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Legal and Ethical Management and Leadership

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Submitted By miamonroe06
Words 2017
Pages 9
Legal and Ethical Management and Leadership
Miranda Bacon
Argosy University

Legal and Ethical Management and Leadership

Mathis Inc. is a designer and manufacturer of women’s clothes. They made a line of high end women’s winter fashions. Normandale is a retailer who sells high end products in malls for a fraction of the cost. Normandale buys Mathis Inc.’s clothing but cannot seem to make a profit selling the expensive clothing. Nornamdale hires Countless Lori-Ann, Mathis’ competitor, to make an identical line of clothing at a lower cost than Mathis Inc. Samples and photographs with the labels from Mathis Inc. are sent to CLA for them to make an identical line. CLA copies the line of clothing and sells clothing to Normandale. Normandale makes a total gross profit of $3 million, a fifty percent increase over its sale of the actual Mathis Inc. clothing line. Mathis Inc. sends Normandale a few cease-and-detest letters with no response. Eventually, Mathis Inc. sues Normandale. This paper will discuss the ethical aspect of selling knock off products at a lower price and the federal and state laws that can protect owners of intellectual property. Also discussed, will be the damages that Mathis Inc. has suffered due to Normandale’s actions. The differing views on social responsibility of corporations will be compared and contrasted along with this paper. A code of ethics that Normandale can implement will be discussed too. And lastly, personal liability and criminal liability will be determined for the owners of Normandale. In the case of Normandale and Mathis Inc., selling knock off products copying Mathis Inc. is not ethical. A knock off product is one that is copied to look similar to an original, but made with cheaper materials and is able to be sold at a lower price. “Spotting counterfeit items can be a designer’s worst nightmare. Designers work hard

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