Question

My) his questions comes under MBA 5005 in a question for a paper. Legal and Ethical Challenges in a Multinational Organization. identify potentional ethical issues and propose recommendations legal and ethical. have 10 part question and stuck on a few of these questions and Scenarios.

Scenario 3 Walexron entered into an agreement with Chuangxiang Toys in China to manufacture remote control helicopters, which would carry the name RC Ranger Helicopter W450. Walexron requires its overseas suppliers to conduct quailty control testing on most of its imported products before selling them in the stores, In a recent study, there was a small indication that the helipcoters had the potential to catch fire if the batteries overheat. Walexron's executives approved the design anyway, and the helicopters were delivered to Walexron's stroes in the United States, Canada, and South America. Initial market response to the Ranger Helicopters was positive, and many competitors eyed the unique feature of the camera located in the helicopter

Question   Can Walexron hold Lou Scannon responsible for misappropriation of a trade secret?

Answer 1

Yes, walexron is responsible for hiding the secret that helicopters can catch fire if the batteries are overheated. However, they ignore this warning and without any quality check the helicopters were delivered and sold in US, Canada and South America. This is a very unethical step on the part of walexron and Chuanxiong Toys of China who has manufactured the helicopter will be strictly liable for legal action if any case come up of injury or loss of life. First action will be taken against the Walexron executive who has approved the design without taking the necessary step of quality check. Knowingly they have approved the design and this trade secret is a serious unethical business practice. Next Chinese company can be sued legally because of inappropriate quality product.