Discussion 8You are fresh out of graduate school, and you take a management job
with Cowtown Casino Management (CCM). CCM builds, manages, and
sells rural casinos throughout America.
CCM has contracted with Big Builder (BB) to build a casino. CC and BB
have done business for years, and the contract is done over the phone,
with an agreement to reduce the contract to writing later. BB builds
casinos quickly, often within a matter of months.
BB later emails you what it calls the written contract for the casino. You
scan the document, and you see some things that concern you.
Among other things, the document states that if gambling becomes
illegal, BB’s duties are deemed satisfied, and will still owe BB a
minimum of half the contract price. The document further states that if
BB is late finishing the casino, BB will owe CC 25% of the agreed-upon
lost profits for every day the casino is late. These terms are different
than prior contract terms between CCM and BB, and you don’t recall
agreeing to change those terms.
You remember enough from this course to know you need to contact
CCM’s attorney. Identify all the issues, and your perceived strengths
and weaknesses of those issues, that you want to discuss with the
attorney. Also, discuss any ethical issues raised in this scenario
Discussion 9
You just finished your MBA, and you are now a new vice-president of
Handsome Hair (HH), a chain of discount hair salons. You have
received several complaints from customers about hairstyles they
recently received.
The complaints were launched in May which is HH’s busiest time of the
year. Some customers bitterly complained to their stylists about the
hairstyles that they received, that their stylists walked off the job. Some
stylists refused to work for a few days until customers calmed
down. As a result, other customers complained about not being able
to get their hair done at all. Also, some salons that had stylists walk off
the job were able to meet their appointment obligations with other
stylists.
Report to Penny President, the president of HH, concerning all possible
legal liability HH may face and damages HH might have to pay.