Business Ethics: Case Studies and Selected Readings , Sixth Edition (South-Western Legal Studies in Business Academic Series)

638 Pages·2008·3.5 MB·English

by  Marianne M. Jennings

. . .
MARIANNE M. JENNINGS
SixthEdition
BUSINESS
ETHICS
Case Studies and Selected Readings
Marianne Moody Jennings
ArizonaStateUniversity
Australia.Brazil.Japan.Korea.Mexico.Singapore.Spain.United Kingdom.United States
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BRIEF CONTENTS
PREFACE xi
ACKNOWLEDGMENTS xvii
UNIT 1
F E :V V 1
OUNDATIONSOF THICS IRTUEAND ALUES
SECTIONA:DEFININGETHICS 3
SECTIONB:RESOLVINGETHICALDILEMMAS 20
UNIT 2
F B E :V ,V , B 45
OUNDATIONSOF USINESS THICS IRTUE ALUES AND USINESS
SECTIONA:DEFININGBUSINESSETHICS 47
SECTIONB:RESOLUTIONOFBUSINESSETHICSDILEMMAS 65
UNIT 3
F B E :W I R B S ?
OUNDATIONSOF USINESS THICS HAT STHE OLEOF USINESSIN OCIETY
SHAREHOLDERSVS.STAKEHOLDERS 71
SECTIONA:THEROLEOFBUSINESSINSOCIETY 73
SECTIONB:APPLYINGSOCIALRESPONSIBILITYANDSTAKEHOLDERTHEORY 98
UNIT 4
I ,I V , B O 121
NDIVIDUALS NDIVIDUAL ALUES ANDTHE USINESS RGANIZATION
SECTIONA:TRUSTANDEMPLOYMENT 123
SECTIONB:TAKINGADVANTAGE 149
UNIT 5
I R B O 161
NDIVIDUAL IGHTSANDTHE USINESS RGANIZATION
SECTIONA:CORPORATEDUEPROCESS 163
SECTIONB:EMPLOYEESCREENING 170
SECTIONC:EMPLOYEEPRIVACY 177
SECTIOND:SEXUALHARASSMENT 197
SECTIONE:DIVERSITY,EQUALEMPLOYMENT,ANDAFFIRMATIVEACTION 202
SECTIONF:WHISTLE-BLOWING 214
SECTIONG:EMPLOYEERIGHTS 234
UNIT 6
B O :F I 255
USINESS PERATIONS INANCIAL SSUES
SECTIONA:FINANCIALREPORTS:EARNINGS,TRANSPARENCY,ANDMANAGEMENT 257
SECTIONB:PERSONALAMBITIONANDHUBRIS 315
SECTIONC:CULTUREANDGOVERNANCE 340
UNIT 7
B O :W S R ,S ,
USINESS PERATIONS ORKPLACE AFETY ISKS YSTEMS
I O 379
AND NTERNATIONAL PERATIONS
SECTIONA:CONFLICTSBETWEENTHECORPORATION’SETHICSANDBUSINESS
PRACTICESINFOREIGNCOUNTRIES 381
SECTIONB:WORKPLACESAFETY 403
SECTIONC:PLANTCLOSURESANDDOWNSIZING 416
SECTIOND:ENVIRONMENTALISSUES 421
SECTIONE:PURCHASING:CONFLICTSANDBRIBERY 435
iv BRIEFCONTENTS
UNIT 8
B I C 447
USINESSAND TS OMPETITION
SECTIONA:ADVERTISINGCONTENT 449
SECTIONB:APPROPRIATIONOFOTHERS’IDEAS 463
SECTIONC:PRICING 469
SECTIOND:COMPETITORS,THEPLAYINGFIELD,ANDCOMPETITION 476
SECTIONE:BUSINESSANDITSSHAREHOLDERS 487
UNIT 9
B I P 495
USINESSAND TS RODUCT
SECTIONA:CONTRACTRELATIONS 497
SECTIONB:PRODUCTSAFETY 511
SECTIONC:PRODUCTSOCIALISSUES 530
UNIT 10
B G 541
USINESSAND OVERNMENT
SECTIONA:GOVERNMENTEMPLOYEES 543
SECTIONB:GOVERNMENTCONTRACTS 560
SECTIONC:GOVERNMENTRESPONSIBILITIES 567
UNIT 11
E N 573
THICSAND ONPROFITS
SECTIONA:NONPROFITSANDFRAUD 575
SECTIONB:NONPROFITSANDMANAGEMENT 580
BUSINESS DISCIPLINE INDEX 585
PRODUCT/COMPANY/INDIVIDUALS/SUBJECT INDEX 593
TOPIC INDEX 612
CONTENTS
PREFACE xi
ACKNOWLEDGMENTS xvii
UNIT1
F E : V V 1
OUNDATIONS OF THICS IRTUE AND ALUES
SECTIONA:DEFININGETHICS 3
Reading1.1 WhatAreEthics? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Reading1.2 TheTypesofEthicalDilemmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Reading1.3 HowWeAvoidEthicalDilemmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Case1.4 HankGreenbergandAIG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTIONB:RESOLVINGETHICALDILEMMAS 20
Reading1.5 SomeSimpleTestsforResolvingEthicalDilemmas . . . . . . . . . . . . . . . . . . . . . . 20
Reading1.6 PressureandTemptation:TheParableoftheSadhu . . . . . . . . . . . . . . . . . . . . . 26
Reading1.7 TheTeacherwithToughStandards:Honesty . . . . . . . . . . . . . . . . . . . . . . . . . 32
Reading1.8 TryingOutYourEthicsSkills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Case1.9 TheMovieTicket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Case1.10 PuffingYourRésumé . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Case1.11 Dad,theActuary,andtheStatsClass . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Case1.12 TheInvestmentBankersandtheBachelorParty . . . . . . . . . . . . . . . . . . . . . . . 39
Reading1.13 OnPlagiarism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Case1.14 WhatHappensinBoulderStaysinBoulder:CellPhoneAlibis . . . . . . . . . . . . . . . . 42
Case1.15 TravelExpenses:AChanceforExtraIncome . . . . . . . . . . . . . . . . . . . . . . . . . 42
Case1.16 DoCheatersProsper? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Case1.17 Wi-FiPiggybacking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
UNIT2
F B E : V , V , B 45
OUNDATIONS OF USINESS THICS IRTUE ALUES AND USINESS
SECTIONA:DEFININGBUSINESSETHICS 47
Reading2.1 WhatIsBusinessEthics? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Reading2.2 TheAreasofEthicalChallenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Reading2.3 BusinessEthicsandtheRoleoftheCorporation . . . . . . . . . . . . . . . . . . . . . . . 49
Reading2.4 TheEthicsofResponsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Reading2.5 IsBusinessBluffingEthical? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Case2.6 OnLeavingtoSpendMoreTimewithFamily . . . . . . . . . . . . . . . . . . . . . . . . . 62
SECTIONB:RESOLUTIONOFBUSINESSETHICSDILEMMAS 65
Reading2.7 TryingOuttheModelsandaResolutionApproach . . . . . . . . . . . . . . . . . . . . . . 65
Case2.8 BoeingandtheRecruitingoftheGovernmentPurchasingAgent . . . . . . . . . . . . . . . 66
Case2.9 TheRiggedElection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Case2.10 JamesFrey,Oprah,andAMillionLittlePieces . . . . . . . . . . . . . . . . . . . . . . . . 69
Case2.11 TheEthicsOfficerandFirst-ClassforTSA . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
UNIT3
F B E : W I R B S ?
OUNDATIONS OF USINESS THICS HAT S THE OLE OF USINESS IN OCIETY
S . S 71
HAREHOLDERS VS TAKEHOLDERS
SECTIONA:THEROLEOFBUSINESSINSOCIETY 73
Reading3.1 TheSocialResponsibilityofBusinessIstoIncreaseItsProfits. . . . . . . . . . . . . . . . . 74
Reading3.2 AStakeholderTheoryoftheModernCorporation . . . . . . . . . . . . . . . . . . . . . . 79
vi CONTENTS
Reading3.3 AppeasingStakeholderswithPublicRelations . . . . . . . . . . . . . . . . . . . . . . . . 85
Reading3.4 MichaelNovakonCapitalismandtheCorporation . . . . . . . . . . . . . . . . . . . . . . 86
Reading3.5 MarjorieKellyandtheDivineRightofCapital . . . . . . . . . . . . . . . . . . . . . . . . 90
Case3.6 Adelphia:GoodWorksviaaHandintheTill . . . . . . . . . . . . . . . . . . . . . . . . . 93
SECTIONB:APPLYINGSOCIALRESPONSIBILITYANDSTAKEHOLDERTHEORY 98
Reading3.7 SchoolsofThoughtonSocialResponsibility . . . . . . . . . . . . . . . . . . . . . . . . . 98
Case3.8 Ice-T,theBodyCountAlbum,andShareholderUprisings . . . . . . . . . . . . . . . . . 100
Case3.9 Howard,Janet,Rosie,Don,etc.:TheChallengesoftheOn-AirTalent . . . . . . . . . . . 104
Case3.10 Dayton-Hudson’sContributionstoPlannedParenthood,andTarget
andtheBellRingers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Case3.11 BaseballSteroids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
UNIT4
I , I V , B O 121
NDIVIDUALS NDIVIDUAL ALUES AND THE USINESS RGANIZATION
SECTIONA:TRUSTANDEMPLOYMENT 123
Reading4.1 TheMovingLine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Reading4.2 TheFrustrationofBusinessEthics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Case4.3 BoeingandtheEmployeesWhoBroughttheDocumentswithThem . . . . . . . . . . . . 129
Case4.4 TheComplianceOfficerWhoStrayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Case4.5 EspionageandJobHopping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Case4.6 TheStudent-LoanandFinancial-AidOfficerswithStockOptions . . . . . . . . . . . . . . 137
Case4.7 TheGlowingRecommendation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Reading4.8 TheEthicsofConfrontation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
SECTIONB:TAKINGADVANTAGE 149
Case4.9 TheEthicsofPeer-to-PeerFileSharing . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Case4.10 NestléInfantFormula. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Case4.11 CreativeMedicalBilling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
UNIT5
I R B O 161
NDIVIDUAL IGHTS AND THE USINESS RGANIZATION
SECTIONA:CORPORATEDUEPROCESS 163
Case5.1 AnnHopkins,PriceWaterhouse,andthePartnership . . . . . . . . . . . . . . . . . . . 163
Case5.2 Wal-MartandJulieRoehm:Conflictsvs.Affairs . . . . . . . . . . . . . . . . . . . . . . 168
SECTIONB:EMPLOYEESCREENING 170
Case5.3 MySpace,YouTube,andOtherScreeningofEmployees . . . . . . . . . . . . . . . . . . 170
Reading5.4 IllegalImmigrantsasEmployees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
SECTIONC:EMPLOYEEPRIVACY 177
Reading5.5 EmployeeandTechnologyPrivacy:IstheBossSpying? . . . . . . . . . . . . . . . . . . . 177
Case5.6 Hewlett-Packard(HP)andPretexting:SpyingontheBoard. . . . . . . . . . . . . . . . . 184
Case5.7 TheAthlete/StarRoleModel:FromVerizonandStefanito
CruiseandRedstone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Reading5.8 MarianneM.Jennings,CorporateOfficerswithMessyPersonalLives:
IsItNoneofOurBusiness?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
SECTIOND:SEXUALHARASSMENT 197
Case5.9 SeinfeldintheWorkplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Case5.10 Hooters:MorethanaWaitress? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Case5.11 Toyota,theCEO,theAssistant,andInaction . . . . . . . . . . . . . . . . . . . . . . . . 200
CONTENTS vii
SECTIONE:DIVERSITY,EQUALEMPLOYMENT,ANDAFFIRMATIVEACTION 202
Reading5.12 TheBenefitsofDiversity:DougDaft,CEOofCoca-Cola,Inc. . . . . . . . . . . . . . . . . 202
Case5.13 On-the-JobFetalInjuries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Case5.14 Denny’s:DiscriminatoryServicewithaSmile . . . . . . . . . . . . . . . . . . . . . . . . 208
Case5.15 HunterTylo:PregnancyIsNotaBonaFideOccupationalQualification(BFOQ) . . . . . . . 211
Case5.16 English-OnlyEmployerPolicies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
SECTIONF:WHISTLE-BLOWING 214
Reading5.17 TheOptionsforWhistle-Blowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Case5.18 Beech-NutandtheNo-Apple-JuiceAppleJuice. . . . . . . . . . . . . . . . . . . . . . . 214
Case5.19 NASAandtheSpaceShuttleBoosterRockets . . . . . . . . . . . . . . . . . . . . . . . 221
Case5.20 DowCorningandtheSiliconeImplants:QuestionsofSafetyandDisclosure . . . . . . . . 224
Case5.21 HarvardBusinessReviewandtheWelchInterview . . . . . . . . . . . . . . . . . . . . . 230
SECTIONG:EMPLOYEERIGHTS 234
Case5.22 Nike,Sweatshops,andHumanRights . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Reading5.23 HumanRightsDeclarationsandCompanyPolicies . . . . . . . . . . . . . . . . . . . . . 241
UNIT6
B O : F I 255
USINESS PERATIONS INANCIAL SSUES
SECTIONA:FINANCIALREPORTS:EARNINGS,TRANSPARENCY,ANDMANAGEMENT 257
Reading6.1 APrimeronAccountingIssuesandEthicsandEarningsManagement . . . . . . . . . . . 257
Case6.2 FannieMae:TheMostEthicalCompanyinAmerica . . . . . . . . . . . . . . . . . . . . 267
Case6.3 MiniScribeandtheAuditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
Case6.4 FINOVAandtheLoanWrite-Off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Case6.5 OverstatedEarnings:Bausch&Lomb. . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
Case6.6 Enron:TheCFO,Conflicts,andCookingtheBookswithNaturalGasandElectricity . . . . 285
Case6.7 WorldCom:TheLittleCompanyThatCouldn’tafterAll. . . . . . . . . . . . . . . . . . . 297
SECTIONB:PERSONALAMBITIONANDHUBRIS 315
Case6.8 JonathanLebed:TheMiddleSchoolTycoon . . . . . . . . . . . . . . . . . . . . . . . . 315
Case6.9 WholeFoodsbutNotFullDisclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
Case6.10 MarthaStewart:NotSuchaGoodThing . . . . . . . . . . . . . . . . . . . . . . . . . . 317
Case6.11 DennisKozlowski:Tycoandthe$6,000ShowerCurtain . . . . . . . . . . . . . . . . . . 322
Case6.12 JettandKidder:Compensation-FueledDishonesty . . . . . . . . . . . . . . . . . . . . . 332
Case6.13 TheEthicsofBankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
SECTIONC:CULTUREANDGOVERNANCE 340
Reading6.14 APrimeronSarbanes-Oxley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
Reading6.15 ThatToneattheTopThing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345
Case6.16 ArthurAndersen:AFallenGiant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354
Reading6.17 StockOptions,Backdating,andDisclosureOptions:WhatHappenedHere? . . . . . . . . 360
Case6.18 HealthSouth:TheScrushyWay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
Case6.19 RoyalDutchandtheReserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
UNIT7
B O : W S R , S ,
USINESS PERATIONS ORKPLACE AFETY ISKS YSTEMS
I O 379
AND NTERNATIONAL PERATIONS
SECTIONA:CONFLICTSBETWEENTHECORPORATION’SETHICSANDBUSINESS
PRACTICESINFOREIGNCOUNTRIES 381
Reading7.1 WhyanInternationalCodeofEthicsWouldBeGoodforBusiness . . . . . . . . . . . . . 381
Case7.2 ChiquitaBananasandMercenaryProtection . . . . . . . . . . . . . . . . . . . . . . . . 386
viii CONTENTS
Case7.3 PwCandtheRussianTaxAuthorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
Case7.4 ProductDumping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390
Reading7.5 TheEthicsofBusinessinChinaandBusinessEthicsinChina. . . . . . . . . . . . . . . . 391
Case7.6 ChinaandYahooandGoogle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
Case7.7 SaltLakeCity,theOlympics,andBribery . . . . . . . . . . . . . . . . . . . . . . . . . . 396
SECTIONB:WORKPLACESAFETY 403
Reading7.8 TheRegulatoryCycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
Case7.9 BP:PipelineMaintenanceandRefinerySafety . . . . . . . . . . . . . . . . . . . . . . . 406
Case7.10 Domino’sPizzaDelivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
Case7.11 TextMessagingwhileDriving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415
SECTIONC:PLANTCLOSURESANDDOWNSIZING 416
Case7.12 AaronFeuersteinandMaldenMills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
Case7.13 United,GM,andthePensionObligations . . . . . . . . . . . . . . . . . . . . . . . . . 418
SECTIOND:ENVIRONMENTALISSUES 421
Reading7.14 TheNewEnvironmentalism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
Case7.15 HermanMillerandItsRainForestChairs . . . . . . . . . . . . . . . . . . . . . . . . . . 424
Case7.16 ExxonandAlaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426
Case7.17 TheDeathoftheGreatDisposableDiaperDebate . . . . . . . . . . . . . . . . . . . . . 432
SECTIONE:PURCHASING:CONFLICTSANDBRIBERY 435
Case7.18 JCPenneyandItsWealthyBuyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
Case7.19 FrozenCokeandBurgerKingandtheRichmondRigging . . . . . . . . . . . . . . . . . 436
Case7.20 ThePerks,thePharmas,theDoctors,andtheResearchers . . . . . . . . . . . . . . . . . 440
Case7.21 TheAnalystWhoNeededaPreschool . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
UNIT8
B I C 447
USINESS AND TS OMPETITION
SECTIONA:ADVERTISINGCONTENT 449
Case8.1 JoeCamel:TheCartoonCharacterWhoSoldCigarettesandNearlyFelledanIndustry. . . 449
Case8.2 AlcoholAdvertising:TheCollegeFocus. . . . . . . . . . . . . . . . . . . . . . . . . . . 455
Case8.3 SubprimeLendingandMarketing:FromPaydaytoTitleLoans . . . . . . . . . . . . . . . 457
Case8.4 HollywoodAds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
Case8.5 Kraft,BarneyRubble,andShrek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
SECTIONB:APPROPRIATIONOFOTHERS’IDEAS 463
Case8.6 TheLittleIntermittentWindshieldWiperandItsLittleInventor . . . . . . . . . . . . . . . 463
Case8.7 Copyrights,Songs,andCharity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
Case8.8 Microsoftvs.Googleand“Snippets”ofBooks . . . . . . . . . . . . . . . . . . . . . . . 466
Case8.9 LouisVuittonandtheLandlords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467
SECTIONC:PRICING 469
Case8.10 TheMessatMarshMcLennan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469
Case8.11 Sotheby’sandChristie’s:TheNo-AuctionPrices . . . . . . . . . . . . . . . . . . . . . . 471
SECTIOND:COMPETITORS,THEPLAYINGFIELD,ANDCOMPETITION 476
Reading8.12 AdamSmith:AnExcerptfromTheTheoryofMoralSentiments. . . . . . . . . . . . . . . 476
Case8.13 Slotting:Facilitation,Costs,orBribery?. . . . . . . . . . . . . . . . . . . . . . . . . . . 478
Case8.14 TheCokeEmployeeWhoOfferedInsideInformationtoPepsi . . . . . . . . . . . . . . . 484
SECTIONE:BUSINESSANDITSSHAREHOLDERS 487
Case8.15 ExecutiveCompensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
CONTENTS ix
Case8.16 ShareholderProposalsandCorporateGovernance . . . . . . . . . . . . . . . . . . . . . 490
Case8.17 HomeDepot’sShareholderRebellion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492
UNIT9
B I P 495
USINESS AND TS RODUCT
SECTIONA:CONTRACTRELATIONS 497
Case9.1 IntelandPentium:WhattoDoWhentheChipsAreDown. . . . . . . . . . . . . . . . . 497
Case9.2 ThinningDietIndustry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Case9.3 SearsandHigh-CostAutoRepairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
SECTIONB:PRODUCTSAFETY 511
Reading9.4 APrimeronProductLiability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
Case9.5 Tylenol:TheProductandItsPackagingSafety . . . . . . . . . . . . . . . . . . . . . . . 514
Case9.6 FordandItsPintoandGMandItsMalibu:TheRepeatingExplodingGasTankProblem . . 516
Case9.7 MerckandVioxx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
Case9.8 E.coli,Jack-in-the-Box,andCookingTemperatures . . . . . . . . . . . . . . . . . . . . 528
SECTIONC:PRODUCTSOCIALISSUES 530
Case9.9 TheMommyDoll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530
Case9.10 China,Pharmaceuticals,PetFood,andToys . . . . . . . . . . . . . . . . . . . . . . . . 531
Case9.11 Stem-CellResearch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535
Case9.12 ToroandItsProductLiabilityProgram . . . . . . . . . . . . . . . . . . . . . . . . . . . 537
Case9.13 FastFoodLiability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538
UNIT10
B G 541
USINESS AND OVERNMENT
SECTIONA:GOVERNMENTEMPLOYEES 543
Reading10.1 TheFishBowlExistenceofGovernment . . . . . . . . . . . . . . . . . . . . . . . . . . 543
Case10.2 Kodak,theAppraiser,andtheAssessor:LotsofBackScratchingonValuation . . . . . . . 546
Case10.3 TheFiremanandHisFamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547
Case10.4 Commodities,Conflicts,andClintons. . . . . . . . . . . . . . . . . . . . . . . . . . . . 547
Case10.5 TheSecretaryofAgriculture,ChickenProcessors,andFootballSkyboxSeats . . . . . . . . 549
Case10.6 PaulWolfowitzandtheWorldBank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553
Case10.7 IRSEmployeesandSensitiveData . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555
Case10.8 TheGenerousandProfitableFoundationBoard . . . . . . . . . . . . . . . . . . . . . . 556
Case10.9 OneFootinGovernmentandtheOtherinthePrivateSector. . . . . . . . . . . . . . . . 558
Case10.10 HidingtheSlip-UponOilLeaseAccounting:InteriorMotives. . . . . . . . . . . . . . . . 559
SECTIONB:GOVERNMENTCONTRACTS 560
Case10.11 StanfordUniversityandGovernmentOverheadPayments . . . . . . . . . . . . . . . . . 560
Case10.12 CasinoLeasesandtheCountySupervisor . . . . . . . . . . . . . . . . . . . . . . . . . 563
Case10.13 GovernmentPricingandFindingaWayAroundIt . . . . . . . . . . . . . . . . . . . . . 564
Case10.14 OfficialsWhoSellPublicRecords:IsThereaProblem? . . . . . . . . . . . . . . . . . . . 565
Case10.15 TaserandStunningBehavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566
SECTIONC:GOVERNMENTRESPONSIBILITIES 567
Case10.16 CarsandConflicts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567
Case10.17 TheDukeLacrosseTeamandtheProsecutor . . . . . . . . . . . . . . . . . . . . . . . . 567
Case10.18 FEMA,HurricaneKatrina,andMichaelBrown . . . . . . . . . . . . . . . . . . . . . . . 570