JULY AT THE MULTIPLEX The days had been extremely hot. It had been hotter than normal. In addition, the moisture coming up from the gulf had increased the humidity to almost unbearable levels. It was under these circumstances that Tommy decided to go see a movie. The theater would at least be air conditioned and would provide some welcome relief from the weather. Tommy looked in the movie section of the newspaper to see what movies were being screened in his area. He saw that the highly anticipated movie “The Governator” was being shown at the nearby Royal 16 Theater complex in the Eastfield Mall. The newspaper advertisement indicated that the movie was scheduled to begin in 30 minutes, at 1:00 pm. Tommy got his wallet and car keys, jumped into his car, and sped off to the mall. Since he always had difficulty finding a seat in the dark, one thing Tommy did not want was to be late for the beginning of the movie. Once the lights were out, he could barely see where he was going. Tommy made it to the Royal Theater in 15 minutes. While at the ticket window to purchase his ticket, Tommy asked the cashier when the movie was scheduled to begin. The cashier told him that the movie would begin in 15 minutes, at 1:00 pm, the time posted on the marquee. Tommy asked what was the cost of an admission ticket to see “The Governator.” The clerk replied, “nine dollars.” Tommy exclaimed, “Nine dollars, why so expensive? Don’t you give any discount for an early movie?” The cashier replied that because this was a long awaited “blockbuster movie” the theater owner was not reducing the price for early afternoon showings. Tommy reluctantly paid the nine dollars and was given a ticket of admission that stated the movie would begin at 1 pm. The ticket contained no other relevant statements. Tommy was not a regular moviegoer. He had not been to the movies for several years because he was too busy. He was a business major at the local university and worked about 20 hours a week. Attending classes, studying, and working left him very little time for entertainment. Having already parted with nine hard earned dollars, Tommy reluctantly decided to stop at the refreshment counter. The line was long, but Tommy got in line anyway. After spending another nine dollars for a large tub of buttered popcorn, a large iced soda, and a super-sized candy bar, Tommy hurried off in the direction of the sixteen movie viewing rooms in search of the one showing “The Governator.” Tommy found the right theatre room at 12:58 p.m. He walked down the aisle, found a suitable row, and headed for a selected seat. Tommy softly exclaimed, “Pardon me, excuse me, pardon me,” as he squeezed and climbed past other moviegoers to finally get to his seat. Tommy settled into his seat as best he could (with a little less popcorn and soda, but still clutching his candy bar). He let out a big sigh of relief. He was seated with 10 seconds to spare. The lights began to dim, and then Tommy uttered “. . . what the (expletive deleted) was this? A commercial!” Tommy was outraged. He had paid eighteen dollars to watch commercials? All that hurrying, all that worrying, all that anxiety to find his seat before the movie would begin. All that, just to see commercials! As a matter of fact, twenty minutes of commercials were shown before the movie began. Tommy endured the commercials. After all, the theater was air conditioned and comfortable. Finally the movie started. However, very early into the showing, it was clear to Tommy that this was the worst movie ever made. He decided to give the movie a chance to improve. Tommy watched the movie for another 30 minutes, but the movie did not get any better. Tommy stumbled and fumbled his way out of the viewing Copyright 2009, Dr. Leonard J. Rymsza, Dr. Carol Docan, and Dr. Paul Baum 2 room and headed off to find the manager of the theater. Tommy was disgusted. Not only had he been forced to watch 20 minutes of commercials, the movie was, in his opinion, a bust. It was a waste of nine, hard earned dollars to see the movie. Tommy asked for his money back. The manager explained that it was the policy of the theater owner not to refund the admission fee. Tommy left the theater, vowing not to let this episode pass without some resolution. He was sure that the theatre had violated his legal rights as well as the rights of other moviegoers, particularly by showing all of those commercials. He returned home, found his Business Law textbook, and began to consider various legal actions he could pursue. There had to be some recourse. Tommy, remembering a few things from a Business Law course he had taken, wrote a letter to Mr. Mull T. Plex, the owner of the Royal Theatre. In the letter Tommy expressed his dissatisfaction with the showing of the commercials and indicated to Mr. Plex that he was going to pursue legal recourse including the possibility of filing a class action lawsuit. Class Action Case: Statistical Analysis After reading Tommy’s letter and the possibility of a class action lawsuit being filed, Mr. Plex was livid. Not knowing how to proceed, he decided to contact other theatre owners in the area to see if they had also been notified as being potential defendants in Tommy’s threatened class action lawsuit. After learning that all of his competitors had been contacted, Mr. Plex’s initial reaction was “Good! With my untarnished reputation, I’ll prevail in the lawsuit, but my competitors will go under. Then I’ll be the only show in town.” However, after realizing that he too could go belly up, Mr. Plex decided that it would be better if he and his competitors stuck together and prepared to defend any lawsuit by forming a consortium. Pleased with his esprit de corps strategy, Mr. Plex presented his idea to his competitors. The response was overwhelmingly positive and the consortium was formed. After much debate, the consortium agreed that it would be useful to know the percentage of all theater goers who are unhappy with the practice of showing advertisements before the featured film begins. They reason that if the percentage is small, then Tommy is a “voice in the wilderness” and there is no basis for a class action lawsuit. On the other hand, if the percentage is substantial, then perhaps Tommy’s response is not an aberration, in which case the more prudent course of action would be to proceed cautiously in the hope of avoiding the cost of defending a lawsuit. The consortium, while suspecting that the percentage is relatively low, probably less than 10%, decides to apply the following decision rule: if the percentage is actually 10% or more, the consortium will seriously consider negotiating a settlement of any lawsuit filed by Tommy. However, if the percentage is less than 10%, they will vigorously defend any lawsuit filed by Tommy. The consortium is not sure how to go about surveying its patrons. In addition, the consortium is not sure what to do with the results of the survey if in fact it is conducted. Further, the consortium is concerned about the causes of action that Tommy may include in his lawsuit. Your law firm handles business law matters, with a specialty in statistical analysis, and has been hired by Mr. Plex. Mr. Plex has indicated to you that he has several concerns and would like your firm to provide him some answers

Identify any ethical issue(s) that may be involved in showing twenty minutes of commercials before the screening of the movie. Evaluate the ethical issue(s) presented in the case using one or more of the approaches to ethical decision making discussed in class?

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One ethical issue that may be involved in showing twenty minutes of commercials before the screening ... View the full answer