event that continues to ripple throughout the bank/lending world. As a
result of the downturn in housing sales, foreclosures, bank lending
overvaluations, and bank failures, lending practice changes and bank
bailouts have become the norm.
The U.S. financial crisis has not gone unnoticed in the international
world. The impact has been worldwide. The value of securities tied to
real estate fell, which damaged financial institutions globally. New rules
regarding appraisers, appraisals, and bank oversight have gone into
place, but not in time to save many investors and foreign banks from
huge losses.
Many people think that this crisis could have been avoided if better
regulations had been in place. Some feel that the U.S. bank/lending and
borrowing ethical standards may have been partially responsible for this
downturn.
Argue for or against an ethical basis for the housing bubble collapse.
Use Marianne Jennings' article as a basis for a solution to avoiding a
future collapse such as this. Can you think of a way that an international
code of ethics would have helped avoid this crisis or could keep another
one from occurring in the future? What challenges would there be in
implementing ethical codes that may prevent such a situation in the
future? Be sure to include specific ideas from Marianne's article along
with your own thoughts, analysis, and evaluation of this essay question.
(Points : 40)
3. TCO B. The "public comment" period closes on an OSHA proposed
regulation, and your business had filed a public comment against the

3. proposed regulation explaining that the regulation would not fix the
problem that OSHA was trying to remedy, that the regulation would cost
more than the problem itself, and that the regulation was a tax, not a
safety change. List two arguments available to your company that may
succeed in overturning the regulation. (Points : 15)
4. TCO A. Use the fact pattern you received in the above Marianne
Jennings "International Code of Ethics" question to answer this
question. Analyze and propose a solution to the problem you received
above using the Blanchard and Peale method. Show the steps, apply the
facts, and provide a proposed solution you would suggest. (Points : 40)
5. TCO F. When Vanna White sued Samsung for appropriation and
under the Lanham Act, she won her case under the California common
law right of publicity claim and under the Lanham Act. List the eight
Sleekcraft factors that are required to prove a Lanham Act
complaint. (Points : 15)
6. (TCO C)Will E. Chancit, a 36-year-old attorney, was killed when his
Ford Fairlane collided with some metal fence on the Harbor Freeway in
Los Angeles. He was traveling at a speed between 50 and 70 mph. What
happened was this: A city of Los Angeles construction crew had placed
a "left lane closed ahead" sign with a "60 mph" speed limit sign under it.
(The usual speed limit in that area was 70 mph.) However, the actual
closed lane was the right lane. Speculation is that Will noticed at the last
minute that he was in the wrong lane and over corrected, and that's how
he slid off the road and hit the fence. After the collision, the car spun
and the driver's door flew open. Chancit was ejected from the car and
sustained fatal head injuries. Had the door stayed closed, his injuries
would have been relatively minor. Chancit was not wearing his seat belt,
and his wife claims he had been up all night the night before after
getting food poisoning at the local Chi-Chi's. I. Discuss the
negligence or other theory for recovery in the suit Chancit’s widow has
brought against Ford Motor Company, the makers of the Ford Fairlane.
(15 points) II. Discuss all defenses Ford Motor Company might
have. (10 points) III. Discuss any liability the City of Los Angeles
may have. (10 points) IV. Discuss any liability Chi-Chi's may
have. (5 points) (Points : 40)