Law And Ethics In The Business Environment 6th Edition Terry Halbert , Elaine Ingulli - Solutions

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Why, in the majority opinion of Justice Stevens, is the “standing” of the petitioners enhanced by the fact that they include the Commonwealth of Massachusetts? Why, according to Chief Justice Roberts’ dissent, do the petitioners lack standing?Calling global warming “the most pressing
According to the majority, why is the EPA’s decision not to exercise its rulemaking function“arbitrary and capricious?” Why does dissenting Justice Scalia disagree?
Calling global warming “the most pressing environmental challenge of our time,” a group of States, local governments, and private organizations, alleged … that the Environmental Protection Agency (EPA) has abdicated its responsibility under the Clean Air Act to regulate the emissions of four
On September 20, 2006, the State of California sued General Motors and five other automakers for damages relating to the greenhouse gas emissions of their vehicles.Internet Assignment How is this suit similar to Massachusetts v. EPA? What arguments do the automobile manufacturers make to have the
In Kyoto, Japan in 1995, the United Nations adopted protocols assigning limits to greenhouse gas emissions for developed countries. The Kyoto Protocol was signed by 130 countries, but in 1997, the United States Senate passed a unanimous resolution refusing to adopt it.Internet Assignment What were
Many states are now ahead of the federal government in responding to the problem of greenhouse gas emissions.Internet Assignment Locate the California Climate Action Registry. How many states have now joined with California in tracking green house gas emissions? What is the difference between the
Many cities are also ahead of the federal government on this issue. Cities cover one percent of the Earth’s surface but generate 80 percent of the anthropogenic (human-caused)heat-trapping greenhouse gases.Internet Assignment Locate the Large Cities Climate Summit of 2007. What strategies can
The World Meteorological Organization (WMO) and the United Nations Environment Programme(UNEP) established the Intergovernmental Panel on Climate Change (IPCC) in 1988. On May 4, 2007, in Bangkok, the IPCC released its most recent report.Internet Assignment Browse quickly online through this
According to Locke, what gives a person the right to own property? Is there any limitation on that right?Though the earth, and all inferior creatures, be common to all men, yet every man has a property in his own person: this no body has any right to but himself. The labour of his body, and the
Why does Locke believe people form government?Though the earth, and all inferior creatures, be common to all men, yet every man has a property in his own person: this no body has any right to but himself. The labour of his body, and the work of his hands, we may say, are properly his. Whatsoever
The image of David Lucas that emerges from majority Justice Scalia’s description is strikingly different from the one that Justice Blackmun creates in his dissent. What are the two contrasting stories in this case? Do you think that when Lucas bought the land at issue here, in 1986, he had reason
According to the majority, what two types of regulatory action automatically trigger compensation as takings, without a court needing to examine the circumstances in a casespecific way? Why does the dissent object to this approach?
Included in the bundle of rights that go with land ownership are those of occupation, use, and sale. When something is done to affect those rights—making them less valuable to the owner—the common law allows a suit for nuisance. A nuisance is an activity or condition that creates an
A ballot initiative passed by Oregon voters in the November 2004 election reverses a trend in that state, which has some of the most restrictive land-use rules in the country. The new measure allows owners to prove that zoning or environmental regulations will reduce the investment value of their
In the summer of 2007, the G-8 nations (Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States) met at a summit. With an eye on the 2012 expiration of the Kyoto Protocol, German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe, leaders of the third and second
One approach to environmental protection involves creative use of taxes. Traditionally, we tax many of the things we value; we levy taxes on paychecks, income, property, sales, and businesses. But because taxation tends to discourage productive activity, why not use the power to tax for what it is:
Massachusetts vs. EPA focuses on reduction of greenhouse gas emissions by new cars and trucks. But there are many strategies not touched upon in this case that will reduce vehicle emissions. Consider that in the next 30 years, 70 million new homes will be built in the United States alone.Internet
More than 20 states now require that utility companies derive a certain fixed percentage of their energy from renewable sources. Government has encouraged the private sector in the past with incentives and subsidies: In the mid-nineteenth century Congress gave railroad companies the land to build
Daniel Kammen, founder of the Energy and Resources Group in the Goldman School of Public Policy at the University of California, Berkeley, describes three waves of environmentalism.The first wave, he says, involved such prophets as Rachel Carson, the author of the midtwentieth century book Silent
In 1990 the nonprofit organization Ceres was founded, envisioning “a world in which business and capital markets promote the well being of society and the protection of the earth’s biological systems and ressources.” Today it maintains a Web site identifiying itself as “Investors and
The World Trade Organization (WTO) was established in 1995 pursuant to the Uruguay Round of negotiations under the GATT to ensure the “optimal use of the world’s resources in accordance with the objective of sustainable development. During the Doha Round of negotiations, the WTO discussed ways
Species have been disappearing into extinction since they first existed on this planet, but the last 100 years have seen the rate of extinction leap alarmingly. At the time of the dinosaurs it is estimated that one species became extinct every 1,000 years, while today we lose one every day. The
Internet Assignment Despite widespread consensus among the vast majority of the world’s scientists—and a majority of the Supreme Court—that global warming is happening, that it has serious negative impacts on human health and the environment, and that human activity is one of its causes, many
Internet Assignment Find out what you can about indigenous environmental activists in other countries. What has been going on, for example, with the Mapuche Indians’ fight for control of the forests on their ancestral lands in Chile? What was the result of the “water wars” in the Cochabamba
What is involved in “detailing” a drug? Identify the various stakeholders involved in detailing.How does each benefit from the practice? How are they harmed?
How does the acquisition of prescription information facilitate the marketing of branded drugs? Why did the state of New Hampshire want to limit the practice? On what grounds did the court overturn the New Hampshire law?
A state-supported program in Pennsylvania called PACE, pays a team of doctors to assess multiple scientific studies in order to give physicians objective information regarding the costs and benefits of various types of treatments. This so-called “academic detailing program”helps doctors decide
New Hampshire’s Attorney General claimed to have a “substantial state interest” in protecting prescriber privacy by “limiting unwarranted intrusions into the decision-making process of prescribing physicians . . . .” Review Chapter 3, focusing on the Alan Westin article “The Functions
Judge Barbadoro writes: “If legislators are concerned that pharmaceutical companies are improperly using samples, gifts, meals, and other inducements to promote inadvisable prescribing practices, they can address this perceived problem by following other states that have adopted laws that limit
During the legislative hearing, New Hampshire state representative Price submitted a research paper written by a health care advocate for California Public Interest Research Group (CALPIRG), Emily Clayton. Find this paper at http://calpirg.org. Read it; then write a dissenting opinion for IMS v.
In May 2004 Pfizer paid a $430 fine and pled guilty to criminal charges over the marketing by its subsidiary Warner-Lambert of a drug called Neurontin. The marketing strategy was to pay doctors tens of thousands of dollars each if they would agree to give talks to groups of other doctors,
Why did Klavir claim he was not liable as an individual? How did the court respond? Note the treatment of Klavir’s relationship with Perez, the creator of the actual ad. Why couldn’t Klavir shift the responsibility for the Silueta commercial to Perez?
If you are led into making a contract by fraud or deception, you may sue to rescind the agreement and get your money back. Given that each of the misled customers for Silueta could have brought such a claim and won, do we need the FTC to pursue false advertisers also?
In the wake of September 11, the FTC has sent warnings to dozens of Web sites, ordering them to stop making unsubstantiated claims that their products would protect consumers from bioterrorism. Peddling such items as gas masks, mail sterilizers, protective suits, biohazard test kits, and a device
Internet Assignment Go to the FTC Web site, http://www.ftc.gov. Look for Advertising Policy Statements and Guidance. How does the agency define “deception”? “Unfairness”? What guidance is offered regarding advertising and marketing on the Internet?
On what basis does the court conclude that GSKCH likely violated the Lanham Act?
What public interests are at stake in this case?
Television advertising for children has come under attack for many reasons. One is that small children have difficulty distinguishing between program content and advertising.There are also concerns that children are exposed to too much—to an avalanche of ads. In the late 1970s, the FTC
Internet Assignment Find out about interactive Web sites directed at children, like Webkinz, WeeWorld or Club Penguin. Investigate. How do they engage children?How do they advertise? Now locate a set of industry standards that address advertising targeting children. Do the Web sites conform to
Describe the evolution from the “intrinsic product benefit” model for advertising and the“creative revolution.” According to the authors, why did the change occur?
Many argue that the health dangers associated with consuming junk food are obvious and well known, and when people eat junk food they are merely exercising their freedom to choose. How would the authors respond to this claim?
Many argue that parents have primary responsibility for their children’s eating habits, and that marketers should not be blamed for rising rates of obesity among the young. How would the authors respond?
Junk food marketing proliferates in low-income communities, on billboards, store signs, targeted television, and radio. The same communities tend to have limited access to affordable healthy food, and—no surprise—higher obesity rates. This confluence of factors, along with recent studies
Internet Assignment Ashley Pelman and Jazlen Bradley, minor customers of McDonald’s, claimed to have increased risk of becoming obese and developing diabetes and other medical problems as a result of the company’s advertising, which gave the false impression that its food was healthy and
The nonprofit group Children NOW has testified before the FTC advocating for a ban on interactive advertising to children. Commercial Alert advocates for a ban on all junk food sales in schools.a. Put each of these strategies for limiting commercial speech through the Central Hudson test outlines
As the authors indicate, the public schools have been hotbeds of activism on this issue. Parents and advocacy groups have fought Channel One,25 and banned junk food and soda. According to a 2004 U.S. Government Accountability Office report, “13 states ha[d]established laws addressing commercial
In this article, the Center for Consumer Freedom is described as “a political front group.”a. Internet Assignment Locate the Center for Consumer Freedom Web site. Read some of its articles. Do they seem well-researched and reliable? Why/why not? What can you find out about how this organization
Other countries have regulated advertising to children. More than a decade ago, for example, Sweden banned advertising to children under the age of twelve. In 2001 the mayor of Rio de Janeiro issued a decree restricting all outdoor ads for food, drink, and tobacco within 200 meters from schools and
Threatened by parents and advocacy groups with an obesity lawsuit, Kellogg announced new nutritional standards in June 2007. A single serving of any Kellogg product will contain not more than 200 calories, have no trans fats, and have limited sodium and sugar content. As of the time of the
What is the Learned Intermediary Rule? Explain the context in which it became law.
On what legal grounds does the majority believe that the Learned Intermediary Rule does not apply where drugs are advertised directly to consumers? How does the dissent view this issue?
Internet Assignment In the European Community, direct-to-consumer advertising of prescription drugs is prohibited. What, if anything, is recommended to regulate DTC ads by consumer advocates in the United States?
One theme of the Perez case is the degree to which consumers today are active, aware, and taking responsibility for their own health, rather than passive and in awe of medical expertise.Direct-to-consumer advertising—estimated at $58 billion as of 2005—is premised on the notion that consumers
Beginning in the 1990s, with their research pipelines drying up, the major players in the pharmaceutical industry moved to sustain profits by fighting to extend patent periods, by advertising direct-to-consumers, and by raising drug prices. The facts of a case filed recently in California reflect a
In the wake of public scrutiny and industry self-regulation of pharmaceutical detailing practices, the focus has shifted to “simple one-on-one human rapport.” As The New York Times reported in 2005:Anyone who has seen the parade of sales representatives through a doctor’s waiting room has
Internet Assignment In recent years, the U.S. Supreme Court and lower federal courts have been dealing with several First Amendment challenges to regulation of tobacco and alcohol ads. In 2002, a community college’s ban on ads on its property for alcohol, tobacco, guns, and illegal drugs was
In the 1990s R.J. Reynolds Tobacco planned to test market a new brand of menthol cigarettes to African-Americans in Philadelphia. The Urban Coalition got wind of this and launched a protest.Internet Assignment Find out what happened.
What is the “aesthetic appeal” of advertising? Consider this:During recent years, in certain circles, the surest way to silence a would-be critic of advertising has been to cite its artistic achievements. Whatever we may think of the products or the sponsors, this argument runs, we have to
In 1980, roughly one-third of all biomedical research was funded by the pharmaceutical industry. As government support declined, the industry stepped in, and by 2000 it funded nearly two-thirds of such work. The industry also provides much of the advertising that supports the publication of
According to the Surgeon General, the causes of childhood obesity in the United States are unhealthy eating, insufficient physical activity, and genetics. With a team of your classmates, come up with a policy recommendation that addresses all three of these factors.
In 1998, Coca-Cola held a contest inviting high-school students to devise promotional ideas for the company. A prize of $500 would go to the school with the best PR strategy.Greenbriar High in Evans, Georgia, was the winner. On “Coke Day,” students were to attend lectures from visiting company
By 2030 tobacco will be the biggest cause of death, killing about 10 million people annually.The fastest growing population of smokers exists in the developing world. In China, for example, there are an estimated 300 million smokers—one-third of its adult population and triple the number of 20
The chic political and cultural Web logs (blogs) run by Gawker Media receive some 400,000 to 700,000 visitors monthly. Recently Gawker began blogging on behalf of big advertisers like Nike. For its advertorial blog “The Art of Speed,” Nike provided several short films on the theme of speed and
New York’s Metropolitan Transportation Authority proposes to sell naming rights to bridges and to rail and subway stations to corporate advertisers. Meanwhile, in Rome, city planners have been very successful raising funds for restoring ancient buildings and monuments by selling advertising
According to the majority, the plaintiffs have not properly alleged a tort of public nuisance.Why not? Why does the dissent disagree?
Both majority and dissent point to the historical basis and purpose of law, specifically the tort of public nuisance. How would allowing this case to go forward distort the historical tort, according to the majority? How would it further the “corrective” and “preventive” functions of the
How should society deal with a problem like the lead exposure to children described in this case? Is it fair to go after the manufacturers years after their products were sold and used? To expect the property owners to bear the clean-up costs? Who are the stakeholders in this scenario? What ethical
On what basis do Schwartz and Goldberg object to the kind of nuisance suit brought by Camden, New Jersey against paint-companies? How would Peck and Vail argue in favor of such suits?
Lead-paint nuisance suits filed in Milwaukee, St. Louis, and Santa Clara County have all been dismissed; Rhode Island remains the site of the lone victory. In spring 2007, Ohio became the second state to file a lead paint suit.Internet Assignment Find out if there have been any suits involving lead
Internet Assignment Peck and Vail argue that the insurance industry and business defendants are leading the charge on tort reform, and are largely responsible for media attacks on lawyers and the contingent fee system. Look for some evidence of that. Find an article that takes this position and try
Internet Assignment The Department of Justice sued Philip Morris, R.J. Reynolds, Brown & Williamson, and others in the late 1990s in the largest civil racketeering suit in history. In 2006, federal district court judge Gladys Kessler ruled in favor of the government, finding that companies had
On what grounds did the court determine that Transport Corporation was not entitled to money damages? What should the plaintiff have done to better protect itself?
While it is common for businesses to limit damages, as IBM did in this case, the UCC makes it unconscionable (shocking to the conscience) to limit damages for personal injury in the sale of products to consumers. So, for example, Ford could not give a warranty that limited its responsibility for
What did Nancy Denny think she was buying? What did she buy? On what legal theories did she sue? On what basis did she win?
Elsewhere in the decision, dissenting Judge Simons argues that the majority imposes a kind of absolute liability on a manufacturer. Is he right? What might Ford have done differently?
Compare this case to the Norplant case in Chapter 7. What similarities/differences do you see in the marketing campaigns? In the lawsuits?
What is “the economic loss doctrine”? How did it apply to AOL? To Transport Corporation?
Is there anything AOL could have done to better protect itself in the process of making an insurance deal? What could it have done in the process of making/selling its software?
Why did the jury award punitive damages against Ford? On what basis does the court uphold the punitive damages award? Ford argued that the amount should be limited by the California and federal guidelines setting maximum fines for selling defective products. Can you think of any other arguments
An internal Ford memo, entitled “Fatalities Associated With Crash Induced Fuel Leakage and Fires,” estimated the “benefits” and “costs” of design changes as follows:Benefits: Savings—180 burn deaths, 180 serious burn injuries, and 2,100 burned vehicles Unit cost—$200,000 per death,
Would punitive damages be justified in the following case? Holmes was injured in 1999 when his Ford Explorer, equipped with its original Firestone radial tires, rolled over. A Web site posted by Public Citizen, a non-profit consumer advocacy group, included a “Chronology of Firestone/Ford
Suppose the jury had the option of putting Lee Iacocca, Robert Alexander, and Harold MacDonald in prison for their decision regarding the Pinto design. What are the pros and cons of meting out criminal sentences as compared to issuing punitive damage awards?
In 1979, Ford, indicted for manslaughter, was one of the first corporations to face such charges based on a defective product. In the mid-1990s, the crash of a ValuJet airplane in the Florida Everglades again led to criminal charges. This time, however, the defendant was not the airline or its
How do the plaintiffs in the OxyContin case compare to the cigarette smoker who continues to smoke, despite reading Surgeon General warnings, and then develops lung cancer? Are they similar or different in their moral culpability? In their legal rights and responsibilities?
Faced with an opportunity to overturn the learned intermediary rule, the Kentucky court chose not to. Compare the court’s reasoning to that in the New Jersey case involving Norplant that was discussed in Chapter 7. Which is more persuasive to you? Why? To what extent do the judgments seem to
The attorney general for West Virginia sued Purdue Pharma in 2001, charging the company with aggressively marketing OxyContin and deliberately hiding its addictive qualities from doctors. In November 2004, the parties settled. The lawsuit was dropped in return for Purdue Pharma’s promise to spend
In 2007, Purdue Pharma and three of its top executives—President Michael Friedman, Howard K. Udell, its top lawyer, and former medical director Dr. Paul D. Goldenheim—agreed to pay $634.5 million in penalties to resolve a false marketing charge growing out of the company’s sale of OxyContin.
What are the relative merits of government regulation versus litigation? What arguments can you make that one or both of those mechanisms for assuring our safety needs to be reformed?
Internet Assignment Choose one of the federal agencies with some responsibility for monitoring product safety, such as the FDA, EPA, NHTSA, or CPSC. Find out about the backgrounds of those persons with policy-making power within the agency, including education, work experience in both the public
Talon-G is a rat poison made by ICI Americas and sold only to professional pest control companies. The poison was registered by the EPA and packaged in a container with EPA-approved labeling that displayed warnings cautioning users to keep it out of the reach of children, that it might be harmful
While his mother was sleeping, a two-year-old child retrieved a disposable butane lighter from his mother’s purse atop the family refrigerator and used it to start a fire. The child, a sibling, and the sleeping mother were all killed. The lighter had no childresistant features, and those
As we learned in Chapter 7, obesity—especially childhood obesity—has become a national health scandal. In December 2003 Xenical became the first drug specifically approved by the FDA for the treatment of obesity in adolescents. In the past few years lawsuits have been brought—and
Silicone gel breast implants were introduced to the U.S. market in the 1960s. In 1992, after reports that they leaked silicone into women’s bodies and endangered their health, the FDA took the devices off the market and restricted the use of implants to clinical trials. During the next 14 years,
Consider the following: Linda Green began her career as a health care worker in 1978, following hospital rules that required her to wear protective gloves while attending patients.For more than a decade she wore nearly 40 pairs of cornstarch powdered latex gloves, made by Smith & Nephew (S&N),
In July 2007, Zheng Xiaoyu, one of the most powerful regulators in China, was executed after confessing to accepting gifts and bribes from drug companies over the eight years he headed China’s equivalent of the FDA. During Zheng’s tenure, his agency approved over 150,000 applications for new
DDT is a cheap way to eliminate insects that threaten crops and people—including mosquitoes that spread malaria. Because it accumulates in the food chain and causes harm to humans and animals, its use has been banned in the United States since 1972. However, 23 nations continue to use it for
Health agencies are looking to artemisinin, a new drug derived from sweet wormwood isolated by Chinese scientists to fight malaria. Used in combination with other drugs, it can be a powerful treatment. But 18 companies from around the world make artemisinin in a one-drug form that can be sold
An Oregon jury awarded $79.5 million in punitive damages to the widow of a heavy cigarette smoker who died of smoking-related lung cancer. The judgment against Philip Morris was reduced to $32 million by the judge. On appeal, the U.S. Supreme Court overturned the punitive damage award as a taking
Biotech medicines—proteins made by modifying the DNA of bacteria, yeast or mammal cells and infused into sick patients—are the fastest growing category of health spending.Sales reached $40 billion in 2006, when reports indicated there were more than 400 biotech products being synthesized to
For this project, you are asked to identify a proposed regulation related to product safety and to submit a written comment for or against the proposed rule.• Begin by going to the Web site of any of the major government regulatory agencies with responsibility for product safety (the National

Law And Ethics In The Business Environment 6th Edition Terry Halbert , Elaine Ingulli - Solutions

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