A person who volunteers with no expectation of being paid for her ...

[Coya19@aol.com]

A person who volunteers with no expectation of being paid for her services is a(n):
 a. exceptional agent b. universal agent
  c. agent who has an agency coupled with an interest d. special agent
  e. none of the other choices

Question 2

Ethical Conduct. Eden Electrical, Ltd., owned twenty-five appliance stores throughout Israel, at least some of which sold refrigerators made by Amana Co Eden bought the appliances from Amana's Israeli distributor, Pan El A/Yesh Shem, which approached Eden about taking over the distributorship. Eden representatives met with Amana executives. The executives made assurances about Amana's good faith, its hope of having a long-term business relationship with Eden, and its willingness to have Eden become its exclusive distributor in Israel. Eden signed a distributorship agreement and paid Amana 2.4 million. Amana failed to deliver this amount in inventory to Eden, continued selling refrigerators to other entities for the Israeli market, and represented to others that it was still looking for a long-term distributor. Less than three months after signing the agreement with Eden, Amana terminated it, without explanation. Eden filed a suit in a federal district court against Amana, alleging fraud. The court awarded Eden 12.1 million in damages. Is this amount warranted? Why or why not? How does this case illustrate why business ethics is important?

[cegalasso]

Answer to Question 1

e

Answer to Question 2

Ethical conduct
You can infer from the problem that the damage award included not only actual damages to compensate Eden for Amana's failure to fulfill its contractual obligations but also punitive damages. The real question here is thus whether such a high amount of punitive damages was appropriate, or warranted, in this case. One would assume that behavior such as Amana's should be punished somehow. Amana had clearly ignored its ethical and legal obligations to Eden. Moreover, Amana is a major appliance dealer with global operations, and 12.1 million would not likely cause the company to go bankrupt. The award is sufficiently high, though, to severely punish Amana and let Amana know that its conduct toward Eden was outrageous. Indeed, the trial court referred to Amana's actions as a reprehensible case of business fraud. On appeal, the U.S. Court of Appeals for the Eighth Circuit emphasized that due to the egregious nature of Amana's conduct, the damages award appropriately furthered the state's twin goals of punishment and deterrence. This case illustrates that business ethics is important to the long-run viability of a corporation. Too much unethical conduct by a firm's representatives and consequent financial penalties would likely result in the end of the firm's capacity to do business.

[Coya19@aol.com]

Thank you

[cegalasso]

Happy to help you