For 15 years, Kevin Lamson was a sales manager for a car dealership. He was a good

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For 15 years, Kevin Lamson was a sales manager for a car dealership. He was a good employee who valued his job and liked the company's philosophy that "customers come first." He believed the dealership was held in respect for not having aggressive sales tactics. Lamson had a reputation among his employees "for adhering to a high standard of ethics and integrity."
When sales were lagging, the company hired an outside sales firm, Real Performance Marketing (RPM) to run a five-day sales promotion. During the promotion, Lamson observed "a number of activities he considered to be unethical or unlawful or both." RPM produced a video that said that "all vehicles" would be cut in price.
In fact, only the vehicles pictured in the video were on sale. RPM also tried to "pack the payments" by providing customers such things as life insurance and service contracts in purchase agreements without the customers' knowledge. When Lamson complained to the general manager (GM), he was told to go home.

1. Suppose some of the sale tactics used by RPM violated Oregon law. What could Lamson do about it? Unless he suffered the effects of an illegal practice by making a purchase based on such practice, he had no complaint at law. Who would know more about such practices: those involved in putting them in place or a customer? Do you think any other car dealer would want to hire Lamson if he went public about his complaints?
2. Why do you think the courts are shy to get involved in such incidents? Should the courts be enforcers of company's ethical practices and codes of ethics?

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A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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