Scenario 1

Amblin Industrial Equipment is seeking a merger with Whitmore Industries. Both companies manufacture automotive parts in a twelve state region of the Midwest. The merger will give Amblin/Whitmore control of almost 85% of the remanufactured parts business within this area.

• Discuss with them the implication of their decision to require all new customers of the merged company to purchase a "start-up" package of parts for $350,000; a package that includes slow-moving items from their inventory in an effort to increase productivity and reduce inventories.
• Would there be any action which their small competitor, Kirby Automotive, could take to insure that the merger does not take place? What and how?
• Are there problems related to the required purchase of the "start-up" package which would be subject to agency regulation?

Scenario 2

Marvin and Ruby Stubblefield, a middle-aged couple from Boston, moved to Omaha following Ruby's transfer to ConAgra headquarters. As part of the negotiated package of salary and benefits, Ruby was given a stock-option at the end of each year, based upon her performance. She was to be given 10,000 shares of common stock each year that she met her departmental performance quota. The stock had a value of $5 per share on the date the contract was negotiated, but the interviewer assured her that based upon information obtained through a recent Board of Directors meeting, an announcement about a new patented diet food was going to increase the value of each share to $12 by the time Ruby was scheduled to begin. Acting on this information both Ruby and Marvin took their savings of $250,000 and purchased 50,000 shares of ConAgra stock. Sure enough, the stock quickly went to $12 and both Ruby and Marvin realized a healthy gain on their investment when they sold it six months later.

• Should Ruby, Marvin or ConAgra be concerned? Why or why not?

Upon reporting to work at ConAgra, Ruby was informed that due to a restructuring, her position had been eliminated but there was an administrative assistant position available. Assured that she would be considered first for any management openings, Ruby accepted the job at a significant reduction in pay. Once a management position opened up, Ruby interviewed for it. During the course of the interview, she was asked whether she would be willing to travel as part of the job. She told the interviewer that, although she was the mother of three small children, a modest amount of travel would be acceptable. The interviewer recorded that it was a sign of poor parenting and refused to hire her for the position.

• Does this present any problems for ConAgra under regulations applying to employment terms and conditions?