' Include all the references you used! EXERCICES: 132. Conflicts of Interest. Oxy Corp. is negotiating with Wick Construction Co. for the renovation of 9m corporate headquarters. Wick, the owner of Wick Construction Co., is also one of the five members onngyfvs board of directors. The contract terms are standard for this type of contract. Wick has previously informed two of the other directors of his interest in the construction company. anyis board approves the contract by a three-to-two vote, with Wick voting with the majority. Discuss whether this contract is binding on the corporation. {See Corporate Directors and Officers.) 202. Wrongful Discharge. Denton and Carlo were employed at an appliance plant. Theirjob required them to perform occasional maintenance work while standing on a wire mesh twenty feet above the plant floor. Other employ-gas had fallen through the mesh, and one of them had been killed by the fall. When their supervisor told them to perform tasks that would likely involve walking on the mesh, Denton and Carlo refused because they feared they might suffer bodily injury or death. Because they refused to do the requested work, the two employees were fired from theirjobs. Was their discharge wrongful? If so, under what federal employment law? To what federal agency or department should they turn for assistance? [See Employment at Will.) 221. Unfair Labor Practices. Consolidated Stores is undergoing a unionization campaign. Prior to the union election, management states that the union is unnecessary to protect workers. Management also provides bonuses and wage increases to the workers during this period. The employgag reject the union. Union organizers protest that the wage increases during the election campaign unfairly prejudiced the vote. Should these wage increases be regarded as an unfair labor practice? Discuss. (See Unfair Labor Practices.) 273. Price Fixing. Together, EMI, Sony BMG Music Entertainment, Universal Music Group Recordings, Inc., and Warner Music Group Corporation produced, licensed, and distributed 80 percent of the digital music sold in the United States. The companies formed mm sell music to online services that sold the songs to consumers. MusicNet required _e_i_|_l__ of the services to sell the songs at the same price and subject to the same restrictions. Digitization of music became cheaper, but MusicNet did not change its prices. Did W violate the antitrust laws? Explain. [Starr v. Sony BMG Music Entertainment, 592 F.3d 314 {2d Cir. 2010)] (See Section 1 of the Sherman Act.) 283. Insider Trading. David Gain was the chief executive officer {CEO} of Forest Media Corporation, which became interested in acquiring RS Communications, Inc. To initiate negotiations, Gain met with RS's CEO, Gill Raz, on Friday, July 12. Two days later, Gain phoned his brother Mark, who bought 3,800 shares of RS stock on the following Monday. Mark discussed the deal with their father, Jordan, who bought 20,000 RS shares on Thursday. On July 25, the day before the RS bid was due, Gain phoned his parents' home, and Mark bought another 3,200 RS shares. The same routine was fol- lowed over the next few days, with Gain periodically phoning Mark or Jordan, both of whom continued to buy RS shares. Forest's bid was refused, but on August 5, RS announced its merger with another company. The price of RS stock rose 30 percent, increasing the value of Mark's and Jordan's shares by $664,024 and $412,875, respectively. Did Gain engage in insider trading? What is required to impose sanctions for this offense? Could a court hold Gain liable? Why or why not? {See The Securities Exchange Act of 1934.)