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Ch3) "James Stilton isthechief executiveofficer (CEO) ofRightLiving, Inc., acompany that buyslife insurance policiesat a discount from terminally ill persons and sells the policies to investors. Right Living pays the terminally ill patients a percentage of the future death benefit (usually 65 percent) and then sells the policies to investors for 85 percent of the value of the future benefit. The patients receive the cash to use for medical and other expenses. The investors are "guaranteed" a positive return on their investment,and Right Living profitson the differencebetween the purchaseand sale prices.

Stilton is aware that some sick patients might obtain insurance policies through fraud (by not revealing the illness on the insurance application). Insurance companies that discover this will cancel the policy and refuse to pay. Stilton believes that most of the policies he has purchased are legitimate, but he knows that some probably are not. Using the information presented in this chapter, answer the following questions."

1. Would a person who adheres to the principle of rights consider it ethical for Stilton not to disclose the potential risk of cancellation to investors? Why or why not?

2.Using Immanuel Kant's categorical imperative, are the actions of Right Living, Inc., ethical? Why or why not?

3.Under utilitarianism, are Stilton's actions ethical? Why or why not? If most of the policies are, in fact, legitimate, does this make a difference in your analysis?

4.Using the IDDR approach, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors."

Ch4) "StanGarner resides inIllinois and promotesboxing matches forSuperSports, Inc., anIllinois corporation. Garnercreated the conceptof "Ages" promotionathree-fight series ofboxing matches pittingan older fighter(George Foreman) against a younger fighter. The concept had titles for each of the three fights, including "Battle of the Ages." Garner contacted Foreman and his manager, who both reside in Texas, to sell the idea, and they arranged a meeting in LasVegas, Nevada. Duringnegotiations, Foreman's managersigned a nondisclosureagreement prohibiting him from disclosing Garner's promotional concepts unless the parties signed a contract. Nevertheless, after negotiations fell through, Foreman used Garner's "Battle of the Ages" concept to promote a subsequent fight. Garner filed a suit against. Foreman and his manager in a federal district court located in Illinois, alleging breach of contract. Using the informa-tion presented in the chapter, answer the following questions."

1.On what basis might the federal district court in Illinois exercise jurisdiction in this case?

2.Does the federal district court have original or appellate jurisdiction?

3.Suppose that Garner had filed his action in an Illinois state court. Could an Illinois state court have exercised per-sonal jurisdiction over Foreman or his manager? Why or why not?

4.Now suppose that Garner had filed his action in a Nevada state court. Would that court have had personal jurisdiction over Foreman or his manager? Explain."

Ch5) "Ronald Metzgar placed his fifteen-month-old son, Matthew, awake and healthy, in his playpen. Ronald left the room for five minutes and on his return found Matthew lifeless. A toy block had lodged in the boy's throat, causing him to choke to death. Ronald called 911, but efforts to revive Matthew were to no avail. There was no warning of a choking hazard on the box containing the block. Matthew's parents hired an attorney and sued Playskool, Inc., the manufac-turer of the block, alleging that the manufacturer had been negligent in failing to warn of the block's hazard. Playskool filed a motion for summary judgment, arguing that the danger of a young child's choking on a small block was obvious. Using the information presented in the chapter, answer the following questions."

1.Suppose that the attorney the Metzgars hired agreed to represent them on a contingency-fee basis. What does that mean?

2.How would the Metzgars' attorney likely have served process (the summons and complaint) on Playskool, Inc.?

3.Should Playskool's request for summary judgment be granted? Why or why not?

4.Suppose that the judge denied Playskool's motion and the case proceeded to trial. After hearing all the evidence, the jury found in favor of the defendant. What options do the plaintiffs have at this point if they are not satisfied with the verdict?"