Assignment 1: Stolen Credit Card
Lori received a credit card in the mail from a company that had taken her name and address from a white pages directory without her knowledge. Upset about the unauthorized use of her name, Lori planned to contact the company to lodge a complaint. Before she could do that, her roommate stole the card and charged thousands of dollars’ worth of merchandise to it without Lori’s knowledge.
The card issuer claimed that Lori was fully responsible for the purchases, while Lori claimed that she should have no liability whatsoever for the purchases.
Research government agencies that provide consumer credit protection or that regulate credit card companies, using your textbook, Business Law 16th Edition (Mallor, barnes, Langvardt, Prenkert, McCrory) and library resources, and the Internet. Based on the facts of the case and research, respond to the following questions:
If the card issuer sues Lori, who might the court rule in favor of and why?
Does the Federal Trade Commission (FTC) offer any protection to Lori?
What ethical issues are raised by the card issuer’s conduct?
What can you do to protect yourself from something like this happening to you?
Assignment 2: What Went Wrong?
Friend’s Bank is seeking to hire a new teller. Darrell has applied for the position. His application states that five years ago, he was convicted for embezzlement as a teller. In the interview, Darrell reveals he spent three years in prison and is now on probation for three years. He claims that he turned his life around, became a Christian, and is a law-abiding citizen.
Darrell is invited for a second interview. The first interviewer does not share the information about the embezzlement with the second interviewer. The second interview goes well with no mention about the embezzlement. The second interviewer subsequently hires Darrell. Within three weeks, Darrell starts to flirt with a younger female teller, and on one occasion, actually grabs her behind.
The teller complains to the bank. Darrell’s file is revisited and he is terminated the next day. Darrell contends the termination was because of his race.
Research employee discrimination, using your textbook, Business Law 16th Edition (Mallor, barnes, Langvardt, Prenkert, McCrory) and library resources, and the Internet. Based on the facts of the case and research, respond to the following questions:
Was the bank justified in terminating Darrell on the grounds of his prior embezzlement conviction? Explain.
Would the bank have grounds to terminate Darrell even if he had not been convicted of embezzlement? Explain.
Does Darrell’s behavior with the female teller constitute sexual harassment, and if yes, what type?
Were there any ethical problems with the way the bank handled the initial and subsequent interviews? Explain.