Case Summary: A Company L along with 19 other companies participated in the global market for CRT products. CRT’s were used as a component in several consumer goods which included television sets as well. They were sold in large numbers in the US including the state of Washington. A lawsuit was filed by the state in the Washington state court against the company L and other foreign companies. The lawsuit claimed that these companies are conspiring for raising prices of CRTs and setting its production level in the market, which was in violation with the state consumer protection statute. In response, a motion was filed by the defendant to dismiss the case on the grounds of lack of personal jurisdiction.
To Explain: If the motion of dismissal should be granted.
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Chapter 2 Solutions
The Legal Environment of Business: Text and Cases
- In January 2020, two of McKinsey & Co’s Associate Directors in France, Karim Tadjeddine and Thomas London, appeared in front of an inquiry by the French Parliament’s Senate into ‘The Growing Influence of Consulting Firms on Public Policy’. In the first year of the COVID crisis, between March 2020 and February 2021, €11.35mn had been spent by the Ministry of Health on seven consulting firms, including McKinsey, which alone had received €4mn. Among the services McKinsey had supplied was providing a staff member as ‘liaison officer’ for coordinating vaccine logistics at Public Health France. A senator asked: ‘Don’t you think that there are civil servants within our administration who could carry out this mission?’ Tadjeddine, Head of McKinsey’s public sector practice in France, replied simply: ‘Yes’. McKinsey has a large public sector consulting practice worldwide, with over 520 specialist consultants and more than 5,400 projects in the public and social sectors, spread across more…arrow_forwardSungsam, Inc., a Taiwanese company, and nineteen other Asian companies (the Companies) collaborated to manufacture and sell transistors internationally. These transistors were used in a multitude of consumer goods, millions of which were sold in the United States, including Georgia. The state of Georgia sued the Companies in Georgia, alleging violating consumer protection laws. The Companies filed a motion to dismiss for lack of personal jurisdiction. In response, Plaintiff alleged that the Companies sold the transistors into international streams of commerce with the intent that they would be incorporated into millions of consumer products sold in the United States, including Georgia. Should the Companies motion be granted? © a. No because the Companies did not sell any products directly to Georgia consumers and did not conduct any business in Georgia. b. Yes because a foreign manufacturer’s placement of goods into the stream of commerce of the state of Georgia, with…arrow_forward"French survivors of the Holocaust sued Yahoo USA because French citizens were purchasing Nazi memorabilia on Yahoo’s U.S. website. The lawsuit also charged Yahoo USA with hosting the websites of anti-Semitic groups.arrow_forward
- The Endangered Species Act (ESA) charges the National Marine Fisheries Service (a federal agency) with the duty to “ensure” that any proposed action by the council does not “jeopardize” any threatened or endangered species. The Steller sea lion is on the list of endangered species. The agency developed a North Pacific marine fishery plan that permitted a significant harvest of fish by commercial fisheries in the area. Greenpeace, an environmental group, challenged the agency on the grounds that the plan was not based on a sufficient number of biological studies on the impact of the allowed fishing on the Steller sea lion. Greenpeace’s biologic opinion concluded that the fishery plan would reduce the level of food for the sea lions by about 40% to 60% if the juvenile fish were not counted in that figure. Greenpeace’s expert maintained that counting juvenile fish was misleading because they were not capable of reproducing and the government agency’s figure was, as a result, much lower at…arrow_forwardRed Cross insurance company provide 8 million Americans with health-care financing. They paid millions of dollars for care attributable to illnesses related to tobacco use. In 1998, to recover some of this money, they sued the tobacco companies alleging fraud. They claimed that since 1953 the defendants conspired to addict millions of Americans to cigarettes and other tobacco products by misrepresenting the safety of nicotine and its addictive properties. The defendants’ success caused lung, throat, and other cancers, as well as heart disease, stroke, emphysema, and other illnesses to members of Red Cross plans, which Red Cross was required to pay. At trial, the defendants asked the court to dismiss the case on the ground that the plaintiffs did not have standing to sue. Does Red Cross have standing in this case? © a. No, Red Cross does not have standing because their claim should be filed against the insured who chose to smoke and risked these illnesses. b.…arrow_forwardIndian Coffee Company, a coffee roaster in Pittsburgh, Pennsylvania, sold its Breakfast Cheer coffee in the Pittsburgh area, where it had an 18 percent market share, and in Cleveland, Ohio, where it had a significant, but smaller, market share. Late in 1971, Folger Coffee Company, then the leading seller of branded coffee west of the Mississippi, entered the Pittsburgh market for the first time. In its effort to gain market share in Pittsburgh, Folger granted retailers high promotional allowances in the form of coupons. Retail customers could use these coupons to obtain price cuts. Redeeming retailers could use the coupons as credits against invoices from Folger. For a time, Indian tried to retain its market share by matching Folger’s price concessions, but because Indian operated in only two areas, it could not subsidize such sales with profits from other areas. Indian, which finally was forced out of business in 1974, later filed a Robinson—Patman suit against Folger. At trial,…arrow_forward
- Internal misuse of information and communications technology by public sector employeesICT may be both the target of criminal activity, as well as a tool used to facilitate criminal acts (Choo, Smith & McCusker 2007). Instances of misuse of ICT within the public sector may fall within the definition of fraud provided in the Commonwealth Fraud Control Guidelines 2011 (the Guidelines), namely ‘dishonestly obtaining a benefit, or causing a loss, by deception or other means’ (AGD 2011: 5). According to KPMG (2013), the most concerning frauds against organisations are those perpetrated by employees, as they tend to be committed for longer periods and may cause more reputational damage than external fraud. Over a three year period between 2008 and 2011, the estimated value of internal fraud against the Commonwealth has steadily increased, from $1.9m in 2008–09 (Lindley & Smith 2011) to $3m in 2010–11 (Jorna & Smith 2013). Internal misuse of ICT is an important area of concern as…arrow_forwardInternal misuse of information and communications technology by public sector employeesICT may be both the target of criminal activity, as well as a tool used to facilitate criminal acts (Choo, Smith & McCusker 2007). Instances of misuse of ICT within the public sector may fall within the definition of fraud provided in the Commonwealth Fraud Control Guidelines 2011 (the Guidelines), namely ‘dishonestly obtaining a benefit, or causing a loss, by deception or other means’ (AGD 2011: 5). According to KPMG (2013), the most concerning frauds against organisations are those perpetrated by employees, as they tend to be committed for longer periods and may cause more reputational damage than external fraud. Over a three year period between 2008 and 2011, the estimated value of internal fraud against the Commonwealth has steadily increased, from $1.9m in 2008–09 (Lindley & Smith 2011) to $3m in 2010–11 (Jorna & Smith 2013). Internal misuse of ICT is an important area of concern as…arrow_forwardthe 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…arrow_forward
- For the scenario below, determine the legality of the company's actions. Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an agreement wherein Bigcorp may not charge more than $300 for a speaker system. Strictly illegal Legal Illegal, depending on impactarrow_forwardIn 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…arrow_forwardSPRINT is negotiating with Carly Rae Jepsen’s lawyers to use her copyrighted hit song “Call Me Maybe” in a commercial launching its new cell phone campaign. What is the intellectual property document that SPRINT will have to obtain from Carly Rae Jepsen? Explain the purpose of this document.arrow_forward
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