Reference no: EM131446668

Mid-term Exam

1. Matchless Clothing Company buys clothing assembled by Nantra, Ltd., a for¬eign firm that employs young children for long hours and low pay. Nantra's na¬tion does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Matchless's connection to Nantra and plans to reveal this information. Before HIP does so, however, Matchless publicly releases the informa¬tion itself and announces that it is severing its relationship with Nantra. Matchless publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Matchless acted unethically in any way? From an ethical perspective, is Matchless's conduct in this situation more important than whatever its mo¬tive might be?

2. Biff went to Carraba's Market to pick up a few items for dinner. It was a rainy, windy day, and the wind had blown water through the entrance to Carraba's each time the door opened. As Biff entered, he slipped and fell in the rainwater that had accumulated on the floor. Dorothea, the manager, knew of the weather conditions but had not posted any sign to warn customers of the water hazard. Biff injured his back as a result of the fall and sued Carraba's for damages, alleging negligence. Is Carraba's liable? Why or why not?

3. Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsani¬tary conditions caused by Vic, a Tasty Foods employee, in the company's ware¬house. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection reveals no such corrections. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable?

4. In State X, persons must be at least eighteen years old before they can purchase alcoholic beverages. The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in com¬mercial establishments be licensed. The only requirement for obtaining a yearly license is that the person be at least eighteen years old. Moffitt, aged thirty-five, is hired as a bartender for the Lone Star Restaurant. Bekins, a staunch alumnus of a nearby university, brings twenty of his friends to the restaurant to celebrate a football victory. Bekins has or¬dered four rounds of drinks, and the bar bill exceeds $200. Bekins learns that Moffitt has failed to renew his bartender's license, and Bekins re¬fuses to pay, claiming the contract is unenforceable. Is Bekins correct?

5. Flossy promises to pay her cousin Garth, who is dangerously obese, $10,000 if Garth loses 100 pounds within the next two years. Garth agrees, per¬forms his part of the bar¬gain, and asks for the money. Flossy refuses to pay, say¬ing that she forgot about the deal, but that even if she did make such a pledge, there was no valid consideration for it. Garth files a suit against Flossy. In whose favor is the court likely to rule, and why?