1. Christina Peterson, Hector Gonzolas, and John Ping are involved in the development and licensing of genetically engineered agricultural products. Unfortunately, it appears as though a competitor has copied some of their work. The competitor alleges that the genetically engineered plans were developed by independent research and not by using any of their work. They decide that it is necessary to protect their rights against the competitor and are considering filing a lawsuit. However, one of the drawbacks of the lawsuit is that the case is extremely complicated and there is a fear that a judge and/or jury will not be familiar enough with the complex issues, nor be able to educate themselves at the trial, in order to arrive at the proper result.

Please define the three (3) major alternative resolution models. Which of these may be the better choice for the plaintiffs and why.

2. Keith Loeb and his wife own stock in Waldbaum, Inc., a publicly traded company in the supermarket business. Robert Chestman is Loebs stockbroker. Chestman is aware that Loebs wife is the granddaughter of Julia Waldbaum, a member of the board of dierctors of Waldbaum and the wife of its founder. Julia is also the mother of Ira Waldbaum, the president and controlling shareholder of Waldbaum. During a four-year perios, Chestman executed several transactions involving Waldbaums stock for Keith Loeb. Subsequently, Ira Waldbaum agreed to sell Waldbaum to a buyer which would result in a stock purchase agreement selling the Waldbaum shares for $50 per share. Ire told three of his children about the pending sale and admonished them to keep the news quiet until a public announcement. He alos told his sister, Shirley Witkin, about the sale and cautioned her not to discuss it because it was to remain confidential. Ignoring that advice, Shirley told her daughter, Susan, that Ira was selling the company. Shirley warned her daughter not to tell anyone except her husband, Keith Loeb, because disclosure could ruin the sale. The next day Susan told Keith about the pending sale, but told him not to tell anyone.

The following day, Keith Loeb says he talked with Chestman and told him that Waldbaum was about to be sold at a substantially higher price than its market value. Loeb asked Chestman what he thought he should do, and Chestman responded that he could not tell Loeb what to do in a situation like this. After the phone call, Chestman bought 3,000 shares of Walbaum at $24.65 per share and purchased an additional 8,000 shares for his clients with 1,000 of those shares going to Keith Loeb.

Did Keith Loeb act ethically with regard to what he told Chestman Did Robert Chestman act ethically with regard to the information he receiver from Loeb? Pick one of the ethical standards offered in the text and show how that standard applies to this situation.