California State University, Northridge - BUS 302

Date: September 29, 2015

Executive Summary

1)In the case July the Multiplex the plaintiff Tommy had issue with the theater when he last went to the movie. The movie Tommy went to see was a blockbuster big release, which brings up his first complaint. His first complaint was why did he have to pay full price if he is going to the early screening. He also believe the movie ticket prices were very pricey. This case is against the movie theater he went to called Royal 16 Theater. Since he did not like the movie and there was a misunderstanding or misrepresentation of the time Tommy wanted all the money he spent on the movie, which includes his snacks he bought for the movie. The lawsuit is sent to the theater owner Mr. Plex. It is going to be a class action lawsuit.

As a group we will help Tommy by using our knowledge in statistics, ethics and business law. We understand that Tommy might have went overboard with going ahead with this case and especially making this case as a class action one. We believe there was fraud and misrepresentation. We will decide the best approach Tommy has to take.

JULY AT THE MULTIPLEX- Main Body

1)Liability for Fraudulent Misrepresentation.

2. In the light of this result, what course of action should the consortium adopt? Justify your conclusion by applying a statistical evaluation of the accuracy of your result.

.

3. When would the consortium make a Type I error? A Type II error?

4. Would your answer to Question 2 change if, instead, 300 patrons had been randomly surveyed and 18 out of the 300 patrons agreed with Tommy and resented the ads? Explain.

5. Identify any ethical issue(s) that may be involved in showing twenty minutes of commercials before the screening of the movie. Evaluate the ethical issue(s) presented in the case using one or more of the approaches to ethical decision making discussed in class.