CONTEXT:

ARTVECTOR Brian Maxwell, Customer Relations Manager, for Art Vector, was in a quandary. He pondered over a memo from Jay Kelly. Loss Prevention Manager at Art Vector. (Exhibit 1) and a letter addressed to him from Candice Cook. a customer, (Exhibit 2}. What appeared to have been a routine shoplifting incident on the part of Mrs. Cook turned out to lack evidence. To make matters worse, the suspect was injured during apprehension. It appeared that Art Vector faced the possibility of a lawsuit because of the incident. Ronald Wood. Chief Administrator. had asked Mr. Maxwell to assess the legal and nancial consequences of the case. make recommendations. and report back to him. Art Vector is a large stationery and drawing supplies retailer with approximately 50 stores located throughout the State of Green. The rm has been established for many years, making steady, if unspectacular prots. HHET1 MEMORANDUM DATE: January 3, 2019 TO: File FROM: Jay Kelly, Loss Prevention Manager SUBJECT: Shoplifting Incident At 2:20 p. m. today, I observed a customer, Candice Cook, who was standing next to calligraphy sets in the store, make a sudden move to her pocket. She then proceeded at an accelerated pace toward the exit. I noticed that her side pocket was stuffed. I then proceeded directly to where the customer had been standing and noticed that a calligraphy pen set was missing. It so happened that I noticed earlier that day that the calligraphy pen sets were fully stocked up. I assumed that the customer, who I had previously observed, had shoplifted the set As the customer was about to leave the store by then, I began chasing after her and reached her at the store's entrance. Fearing that I might lose her in the crowd, I shouted at her to stop. I then grasped her by the arm and shoved her back to the store. Apparently, the customer lost her balance and fell on her back hitting one of the checkout counters. She seemed to be hurta little, but then I offered to help her stand up, although she continued to limp. I then asked her if she had forgotten to pay for something. She seemed surprised and said that she does not understand what I am talking about I then directed her to follow me to the Loss Prevention room. Alice Femandez, one of the checkout employees, helped her walk toward the Loss Prevention room as the customer complained she was having difficulties walking and was experiencing terrible back pain. | closely walked behind the two of them. Per store's protocol, I then advised the customer that she would have to wait until the store's manager would come back from a meeting for the investigation to begin. The store's manager, Jackie Tran, was due to retum from a meeting at 2:3t'.lI p.m. that day. Unfortunately, she only retu med at 3:30 p.m. At that time, Mrs. Tran advised the customer why she was being held up and asked her to empty her pockets. However, no calligraphy set was found. Mrs. Tran then apologized for the inconvenience, gave her a $25 gift certicate, and wished the customer well. I really did not mean to hurt the customer, but apparently, her fall did some damage to her as she kept complaining that her back hurts. EXHIBIT 2 Candice Cook 77 Green Avenue Green City, Green February 13, 2019 Ronald Wood, Chief Administrator Art Vector 99 Mint Blvd. Rose City, Green Re: incident dated January 3'\\fRequired: Suppose you are Brian Maxwell. You havejust conrmed that. for all practical purposes. Mrs. Cook will be unable to work at all during the next ten years. including all of 201 9. Write a report. addressed to Ronald Wood. Chief Administrator of Art Vector. Be sure to follow the guidelines for writing a report found in the Gateway Web Site. To prepare for this case. you may want to review business law LDC concepts 2 and 9. financial accounting LDC concept 7, macroeconomics LDC concept 1, and statistics LDC concepts 1, 4. and 8- Exhibit 3 Number Year Gross Income Price Index Adjusted Price Index Real Income 1 2004 60.056.00 188.9 1.889 31,792.48 2 2005 S 61,257.00 195.3 1.953 31,365.59 2006 62,482.00 201.6 2.016 30,993.06 A 2007 63,732.00 207.3 2.073 $ 30,743.85 2008 65.007.00 215.3 2.153 30,193.68 2009 66,307.00 214.5 2.145 30,912.35 2010 67,633.00 218.1 2.181 31,010.09 2011 68,986.00 224.9 2.249 30,674.08 9 2012 70,366.00 229.6 2.296 30.647.21 10 2013 71,773.00 233.0 2.330 30.803.86 11 2014 73,208.00 236.7 2.367 30,928.60 12 2015 74,672.00 237.0 2.370 31,507.17 13 2016 76,165.00 240.0 2.400 31,735.42 14 2017 77,688.00 245.1 2.451 31,696.45 15 2018 $ 79,242.00 251.1 2.511 $ 31,557.95 "Source: https://data.bls.gov/pdq/SurveyOutputServlet U.S. Department of Labor, Urban Consumers, 1982 - 1984 = 100