Question
In the quest to increase productivity, you hire a consulting firm to help. The consulting firm is Dr.Seuss's Glikktastic Consultuatious Humpfers. A young man by
In the quest to increase productivity, you hire a consulting firm to help. The consulting firm is "Dr.Seuss's Glikktastic Consultuatious Humpfers." A young man by the name of Bartholomew Cubbinscomes into your office. "I hear you have need of anew Zillow catcher or Whibbledyspout! You havehired a stuperdeously fabulostic consulting firm tohelp!"You and Mr. Cubbins agree to an arrangement where he will represent you with many differentvendors and manufacturers, in an attempt to increase productivity. He will eliminate waste and use theconnections he has throughout the world to get youthe lowest cost with highest quality. You give hima budget and six month time frame to complete the work.
At a luxurious dinner party, you introduce Mr. Cubbins to the host, Dr. Lorax. You introduce Mr.Cubbins as your new "Business Partner." He begins to say, "But I am merely your stuperdeouslyfabulostic consu..." when you cut him off. You interrupt, "He is going to make this business take off,and we are so excited he is partnered with us!" A few minutes later, Dr. Lorax and Mr. Cubbins arealone in the rumpus room. Dr. Lorax says, "Mr. Cubbins, it is so good that you have partnered withmy friend. Let me tell you, I have been trying to get {Insert your Company} to invest in this new ideafor years, maybe you will be more receptive to it..."
Mr. Cubbins is excited by the prospect and promises$500,000.00 of your companies money to fundthe venture. Three months later, you are going over
account statements and see the wire transfer ofhalf a million dollars. You immediately call Mr. Cubbins into your office. "WHAT DID YOU DO?!?!
Dr. Lorax has been trying to get me to invest for years and have said no because it was stupid idea,besides, you had no right to promise that, I hired
you for productivity enhancements! I am going tocall Dr. Lorax RIGHT NOW!"
You grab the phone - Dr. Lorax immediately answersyour call - "Hi! I am so glad you called,remember that investment you made... half a million?!
Well...ohh, I can't hold it in, we used it on theidea, and we made $10M! You invested half the capital, so I guess I owe you $5M...I'll get my
checkbook!"
Do you have a right to claim the profit? Why or whynot? What actions would you take to ensure it isproperly claimed?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started