Task 1:

Please import the DirectMarketing dataset into R. Please create dummy variables for the Catalogs columns. The variable names should be High_Catalog, and Low_Catalog. Please answer do we need to also create the Middle_Catalog? Why?

Task 2:

Please estimate a regression with the following model specification: AmountSpent = a + b * Income + c * High_Catalog + d * Low_Catalog + e. Please answer what group tends to spend the most? What is the average spending difference between highest spending group and the lowest spending group? Does sending more catalogs increase the spending? Assume everything is statistically significant.

Task 3:

Make dummy variable called "Single" based on the column Married. Make it 1 if the customer is single, otherwise 0. Please estimate this model:AmountSpent = a + b * Income + c * Single + d * Single * Income. Please answer, for the same amount of income increase, who increases the spending more, single customers or married customers? Assume everything is statistically significant.

https://drive.google.com/drive/folders/1GfG7pxvG0zFHm3iofwJ_QdqBsVGHmNrU?usp=sharing

CASE SUMMARY 15.4 Grobow v. Perot, 539 A.2d 180 (Del. 1988) BUSINESS JUDGMENT RULE (particularly EDS), and cease any criticism of GM's H. Ross Perot became the single largest shareholder directors. A group of GM shareholders sued the direc- and a director of General Motors as a result of GM's tors under the theory that the directors had breached acquisition of Perot's highly successful company their fiduciary duty by wasting corporate assets in buy- Electronic Data Systems (EDS). A rift grew between ing Perot's silence. The directors asserted the business Perot and GM's other directors. and after appointing judgment rule as a defense. a subcommittee of directors to study possible alterna- tives, GM's directors offered to purchase back Perot's CASE QUESTIONS sock at a significant premium over market value. In 1. Who prevails and why? exchange for the payment. Perot agreed to leave his 2. What fiduciary duty is at issue? director's seat, not compete with any GM subsidiaryQUESTION 49 Which of the following is true about marketing messages and social media? a. Traditional marketing messages are bottom up. Ob. Social media marketing messages are not like traditional marketing messages. c. Social media messages are typically bottom up. d. Traditional marketing messages are top down, similar to social media messages e. Social media follows traditional marketing messages and how they are distributed QUESTION 50 What do users say is their primary reason for using social media? O a. Reconnecting with school mates Ob. Reconnecting with old friends O c. Promoting their own goals and objectives O d. Sharing information about themselves O e. Staying in touch with family and friendsQUESTION 28 Is a decision by a director to exercise a power for both a proper purpose and an improper purpose a breach of duty? O a. Yes, always. Ob. Yes, but only if, but for the improper purpose, the director would not have exercised the power. O c Yes, but only if, but for the proper purpose, the director would not have exercised the power. O d. No. QUESTION 29 Which of the following is not one of the requirements that must be satisfied before a director can rely on the Corporations Act 2001 (Cth)'s 187 to avoid liability for breach of the duty to act in the best interests of the company? O a, The company is a wholly owned subsidiary. O) b. The constitution of the company expressly authorises the director to act in the best interests of the parent company. c. The director acts in good faith in the best interests of the parent company. O) d. The company is insolvent at the time the director acts or becomes insolvent because of the director's act. QUESTION 30 The statutory business judgment rule allows the directors the benefit of a presumption that they are not in breach of which of their duties? C a. The duty to act in good faith in the best interests of the company. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Surve MacBook AirCHAPTER 1 Law and Legal Reasoning 5 UNIFORM LAWS During the 1800s, the differences orders, and decisions of administrative agencies. An among state laws frequently created difficulties for administrative agency is a federal, state, or local businesspersons conducting trade and commerce government agency established to perform a specific among the states. To counter these problems, a group function. Administrative law and procedures consti- of legal scholars and lawyers formed the National tute a dominant element in the regulatory environ- Conference of Commissioners on Uniform State Laws ment of business. (NCCUSL, www.uniformlaws.org) in 1892 to draft Rules issued by various administrative agencies uniform laws (model statutes) for the states to con- now affect almost every aspect of a business's opera- sider adopting. The NCCUSL still exists today and tions. Regulations govern a business's capital struc- continues to issue uniform laws. ture and financing, its hiring and firing procedures, Each state has the option of adopting or rejecting a its relations with employees and unions, and the way uniform law. Only if a state legislature adopts a uniform it manufactures and markets its products. Regulations law does that law become part of the statutory law of that enacted to protect the environment also often play a state. Note that a state legislature may adopt all or part significant role in business operations. of a uniform law as it is written, or the legislature may rewrite the law however the legislature wishes. Hence, FEDERAL AGENCIES At the national level, the cabinet even though many states may have adopted a uniform departments of the executive branch include numer- law, those states' laws may not be entirely "uniform." ous executive agencies. The U.S. Food and Drug The earliest uniform law, the Uniform Negotiable Administration, for example, is an agency within Instruments Law, was completed by 1896 and adopted the U.S. Department of Health and Human Services. in every state by the 1920s (although not all states Executive agencies are subject to the authority of the used exactly the same wording). Over the following president, who has the power to appoint and remove decades, other acts were drawn up in a similar man- their officers. ner. In all, more than two hundred uniform acts have There are also major independent regulatory been issued by the NCCUSL since its inception. The agencies at the federal level, such as the Federal Trade most ambitious uniform act of all, however, was the Commission, the Securities and Exchange Commission, Uniform Commercial Code. and the Federal Communications Commission. The president's power is less pronounced in regard to inde- THE UNIFORM COMMERCIAL CODE One of the most pendent agencies, whose officers serve for fixed terms important uniform acts is the Uniform Commercial and cannot be removed without just cause. Code (UCC), which was created through the joint efforts of the NCCUSL and the American Law Institute.' The UCC was first issued in 1952 and STATE AND LOCAL AGENCIES There are administrative has been adopted in all fifty states,' the District of agencies at the state and local levels as well. Commonly, Columbia, and the Virgin Islands. a state agency (such as a state pollution-control agency) The UCC facilitates commerce among the states by is created as a parallel to a federal agency (such as the Environmental Protection Agency). Just as federal stat- providing a uniform, yet flexible, set of rules govern- ing commercial transactions. Because of its impor- utes take precedence over conflicting state statutes, tance in the area of commercial law, we cite the UCC federal agency regulations take precedence over con- flicting state regulations. frequently in this text. We also present the full UCC in Appendix C. From time to time, the NCCUSL revises the articles contained in the UCC and submits Case Law and the revised versions to the states for adoption. Common Law Doctrines The rules of law announced in court decisions consti- Administrative Law tute another basic source of American law. These rules Another important source of American law is include interpretations of constitutional provisions, administrative law, which consists of the rules, of statutes enacted by legislatures, and of regulations created by administrative agencies. i. This institute was formed in the 1920s and consists of practicing attorneys, legal scholars, and judges, Today, this body of judge-made law is referred to I. Louisiana has not adopted Articles 2 and 24 (covering contracts for as case law. Case law-the doctrines and principles the sale and lease of gooch], however. announced in cases-governs all areas not covered byDiscussion Board Question 0 The Uniform Commercial Code (UCC) Article 1 Part 2, Section 2- 204 describes contract "Formation in General." How can an "agreement sufficient to constitute a contract for sale" be found when "the moment of its making is undetermined?" Please look at UCC definitions and relevant provisions to support your answer. Your answer should be between 125 words and 300 words