Semester Final

Dracca is prohibited from selling its Funny Bunny toys in  the United States because they do not meet product safety guidelines. Because  there is a high profit margin on these toys, Dracca sells them overseas via  electronic contracts. Dracca offered 100 cartons of Funny Bunny toys to a  retailer in Canada known as Northern Toys, Ltd (NT). NT accepted the offer,  stating, “We accept your offer for 100 cartons of Funny Bunny toys, but require  an additional 20 cartons of Happy Hippos for the same price.”

Another international retailer with which Dracca does  business is Baby Supplier out of Mexico. Baby Supplier discovered it could  easily manufacture the GlideStride stroller for much cheaper in its plant in  Mexico City. The GlideStride is patent pending in the United States.

The GlideStride is shipped to six other countries,  including several countries in the European Union. Upon shipment to the EU, a  Dracca employee offered a customs official $1,000 U.S. dollars in exchange for  levying duties on only half of the shipment. This could save Dracca $5,700 U.S.  dollars over a two-month period.

The GlideStride is manufactured by Dracca in Indonesia at  a plant that employs children as young as eight. Recently, a television news  program in the United States reported that Dracca products were made in  factories where workers were paid less than the applicable minimum wage, were  required to work excessive overtime, and were exposed to toxic chemicals in  violation of applicable health and safety laws. It was noted that the  GlideStride could not be manufactured in the United States due to environmental  restrictions.

Dracca issued publicity refuting the allegations of the  television report. Tanya Crier sued Dracca on behalf of the public, claiming  Dracca’s statements were false and misleading. Dracca moved to dismiss the  complaint, noting its statements were protected under the First Amendment to  the United States Constitution.

In light of these facts, please respond to the following  questions using course material and credible outside research to support your  findings. Please submit findings in a three- to five-page paper, using APA  format.

  • What are the ethical considerations of Dracca  selling the Funny Bunny toys in Canada when they are banned in the United  States?
  • Under the CISG, has Dracca entered a contract  with NT? Why or why not?
  • What are the legal and ethical ramifications  of the Dracca employee’s offer to the customs official?
  • What legal and ethical issues are presented  by Baby Supplier’s manufacture of the GlideStride?
  • What legal and ethical issues are presented  by the working conditions of Dracca’s Indonesian factory?
  • Can a corporation such as Dracca  participating in a public debate be subjected to liability for factual  inaccuracies? Would the First Amendment protection apply to Dracca’s  statements?
  • What actions (internal and external) do you  recommend to Dracca to remedy the ethical and legal considerations of this  scenario? Be specific and detailed, and be sure to base recommendations on  relevant legal and ethical principles.

Cite any  sources using the APA format on a separate page.

Name your  document: SU_MBA5005_W6_A2_LastName_FirstInitial_PartI.doc.

Part  II

To help mitigate the penalties they face because of some  of the actions mentioned in the six scenarios presented over six course weeks,  Dracca has hired you to draft a code of ethics specifically tailored to their  company. Review the legal and ethical dilemmas Dracca encountered in Weeks 1 through 6. Consider other potential areas of risk that may not have been  identified.

Your code of ethics should include an overview of the  company and its legal/ethical situation, should address at least six  legal/ethical issues related to Dracca, and should provide a mechanism for  reporting violations. Do not consider copying information from online sources. Organizations  differ depending on the type of industry, regulations, goals, and other issues;  therefore, one ethics policy would not be suitable for all companies. Customize  your policy to Dracca.

Cite any sources using the APA  format on a separate page.

Name your document: SU_MBA5005_W6_A2_LastName_FirstInitial_PartII.doc.


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