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Chapter 22

In April,several employees ofJavatech, Inc., acomputer hardware developerwith 250 employees,started organizing theJavatech Employees Union(JEU). When Javatechrefused to voluntarilyrecognize the union,organizers petitioned theNational Labor RelationsBoard (NLRB) foran election. InJune, the NLRB conductedan election that showed that a majority of Javatech employees supported the union. JEU was certified and began bargaining with management over wages and benefits.The following January, Javatech management offered the JEU a 1 percent annual wage increase for all employees with no other changes in employment benefits. The JEU countered by requesting a 3 percent wage increase and an employee health-insurance package. Javatech management responded that the 1 percent wage increase was the com-pany's only offer. The JEU petitioned the NLRB for an order requesting good faith bargaining. After meeting with an NLRB representative, Javatech management still refused to consider modifying its position. JEU leaders then became embroiled in a dispute about whether the JEU should accept this offer or go on strike.New union leaders were elected in July, and the employer refused to meet with the new JEU representatives, claiming that the union no longer had majority support from employees. In August, a group of seven Javatech engineers began feeling ill while working with a new adhesive used in creating motherboards. The seven engineers discussed going on strike without union support. Before they had reached an agreement, one of the engineers, Rosa Molina, became dizzy while working with the adhesive and walked out of the workplace. Using the information presented in the chapter, answer the following questions.

1.How many of Javatech's250 employees musthave signed authorizationcards to allowthe JEU topetition the NLRB for an election?

Chapter 27

The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit entity that organizes Internet domain names. It is governed by a board of directors elected by various groups with commercial interests in the Internet. One of ICANN's functions is to authorize an entity to serve as a registry for certain "Top Level Domains" (TLDs). ICANN and VeriSign entered into an agreement that authorized VeriSign to serve as a registry for the ".com" TLD and provide registry services in accordance with ICANN's specifications. VeriSign complained that ICANN was restricting the services that it could make available as a registrar, blocking new services, imposing unnecessary conditions on those services, and setting the prices at which the services were offered. VeriSign claimed that ICANN's control of the registry services for domain names violated Section 1 of the Sherman Act. Using the information presented in the chapter, answer the following questions.

1.Should ICANN's actionsbe judged underthe rule ofreason or bedeemed per seviolations of Section1 of theSherman Act? Why?

Chapter 28

Dale Emerson servedas the chieffinancial officer forReliant Electric Company,a distributor of electricity servingportions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks, Inc.,a natural gasdistributor that operatedsolely within NorthDakota. Emerson wenton a weekendfishing trip with his uncle, Ernest Wallace. Emerson mentioned to Wallace that he had been putting in a lot of extra hours at the office planning a takeover of Dakota Gasworks. When he returned from the fishing trip, Wallace purchased $20,000 worth of Reliant stock. Three weeks later, Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57 percent of DakotaGasworks stock. Over thenext two weeks,the price ofReliant stock rose72 percent beforeleveling out. Wallace then sold his Reliant stock for a gross profit of $14,400. Using the information presented in the chapter, answer the following questions.

1.Would registration with the SEC be required for Dakota Gasworks securities? Why or why not?