UNIT HYPOTHETICAL

CompTac, Inc., which is headquartered in San Francisco, California, is one of the leading software manufacturers in the United States. The company invests millions of dollars to research and develop new software applications and computer games that are sold worldwide. It also has a large service department and takes great pains to offer its customers excellent support services.

1. Jurisdiction. CompTac routinely purchases some of the materials necessary to produce its computer games from a New York firm, Electrotex, Inc. A dispute arises between the two firms, and CompTac wants to sue Electrotex for breach of contract. Can CompTac bring the suit in a California state court? Can CompTac bring the suit in a federal court? Explain.

2. Negligence. A customer at one of CompTac’s retail stores stumbles over a crate in the parking lot and breaks her leg. Just moments earlier, the crate had fallen off a CompTac truck that was delivering goods from a CompTac warehouse to the store. The customer sues CompTac, alleging negligence. Will she succeed in her suit? Why or why not?

3. Wrongful Interference. Roban Electronics, a software manufacturer and one of CompTac’s major competitors, has been trying to convince one of CompTac’s key employees, Jim Baxter, to come to work for Roban. Roban knows that Baxter has a written employment contract with CompTac, which Baxter would breach if he left CompTac before the contract expired. Baxter goes to work for Roban, and the departure of its key employee causes CompTac to suffer substantial losses due to delays in completing new software. Can CompTac sue Roban to recoup some of these losses? If so, on what ground?

4. Cyber Crime. One of CompTac’s employees in its accounting division, Alan Green, has a gambling problem. To repay a gambling debt of $10,000, Green decides to “borrow” from CompTac to cover the debt. Using his knowledge of CompTac account numbers, Green electronically transfers $10,000 from a CompTac account into his personal checking account.A week later, he is luckier at gambling and uses the same electronic procedures to transfer funds from his personal checking account back to the CompTac account. Has Green committed any crimes? If so, what are they?

5. Ethical Decision Making. One of CompTac’s bestselling products is a computer game that includes some extremely violent actions. Groups of parents, educators, and consumer activists have bombarded CompTac with letters and e-mail messages calling on the company to stop selling the product. CompTac executives are concerned about the public outcry, but at the same time, they realize that the game is CompTac’s major source of profits. If it ceased marketing the game, the company could go bankrupt. If you were a CompTac decision maker, what would your decision be in this situation? How would you justify your decision from an ethical perspective?