Summary
This case study was developed after the authors became aware of a consumer fraud lawsuit that was filed against a national movie theatre chain on behalf of all moviegoers who sat through unannounced advertisements. The authors recognized a series of additional legal issues that were not presented in the original litigation, which lead to a discussion of the ethical issues presented in the scenario, and to a discussion of how the national chain might solve the threatened litigation through statistical analysis of a consumer survey.
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Extract
A Day at the Movies
INSTRUCTORS' NOTES
Recommendations for Teaching ApproachesThis case is designed to be used in an upper division business course. The purpose of the course is to enable students to utilize knowledge they have gained in their lower division core business courses. In addition, the course also aims to improve a student's communication, written and oral, and teamwork skills. Student teams prepare the answers to questions presented in the case with coaching from faculty. The faculty coaching is intended to provide answers to team questions. One team of students formally presents their case solution to the class. A second team of students acts as a "challenge team" by asking the presenting team for further explanation or clarification of its case solution. Following the challenge, the entire class is welcome to participate in an active question and answer session.CASE A QUESTIONS - LEGAL AND ETHICAL1. Does a contract exist between Tommy and Royal Theater? If a contract is present, what are the terms of the agreement and did Royal breach the agreement? If the contract was breached, what damages, if any, may Tommy recover?Contract FormationThe breach of contract claim appears to be straightforward. A simple contract was entered into between Tommy and Royal Theater, Tommy requesting a ticket and paying for it in cash. Who is the offeror and who is the offeree is really not critical to the case. Whether Tommy offers to purchase the ticket by tendering the cash and Royal Theater accepts the tender, or Royal Theater offers to sell the ticket and Tommy accepts the off...See the full content of this document
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