Devry MGMT520 final exam

1.(TCOs D, E, F) Benjamin is a long-time key salesman for
Morton and Dunderfield, a business supply company in Eastern Pennsylvania.
The company decides to change its formal employer/employee relationship with
all of its sales people, including Benjamin. Instead of compensating them
with salary and a bonus based on quarterly sales, they change the
relationship to that of an independent contractor who earns a sizeable
percentage commission each month. With the change in this relationship,
Morton and Dunderfield require all of their sales people to sign employment
contracts which contain a clause that states upon leaving Morton and
Dunderfield’s employ, they will not contact any former customers for a period
of two (2) years. Benjamin, fearing he will lose his job, signs the
agreement. After the first month, he realizes he will earn much less that he
formerly did. |
Question 2. 2.(TCOs B, C, G, I) Lonestar Trucking, a large freight
carrier servicing the Southwest, learns from reading in the industry trade
magazine that the Federal Motor Carrier Safety Administration (FMCSA) has
proposed a regulation change. The regulation, proposed pursuant to a statute
that restricts drivers from operating/driving a truck for more than twelve
(12) hours a day, will now require drug testing of any driver involved in an
accident. The regulation was proposed due to political pressure from Mothers
Against Impaired Driving (MAID), a group dedicated to eliminating deaths due
to people driving while impaired. Lonestar Trucking is concerned, not just
about the costs of implementing such a regulation, but how it will comply
with its requirements since accidents often occur far from their base of
operations. Lonestar Trucking’s employees and their union are also very upset
with the proposal. They are concerned that the field drug tests used by
police officers are notorious for giving “false positive” results, and that
the proposed regulation will require that a test be given even when “the
other diver” is clearly at fault. |
Question 3. 3.(TCO C) Three professors from Keller’s Illinois campus,
Favre, Bush, and Clinton, decide to visit XYZ Go-kart facility together in
Minnesota. This decision is made after a lengthy faculty brunch, at which
unlimited alcoholic mimosas were served. XYZ Go-kart advertises at the
college’s various campuses and, in fact, the professors use their faculty
discount at the facility. At the facility signs are posted everywhere in bold:
“BY PARTICIPATING IN Go-KART RACING, YOU VOLUNTARILY ASSUME THE RISK OF ANY
DEATH OR INJURY THAT MAY RESULT. “ Additionally, the professors hurriedly
sign a contract, which states: “YOU ARE GIVING UP ALL LEGAL RIGHTS”; “XYZ
WILL NOT BE HELD LIABLE FOR ANY NEGLIGENCE RESULTING IN YOUR INJURY OR
DEATH”; and “THE PARTIES AGREE THAT ANY POSSIBLE LEGAL ACTION WILL BE HEARD
IN THE STATE OF MINNESOTA.” |
Question 4. 4.(TCOs A, D, E) Judy Collinsworth, a then-unknown folk
singer, signed a three album recording contract with Mercury Apollo Music,
Inc. Mercury Apollo Music was a boutique label specializing in folk artists.
Collinsworth’s first album for Mercury Apollo was moderately successful. The
second album, unfortunately, was panned by the critics and did not sell.
Mercury Apollo Music was acquired by NastiCondiMedia, Inc. NastiCondiMedia,
in an effort to re-vitalize Collinsworth’s career, encouraged her to leave
the folk style she was committed to and do more commercially viable pop
material. Collinsworth rejected this request. Furious with NastiCondiMedia,
Collinsworth wanted to end the contract. On her own, with what remaining personal
funds she had left, she immediately went to an independent recording studio
and did sessions toward a third album without approval or consent by
NastiCondiMedia. Using her concert band, she recorded tracks for over 30
songs. Due to the financial failure of Collinsworth’s second album and her
recent unsuccessful concert tour, NastiCondiMedia did not do the final
production work on Collinsworth’s third album. |
Question 5. 5.(TCOs A, B, F, H) |
Question 6. 6.(TCOs A, D, E) Jane worked at the local country club pool
as a lifeguard, not a swim teacher, for the summer of 2013. Jane was a public
school physical education teacher. The country club did not do a background
check or confirm any references when they hired her. They relied on the
“say-so” of Jane’s brother, a member of the country club board of directors.
The country club only did a cursory Internet search of the state’s Department
of Education website to verify that she had a valid teaching certificate.
When one of the swim instructors unexpectedly quit one day, she took over the
class. Initially, the class went well. Eventually, Jane also took over
coaching the club’s competitive swim team. When she became the swimming
coach, Jane effectively stopped “teaching” the swim classes. Instead, she had
all the swimmers in the classes do races and train for competitive meets
during the 30 minute lessons. Jane had done this many times during the
summer. Her boss, the country club director, knew this and, as the swim team
was winning, ignored complaints from parents and students. Jane raced with
the swimmers and pushed the winners out of the way when they tried to touch
the side of the pool so that Jane’s team would win each time. This was not
the first time that Jane had injured swimmers. Last year, she was arrested
for physically abusing a child she coached at her school. Although the
criminal charges were dropped, Jane is on administrative leave from her
public school job until an administrative hearing with the state Department
of Education can be held in the fall. The incident was reported in several
local papers, and her administrative suspension is listed on the state’s
database. |
Question 7. 7.(TCOs G and I) In the 1930s, after immigrating to the U.S.
from Ireland at the onset of World War II, Shamus and Mary McCream opened a
bakery in Boston. They specialized in snack cakes. McCream Cup Cakes became
so popular in the area that the family stopped being actual bakers and became
manufacturers/ food processors of the snack cakes on a regional basis. After
returning from the war, their son Steve completed college and began working
in television advertising in the early 1950s. Steve approached his parents
and his older brother Tom, who was now running the business, about the
possibilities of advertising and “going national.” The family liked the idea
and began advertising and expanding. In addition, to fuel the expansion, they
offered retailers price discounts and other incentives if they prominently
positioned the store displays set-up by McCream rack jobbers. By the 1960s,
they were a national brand, controlling over 80 percent of the snack food
industry. |
Question 8. 8.(TCOs A, E, F) John and Janet Fonda, siblings and actors,
decide to retire after years on the road. They remember a town in New Jersey
they were familiar with from their travels. From the internet, they learn of
a farm a few miles outside of town that seems ideal. There is a great house
and lots of land. The Fondas wish to convert the farm to a restaurant-hotel
with a dinner theater. They contact the realtor by phone, and make
arrangements to buy the parcel. The Fondas plan on traveling to New Jersey
prior to the closing to look things over, but are unable to do so due to
their touring schedule. The realtor, whose commission is technically paid by
the proceeds to the seller, and who has a listing contract with the seller,
advises the Fondas that she will handle everything. New Jersey custom, law,
and practice does not require a purchaser of land to have an attorney. The
realtor does only the bare minimum needed for title to transfer to the
Fondas. On their behalf, she only has a minimal title search and minimal
inspections done, and she obtains a minimal coverage title insurance policy.
As the area near the farm was once occupied by a large chemical plant, when
the realtor represents local purchasers, as a precaution, she advises the
buyers to get the maximum possible title search and title insurance, and to
get all possible inspections done. It is her regular practice to caution
local purchasers who she represents about the former chemical plant. |

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Solution: Devry MGMT520 final exam