Why do you think Sears wants to reinstall commissions for its salespeople? Do you think that the new safeguard that separates diagnosing problems from selling services will prevent a recurrence of past problems? Explain.
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In 1992 the state of California charged Sears Auto Centers with overcharging customers for unneeded or unperformed repairs.
Sears agreed to a settlement that could cost as much as $20 million. Sears had compensated its salespeople with commissions based on total sales.
Following the settlement, Sears dropped the commissions and went to a straight salary.
Sears recently indicated that it is planning to reinstate commissions for salespeople in their Auto Centers.
It even plans on paying commissions for selling customers brake jobs and wheel alignments.
These two products were the core of the 1992 scandal. Sears says that it has taken steps to prevent a recurrence of past problems.
In particular, the decision right to recommend repairs is granted to mechanics who are paid a straight salary.
Sales consultants are paid commissions for selling repair services but are not authorized to recommend repairs.
Under the old system that caused problems, these individuals diagnosed repair problems and sold the corresponding service to customers.
Why do you think Sears wants to reinstall commissions for its salespeople?
Do you think that the new safeguard that separates diagnosing problems from selling services will prevent a recurrence of past problems? Explain.
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- You are President and CEO of Apex Business Systems, Inc. (Apex). Apex, through its purchasing agent, bought a new microwave from Inki Appliances Company (Inki) who sells microwaves on a daily basis. There was no written or oral warranty given when the sale was made. The microwave stopped working one week after it was placed it in the company kitchen. Assume also that nobody misused the microwave or in any way caused it to quit working. The purchasing agent returned the microwave three days after it quit working. The owner of Inki refused to repair or replace the microwave or offer a refund. Prepare a demand letter to be sent to Inki.Under the Uniform Commercial Code (UCC), which of the following remedies is available to both buyers and sellers? Select one: a. Recovering the total value of goods in the contract b. Recovering profit from the resale of nonconforming goods by the other party c. Damages in the amount of the difference between the contract price and the market price of goods d. Obtaining specific performance of the contractSolar Living discovers that Sunny Solar is planning to use the slogan “The Sun Is Always Shining on Solar Energy” in its marketing materials. Solar Living quickly files a trademark application for that phrase to prevent Sunny Solar from using it, although Solar Living has no plans to use the slogan. Will Solar Living’s application be granted? No, because Sunny Solar can prove that it thought up the slogan before Solar Living did. Yes, because Solar Living was the first to file for the trademark, and the U.S. operates on a first-to-file system. Yes, because “The Sun Is Always Shining on Solar Energy” is a phrase that can acquire a secondary meaning. No, because for a trademark to be granted an applicant must actually use, or intend to use, the mark in commerce.
- the major federal legislation in Canada that defines illegal practices, including price fixing, bid rigging, price discrimination, predatory pricing, double ticketing, resale price maintenance, bait and switch selling, and pyramid selling occurs when false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property comprise principle and standards that guide behaviour in the world of business may be incurred when an unfair and untrue statement is made about a competitor in writing the statement becomes actionable when it is communicated to a third party and can be interpreted as damaging the company the foundation for partnering-style relationship, product, customer, and presentation strategies an attempt to influence the person receiving the "gift"prohibits joining a competing firm for a year after they leave mutual exchange of benefits, as when a firm buys products from its customer the buyer wants to do business with an institution…Anthem, one of the largest healthcare insurers in the United States, implemented an“avoidable ER” policy to help manage the care of its enrollees. The policy stated thatAnthem would not pay for emergency room visits if the company determined that the visitwas not necessary. The policy, which was instituted in six states beginning in 2015, wasmeant to encourage patients to seek care in appropriate settings. However, providers feelthat this policy might cause patients to avoid emergency treatment, even when it isnecessary. In response to customer and provider complaints, Anthem created severalexceptions: Claims will be covered if a healthcare provider tells a patient to go to theemergency room, if the patient is under 15 years of age, if the patient is outside his or her state of residence, and if the patient had a CT scan or MRI or underwent surgery. Still,providers are unhappy with the policy (Livingston 2018).1-Why did Anthem implement this policy?The Federal Trade Commission (FTC) files suit against Yange Corp. under § 2 of the Sherman Act. To be successful, the FTC must prove that Yange Corp. possesses monopoly power in the relevant market and that the monopoly power was obtained by illegal means. The FTC has no direct evidence that Yange is using its power to control prices and restrict output. The FTC, therefore, must show that Yange Corp. has monopoly power indirectly, by showing that Yange Corp. has a dominant share of the relevant market and that there are significant barriers for new competitors entering that market. The FTC can calculate the market share that Yange Corp. has by: showing the total sales that Yange Corp. has ever had. × showing the net revenue that Yange Corp. had during their year of highest profits. looking at the company's sales compared against the total sales of the industry within a specific period. taking the total sales of the industry over one year, and comparing against industry sales over prior…
- Over the years, the Red Cross has been guided in its use of donations by honoring donor intent. This policy helped the organization deal with a major ethical challenge after the terrorist attacks of September 11, 2001. The Red Cross received more than $1 billion in donations and initially diverted some money to ancillary operations, such as creating a strategic blood reserve. After donors objected, however, the organization reversed its decision and – honoring donor intent – used the contributions to directly benefit people affected by the tragedy. Should the American Red Cross have reversed its initial decision to divert some of the money donated for September 11 relief efforts to pressing but ancillary operations? Support your chosen position.ANTHEM’S AVOIDABLE EMERGENCY ROOM POLICYAnthem, one of the largest healthcare insurers in the United States, implemented an“avoidable ER” policy to help manage the care of its enrollees. The policy stated thatAnthem would not pay for emergency room visits if the company determined that the visitwas not necessary. The policy, which was instituted in six states beginning in 2015, wasmeant to encourage patients to seek care in appropriate settings. However, providers feelthat this policy might cause patients to avoid emergency treatment, even when it isnecessary. In response to customer and provider complaints, Anthem created severalexceptions: Claims will be covered if a healthcare provider tells a patient to go to theemergency room, if the patient is under 15 years of age, if the patient is outside his or her state of residence, and if the patient had a CT scan or MRI or underwent surgery. Still,providers are unhappy with the policy (Livingston 2018). What other solutions could be used…Hyde is a broker involved in a conflicting demands settlement procedure that has already begun. The escrow funds are held in an attorney's escrow account. Hyde seeks an EDO from the FREC. How will the FREC likely respond? The FREC will not issue an EDO because the funds are in an attorney's escrow account. The FREC will issue an EDO within ten business days. The FREC will issue an EDO if the other three settlement procedures don't work. The FREC will not issue an EDO because the dispute must be settled
- Which of the following actos covered under a Personal Auks poley WOU al or of INGICE WREST OA An auto that is covered by a pelle se tare si se to see the interesting them on occident An auto that is inoked in an accidentting in damage that esessed the state accident repeating threshold An auto that is insured by a company which at the time of an accidente delaying syment of another com under the poly An auto whose owner has het teda proof of thancial responsibility after an accidentPlease do not give solution in image formate thanku.As the Vice President of Rochester Preferred Travel, you are upset with Premier Promos. Premier is a catalog company that provides imprinted promotional products for companies. Your travel service was looking for something special to offer in promoting its cruise ship travel packages. Premier offered free samples of its promotional merchandise, under its "No Surprise" policy. You asked yourself, "What can we lose?" and on January 11, you placed a telephone order for a number of samples. These included: An insulated lunch sack A portable power strip in a zippered case A square-ended barrel bag with fanny pack A deluxe canvas attaché case Two colors of garment-dyed sweatshirts All items were supposed to be free. But it seemed odd to you when they asked for your company's credit card number. This was because Premier had promised to bill you only if you decided to keep these sample items. When the items arrived. You were not pleased. You returned them all on January 21. You have a…