Imagine That You Are the Judge Hearing a Motion for Summary

question 21

Multiple Choice

Imagine that you are the judge hearing a Motion for Summary Judgment. The case before you concerns the former Vice-President of Marketing at May Department stores, who has recently been hired by Victoria's Secret.  May Department stores has sued to enforce the non-competition agreement in which the VP agreed not to work for firms competing directly against May Department store. Both parties agree that both stores sell women's intimate apparel, but to different ages of women, and to different customer bases. They also agree that about 8% of May's business is women's intimate apparel, while 98% of Victoria's business is women's intimate apparel. What should you decide?  ​

• A)even though both companies sell women's intimate apparel, there is no meaningful or material competition between them
• B)when both companies sell the same category of products,  in determining whether the companies are in competition, the sale of the products is important, not the percentages of overall sales of the product
• C)when both companies sell the same category of products, the fact that they both sell these products to women is important in determining whether the companies are in competition, not the ages of the women, nor the typical customer base

Understand the role and calculation of after-tax salvage value in equipment disposal decisions.

Evaluate the economic implications of lease payments versus loan payments for equipment acquisition.

Analyze financial decisions using assumptions regarding tax status and depreciation methodologies.

Understand the causes, symptoms, and consequences of groupthink.

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Definitions:

Acceptance

Acceptance in contract law refers to the express or implied agreement to the terms of an offer, forming a binding contract.

Expressly Stated

Expressly stated refers to something clearly and directly communicated in words, with no need for interpretation or inference.

Implied Authorization

An understanding that an agent has the approval to perform acts that are reasonably necessary to accomplish the purpose of an agency.

Offeror

The person or entity who makes a proposal or offer, especially in a contractual context.