MEDRANO, MARINETTE V.

XII – LAO TZU

CASE STUDY #1: FALSE ADVERTISING

1. This is a clear case of deceitful advertising, who is responsible?
False Advertising is often a crime. It is defined as the act of using false, misleading or
unproven information to advertise products to consumers.
The doctor, manufacturer of the product, actress, and most especially the advertising
agency should be hold responsible for this incident. Here are the reasons why they should
be held liable for this case:
 As for the doctor
Providing false or incomplete research findings can lead to potentially and
considerably disastrous problems. What the doctor did became the major starting
point of this problem that’s why he/she is accountable for this case.
 As for the manufacturer of the product
The manufacturer should be held liable for this case because of neglecting
their duty the check product’s authenticity and liability before producing and
taking it to the bigger market.
 As for the actress
Being an actress greatly affects and influences the opinions and insights of
people regarding the product that you are endorsing. The actress giving unproven
testimony in a TV commercial will be the sole reason why she should be held
responsible also for this case.
 As for the advertising agency
Based on the Federal False Advertising Law, FTC Act: The Federal Trade
Commission Act Section 5 says that “unfair or deceptive acts or practices in or
affecting commerce” are declared illegal.
2. If you were the doctor who conducted the research, what will you do?
If I were the doctor, I would report the complete results of research findings to verify
the products effectiveness to avoid any misunderstandings in the near future. But in this
case, after the incident, I would give the full report of my research findings, admit and
reflect to my mistakes and do my very best to correct all my wrong doings for me gain
their trust again and help me save my reputation as a doctor.
3. If you were the actress, would you submit yourself the same situation?
I will not submit myself in the same situation because as an actress, it is my duty to be
cautious and be mindful to everything that I will do and say in the public because it might
affect my career, reputation and the people that supports and follows me. As an actress, I
ought to provide only proven and honest information to the community.
4. As an advertising agency, what is your responsibility to the public?
It is my responsibility to the public as an advertising agency to ask for a public
apology for providing false, misleading and unproven information. I must correct all the
wrong information that has been broadcasted on the television and data that has been
printed in newspapers. I also need to pay for all the damages that my agency has caused
before officially removing the commercials and broadsheets.
5. As the manufacturer, what is your responsibility to the public?
As the manufacturer, you will be held responsible for the people who have
used and users of the product at present. It is my duty to correct the liability of the
product and later on, after doing that, you must make plans and steps on how to
remove and pull out all the products in the market as soon as possible.
CASE STUDY #2: AFTER SALES SERVICE
1. If you were Ann, how could handle the problem?
If I were Ann, I would handle the problem first, by acknowledging the situation in a
calm manner. I will think more thoroughly on what and where could have gone wrong
because most of the people tends and stay in denial when they face a tough situation. I
will have a deeper understanding to consider things that might affect the product before I
act hastily and negatively. After some thinking, I will go to the store where I buy the
product and talk to the authorities (salesman or store manager) regarding the issue in a
nice and cool way to find solution together to avoid further misunderstandings to happen.
2. If you are the Salesman, how could you have treated Ann?
If I were the salesman, I would give Ann the chance to explain herself because it is
her right as a customer. I must stay calm and before I refused to believe her version, it is
my duty to listen and understand her because if I did that in the first place, Ann would not
be hysterical and she will not lose her patience. As a salesman, I also need to explain
myself and I also need to learn on how not to take situation personally because it might
affect my attitude inside my workplace. I also need to be kind and try all the necessary
steps to avoid arguments. After hearing her side, we must try to find the solution together
and lastly, ask for an apology if needed and necessary.
3. If you are the Store Manager, how could you handled the situation?
As the store manager, I should use my best listening skills to hear their sides to evade
being bias. I also need to remain calm when dealing with difficult situations and angry
customers like this one. It is also my responsibility as a store manager to thank the
customer for bringing you the issue to your attention because it is a proof that she wants
to solve it in a proper way. After that, I will take my chance to explain the steps we will
need to take to solve the problem. I also need to be as sincere as possible to cope with
intense situations and hopefully to resolve the problem to everyone’s satisfaction and
apologize gracefully.

4. Comment on the actions taken by the Consumers Union and the Director of the
Union?
Consumers Union is independent nonprofit organization whose mission is to work for
a fair, just and safe marketplace and to empower consumers as they buy products and
services. The actions taken by Consumer Union were the case of being over reacted
because it is just a small issue, they don’t need to take it as a big deal because it only
causes the problem to become larger and intense. A small and sincere talk between Ann
and the salesman or store manager would be enough to solve the issue. Their movements
are incorrect because if they just give the two each time to be calm, the issue would have
been solved without their assistance. Their presence makes it a big deal which makes
people to be alarmed that greatly affects the both party which is wrong based on what I
believed personally.

CASE STUDY #3: HEAD HUNTING

1. Comment on the actions of Martin F. for pirating the researcher.
 Being practicable, as a business man you need to take actions on how to beat your
competitors. What martin F. do is inappropriate but on the other side, I know every one of
us, every business person would do everything to strive and reach for their success in the
business world. This lifetime is a battle of survival and you only have two major options:
became the prey or became the predator. The prey that would be eaten by the predator or
the predator that would eat the prey. Martin F. became unprincipled with his actions but I
fully understand his choice.
2. Comment on the actions of the Researcher.
Case to case basis, maybe the researcher has been having financial problems that’s
why he/she had no choice but to do that. If we look into reality, maybe he needs money or
what he/she earns is not enough to support their daily living that’s why he decided to be
disloyal and asks Martin F. to pay him 89% higher. His actions of course taint his/her
reputation and career as a researcher and I believe it is wrong to do but we must do
everything to survive in this cruel world.
3. Was there action ethical or unethical?
What Martin F. and the researcher did is definitely unethical, why? Because they
choose to deceive and betray others for success. They became selfish to benefit
themselves. The effects of unethical behavior on business must be clearly spelt out along
with the consequences of indulging such behavior. We must always learn on how to play
fair and square in every situation because no one succeeds by deceiving others. There is
no excuse or reason for cheating or pirating inside a business organization and anyone
that exercises this kind of activity and those who continue to do so must face the
repercussions. Always remember that karma will always come back to you.