MGMT 402 midterm SP 2020

Business Copyright

95 years after first publication or 120 years from creation (whichever's shorter)

Plant Patent

A unique patent right granted to inventors of new forms of plants.

Trademark

Any unique name/branding a company uses to distinguish itself and its products from those of its competitors

Comprehensive environmental response, compensation, and liability act (CERCLA)

Creates a superfund (from business taxes) to clean up land when the polluter fails to do so. Anyone connected to a spill can be held liable

2 types of trademark infringements

Direct infringement and dilution

Moral compensation

Doing good because we did bad before

Resource conservation and recovery act

EPA develops regulations applicable to all facilities that handle hazardous waste in any capacity

How to mitigate self-serving bias (2 ways)

Engage trusted friends, advisers, etc. seek objective truths/facts.

Patents. Definition and 3 types

Exclusive right to use, sell, or license an invention for a period of time. Utility, design, and plant

Ethical framing

How situations are posed controls how we respond. (IE. 75% fat free or 25% fat). Are employees/companies thinking about ethics or profits?

Self-serving bias

Impossible to be impartial. We see things in a light most favorable to our own interests. We are more likely to recall facts that support our point of view.

The power of one

It takes one person to break groupthink.

Sadhu application of ethical fading, moral myopia, ethical framing, self-serving bias, loss aversion.

McCoy was too focused on his goal to help, rationalization was that the Sadhu got what was coming to him, his frame was to climb the mountain not help those in need, McCoy wanted to go up the mountain for himself rather than help someone else, he would lose all progress and training if he helped the Sadhu

Environmental Protection Agency (EPA)

Oversees all environmental laws. Makes, investigates, and enforces administrative regulations

Tort

Patent infringement

Incrementalism

People will intentionally do something unethical or cut corners, expecting to be more ethical after success however after doing a couple unethical actions they don't feel as unethical.

How to be morally aware (3 ways)

Practice ethical attentiveness: think about situations and if there's an ethical component to them. Listen to your gut. Engage trusted friends, advisers, etc.

Consumer Financial Protection Bureau (CFPB)

Regulates financial institutions, debt collectors, payday lenders, etc.

National Environmental Policy Act (NEPA)

Requires filing of environmental impact statements with EPA for almost all government actions. Makes gov't take forever

Various patent infringement punishments

Royalties, injunction, destruction of infringing items (Apple V Samsung case), Other damages (monetary damages)

Agreed-upon mergers

Stock purchase, short-form mergers, and asset purchase

Loss Aversion

The extreme desire to hold on to what we have can lead to unethical behavior.

Copyright

The right to protect a recorded expression of a creative idea (mentioned in US constitution). No application process, originally as short as 14 years, now author's life +70

Social comparison theory

We all compare ourselves to those around us

Rationalization

We are very good at convincing ourselves that our actions are justified (rational-lies)

Moral licensing

We do a good thing and have the license to slack on other things

moral equilibrium

We keep a running scoreboard in our heads comparing our behavior with our mental image of ourselves

Conformity bias

We take our cues on the behavior of others

McGurk Effect

What we see overrides what we hear.

Injunction

a court order that forces or limits the performance of some act by a private individual or by a public official

Patent trolls

a firm or individual that produces no products or services and owns patents only to obtain licensing fees from other firms. (IE Lodsys LLC suing app developers for in-app purchases)

Design Patent

a patent that offers protection for the way a product looks

Utility patent

a patent that protects the functionality of the invention

Sadhu application of bystander effect, social comparison, conformity bias, power of one

a. Bystander effect: other hikers would help b. Social comparison: comparing yourself to other hikers c. Conformity bias: if someone else isn't helping why should I? d. Power of one: if one person takes initiative to help, others might have joined in

Sadhu application of moral equilibrium, conflicts of interest, and rationalizations

a. Moral equilibrium: McCoy maybe didn't help the Sadhu because he felt he had built up a bank. Maybe he did something good later to make up for it b. Conflicts of interest: Either climb mountain or save Sadhu c. Rationalizations: Other people will take care of him. If i don't do it someone else will

Ethical Fading

a. being so focused on one aspect of a situation that the moral dimensions fade from view. IE. you know layoffs are happening and your boss asks you to "massage" some financial numbers to hit your targets. Ethical issues fade away

Requirements for a Trademark

a. unique in industry, demonstrate actual need, protected nationwide except if someone else is using that name

Short-form mergers

acquirer already owns 90%+ of target stock. No approval necessary

Asset purchase

acquirer buys target asssets, but not stock. Helps acquirer avoid liabilities

Trade secrets

any confidential, proprietary business information (IE coke recipe or KFC's spices)

Food and Drug Administration (FDA) regulates...

anything that goes in your body i. No sale of unadulterated food ii. No false/misleading food labels iii. Labels must contain name and location of manufacturer, ingredients, nutritional content iv. Restaurants with >19 locations must publish nutrition info

2 forms of stock purchase

cash merger: money for stock Share exchange: stock for stock (acquirer shareholders need to approve if >20% dilution)

Fair use doctrine (5 ways)

copyrighted material may be reproduced without permission in parody/satire, short portion in news report, educational purposes, critique/review, judicial/legislative proceeding.

TM infringement punishments

disgorge of profits (hand over all profits), damages, injunction, destruction of infringing items

Copyright infringement punishments

disgorge of profits (hand over all profits), damages, injunction, destruction of infringing items, statutory damages (only if registered, set fine amount received)

how to avoid fundamental attribution error

empathy, do not assume you are better than others, put yourself in others' shoes, learn from mistakes of others

Clean Air Act

gives EPA broad authority to regulate air pollution

Fair and Accurate Credit Transaction Act (FACT)

gives consumer the right to receive their credit report annually

Fair credit billing act

gives consumers a process for disputing credit card charges

How to avoid negative social comparison

i. Do not assume what you see is all there ii. Become content with your standing

Toxic substances control act

i. EPA has identified hundreds of compounds as toxic ii. Regulates use depending on the degree of risk

3 ways to curtail rationalizations

i. Get a second, unbiased opinion ii. What would your grandmother think? iii. Do you want this published in the news?

How to reduce conflicts of interest (3 ways)

i. Increased transparency ii. Increased accountability iii. Implement policies to mitigate conflicts (2 signers on checks)

Telemarketing regulations

i. Inform consumer it's a sales call and identify product and seller ii. Inform the consumer of the price and purchase terms iii. Inform the consumer if te purchase price is nonrefundable iv. Obtain explicit authorization from the consumer v. Clearly disclose the terms of any free trial period vi. Remove a customer from their contact list upon request

Penalties for polluting water

i. Injunctions ii. Fines iii. Order to clean up polluted body of water iv. Order to clean up polluted water v. Criminal prosecution

3 Penalties for violations of EPA

i. Injunctions ii. Fines: 25k or amount of benefit iii. Criminal prosecution for willful violations

4 factors that promote cognitive dissonance

i. Irrevocable commitment ii. Foreseeable consequences iii. Responsibility for consequences iv. Effort

What sales does FTC regulate

i. Mail, telephone, and online sales ii. Door-to-door sales: 3 day cooling off period iii. Accurate odometers, itemization of funeral services, and many other issues

False and deceptive advertising

i. Making unsubstantiated claims ii. Misleading a reasonable consumer

Beauty products regulation

i. Must disclose ingredients and any harmful substances ii. Prohibits misleading/unsubstantiated claims on labels iii. Mislabeled or adulterated products prohibited

ways to stop a tender offer

i. Negotiation: convince acquirer that they don't want you ii. Lawsuits: draw out the process by suing acquirer that they didn't follow Williams Act iii. Self-tender or reverse-tender: buy the acquirer iv. Selling a crown jewel: selling valuable asset that acquirer wants v. White knight: someone else comes in and saves company vi. Poison pill: if ownership changes then contract is terminated vii. Greenmail: giving them money not to get bought viii. Issuing more stock: diluting stock so company can't buy

3 ways to reduce cognitive dissonance

i. Never ignore guilty feelings in your gut ii. Learn the ways your minds trick us into having incorrect views of ourselves iii. Know the types of rationalizations we use to excuse our behavior

2 Sources of water pollution

i. Point source: power plant, sewage treatment, etc. Requires detailed records and monitoring of activity ii. Thermal sources: uncontaminated, non-toxic, hot water. Prohibited without a permit. Not dangerous to humans, but harmful to ecosystems

How to be the power of one

i. Prepare ahead of time ii. Be aware of ethical dimensions iii. Live with your means and have an emergency fund iv. Have your most meaningful relationships outside of work

Federal water pollution control act (clean water act)

i. Requires states to regulate bodies of water within their borders ii. Classifies bodies of water based upon quality (drinking, recreation, industrial)

Safe drinking water act

i. Sets minimum quality standards for municipal water providers ii. Prohibits actions that pollute a drinking water source

Sources of air pollution

i. Stationary: power plants, factories, etc. Regulated by state ii. Mobile: cars, planes, etc. EPA sets emissions standards

How to avoid loss aversion

iWhen faced with a possible loss and a course of action to try to avoid it, ask yourself whether you would take the same course of action to gain the same amount of benefit

Dilution (trademark infringement)

iconfusion not required (IE. Ben and Jerry's and Ben and Cherry's). Weakens brands

Economic Espionage Act (1996)

if someone discloses trade secrets of your company it is considered a criminal defense

Moral Myopia

keeps ethical issues from coming into focus because a rationalization blocks them. Ethical issues are kept from view. IE. automatically believing something is ethical because it's legal.

Fair Credit Reporting Act (FCRA)

limits credit reporting agencies' use of consumer information

Requirements for a patent

new, useful, and nonobvious

imposter syndrome

opposite of overconfidence bias. high achiever underestimates ability and achievement, despite evidence

Cognitive dissonance

our minds can entertain two contradictory concepts at the same time. Our brains will make us resolve the conflict one way or another. When we resolve conflict by acting unethically, we rationalize behavior we previously believed to be wrong as no longer being wrong

3 intellectual property ethics issues

patenting life, patent trolls, drug pricing

Overconfidence bias

people tend to believe they are more ethical than everyone else

Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD)

places regulations on credit card issuers such as: i. Requiring card agreements to be in plain English ii. Card agreements must be posted publicly online iii. Restricts issuance of card to consumers

Fair Debt Collection Practices Act (FDCPA)

prohibits i. Contacting a debtor between the hours of 9pm and 8am ii. Contacting a debtor after written notice to cease contact iii. Harassing debtors iv. Making false statements v. Threatening any action outside of the debt collector's legal rights

Equal Credit Opportunity Act (ECOA)

prohibits discrimination in provision of credit on the basis of race, sex, religion, color, etc.

CAN-SPAM Act

requires ability to unsubscribe, accurate headers, a physical address listed for the seller, and clear labeling of adult content

Fair credit and Chard Card Disclosure act

requires disclosure of credit card interest rates, fees, minimum finance charges, payment due dates, and grace periods

Truth in Lending Act (TILA)

requires lenders to disclose: i. Cash price of the goods or services being purchased ii. Interest rate and fees of the loan iii. The amount paid over the life of the loan iv. The amount and due date of each installment payment v. Penalties for late payments or for repayment of principal

Williams Act

sets tender offer rules: i. Must treat all shareholders equally in pay and proportion ii. Offers are held for 20 days iii. No dissenter's rights for shareholders who don't sell

The bystander effect

the presence of others discourages an individual from intervening. The more bystanders, the smaller the chance that any one of them will help. Diffusion of responsibility

2 ways to avoid overconfidence bias

try to be humble, don't surround yourself with yesmen

Direct infringement of Trademark

unauthorized use that creates confusion among consumers

fundamental attribution error

we all think we're better than we are and we all think others are worse than they are

Contested mergers

when target board disapproves. Acquirer goes directly to target shareholders

Conflicts of interest

when we have incentives that conflict with our professional responsibilities. We always think we are immune (overconfidence bias). Single most important ethical problems in business

Federal trade commission (FTC)

working to protect consumers by preventing anticompetitive, deceptive, and unfair business practices