Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
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The Environmental Protection Agency (EPA) would like to adopt some new rules regarding environmental impact statements, but it is afraid that if too many people know about them ahead of time, the adverse publicity will force the agency to amend them. To avoid any public comment, the agency seeks to adopt the rules without publishing them. Which of the following statements is true regarding the agency's actions?
a. The agency is seeking to adopt the rules by a procedure that violates the rulemaking procedures set forth in the APA.
b. The agency has a right to act in this way and a duty to be efficient with taxpayer money.
c. The rules in this instance are procedural in nature and therefore are not required to be published.
d. The agency has no rulemaking authority, because only Congress can make legislative rules.
Novak Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Novakdoes not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Novak patent number 758-6002-1A is as follows.
Date
Activity
Cost
2011–2012
Research conducted to develop precipitator
$382,000
Jan. 2013
Design and construction of a prototype
89,000
March 2013
Testing of models
40,600
Jan. 2014
Fees paid engineers and lawyers to prepare patent application;
patent granted June 30, 2014
52,700
Nov. 2015
Engineering activity necessary to advance the design of the
precipitator to the manufacturing stage
84,500
Dec. 2016
Legal fees paid to successfully defend…
The Environmental Protection Agency (EPA) is in the process of investigating a possible water contamination issue at the manufacturing facility of Northwest Forest Products. The EPA has not yet proposed a penalty assessment. Management feels an assessment is reasonably possible, and if an assessment is made, an unfavorable settlement is estimated between $20 and $30 million. How should Northwest Forest Products report this situation in its current financial statements?
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- Blue Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Blue does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Blue patent number 758-6002-1A is as follows. Date Activity Cost 2011–2012 Research conducted to develop precipitator $372,000 Jan. 2013 Design and construction of a prototype 88,000 March 2013 Testing of models 57,400 Jan. 2014 Fees paid engineers and lawyers to prepare patent application; patent granted June 30, 2014 66,300 Nov. 2015 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage 81,500 Dec. 2016 Legal fees paid to successfully defend…arrow_forwardA writ was lodged in the Supreme Court in the week after year-end claiming damages forillness allegedly caused by chemicals used at a subsidiary company’s manufacturing plant inthe 1990s. This is the tenth such writ lodged, and the client has denied responsibility in allcases because it was unreasonable to believe at that time that these chemicals had adversehealth effects. The claimant has new scientific evidence that counters this defence. Which subsequent event is this and what is the treatment for this?arrow_forwardSerious ethical violations by corporations such as Enron led to the passage ofarrow_forward
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