Assignment 2: LASA 1: Legal
and Ethical Leadership and Management
Mathis, Inc. is a designer and manufacturer of women’s clothing and
specializes in high-end women’s winter fashions. Normandale, a retailer, sells
high-end products in malls throughout the country. With Mathis’s high costs,
Normandale is unable to make a profit from the sale of Mathis’s products.
Countess Lori-Ann (CLA) is a Mathis competitor. Normandale sends
photographs and samples of the Mathis line to CLA and instructs them to make an
identical line at a lower price. Mathis labels are easily discernable in the
photographs and the samples have the Mathis label attached. CLA copies the
Mathis line for Normandale.
CLA sells the clothing to Normandale at a low price allowing Normandale
to sell the products for a total gross profit of nearly $3 million, an increase
of nearly 50% over its sale of Mathis products. Mathis discovers that
Normandale is selling counterfeit products, and sends several cease-and-desist
letters to them—to no avail. Mathis then sues Normandale alleging Normandale
has engaged in illegal conduct. Normandale counters that it did nothing wrong.
Research business law in regard to protection of intellectual property,
using your textbook, the Argosy University online library resources, and the
Internet. Based on the facts of the case and research, write an analytical
paper. In the paper, respond to the following questions:
·
Was it ethical
for Normandale to sell the alleged knock-off products at a lower price?
Explain.
·
What federal or
state laws protect owners of intellectual property? How do they apply
here? Explain.
·
What damages, if
any, has Mathis suffered because of Normandale’s conduct? Explain.
·
What are the
differing views on the social responsibility of corporations like Normandale?
·
What ethical
code could Normandale implement to prevent similar incidents in the future?
·
Do the owners of
Normandale have personal liability to Mathis for damages? Explain.
·
Do the owners of
Normandale have personal criminal liability for their conduct and that of the
business? Explain.
Write a
five-page paper in Word format. Apply APA standards for writing style to your
work.
