7

NO.8 KT4OIO3ETH|CSANDtAWTUTORIAL ETHICS internationalbusiness needto comply companies that multinational 1 . Whatarethe moralprinciples with host countries? ? countries with the lawsof hom'e mustalsocomply 2 . Why do thesecompanies with the be 3 . To what extent are the cultureof hostcountries compatible ? comPanies multinational ff 4 . Do cases 434 nos. 3 , 6 and 8 caseff 538 no. 5 5 . Discuss IAW - intellectualProperty o 1 . Defineintellectual ProP"rtY? . four ( 4 )types of trade marksor trade symbols Act 2 . T he Lanham recognises them. Describe ? for 3 . What are the requirements patentsto be registrable the 4 . Describe differenttypes of patents? ff 5 . Do casestudies 1.013nos.jZf andff1014nos . 8 , 9 and 12 . t4 -LL'aOLL

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mative action program that might work in any business.

2. How does business ethics differ from bioethics and other specific ethical
areas?

2. Ho AA 3. Sta En 4. Ca

,{

List in detail what you feel are the rights and obligations in business activities for each of the following groups: business people in general, employers, employees, consumers, and government. Give reasons for your answer.

+ . Analyze, detail several advertisements in any of the communications in media (newspapers, magazines, radio, TV) and show the degree to which they tell the truth, misrepresent a product or service, warn the public of dangers, omit important information, or make unsupported and unsupportable claims.

Attfie sity Barrl Cal Beau<

5. Write an essaydiscussing the value or lack of value of competition in

business and in other specific areas of society-for example sports. Do you feel that our society places too heavy an emphasis on competition? Why or why not?

NJ
Bok, I DesJa Etht Donal EtE Ezorsl Ne'l Frank 2Lst Uni Gibsor Gross, Hay, tr

/6. To what extent do you feel that government controls and regulations of
business are necessary?Describe in detail some situations in which government should intervene and some in which it shouldn't, explaining why you feel as you do.
,7

To what extent should business take precedence over the environment, and to what extent should the environment cot1e first? Explain in detail, giving reasons for your answers. Focus on a specific situation relevant to the business versus environment issue and analyze what has or hasn't been done to correct the problems involved. Do you agree with what has been done? Why or why not? What's your general blueprint for how to deal with environmental problems in business?

434

affirmative action and reverse discriminatio king this decision,especially because the percentage of minority employees at the center is so low. I feel that the first criteri ng should be that the prospective employeehas the quali for the job; once that criterion is met, however, I feel that aflirmati ion should have the greatest influence on the choice, at least until t io of minorities and women has been raised to an acceptable level. ,/ CA S E T6 I feel that every effort should be made by all parties to effect a series of compromises that will save the people and the environment, the town, and the company-in that order. I definitely feel that the government, as the representative of all people, does have a right-indeed, an obligation-to investigate businesses and communities to avoid destruction of the environment. The government's report is obviously very important. to everyone in this area, and all parties should accept the following as their goals: to clean up the environment as soon as possible; to keep the town economically alive by maintaining the plant, even if at a reduced capacity until necessary changes can be made; and to allow the company to reap a reasonable profit from the plant's operations. Representatives of the company, the townspeople and their representatives (mayor, city council), and the federal government should meet together to see what can be done to accomplish the stated objectives. The company must be willing to pay its fair share of the costs, but it should not be overburdened. The townspeople must also bear some of the burden, perhaps through higher taxes or the forgoing of raises for workers at the plant for one year. The government should also help financially by offering either low- ' interest government loans or part payment for the changes that the plant must undergo. I feel that the mayor would be wrong in entering into collusion with the plant manager to stall environmental changes at the expense of the health and welfare of the entire community. I believe that the problem ought to be brought into the open so that the townspeople can be made aware of it and can help solve it in some way. I also feel the company that owns thellant ought to consider more than just a loss of profits in its decision making. After all, the company is contributing not only to the economic well-being of a town but also to the destruction of its environment and the possible ill-health of its people. The company should also consider the goodwill it can gain by maintaining the plant, even if it sustains some loss of profit. Instead of taking the either-or position, the company ought to present choices as to whar can be done, and it should ask for help and cooperation from all involved parties.

538

Moral Protlems in Business (BusinessEthics)

Thecompanymust-asmusteveryonewhoisinvolvedinthissituationenvironment; of the accept. long-range necessity protecting and preServing.the be a plant ot *atty pgoPle ut-o1"9 in yearsto come' I otherwise,there may not that the environf".t tt u, il aspectsof the situation are important, but I feel first priority by all parties. If the plant maintains be *""or aspecr^should given has sugir,,igia ptsition and wilionly take ihe stalling route the-manager the mayor has no choice but to refuse to go gest; rc the mayor, I feel that alongwith it. .,! | ----e?*rupr now that the town is better established,there will be time to encourup in Farto age new les, enui,o,,mdhtally destructive.businesses Setthemselves to increasethe danger to the health and iiig. r, any case,I feel that a decision wrong decision for *.il-b.irrg of the people and the environment would be the way ofsaving the-town economically. the mayoi to make, even if it is the only move somewhere arr., uit, if people have their health and lives, they can still hand, they are sick or dying, then the other jobs; if, on the other J;; ";ig"; of economicls the situation definitely becomesunimportant' CASEiT
Tiue, she made a I think what happened to the first officer was abominable. ofiicer, but she did iooltsh mistake in t uuing an affair with a higher ranking

him wlen he saidhe wasdivorcinghis h"l;;;Jh"t ind believed ffiilh;, to. just-wanted ffi. ctrISsL. r"""a out that he wasnot committedto her and right she havingno inrentionof divorcinglis y_ire, had every ;;;; ,.;;tfi"e;
uni ro have thatbe the end of it. Nothing she did ;;;;;["{irrr.X"it an ,tt. ,r.ur]ue, she received after breaking up with him' Despite l.r.tt.a

.rrot i"J"agment, sh\{ould havebeenleft aloni by that t*ttl:it:jl::ll

have received any hara;v she wanied io end the adie and in no way should she

able been to t9l1:t"l,1lTy'T' definit\hould have

;;l;s h.t poii.. a"ri.', '.f"'6\rwhat

her up when

Yt+ 1-"-:""1i:i:t;:^m been r-eprimanded, transferred to a ."rr,'.rp..iully the,..glu"?, should\e even ae\nqted, iniluding those who did not back different precinct, "rrip"rlrups she needed it.
CASE.8 sex and should The secondofficer was certainlf unfairly treated because successfully not have been discriminated uiuirrr, becauseshe is female. she-trad \"'

on hadgone

."-pilr.a thedifficuittrainin[ thatqualifrea P,t'h: I:- tlT:}5[$:::* ilia.hbeen allowed to plrforrnher duties without harassment,
;;;JIJh.". and actions'That shewas put in danger of lurrg,rage don, or dehumanizirrg

CHAPTER

50

i ul' :ile u u a l p r :o ir tr i,,

r0t3

PR.OtsLEftS
l. I(eller, a professor of legai studies at Rhodes Universitv, , Stella, a chemist, was employed by Johnson, a manu_ is a diligent instructor. Late one night, while reading a ,/ facturer, to work on a secret process for Johnson,s newly published, copyrighted rrearise of 1,g00 pages product under an exclusive three_year conrract. written by Gilbert, he came across a three_page section Dabney, a salesman, was employed byJohnson on a discussing the subject matter he intendedto cover in week-to-week basis. Stella and Dabney resigned their class the next day. I(eller considered the trearment to employment with Johnson and accepted employment be illuminating and therefore photocopied the three in their respective capacities with Washington, a rival pages and distributed the copies to his class. One of manufacturer. Dabney began soliciting pationage from Keller's students is a second cousin of Gilbert. the Johnson's former customers, whose names he had author of the treatise; and she showEd Gilbert the memorized. What are the rights of the parties in (a) a copies. Instead o{ being flattered, Giibert sued l(eller suit by Johnson to enjoin Stella from working for for copyright infringement. Decision? Washington, and (b) a suit by Johnson to enioin Jennings conceived a secret process for the continuous Dabney from soliciting Johnson,s customers? freeze-drying of foodstuffs and related products and 4" Conradand Darby were competitors in the business of constructed a small pilot plant that practiced the dehairing raw cashmere,the fleece of certain Asiatic process. However, Jennings lacked the financing nec_ goats. Dehairing is the processof separating the com_ essary to develop the commercial potential of the merciallyvaluablesoft down from the mat;d mass of process and, in hopes of obtaining a contract for its raw {leece, which containslong coarse guard hairs and development and the payment of royalties, disclosed it other impurities. Machinery for this processis not in confidence to Merrick, a coffee manufacturer, who readily availableon the open market. Each company signed an agreement not to disclose it to anyone else. in the business designed and built its own machinery At the same time, Jennings signed an agreement not to and kept the nature of its processsecret.Conrad con_ disclose the process to any other peison as iong as tracted with Lawton, owner of a small machine shop, Jennings and Merrick were considering a contract for to build and install new improved dehairing rnachin_ its development. Upon Jennings,s disclosure of the ery of increased efficiencyfor which Conradfurnished process, Merrick became extremely interested and designs, drawings, and instructions. Lawton, who offered to pay Jennings rhe sum of $ i,zso,Ooo if, upon knew that the machinery design was confidential, further development, the process proved to bc com_ agreed that he would manufacture the machinery mercially feasible. While negotiations between exclusivelyfor Conrad and that he would not repro_ Jemings and Merrick were in progress, Nelson, a com_ duce the machinery or any o{ its essential parts for petitor of Merrick, learned of the process and else.Darby purchasedfrom Lawton i copy of 1"yol: requested a disclosure from Jennings, who informed the dehairing machinery that Conrad had specially Nelson that the process could not be disclosed to any_ designed. Whar are Conrad,srights against 1ai OarUy one unless negotiations with Merrick were broken olf. and (b) Lawton? Nelson offered to pay Jennings $2,500,000 for.rhe ,t Sally, having filed locally an affidavit required under process, provided it met certain defined obiective orr- / the assumedname statute, has been operating and formance criteria. A contract pr"pu..i and exe_ advertisingher exclusive toy store for twinty years in cuted between Jennings and -u, Nelson on this basis, Centerville,Illinois. Her advertisinghas consistedof without any prior disclosure of the process to Nelson. large signson her premisesreading ,,TheToy Mart.,, Upon the making of this contract, Jennings reledted Bob, afteroperatinga storein Chicagounder the name Merrick's o{fer. The process was thereupon disclosed to "fne ChicagoToy Mart,,, relocatedin Centerville, 9{ Neison. and demonstrarion runs of the pilot plant in Illinois, and erecteda large sign reading "TOy MART" the presence of Nelson representatives were conducted with the word ,,Centerville,, written underneath in under varying conditions. After three weeks of exper_ subsrantialiysmaller letters. Thereafter. Sally,s sales imental demonstrations, compiling data, and analyiing declined, and many o{ Sally,scustomerspaironized results, Nelson informed Jennings that the process did Bob's srore,thinking it to be a branch of Silly,s busi_ not meet the performance criteria in the contract and ness. What are the righrsof the parties? that for this reason Nelson was rejecting the process. 6. Ryan Corporationmanufactures and sellsa variety of TWo years later, Nelson placed on the markei freeze_ householdcleaningproducts in interstate commerce. dried coffee that resembled in color, appearance, and On national television, Ryan falsely advertisesthat its texture the product of Jennings's pilot plant. WhAt are laundry liquid is biodegradable. Ryan violated the Hai the rights of the parties?

,t::

LanhamAct?

pART XI pioperrv

the benefit of consumer identification with the Gibbons, Inc. and Marvin Corporation are manufac,^o l"1p turers who sell a variety o{ household cleaning prodCoke name. Decision? ii. Vuitton, a French corporation, manufactures highucts in interstate commerce. On national television quality handbags, luggage, and accessories. (16ryn Gibbons states that its laundry liquid is biodegradable and that Marvin's is not. In {act, both products are Handbags, a New York corporation, manufactures and distributes ladies' handbags. Vuitton handbags are sold biodegradable. Has Gibbons violated the Lanham Act? exclusively in expensive department stores, and distri_ George McCoy of Florida has been manufacturing and bution is strictly controlled to maintain a certain retail distributing a cheesecake for over {ive years, labeling a selling price. The Vuitton bags bear a registered trade_ his product with a picture of a cheesecake, which mark and a distinctive design. Crown's handbaes serves as a background for a Florida bathing beauty and under which is written the slogan "McCoy All appear identical ro the Vuitton bags but are of inlerior quglity. Vuitton sues Crown {or manufacturing counSpice Florida Cheese Cake." George McCoy has not terTeit handbags and seliing them at a discount. registered his trademark. Subsequently, Leo McCoy of Decision? California begins manufacturing a similar product on 12. T.G.I. Friday's, a New York corporation and registered the West Coast using a label similar in appearance to that of George McCoy, containing a picture of a / service mark, entered into an exclusive licensing Hollywood star and the words "McCoy's All Spice agreement with Tiffany & Co. that allowed Ti{fany to open a Friday's restaurant in Jackson, Mississippi. Cheese Cake." Leo McCoy begins marketing his products in the eastern United States, using labeis with the Internationai Restaurant Group, operated by the ownword "Florida" added, as in George McCoy's label. Leo ers of Tiffany, applied for a license to open a Friday's in McCoy has registered his product under the Federal Baton Rouge, Louisiana, but was refused. In Baton Trademark Act. To what relief, if any, is George McCoy Rouge, International then opened a restaurant, called entitled? E.L. Saturday's, or Ever Lovin' Saturday's, which had p" Sony Corporation manufactured and sold home video the same type of menu and decor as Friday's. Friday's / recorders, specifically Betamax videotape recorders sues International for trademark infringement. (VTRs). Universal City Studios, Inc. (Universal) owned Decision? tr3. As part o{ its business, ICnko's Graphics Corporation the copyrights on some programs aired on commer(ICnko's) copied excerpts from books, compiled them cially sponsored television. Individual Betamax owners frequently used the device to record some of in "packets." and soid the packets to college students. Universal's copyrighted television programs for their Kinko's did this without permission {rom the owners own noncommercial use. Universal brought suit, of the copyrights to the books and without paylng ciaiming that the sale of the Betamax VTRs to the gencopyright fees or royalties. Kinko's has over 200 stores eral public violated its rights under the Copyright Act. nationwide and reported $I5 million in assetsand $3 It sought no relief against any Betamax consumer. million in profits for 1989. Basic Books, Harper 6 Row Instead, Universal sued Sony for contributory infringeJohn Wiley & Sons, and others (plaintiffs) sued ment of its copyrights, seeking money damages, an Icnko's for violation of the Copyright Act of 1976. The plaintiffs ovr.ned copyrights to the works copied and equitable accounting of profits, and an injunction against the manufacture and sale of Betamax VTRs. sold by Kinko's and derived substantial income from Decision? royalties. They argued that Kinko's had infringed on 1*. The Coca-Cola Company manufactures a carbonated their copyrights by copying excerpts lrom their books beverage, Coke, made from coca leaves and cola nuts. and selling the copies to college students for profit. The Koke Company of America introduced into the I(nko's admitted that it had copied excerpts without permission a?rd had sold them in packets to students, beveiage market a similar product named Koke. The Coca-Cola Company brought a trademark infringebut it contended that its actions constituted a fair use ment action against l(oke. Coke claimed unfair comof the works in question under the Copyright Act. petition within the beverage business due to Koke's Decision? imitation of the Coca-Cola product and I(oke's attempt