The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 11, Problem 2IS
Summary Introduction
Case summary: The company G has 12 percent holding in the U.S. shares market for diamond. The company offered price discounts to the U.S. buyers to acquire more share. Moreover, it increased the prices for the same in the home market to make up for the loss.
To find: The way by which an underselling practice can be defeated.
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2. (The law of Agency) Conflict of interest means ________________.
a. Agent is interested in Principal business
b. Principal is interested in Agent business
c. Agent stands to compete with Principal interest
d. Principal stands to compete with Agent interest
3. (Law of Contract) The agreement is _____________ if it is caused by mistake as to any law in force in Malaysia.
a. voidable
b. void
c. valid
d. illegal
4. (Law of Contract) Yan wants to borrow RM20,000 from her friend Pang and Pang agrees to lend the money if Yan agrees to pay the money to Cathy, his sister in four installments. The above situation illustrates the principle of __________.
a. consideration need not move from the promisee
b. part payments are valid consideration
c. natural love and affection is valid consideration
d. executory consideration is performed after contract is made
Intel made large loyalty payments to HP in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD
What incentive conflict was being controlled by these loyalty payments?
What advice did Intel ignore when they adopted this practice (consider how the Robinson-Patman Act applies to their practice) and speculate why Intel ignored the advice.
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Chapter 11 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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