UMGC University of Maryland Global Campus mba 630

3/10/24, 11:25 AMDualplex 360
Course Resource
Dualplex 360
Notice: Contains confidential information.
Colossal Corporation maintains a subsidiary in Serafini, a small country in
Eastern Europe. This subsidiary is incorporated in the state of Delaware as
New Brand Design, Inc. (NBD), a company that designs, brands, and
manufactures innovative electronic products, and markets and distributes
them for resale across the globe. NBD has been admitted to conduct
business in Serafini.
NBD has been manufacturing and distributing a laptop computer with 360degree technology. The thin tablet can easily convert into a laptop by
flipping the screen over and locking it in place against the back of the
keyboard. The laptop, marketed under the name Dualplex 360 is very
popular and is distributed primarily in Western Europe, North America, and
South Africa.
The Dualplex 360 went on the market six months ago, and the product is
selling out in the United States and Europe. Unfortunately, consumers have
reported that some laptops that were shipped to the United States have
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3/10/24, 11:25 AM
Dualplex 360
overheated and ignited when they have remained plugged into a power
source for too long. In a few cases, the laptops have burned users and
damaged property.
NBD’s research and development team was fully aware of the overheating
problem when putting the Dualplex 360 on the market but performed a
cost-benefit analysis and determined that the payouts from lawsuits would
be less than the cost of redesigning and manufacturing a new laptop. The
research and development team covered up the defect but included the
following disclaimer in the instruction manual:
DO NOT LEAVE THE DUALPLEX 360 PLUGGED IN TO A POWER
SOURCE AFTER THE BATTERY IS FULLY CHARGED. SELLER
EXPLICITLY DISCLAIMS ALL WARRANTIES. SELLER MAKES NO
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR USE. NOR IS THERE ANY OTHER EXPRESS OR IMPLIED
WARRANTY.
The instruction manual contained no other warnings regarding the
possibility of overheating or danger. To date, all instances of overheating
have resulted from consumers ignoring the warning and leaving their
computers plugged in after the battery is fully charged, although some
claim they never read the instruction manual so did not see the warning.
The executive board of NBD has reached out to the CEO of Colossal to
discuss these issues and the potential that NBD will be held liable for the
overheating laptops and resulting injuries and damage to property. The
CEO informed the board that the company’s international task force will
research and address these concerns.
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validity or integrity of information located at external sites.
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3/10/24, 11:26 AM
Employment Issues—Hiring and Firing
Course Resource
Employment Issues—Hiring and
Firing
Notice: Contains Confidential Information
Colossal Corporation maintains a subsidiary in Serafini, a small country in
Eastern Europe. This subsidiary is incorporated in the state of Delaware as
New Brand Design, Inc. (NBD), a company that designs, brands, and
manufactures innovative electronic products and markets and distributes
them for resale across the globe. NBD has been admitted to conduct
business in Serafini.
NBD’s executive board is composed of six expatriates from the United
States, one expatriate from Italy, and three local Serafini nationals. These 10
board members manage over 100 employees who are all nationals of
Serafini.
Two of the local Serafini executives, Elena and Viktor, recently learned that
their salaries are much lower than the other eight members of the
executive board, and their benefits packages not nearly as comprehensive.
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3/10/24, 11:26 AM
Employment Issues—Hiring and Firing
They are upset and have lodged formal complaints with the human
resources director at NBD, Max Ciccone.
Max has been dealing with the troubles at NBD for a few months and has
been consulting with operations in the United States to try to find a
solution. US operations decided to try to fix the problem by sending out
two more expatriates from the United States on five-year contracts to
replace Elena and Viktor.
The new US expatriates that NBD plans to send to Serafini are Michael and
Beth. Michael is a 66-year-old who has a lot of executive experience and is
the former CFO of another of Colossal’s international subsidiaries. Beth is a
42-year-old with 15 years of experience in management. NBD has applied
for visas and work permits for Michael and Beth, as required under Serafini
law.
Elena and Viktor are very upset, but they are continuing to do their work
as usual. Max has explained to them that their salaries are reflective of their
more limited experience and qualifications relative to the other members
of the executive team. Despite this explanation, Elena and Viktor continue
to complain and threaten lawsuits, saying they have equal experience and
qualifications to at least three other US board members (which happens to
be true).
Serafini is not a democracy and it has no equal-pay laws. Moreover,
everyone in Serafini is required to retire at 65. The stated reason for this
law is that the country must force older workers to retire so younger
workers can find jobs. For this reason, the labor office of Serafini is
refusing to grant Michael a work permit.
Although there is no local law prohibiting women from taking management
positions in Serafini, the labor office of Serafini is known for fabricating
reasons to deny women’s requests for work permits. It now is refusing to
grant a work permit for Beth. The labor office claims her paperwork was
incomplete, but Max has confirmed it was complete when it was initially
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Employment Issues—Hiring and Firing
sent. He recalls that he even re-sent her paperwork to ensure processing.
To date, the labor office has not responded to Max’s many requests to
confirm receipt of Beth’s paperwork.
Because of the hold-up with the permits, no action has yet been taken to
terminate Elena or Viktor, and Max is consulting with US operations about
what he can do legally and ethically to resolve these issues.
© 2024 University of Maryland Global Campus
All links to external sites were verified at the time of publication. UMGC is not responsible for the
validity or integrity of information located at external sites.
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