The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 5, Problem 5BCP
Summary Introduction
Case summary: The person MR was working as a manager in the company AEDC. His father was the president of AEDC and his relationship with his father was tense. MR left AEDC after ten years, taking 15,000 pages of trade secrets with him. MR joined another company GEMI which was a competitor of AEDC. GEMI developed equipment which had some similar elements as that of the AEDC equipment.
To explain : The violation of
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homas Persson and Jon Nokes founded Smart Inventions, Inc., to market household consumer products. The success of their first product, the Smart Mop, continued with later products, which were sold through infomercials and other means. Persson and Nokes were the firm’s officers and equal shareholders. Persson was responsible for product development, and Nokes was in charge of day-to-day operations. In time, they became dissatisfied with each other’s efforts. Nokes represented the firm as financially “dying,” “in a grim state, . . . worse than ever,” and offered to buy all of Persson’s shares for $1.6 million. Persson accepted.On the day that they signed the agreement to transfer the shares, Smart Inventions began marketing a new product—the Tap Light. It was an instant success, generating millions of dollars in revenues. In negotiating with Persson, Nokes had intentionally kept the Tap Light a secret. Persson sued Smart Inventions, asserting fraud and other claims. Under what principle…
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1. Explain how the ethics of an individual’s actions within a corporation is affected by the ethics of the corporation and by the fact that the corporation operates within the system of American free enterprise.
2. At which level do philosophical analysis and reflection take place? Why is that level higher than the other levels?
4. When moral rights clash, how does one decide between them?
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The Legal Environment of Business: Text and Cases
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